As workers worldwide commemorate International Labor Day, the Pakistan Institute of Labor Education and Research (PILER) hosted a seminar on Wednesday addressing one of the most pressing issues facing Pakistan’s labor force: the failure to implement minimum wage laws.

The gathering at Karachi Press Club brought together a coalition of trade unionists, government officials, and international labor activists seeking concrete solutions to protect worker rights amid economic instability.

The Joint Director of PILER, Abbas Haider, moderated the event, which was dedicated to the memory of Karamat Ali, the organization’s founding director, whose lifelong advocacy for labor rights continues to inspire the organization’s mission and labor movements.

Against a backdrop of spiraling inflation and currency devaluation that has eroded worker purchasing power, the seminar tackled the systemic failures that have left millions of Pakistani workers without even the basic wage protections guaranteed by law.

The workers’ representative in the Sindh Minimum Wage Board, Nasir Mansoor, opened the discussions by highlighting the stark contradiction in employer behavior.

“We have witnessed the resistance posed by employers in the minimum wage board. They would give money in charity, but wouldn’t pay their workers fair income,” Mansoor stated.

He emphasized that Pakistan’s current minimum wage has become increasingly insufficient due to rampant inflation and currency devaluation, leaving workers unable to afford basic amenities.

Mansoor criticized the fragmentation of worker identity along racial, ethnic, and personality lines, noting that “90 percent of workers don’t have collective bargaining rights.”

He called for a return to labor-based organizing: “You may love your race, ethnic identity, but shouldn’t forget you basically are workers.”

Bushra Arain from the Sindh Lady Health Workers Union shared testimony about organizing contract workers in the face of significant resistance.

“A pharaoh is sitting on every decision-making seat,” she said, describing the authoritarian management style workers face.

Arain detailed how her union’s solidarity enabled them to demand their rights despite facing imprisonment and physical violence during protests.

The technical aspects of minimum wage evasion were explained by Mirza Maqsood Ahmed from PILER, who detailed how employers manipulate legal language to reduce worker compensation.

“Employers argue that social security and EOBI deductions should also be part of wages,” he explained, adding that most of the workers never get registered with these institutions.

Ahmed pointed out that the lack of proper worker classification into skilled, semi-skilled, and unskilled categories further enables employers to keep wages artificially low, along with reducing gratuity and other benefits.

Qamar ul Hasan, Senior trade unionist, provided historical context that illustrated the dramatic erosion of purchasing power.

“In 2001, 2.5 months of minimum wage would equal 1 tola of gold. Today, you need to work 8.5 months for the same gold,” he stated.

Hasan emphasized that the current official minimum wage of Rs37,000 is already insufficient, yet an estimated 99% of Pakistan’s 800 million workforce don’t even receive this legal minimum.
In a moment of unusual candor from a government official, Athar Shah, Director General of Shop Establishment, acknowledged the state’s failure in enforcement. “We are ashamed that despite having this law, we are unable to implement minimum wage,” Shah admitted.

He noted that workers typically prefer sections where overtime is available because the minimum wage alone cannot sustain their families.

The seminar gained an international perspective from Comrade Patrick of the Socialist Network in Brazil, who shared insights from his country’s experience under President Lula.

Patrick explained how Brazil successfully increased the minimum wage and linked it directly to inflation, ensuring workers’ purchasing power remains protected.

“Currently the minimum wage in Brazil is $265, with no tax on minimum wage,” he stated, adding that “Pakistan is much worse than Brazil” in terms of worker protections.

Patrick advocated for modernizing union strategies through what he called “social trade unionism” – building broader alliances between workers, customers, and suppliers to increase leverage against employers.

“We need to use emerging digital tools to proliferate this narrative,” he advised, suggesting that social media could help reach previously unorganized sectors like domestic workers and delivery personnel.

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Labor rights advocate Habibuddin Junaidi acknowledged the significant labor legislation passed by the Pakistan Peoples Party government in Sindh following the 18th Amendment, but emphasized the persistent implementation gap.

He highlighted security guards as among the most exploited workers, often working 12-hour days for as little as Rs. 14,000 per month.

The seminar concluded with Mehnaz Rehman’s observation that “the difference between rich and poor is widening and the government is doing nothing to address this gap.”

She pointed to emerging labor sectors not documented in traditional frameworks and called for unity among workers and the middle class to address growing inequality.