Benazir Employees Stock Option Scheme: empowering workers’ agenda

[Lahore_Real_Estate]

The cause of the working class has always been dear to the PPP-led government and the proof of this is that the people’s government had and is keeping regular contact with this class to better their lot in every possible manner. It is the worker community that, due to hard work, has enabled the economy to maintain a high economic growth, massive production and high levels of productivity.

Both Zulifqar Ali Bhutto and Benazir Bhutto believed that the PPP derived its strength from the working class of Pakistan and they always fought for their rights and well-being. President Asif Ali Zardari and the PPP-led government has been facilitating the working class and believe in the dignity of labour and that a prosperous workforce can enable Pakistan to compete in a globalised market environment.

The PPP has been striving devotedly for the rights and welfare of workers since its inception. It was the PPP government that observed Labour Day for the first time in Pakistan. The PPP, during the seventies, initiated various pro-labour measures and policies for the amelioration of the working community, provided pensions to workers, increased workers’ shares in companies’ profits, launched various labour welfare schemes and promoted workers’ participation in the management.

The present government introduced a number of revolutionary steps in the Labour Policy 2010. The major initiatives are an increase in minimum wage for unskilled labour from Rs 6000 to Rs 7000 per month, a share for workers in state enterprises, ensuring reinstatement of sacked employees has been ensured under the Sacked Employees Act 2010, the introduction of a large number of labour welfare schemes for workers and their children, an expansion of medical coverage and an increase in the pension of aged employees to Rs 3000 per month. Employees and employers are partners in the production process and their coordination and cooperation is the need of the hour for industrial peace and harmony to ensure optimal utilisation of their energies for the socio-economic development of the country

The Benazir Employees Stock Option Scheme (BESOS) is one of the most important achievements and is important for peace, tranquility and better working conditions at the workplace, social dialogue through tripartism and decent work. BESOS was launched on August 14 2009, when 887 employees of the Heavy Mechanical Complex Taxila were given share certificates.

The work has been stepping up floatation of infrastructure bonds for raising equity to build infrastructure projects. Under BESOS, 12 percent government shares in state-run enterprises will be given to employees free of cost through employees’ trusts that are to be created for this purpose. About 500,000 employees would benefit from this scheme. So far, more than two billion rupees have been distributed as dividends among workers of different units under this scheme and over one billion rupees have been distributed among over 200 workers under the buy-back scheme.

The 12 per cent government shares in another nine enterprises will be distributed among employees. These 80 entities include Pakistan Steel, Utility Stores Corporation, Islamabad Electric Supply Company, Tribal Electric Supply Company, Lakhra Power Generation Company, SLIC, NTC, Railway Construction Pakistan Ltd and Pakistan Railway Advisory and Consultancy Services Ltd.

This was followed by the distribution of certificates among employees of OGDCL and PPL in 2009. So far, employees’ trusts have been created in 64 state-owned entities and unit certificates to 47 entities have been distributed. The infrastructure bonds and raising equity through stock exchanges for infrastructure projects rejuvenated economic activity in the country.

The scheme envisages a financial impact of more than 198 billion for the implementation of BESOS in 77 Sock Option Employees through payment of dividends on 12 percent shareholding of GOP and Payment of buy-back claims to employees.

The Benazir Stock Option Scheme has not only benefitted 500,000 families of workers and labour, but also, for the first time, has enabled workers totake part in the national productive process. The workers have been assured job security, as they can no longer be sacked for no reason. A dissatisfied workforce causes low productivity and also contributes to industrial unrest. It is, therefore, also in the national interest to improve the lot of the working classes and protect them from exploitation.

This was the dream of both ZA Bhutto and Benazir Bhutto and the people’s elected government has made it true. The government is not so naïve to think that a mere new set of reforms will transform the national economic life of working classes overnight. But the government is making a determined beginning in the interests of the workers. Workers will be given ownership of industry. This will be progressively increased. As soon as the connected formalities are completed, workers’ representatives will be associated with the management. The government is confident that if all workers work hard, Pakistan and the working classes will benefit. Out of necessity, it will have to be collective effort. This is the only way to serve Pakistan, to ensure that the children of workers, who have seen nothing but misery and hardship for decades, will live in a better Pakistan, a more secure and happy Pakistan.