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““““ScenariScenariScenariScenario of Trade Unions in Bangladesho of Trade Unions in Bangladesho of Trade Unions in Bangladesho of Trade Unions in Bangladesh
Course title
Department of Business Administration
ID
1201010007
1201010091
1201010072
1201010181
1201010249
1201010202
Major: Human Resource Management
Department of Business Administration
Date of Submission:
1
Surma Tower, Sylhet
An Assignment on
o of Trade Unions in Bangladesho of Trade Unions in Bangladesho of Trade Unions in Bangladesho of Trade Unions in Bangladesh
Course title: Industrial RelationsIndustrial RelationsIndustrial RelationsIndustrial Relations
Course code: HRM-406
Submitted to:
Farhad HossainFarhad HossainFarhad HossainFarhad Hossain
Senior Lecturer
Department of Business Administration
Leading University, Sylhet
Prepared by:
Torch BeareTorch BeareTorch BeareTorch Bearer’sr’sr’sr’s
Name
1201010007 Zakiatunnesa Uma
1201010091 Rabeya Rahman
1201010072 Anjomy Akter
1201010181 Mahmudul Hasan
1201010249 Md. Alimuzzaman
1201010202 Masum Hussain
Semester: 11th
Batch: 30th
Major: Human Resource Management
Department of Business Administration
Leading University, Sylhet
Date of Submission: 31 August, 2015
o of Trade Unions in Bangladesho of Trade Unions in Bangladesho of Trade Unions in Bangladesho of Trade Unions in Bangladesh””””
31 August, 2015
2
Contents
Subjects pages
1. Introduction 5
2. History 5
3. Definition 6
4. Trade union recognition 7
5. Why join a union? 7
6. Trade union activities 8
7. Scenario of Garment Industry 8
8. Trade union benefits in the garment industry in Bangladesh 9
9. Causes of organizing trade unions 10
10. Objectives 11
11. From the management’s point of view the objectives as written 11
12. Limitations 11
a) Lack of consciousness 11
b) Lack of Unity 11
c) Lack of knowledge 12
d) Political influence 12
e) Division of trade union 12
f) Wage Inflation 12
13. Impact of trade union on management 12
a) Positiveimpacts 12
b) Negativeimpacts 13
14. Present Scenario of trade union 13
15. Some cases about accident of garment sectors in Bangladesh 14
16. Rana plaza 14
17. Tazrin Fashion 15
18. Suggestions 16
19. Conclusion 17
20. References 18
3
Executive Summary
A trade union is an organization of worker who have come together to achieve common goals
such as protecting the integrity of its trade, improving safety standards, achieving higher pay
and benefits such as health care and retirement, increasing the number of employees an
employer assigns to complete the work, and better working condition. Trade unions are
the controller of the labor force of an industry which works for the betterment of the
country’s trade by ensuring the right of the labor force. The trade union, through its
leadership, bargains with the employer on behalf of union members and negotiates labor
contract with employers. The most common purpose of these associations or unions is
"maintaining or improving the conditions of their employment. This may include the
negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and
promotion of workers, benefits, workplace safety and policies. Unions may organize a
particular section of skilled workers like craft unionism a cross-section of workers from
various trades or attempt to organize all workers within a particular industry. Trade unions
traditionally have a constitution which details the governance of their bargaining unit and
also have governance at various levels of government depending on the industry that binds
them legally to their negotiations and functioning. Trade unions try to develop close working
relationships with employers. Globalization businesses are expanding rapidly for that reason
the workforce in the industries are increasing hugely. To maintain the whole work force alone by the
management is a very tough job. Trade unions are the only way to manage, compliant, and
control the labor force. Lots of objectives are there to organize trade unions.
In perspective of Bangladesh the immediate objectives and activities of trade unions include
protection and promotion of the interests of their members. Regulating the relations between
workers and employers or workers and workers or employers and employers is another
objective of trade unions. Trade Union has become a necessary part but trade union can’t run
properly due to various reasons. These are lack of consciousness, lack of utility, lack of
knowledge, political influence division of trade union. The rate of unionization has increased
in the RMG sector, trade union affiliation is low in Bangladesh compared to many other
developing countries. The main reasons for this are the fall in employment in previously
highly organized sectors, rise of the service sector and increasing flexible types of
employment relationships .Data available indicates fragmentation and contradiction in
membership of employers and workers organizations.
