Caught in a vicious circle

Peshgi system and less than minimum wages promote bonded labour more than anything else

Caught in a vicious circle

The tragic deaths of a Christian couple at the hands of a violent mob at a brick kiln in Kot Radha Kishan have left many hearts bleeding. Initial investigations into the incident hint that the couple had wanted to escape from the kiln before the mob arrived. It was learnt that both the husband and wife were under the watch of kiln staff who would not allow them to leave without clearing their outstanding dues.

This is just one case; there are many more who have to do bonded labour at brick kilns for similar reasons. They take advance money from owners and can move only after repaying them. If a brick kiln owner wants to take workers to his kiln, he has to pay the outstanding peshgi amount to their existing employer plus a minimum amount.

So, the tool of peshgi is used to retain brick kiln workers who are high in demand. The owners miss no opportunity to extend advance to workers just to make them subservient. This is despite the fact that courts have barred the owners from extending advance or peshgi in excess of a particular amount to the workers.

Khalid Mahmood, Director, Labour Education Foundation (LEF), is convinced that prevalence of peshgi system is a major reason behind the incidence of bonded labour in the country. "The peshgis given to workers keep piling up with the passage of time and they do not have the capacity or audacity to question these inflated claims."

"Ill-paid brick workers are always in need of money. The workers are not registered under social security nor do they know any other skill to earn during rainy and off-seasons when bhattas are closed," he adds. The government, he says, "announces minimum piece rates for them but they are given a fraction of it, which makes them dependent on advances."

He tells TNS that the existing minimum rate is Rs 888 per 1,000 bricks in Punjab but, unfortunately, they hardly get around Rs 400 to Rs 550 per 1,000 bricks -- an amount which is subject to deduction under the head of adjustment against advance they have taken. The deductions, on average, are between 40-50 per cent of the wage. Mahmood says brick kiln workers get Rs 250 to Rs 350 after deductions.

Brick kiln owners, however, claim the minimum rate as announced by the government is too high and must be revised. They say these rates have been worked out without taking the economics of running a kiln.

Dr Aliya Khan, Dean of Social Sciences, Quaid e Azam University, contests this claim and explains the correlation between minimum wages and minimum piece rates and their impact on bonded labour.

On the basis of her experiences as a regular member of the minimum wage board, she says minimum wages are calculated on the basis of a formula with the full consent of all key stakeholders, including the owners. She says piece rates and time rates are announced for 51 industries and it is wrong to say that brick kiln owners are not consulted during the calculation of minimum wages.

She adds that the minimum piece rates always increase in proportion to the increase in minimum wages announced by the government. But, she says, it is impossible to implement minimum wages in the presence of peshgi system.

Dr Aliya Khan says Pakistan has signed and ratified several ILO conventions but it has not yet signed C 131 which talks about minimum wages for workers.

Syed Hasnat Javed, Director, Labour Welfare, Punjab, agrees that "it is a big challenge for the government to implement minimum rate at brick kilns. There are mechanisms under which the brick kiln workers can file complaints about non-payment of minimum wages and deductions under peshgi system. But, unfortunately, they do not resort to this act as they do not want to lose their jobs. Unable to do any other work, they cannot find jobs anywhere else," he states.

Mehr Abdul Haq, Secretary, All Pakistan Brick Kiln Owners’ Association, says it is a wrong impression that the owners do not want things to be in writing and that they are guilty of employing bonded labour with the help of notorious peshgi system. He says it is a fact that no family wants to work at a brick kiln without taking advance.

In the past, peshgis were waived off twice but they piled up once again as brick kiln workers have become addicted to these. He believes "there is nothing wrong with advances if these are legalised, documented, endorsed by the labour department and the schedule of return is decided in advance." Haq says unlike the loans given to employees in the corporate sector, these advances are interest-free and can be returned in easy installments "if properly documented".

He says there is a perception that workers take advance only at the time of death of a family member, marriage of a son or a daughter, and for medical treatment, etc. "But I can cite many cases where advances were taken to buy television, motorcycle, a family function, on the occasion of a religious festival, and so on."

Haq says brick kiln owners are accused of exploiting labour by extending advances. "If this is the case, where is the labour department and why does it not take action against brick kiln owners?" he questions.

He says that some times brick kiln owners approach courts through their front men against rivals just to take control of the labour employed by them. "They allege that workers have been held captive by owners and they seek their acquittal. Once this happens, the brick kiln owners employ those workers at their own kilns," he adds.

Dr Aliya says things are quite complex and decisions cannot be taken in isolation. "It will have to be seen whether there can be any micro-credit schemes to replace peshgi system and will there be less dependence on peshgi system if social security is extended to workers? The policymakers will have to focus on how to define parameters of debt-servicing, in case of brick workers who avail formal loans so that they are not over-burdened."

Caught in a vicious circle