Pakistan International Airlines Established Commerce Essay

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Pakistan International Airlines established in 1955. Pakistan International Airlines is a national airline, 87 percent of the shares are held by the government and 13 percent held by public. It not only provides transportation but also its operation are extended to provide cargo and courier service. In domestic sector, PIA improves its work by increasing its routs Domestic and Internationally. In the international market it faces severe competition, especially due to the fact that these international organizations cost lower than Pakistan International Airlines. Internationally also, Pakistan International Airlines is encountered with a strong challenge with many renowned international names. Pakistan International Airlines faces competition with not only international airlines but also with local airlines that are also on the same routs like Middle East and the Gulf.

Due to technological advancement in international aviation industry regulations and some internal factors such as human resource issues of over recruitment, de-motivated employees, mismanagement of resources both in case of manpower and other resources, corruption and lack of accountability PIA is facing a deep financial crisis. Management issues are also now a days a big problem for PIA that are destroying it day by day. Due to these reasons PIA losing its market shares both in international market and domestic circuit. The present report is written about the current situation of PIA due to the effects of trade unions.

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The report comprises of ten important aspects. The report describes role of trade union, how its work, management, purpose, improvement of unions and recommendations. We try to explain these terms with help of senior members of trade union and management person who help us in completing this report.

Purpose of trade union

At first the main purpose of the trade unions are to provide workers a platform where they can raise their voice for their right. In PIA trade union exists, to provide many benefits other than better working conditions for its members. Unions provide workers an easy way to solve their issue with the management. In this way they can demand higher wages, shorter working days, better working conditions, more on-the-job training.

Another purpose of the Trade Union in PIA is that they facilitate their employees by compromising and negotiating with the management so that they didn't disturb the management at the same time they have their happy members and productive employees.

The key purposes of trade union in PIA are as follow:

To achieve common goals

To get Higher pay

To increase number of employees and employers hire

To give better working conditions

Negotiation of wages

Work rules

Complaint procedures

Rules governing hiring

Firing and promotion of workers

Benefits

Workplace safety and policies

History of trade union

The trade union (Labor union) of PIA follows Labor laws and Union laws of Pakistan. This organization is divided into following departments: Human Resource and Administration, Marketing, Corporate Planning, Information Services, Finance, Flight Services, Flight Operation, Engineering, Procurement and Logistics, Customer Services, Training and Development, Quality Assurance.

The hierarchy of the organization follows, with the Chairman at the top and directors of departments reporting to him. The structure is centralized with the top-level management making the decisions with the collaboration of trade union. There are four unions in the organization that all are to facilitate their members. The history of trade union in PIA is started from 1955 by releasing the Act of Industrial Relation. The unions are working in the PIA from the binging of time some of the historical events are also given below that will explain its history in accordance with the unionization:

1946: Orient Airways is formed.

1955: Pakistan International Airlines is formed and merges with Orient (Union formation)

1959: "Golden Years" of the company begin with appointment of Nur Khan as managing director. (First union election)

1964: PIA begins service to China.

1970: Flight Kitchen is set up.

1973: The Company orders its first wide-body jets (Other unions formation)

1981: Pakistan approves a $60 million bailout package (High court disable unions due to clash)

1982: Union starts working again.

1991: The Company tallies a rare annual loss due to factors arising out of the Gulf War.

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1994: A restructuring program is introduced. (With the involvement of unions)

2000: The government approves an Rs 20 billion bailout for PIA. (After union strikes)

2005: Management changes union leader forcefully

2010: Unions have issues with the management

We can see that trade unions are effectively working in the different departments of the PIA because management just emphasis on the profit maximization without think about the employees. And employees after a lot of suffering the work burden they finally, after interacting with each other make a Union to find and get their rights.

This effectively affects the company's name and after 1955 the manager going to change that public limited company into private company due to less resources. As a result a continuous dispute of management and unions starts that didn't resolve up till now. The following below mention are the current top management of PIA union. Current ruling party in PIA is People's Unity of PIA Employees. In the last referendum from the below given four parties the People's Unity of PIA Employees succeeded and now they are taking decision with the management.

Management of trade union

(Secretary General) Muhammad Ashraf Bhulloo

(Union committee leader) Suhail Baloch 

(President) Hidayatullah Khan  

(Chairman) Mr. Maqsood Ahmed

(Legal Advisor) Muhammad Ziyad A Syed

(Finance secretory) Capt. Shuja Naqvi

(HR) Mr. Shahid Sarwar

Unions

People's Unity of PIA Employees

Pakistan Air Line Pilots Association

Air League

United Workers` Union

There are many management personals that are member of these unions. Every elected party choses its own management. Above mention 4 unions that are registered under CBA. They have their referendum after every three years. The unions are also backed by the current democratic ruling parties of Pakistan. Like PML (N), PPP, and PML (Q). Also political stability and instability affects the unions as well as management. The effects of inflation and political situation makes big disturbance for the PIA from the last ten years.

Code of conduct

Pakistan International Airline is as we now that when came into existence then it is under the public sector with strict code of conduct. That's why the code of conduction of Trade union in PIA is under the some of their business and relational values like:

Work for Success

Built the image

Respect for customers

Protection

Saving the future

Dream to be Higher

Now there are some codes of conduct stated below;

PIA union is open for all the employees to come and join and whenever he/she want to leave it they must go. (As we mention it before)

There is no too much strict rules for the employees those join union.

In union another union is prohibited.

After joining the union, if someone have problem then he/she must communicate the CBA.

Persons joining union must be work under the laws as stated in the contract of joining Union.

There will be no acceptance of those persons fight that fight with each and other to underlying the other person.