4
AcknowledgementAcknowledgementAcknowledgementAcknowledgement
At first, we are grateful to Almighty Allah for creating us in
such a beautiful country like Bangladesh and also for
controlling our life. For the mercy of Him, we have got such
courage to start this assignment on ““““ScenariScenariScenariScenario of Trade Unionso of Trade Unionso of Trade Unionso of Trade Unions
in Bangladeshin Bangladeshin Bangladeshin Bangladesh””””
After that we would like to give thanks to our honorable
Head of the Department Prof.Prof.Prof.Prof. Dr. Tofayel AhmedDr. Tofayel AhmedDr. Tofayel AhmedDr. Tofayel Ahmed for giving
us the opportunity to study in this subject. We would like to
express our thanks to the librarian of Leading University for all
his help that we have received.
Our respected parents who gave us mental support and
inspiration for our assignment, there is a special thanks for
them.
We also would like to give a lot of thanks to our honorable
course teacher, Farhad HossainFarhad HossainFarhad HossainFarhad Hossain for giving us a wonderful
opportunity to make such an interesting and valuable
assignment and giving us a clear concept about the assignment.
At last but not the least, without the help of our friends
and classmates it was quite impossible to prepare such kind of
assignment. They gave us some necessary information about
this topic which was unknown to us. So, we would like to give
thanks to all of them.
5
Introduction:
From starting of industrial the all economy trade union is the most common figure in a
country. Trade unions are the controller of the labor force of an industry which works
for the betterment of the country’s trade by ensuring the right of the labor force. The
economic importance of trade unions in developing countries is not commensurate
with the size of their membership. The behavior of Bangladeshi trade unions is
characterized by political activism, and momentous strikes, called ‘HORTAL’. There, have
played a crucial part in most political changes in this country. In Bangladesh, the share of the
active population concerned by unionization was officially estimated between 3% and 4 % in
1992. However, this figure is largely irrelevant for an evaluation of their power, as the urban
population was only about 18 % of the total Bangladeshi population in 1995, and virtually no
trade unions exist in the rural sector. Within the urbanite working population, and especially
in the formal sector, the picture is quite different. Almost 100% of the workers and
employees of the public sector are unionized, while one out of six of the wage earners in the
private formal sector are unionized. The aim of this discussion is to provide a simple
theoretical framework for analyzing this dimension of trade union activity, and to test its
main implication in the case of Bangladesh.
History:
The history of trade union movement in Bangladesh date back to early 19th
century when
modern industrial concept entered into the sub-Indian continent. Like many other
movement, the trade union movement also was similar in India Bangladesh. The
number of trade unions which was 411, increased into 1174 in 1971 after the bloody
liberation war and the independence of Bangladesh. Bangladesh Trade Union Kendra
(BTUC) which was backed by the socialist party, it was nationalized after the war
of liberation. Awami league got the governing power and changed the constitutions of trade
union. From that very day political influence was imposed on the trade unions of Bangladesh.
Democratic functions which were backed in the 60’s were changing by the aggression of
ruling party men. Unions were forcibly captured. Political, administrative and managerial
influences make it difficult to work independently for trade unions. From1975-1983, 217
factories were privatized. For that reason there was no influence of trade union on those. But
after all systems, outsider’s influence has made alive the trade unions.
The jute and cotton sectors, which were nationalized in 1971, in the wake of the struggle for
independence, and then privatized to some extent in the 1980s, are the most unionized
sectors. Unions are also important in the transport sector and in various services. As
emphasized by Pencavel (1995), among others, unions in developing countries get their
power from their privileged relationship with political parties and in many cases with the
government. The Bangladeshi trade unions are no exception, and are well known for their
lobbying the government rather than acting vis-à-vis the private sector.
