Pakistani bank union’s persistent fight wins recognition for contract workers

For decades, many clerical and non-clerical workers in Pakistan’s banking sector were not recognised as official employees. They were classified as contract workers and deployed through third-party service providers. In many instances, these providers were entities owned by the banks themselves and existed solely to assign workers back to the same banks.

One such bank was Zarai Taraqiati Bank Limited (ZTBL), one of the largest specialised banks for agriculture and rural development, which maintained this arrangement for years. This began to change when Pakistan’s National Industrial Relations Commission (NIRC) ordered ZTBL to recognise contract workers as regular permanent employees on 2 December 2022.

A major factor behind the morale-boosting win was the persistence of the ZTBL Union, which developed and took up the case on behalf of the legally marginalised workers. Despite the victory, progress was slow, as the ZTBL management resisted the legal outcome at the risk of contempt of court.

It took another two years of continued struggle and negotiations before the ZTBL management issued an official memorandum on 24 April 2025, declaring the recognition of 24 workers as permanent employees. In addition, the bank agreed to regularise the workers based on their actual join date, rather than based on the date of the court order.

“This decision not only ensures justice but also protects the workers’ rightful seniority and associated benefits,” said Malik Muhammad Ismail, General Secretary of ZTBL Union.

“The story of the ZTBL Union is a powerful example of union solidarity and unwavering persistence to improve workers’ lives. In the recent climate of general anxiety and uncertainty, this win is a welcome reminder that determined collective action can still lead to real change,” said UNI Asia & Pacific Regional Secretary Rajendra Acharya.

The union welcomed the 24 newly regularised colleagues to sign up as union members and continues to receive more membership applications. It is also documenting and submitting new legal cases to ensure no eligible worker is left behind, with an estimated 3,400 “third-party” workers still awaiting recognition across ZTBL.

This local victory offers a timely affirmation of continuing efforts to strengthen protections for precarious bank workers across Pakistan.

The ZTBL Union is one of the founding members of the Pakistan Bank Insurance & Financial Employees Federation (PBIFEF), a national federation affiliated with UNI Global Union. The ZTBL win in 2022 was a key impetus behind PBIFEF’s decision at its 3rd Delegate Conference to adopt a strategic objective focused on the inclusion of contractual, casual, and part-time workers within the banking industry. The federation also committed to encouraging more women union activists to take up organising roles.