If someone find to break the rules of the union then he/she will be terminated

Responsibilities of trade union

The responsibilities that has been describes by the union members are like:

Properly make a guideline for the union member and for the other employees through which they can resolve their human right issue (employer's internal complaint resolution process).

Properly assisting its members for the reservation of his\her issues with the collaboration of management.

Advocating the employee's issues that are not able to speak on their behalf the union tries to help those.

Also the union provides the members help in filing up a complaint regarding their issue.

If many employees are facing the same issue regarding a problem or policy then the union can compel management to change or remove that type of rule.

The unions make a complete plan and convey it to their members and other employees how they can resolve or raise complaint.

The policy that has been use by the PIA union is employer's human rights policy in accordance to labor laws and union laws of Pakistan.

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Union personal can also go for an informal meeting with its union members in order to listen to them.

Process and procedures

The process of PIA unions is to protest when they observe the wrong implementation of rules or regulation but that was in extreme case under the supervision of the union leader. The unions make sure to work within the law or the rules design for them. Most of the time the unions tries to follow the rules of the management. Process and procedures of the union are just almost same as the responsibilities of union. The below mention are the process and procedures.

The PIA union's process and procedure are like:

Negotiating for timing of job

Compensation package

Recruitment of new members

Listen to members views

Keep their members informed about the laws and regulation that are implemented by the management

Help in taking legal action

Relationship with management

Overall relationship of PIA management and unions is average in sense of current scenario of this organization. No doubt most of the time the unions done well for their people but at the same time they also have issues with each other due to which Lahore High Court directing PIA to freeze its union's accounts till further orders, restrained the allegedly bogus cabinet of Peoples Unity of PIA Employees(CBA) and its president Amir Shah from operating. This is done due to the increase in disturbance that was created by the unions in PIA. But after sometime the high court again allow the unions to work. The union leader also has conflict because he think that national airline is facing crisis due to non-professional members of management, who are indulged in corruption and inefficiency. He also demanded all the inefficient member of the top management should be replaced with efficient ones. Due to this reason the management and unions have issues that are now been analyzing by the CBA and most of the issues have been resolved.

Effect of trade union activities on workmen and management

Trade union of PIA has a deep impact on the company as they have an impact on top level decision from the binging of time. The PIA unions are trying to do best for their members by negotiating for their rights. But from the last decade due to political instability the company is facing lot of trouble to fulfill the required Desires & Demands of their employees.

Political instability and inflation disturbance of the PIA are the major reasons of the management and Unions issues regarding different mindset. At first the management has its own rules and regulations, but with the empowerment of unions in 1989 the unions conduct their own elections in every three years. Now management takes every decision after the influence of union leader.

Effect of trade union compels the management to take good decision but sometimes it does also create a disturbance within the organization. CBA looks after the matters of unions and act as a negotiator between management and unions. The selected union didn't enforce the other employees to join the union but the union of PIA is open style (any one can join or leave).

Historical event of that trade union in which the union had participated and achieves something for work force

The major events in which trade union participate for the achievement and for the work force are that:

1st Trade Union wants to replace those persons in management who effectively blocked frauds and investigators who demolish the peoples who are working well. Due to this reason the unions first try to resolve the issue by giving a prior notice. When they see that the management is not listening to them they decided to go for strike. This strike continuous to 3 weeks until management accepts the union demand. This will remove the corrupt management from the authority.

2nd major achievement of Trade Union in PIA is that they want to increase their current salaries with the % of 20 in each employee. As from the current scenario of the Pakistan economy inflation rates are so high that a poor man can hardly makes both end meet. For that purpose they suggest themselves to Collective Bargaining Agent, Mr. Amir Shah, who is currently also handling the post of Peoples Unity of PIA employees to present a bouquet to MD PIA on behalf of PIA employees. And this times its work only with the help of a prior notice.

The most important incident takes place when the management tries to privatize the company. At first the management thinks that it's easy to get make the organization private by comforting the top persons of unions. But when the news breaks to the union members they go for strike because management thinks that during privatization union did not play its effective role as was expected. They blame that only top leaders and easily follow management. Game changes when the leaders instead go for strike and disturbs the management plan. Management finally stops to privatize the organization.

Recommendation for trade union

Unions in any organization work for the benefits of the employees that is why the trade unions have to work as a team so that they act as a positive signs for their organization.

The most important roles which unions are meant to play are to reduce income Inequality, improve working conditions for employees, protecting the rights of employees. But in case of the PIA unions with the help of the union member's interview it's observe face that they are facing inequality in their union that has to be resolved.

The union management should have to make good and health relation with the top management and try to make a sense of tolerance and negotiation in thy selves.

The members are thinking that over the period of time, unions failed to perform their roles effectively, therefore they are facing decline in their popularity and membership and overall trend of union is diminishing in organization. Union's leader has to think about the consequences of question that are rising in the union members mind.

Unions is working in PIA since long and had played crucial role in its privatization It could provide better results that increase productivity only the need is to use the union in positive way.

The present management has been able to divert unions away from interest of employees by facilitating the top level leaders for their own interests. This thing has sabotaged the image of unions among employees. The leaders must have to look forward to resolve this issue.

The employees feel more confident now with the commitment of the management rather than union, union leaders have to make a true image of unionization at this time.

Management is not taking direct steps to reduce union's strength but with indirect measures and back channel diplomacy, they are meeting its ultimate objective to wipe away unions from PIA. So the union has to be aware about these issues.

Union image is as the protector of working class has been affected when union leaders use the plate form of union to get the advantage for themselves. They may not be able to get any support from employees in future if they don't stop doing that.

Union leaders must have to change the current strategies and the top leaders have to work beyond their personal interests so that they regain the powers. They will have to work for the welfare of the employees as past. Otherwise, unions will be simply wiped off from PIA like it happened in some other organizations (Government) which have been privatized like PIA.