The influence of unions goes beyond the standard reach of industrial relations, and extends
to the political arena. All the political parties, even the smallest ones, exert some control over
6
a trade union. The three main political parties have their own trade union federation, which
accounts for 64 % of the unionized workers. The unions have played an active role in most
major political events of this country, like the massive demonstrations (hartals) that brought
General Ershad down in 1990, or those which pushed the democratically elected government
of Begum Khaleda Zia to resign in 1996. According to the World Bank (2001), an average of
21 full working days was lost annually due to hartals .In the 1980s, and an average of 47 full
working days per year in the 1990s. This report estimates that about 5 % of GDP is lost on
average in the 1990s. Since independence of Bangladesh, no major development took place
in the history of labor legislation till the enactment of the Bangladesh Labor Act, 2006. The
Bangladesh Labor Act, 2006 is a major and comprehensive enactment regarding industrial
relation system-- partly as a response to demand of stakeholders for improving regulatory
framework on trade union and partly by demand for codification of existing labor laws in
order to avoid overlapping and inconsistencies. It brought some significant changes in
industrial relation system. However, the Act has not been able to bring the desired changed
due to its in-built weaknesses, suspension of many labor rights under state of emergency and
lack of institutional capacity to implement the laws. On trade union and partly by
demand for codification of existing labor laws in order to avoid overlapping and
inconsistencies. It brought some significant changes in industrial relation system. However,
the Act has not been able to bring the desired changed due to its in-built weaknesses,
suspension of many labor rights under state of emergency and lack of institutional capacity to
implement the laws. Still in today’s era the trade union of Bangladesh is captured by the
power parties of different interested arena.
Definition
A trade union is an organization made up of members (a membership-based organization)
and its membership must be made up mainly of workers. One of a trade union's main aims is
to protect and advance the interests of its members in the workplace. Most trade unions are
independent of any employer. However, trade unions try to develop close working
relationships with employers. This can sometimes take the form of a partnership agreement
between the employer and the trade union which identifies their common interests and
objectives.
• negotiate agreements with employers on pay and conditions
• discuss major changes to the workplace such as large scale redundancy
• discuss their members; concerns with employers
• accompany their members in disciplinary and grievance meetings
• provide their members with legal and financial advice
• provide education facilities and certain consumer benefits such as discounted
insurance
Different scholars have defined a trade union in different ways. Sydney and Beatrice Webb
have defined a trade union as “a continuous association of wage earners for the purpose of
maintaining or improving the conditions of their working lives”. A trade union is also called
as a labor union. A labor union is an organization of workers who have banned or unified
7
together to achieve common goals such as better working conditions. The trade union,
through its voluntary; bargains with the employer on behalf of the union members and
collective bargain with the employers. This may include the negotiation ofworking conditions like
wages, rules, time, and job security etc. the agreements are strictly negotiated by the union leader
on behalf of the whole trade union with the employers. In some cases nonmember workers
also bargain with the employer.
Trade union recognition
Employers which recognize a union will negotiate with it over members' pay and conditions.
Many recognition agreements are reached voluntarily, sometimes with the help of the Labor
Relations Agency. If agreement can't be reached and the organization employs more than 20
people, a union may apply for statutory recognition. To do so, it must first request recognition
from the employer in writing. If this is unsuccessful, the union can apply to the Industrial
Court for a decision. In considering the union's application, the Court must assess many
factors including the level of union membership and the presence of any other unions. Often,
the Court will organize a ballot among the affected workforce to decide whether recognition
should be awarded. Throughout the process, the emphasis is on reaching voluntary
agreement.
Why join a union?
Some workers join a trade union because they believe that a union can:
• To negotiate better pay
• To negotiate better working conditions, like more holidays or improved health and
safety
• Provide training for new skills
• Give general advice and support
• They believe that there is strength in number and they will be listened to when they in
a group.
• To negotiate a better pay, more holidays and less hours of work.
• To pressurise the employer to provide them with a healthier and safer working
environment.
• Improved benefits for retrenched workers
• To get the benefits of advice, financial support and welfare activities carried out by
Trade Unions.
• Many workers may also join a trade union because there is a closed shop policy.
Union members have the right to be accompanied to a discipline or grievance hearing by a
trade union representative (although trade unions are not compelled to provide this). All
employees, regardless of whether they are union members or not, are entitled to be
accompanied by a work colleague.
8
Trade union activities
When a union is recognized by an employer, members have the right to time off at an
appropriate time to take part in trade union activities. These may include:
• voting in ballots on industrial action
• voting in union elections
• meeting to discuss urgent matters
• attending the annual conference
Scenario of Garment Industry:
Bangladeshi Garment Industry is the largest industrial sector of the country. Though
the history of Readymade Garment Industry is not older one but Bangladeshi clothing
business has a golden history. Probably it started from the Mughal age in the Indian
subcontinent through Dhakai Muslins. It had global reputation as well as demandable
market around the globe especially in the European market.
After industrial revolution in the west they were busy with technological advancement
& started outsourcing of readymade garments to meet up their daily demands. Many
LDC’s took that chance & started readymade garment export at that markets. As an
LDC Bangladesh took this chance enjoyed quota & other facilities of them. Thus
readymade garment industry started to contribute in our economy from late eighties
(1977).
The history of the garment industry dates back to 1977 when the first consignment
was exported to then West Germany by Jewel Garments. The number of units,
however, remained a meager 46 until the end of 1983. From a humble beginning the
sector has thus made phenomenal growth over the last two decades, the number of
units growing to around 4500. The RMG industry achievement is noteworthy,
particularly for a country plagued with poor resource endowments and adverse
conditions for industrialization. Exports increased from approximately 32 million US
dollars in 1983/84 to 1.4 billion dollars in 1992/93. In 1987/88, the RMG export share
surpassed that of raw jute and allied products. The figure further rose to 5.7 billion
dollars in 2003/04, representing a contribution of about 75 percent of the country’s
total export earnings in that year. The employment generated by the sector is
estimated to be around 1.5 million workers.
Several factors account for the outstanding successes of the RMG industry in
Bangladesh. At the same time The tremendous success of readymade garment exports
from Bangladesh over the last two decades has surpassed the most optimistic
expectations. Today the apparel export sector is a multi-billion-dollar manufacturing
and export industry in the country. The overall impact of the readymade garment
exports is certainly one of the most significant social and economic developments in
contemporary Bangladesh. With over one and a half million women workers
employed in semi-skilled and skilled jobs producing clothing for exports, the
development of the apparel export industry has had far-reaching implications for the
society and economy of Bangladesh.
9
Trade union benefits in the garment industry in Bangladesh
At the recent, Bangladesh Garment and Industrial Workers Federation (BGIWF) annual
convention, the theme reverberating among the speakers and among the worker audience was
the importance of unionization. One worker-organizer remarked: “There are three things we
must do: educate, organize and demonstrate.” However, what was equally clear from their
speeches was that unionizing workers in Bangladesh is not an easy task. Almost every trade
union organizer that I interviewed had their own story of being harassed, beaten by police or
factory hooligans frightening them or the workers they were organizing from forming unions.
Labor leader Nazma Akter, founder of Sommilito Garments Sramik Federation, in an earlier
interview spoke to me about sexual harassment from owners or their managers, and sadly, at
times from fellow male organizers. Since much of organizing work requires meeting with
workers after work, or in the streets in front of their factory, owners try to disparage the
reputation of female organizers by calling them “bad women” or “prostitutes.”
The challenges to unionization explain the paltry number of unions, in an industry that boasts
4 million workers and over 3500 operative factories. In just last two years alone, 200 unions
registered. But, in contrast, only 2 unions were registered in 2011 and 2012. They formed in
part due to changes in labor law, international community’s focus on Rana Plaza, and the
suspension of trade benefits by the United States. While BGMEA industry representatives
told me that garment owners are not opposed to unions, however, this fails to explain their
strong opposition when workers do attempt to organize. This opposition was recently shown
in the unionization efforts by workers in Designer Jeans.
In 2010, the current government created a separate Industrial police in most police precincts
to regulate, squash unions, and to prevent union leaders from organizing. The collusion of the
police, state with industry interests to prevent unionization makes these organizing efforts a
monumental task, and therefore any bit of success a huge achievement. Recent examples of
Tuba Group workers being attacked by police with tear gas and rubber bullets reveals the role
that police and the state play in preventing unionization, and the violent manner in which
labor demands are responded to. Kalpona Akter, Executive Director of Bangladesh Center for
Worker Solidarity, reminded workers at the convention that they are fighting two powers:
government and owner, so workers need to organize harder.
While the global attention has been on garment workers, there are similar patterns of
discouraging unions in other sectors, notably the rising technology sector. Grameen phone
union organizer remarked, “Whatever industry we are in, we are all same.” Accenture
Employees Union president commended garment worker organizing, and said at the
convention, that they are learning from the organizing that is happening in the garment
industry. In many ways, employers’ benefit more from unions in that they have one entity
with which they need to bargain with workers. Unions were formed to equalize the
bargaining power between employer and workers, but in practice, serve to maintain industrial
peace and minimize industrial disruptions. Ultimately, workers give up the right to strike and
10
seek redress for their grievances though a collective bargaining process which helps
employers to maintain day-to-day functions of their business. While workers surely benefit in
this process, employers have also much to gain from unions. In absence of a mechanism to
redress basic grievances, workers have no choice but to demand their rights in the street.
When workers take to the street, and if they do this for routine grievances, it only creates
disruptions for the employer.
For Bangladesh, unions may help prevent another Rana Plaza, which the industry cannot
afford to happen to crudely protect its economic interests if not concern for the welfare of
fellow Bangladeshi citizens. Unions will be able to raise safety issues and bring those
concerns to the attention of the factory owner before it becomes serious. Of course,
unionization will not solve many issues that workers experience at the workplace, but it could
minimize much of the disputes that seem factory level problems.
In an industry that is primarily women, unionization provides a vehicle by which women can
seek empowerment, said AmirulHoque Amin, president of the National Garment Workers
Federation. Nomita Nath, president of Bangladesh Independent Garment Workers Union
Federation (BIGUF), echoes this point that unions provides women a platform to assert their
labor rights but it also helps them asserts their rights as citizens in society.
With all these benefits to women’s empowerment, workers and even employers, it is
astounding the Government of Bangladesh has not made a proactive effort to remove any and
all obstacles to unionization. This is particularly surprising given its coveted economic
relationship with United States hangs in balance for its failure to demonstrate any genuine
progress on labor rights for workers, including their right to form trade union. Its time for a
sophisticated and humane approach to labor-management relations especially when so much
is at stake from worker’s lives to country’s economic interests.
Causes of organizing trade unions:
In earlier times when industry was on a small scale and the few apprentice and craftsmen
whom the master craftsmen employed usually lived with him, conditions of employment and
any grievances were easily discussed individually or in small groups and quickly settled.
Modern industry is very difficult. It is organized on a large a scale, and the maintenance of
the close direct relation between employee and employer for the settling of differences is
difficult. The status and security which workers had in earlier communities have gone and in
their place they need the protection of trade unions. Considerably, to answer the question why
trade unions are organized; we have to say that, it is created to bargain and ensure the status,
rights, wages and demands of workers of the modern world of industry. Thus modern
industrial policies are complex due to the expansion on business; it is very much needed to
have a group of people or volunteers who actively work for the labor negotiations. So it is
clear that trade unions are growing rapidly in an economy because of the expansion of
business and economic growth.
11
Objectives
Today’s world is globalized. So businesses are also globalized. For this globalization
businesses are expanding rapidly for that reason the workforce in the industries are increasing
hugely. To maintain the whole work force alone by the management is a very tough job. Trade
unions are the only way to manage, compliant, and control the labor force. Lots of objectives
are there to organize trade unions. From the workers point of view three important objectivesof
tradeuniontodayareasfollows:
1. To defend or improve the wages and working conditions of workers and to bring
about a change in the economic order.
2. To strengthen their (labor) bargaining power collectively to establish and achieves all their
rights.
3. To dully protect all other interest of the workers.
From the management’s point of view the objectives as written:
1. Toreducethenumberofnegotiation
2. To specify work rules, disagreements and grievances to give the better solution to workers
claim.
3. To establish the efficient communication between the employers and management to enforce
thepredictablestandards.
Limitations
Bangladesh is still known as a third world country. Though it is a poor developing
country, in this country Trade Unions have a lot of unavoidable Problems. Some of those are
discussedbelow:
1. Lack of consciousness:
The major numbers of members of trade union are not actually completely aware about their
legal rights and duties. That is the reason they don’t know the favorable characteristics of
trade unions. That is why in Bangladesh trade unions are not strong enough to complete the need
oftheeconomy.
2. Lack of Unity:
Trade union is actually a unity of the labor force for assuring their need. But in Bangladesh
trade unions are separated for political influence. It is a shock that only for difference in
political view, everyindustryhasatleastthreemajorpartsofasingleunion.
3. Lack of knowledge:
In our country the level of workers is not properly educated. They don’t have enough
knowledge about their rights and duties. In this case trade union could be helpful very much
to develop workers KSA, but the whole level of workers is lack in knowledge. That is why
they don’t feel the need or contribution of trade unions; again trade unions are banged here.
4. Political influence:
The most powerful and deep affecting barrier for the growth of trade union of Bangladesh is
its political environment. Most of the trade unions of Bangladesh is not free from the political
influence. Political leaders use the trade unions for illegal purposes. For this the actual
environment of trade union is not seen in Bangladesh. In Bangladesh, trade unions work a
part of political parties not as a free right saving association.
12
5. Division of trade union:
Bangladesh is a country where every organization has more trade unions in name only. Those
unions are driven by the political leaders of various political parties. So a huge verity of
problem arises in the organizations. The overall productivity got down. Moreover trade union
cannot play its role perfectly. That is why disputes are created and more division are created under
differentpoliticalwings.
6. Wage Inflation:
If unions become too powerful they can bargain for higher wages, above the rate of inflation.
If this occurs it may contribute to general inflation.
Impact of trade union on management:
Every association has impacts in management. Trade union has both positive and negative
impactsonmanagement.
Positiveimpacts:
Trade union plays a major role in creating ideal working conditions. It creates pressure
onmanagementtodoafavorablerosterforworkers.
Trade union always helps management to create better policies for workers and to plan
effectiveproductiontargets.
Labors are treated fairly, only then they will maintain the working standard. Trade
unions negotiate for the standard wage and benefits with the management.
Trade union helps the management to make working environment more
active which increases the productivity as well as the profit.
Political influence’s existence makes the trade union not to interfere in management
decisions.
Trade union is hugely helping the management to cope with the competition by
motivating workers to produce more and implementing management tactics.
Negativeimpacts:
Trade unions creating more positions by the permission of management and
appointing more than need of workers. It’s creating surplus of manpower but not of
productivity.
Trade union of Bangladesh bargains more than they understand because of the
limitations of their knowledge. So it becomes difficult to make any decision by
consulting with the TU. If don’t consult then they strike. It is the backend support of
politics what is creating them more powerful.
13
Trade union is legal and it has the right to discuss with the management. That is why
TU think about its power. When they think they have equal power of management
then clashes are started.
In companies labors are awarded for good work and threatened for bad work. But if
it’s punished then trade union interfere and don’t let to happen the
punishment. So it increases crime of the labors.
Trade union leaders always try to save their interest first then the labor. And it is
always communicated that management body did the wrong. So this unethical
performance creates conflict between TU and managerial body.
For the power of politics trade union always dishonor the management. They don’t
listen to them; don’t obey orders even set their compensations by their own. All is
because of the sick environment of politics of Bangladesh.
Present Scenario of trade union
Compared to the total labor force in the country, the number of trade union members is very
small. From 1,160 trade unions with a membership of 450,606 in 1971trade unions had risen
to 6,835 with a membership of 1,904,567 in 2004. The average membership of trade unions
has declined significantly. Trade union density is 1.12 per cent of the total labor force. The
presence of trade unions in the private export-oriented sectors such as RMG, EPZs, shrimp
exporting firms, finished leather and leather goods is very weak. For instance, although there
are more than 40 unions representing garments workers, the level of unionization among
workers is very poor. Most trade unions in the RMG sector operate outside the factories and
therefore lack active participation of the general workers. A combination of factors such as
lack of enforcement of labor laws, inhibiting legal provisions, and system of contract labor
are responsible for reduced trade union membership in these sectors. The workers belonging
to government sectors, educational institutions, health sector, private security services,
confidential staffs, workers in security printing press, ordinance factory, are still deprived
from the right to organize and do not have the freedom of collective bargaining. Trade
unionism in sectors such as nursing or rural electrifications banned. Government and private
owners also discourage trade unions inclement factories, re-rolling mills etc. Furthermore,
trade union leaders and members are frequently intimidated and harassed by employers and
security forces.
14
Some cases about accident of garment sectors in Bangladesh:
Rana plaza
The collapse of an eight-storey garment factory in Rana Plaza on the outskirts of Dhaka on
April 24th killed at least 400 people and injured many more. It was probably the worst
industrial accident in South Asia since the Bhopal disaster in 1984, and the worst ever in the
garment industry. Local police and an industry association had warned that the building was
unsafe. The owners reportedly responded by threatening to fire people who did not carry on
working as usual. Much of the blame lies with Bangladeshi governments of all stripes, which
have made only rudimentary attempts to enforce the national building code, especially
against politically well-connected landlords. With luck, the laws will now be applied, but
nobody expects much.
Western firms can choose to respond in one of three ways. The first is to forget CSR, and
simply exploit labour wherever it is cheapest—counting on consumers back home to ignore
the blood, sweat and tears that went into making that cheap T-shirt or pair of trousers. That
may be the implicit strategy of many smaller firms, but it is hard to imagine any large
multinational being daft enough to proclaim it was doing it.
Second, they could quit Bangladesh and buy from factories in countries where the risk of
deadly industrial accidents is far smaller. For, say, a small up market retailer unable to check
everything that may well make sense. It would remove a risk while putting pressure on
Bangladesh to police health-and-safety rules better. But if large Western firms left in droves,
it would damage not just Bangladesh but also their reputations.
15
Tazrin Fashion
The 2012 Dhaka fire broke out on 24 November 2012, in the Tazreen Fashion factory in the
Ashulia on the outskirts of Dhaka, Bangladesh. At least 117 people were confirmed dead in
the fire, and over 200 were injured, making it the deadliest factory fire in the nation's history.
The fire was initially presumed to be caused by an electrical short circuit, but Prime Minister
Sheikh Hasina has since suspected that the fire had been arson and an act of "sabotage" due
to the occurrence of previous comparable events. This event and others similar to it have led
to numerous reforms in workers' rights and safety laws in Bangladesh.
The fire, presumably caused by a short circuit, started on the ground floor of the nine-story
factory, trapping the workers on the floors above. Because of the large amount of fabric and
yarn in the factory, the fire was able to quickly spread to other floors, complicating the
firefighting operations. The fire burned for more than seventeen hours before the firefighters
were successful in extinguishing it.
Most of the victims were found on the second floor, where at least 69 bodies were recovered.
Witnesses reported that many workers had been unable to escape through the narrow exits of
the building. Twelve of the victims died leaping from windows in order to escape the flames,
some of which died of those attained injuries after being taken to area hospitals. Some lucky
workers who had been able to escape to the roof of the building were successfully rescued.
The fire department's operations manager Mohammad Mahbub stated that the factory lacked
adequate emergency exits that would have made it possible to escape from the building.
Especially, since the fire broke out in the warehouse on the ground floor and quickly moved
up to the higher floors. Of the building's three staircases, all three led through the ground
floor, making them extremely dangerous and unusable in the case of the ground floor fire.
This left many workers trapped and unable to get safely out of the course of the fire. A crowd
made up of thousands of relatives and onlookers gathered at the scene, causing army soldiers
to be deployed to maintain order. Many of the victims were unrecognizable because of the
severity of the burns. This left families with no choice except to wait for the DNA test results
which could have taken up to six months to receive.
16
Suggestions:
In the context of the world industry, Bangladesh is very younger. So it should follow some
measurements in order to increase its stability of economy. In the light of Japanese and
western trade union concept, some suggestion or steps can be defined to improve and
establish the real trade union culture in Bangladesh. These steps must be taken in both public
and private sectors. These are as follows:
• One Union in One Industry: Multiplicity of unions in the same plant leads to inter-
union rivalry that ultimately cuts at the root of the trade union movement. It weakens
the power for collective bargaining and reduces the effectiveness of workers in
securing their legitimate rights. Therefore, there should be only one union in one
industry.
• Paid Union Officials: Generally, the trade unions avail the services of the honorary
workers due to lack of funds. The practice should be stopped because honorary office
bearers cannot do full justice to the task entrusted to them because of lack of time at
their disposal. Suppose that you are asked to do something in the office, which
requires a lot of responsibility.
• Development of Leadership from Within: It is of crucial importance that trade
unions are managed by the workers, and not by outsiders. Leadership should be
developed from within the rank and file of the workers.
• Recognition of Trade Unions. Till recently, the employers refused recognition to the
trade unions either on the basis that unions consisted of only a minority of employees
or two or more unions existed.
Some others suggestions are:
Strengthening bilateral collective bargaining for solving problems quickly and
effectively.
Multiplicity of trade union creates the rivals in a union. So it must be reduced.
Political involvement must be reduced. A trade union without the control of politics
only can be the way of all solution of the problems of management and worker.
Management must help and guide trade unions to settle industrial clashes and crisis. It
is trade union who has control over the workers. It helps totally to stop strikes and
rivals of workers.
The demand of trade union matters a lot to the economy. If demands are reasonable
and real then it should be worked out. But if it is not, then a strike breaks out. So trade
unions always should demand reasonable thing to the management.
17
Conclusion:
A trade union or Labour union is an organization of workers who have banded together to
achieve common goals in key areas and working conditions. According to The
Bangladesh Labour Act, 2006, workers/employers, without distinction whatsoever shall
have the right to form trade union for the purpose of regulating the relations between workers
and employers or workers and workers or employers and employers and, subject to the
constitution of the union concerned, to join trade union of their own choosing
[Sec: 176, The Bangladesh Labour Act, 2006 / Sec: 3, ILO, 1969].
The trade union, through its leadership, bargains with the employer on behalf of union
members and negotiates with employers. This may include the negotiation of
wages, work rules, complaint procedures, rules governing hiring, firing and
promotion of workers, benefits, workplace safety and policies. The agreements
negotiated by the union leaders are binding on the rank and file members and the employer
and in some cases on other non-member workers.
The industrial relation system is pre-dominantly confrontational in nature rather than
cooperative in Bangladesh. It is characterized by the pre-dominant position of informal
economy, fragmented unions, weak labor institutions, lack of enforcement of labor laws and
conflict ridden employer-employee relations. Although in recent times the rate of
unionization has increased in the RMG sector, trade union affiliation is low in Bangladesh
compared to many other developing countries. The main reasons for this are the fall in
employment in previously highly organized sectors, rise of the service sector and increasing
flexible types of employment relationships .Data available indicates fragmentation and
contradiction in membership of employers and workers organizations. Moreover, data on
membership does not reflect the role these organizations play in political and socio-economic
processes and institutions. The promotion of independent trade unions and collective
bargaining can contribute to political and social stability and consequently create more
favorable climate for foreign investment. Several studies of the World Bank and ILO support
the view that freedom of association and collective bargaining contribute to improving
economic and trade performance and have found no negative correlation. Rather, highly
coordinated bargaining accompanied by higher rates of unionization can contribute to
positive economic trends. Trade unions have an important role to play in settling disputes
between workers and management over wages by way of collective bargaining. However,
empirical data show that the experience is far from satisfactory.
18
References
1. Ernst, C. 2005. Trade Liberalisation, Export Orientation and Employment in
Argentina, Brazil and Mexico, Geneva: ILO (Employment Strategy Department)
2. Kabeer, N. 2000. The Power to Choose: Bangladeshi Women and Labour Market
Decisions in London and Dhaka, London: Verso
3. Zohir, S.C. 1998. Gender Implications of Industrial Reforms and Adjustment in the
Manufacturing Sector of Bangladesh, Unpublished PhD thesis, Economics and Social
Studies, University of Manchester
4. Rahman, M., Mustafa, M., Islam, A. and Guru-Gharana, K.K. 2006.Growth and
Employment Empirics in Bangladesh. Journal of Developing Areas 40(1): 99-114
5. Raihan, S., Khatoon, R., Husain, M.J. and Rahman, S. 2010. Modelling Gender
Impacts of Policy Reforms in Bangladesh: A Study in a Sequential Dynamic CGE
Framework. MPIA Working Paper 2010-19, Poverty and Economic Policy Research
Network
6. Raihan, S. and Razzaque, A. 2007a. Global Agricultural Trade Liberalisation:
Implications for the Bangladesh Economy. In S.Raihan, and A. Razzaque (eds.), WTO
and Regional Trade Negotiation Outcomes: Quantitative Assessments of Potential
Implications on Bangladesh, Dhaka: Unnayan Shamannay and Pathak Shamabesh
7. Raihan, S. and Razzaque, A. 2007b. LDCs’ Duty-free and Quota-free (DFQF) Access
to Developed Countries’ Markets: Perspectives from Bangladesh. In S.Raihan, and A.
Razzaque (eds.), WTO and Regional Trade Negotiation Outcomes: Quantitative
Assessments of Potential Implications on Bangladesh, Dhaka: Unnayan Shamannay
and Pathak Shamabesh
8. Raihan, S. 2008. Trade Liberalization and Poverty in Bangladesh. In Emerging Trade
Issues for Policymakers in Developing Countries in Asia and the Pacific, Bangkok:
ESCAP

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Trade Unions in Bangladesh

  • 1. ““““ScenariScenariScenariScenario of Trade Unions in Bangladesho of Trade Unions in Bangladesho of Trade Unions in Bangladesho of Trade Unions in Bangladesh Course title Department of Business Administration ID 1201010007 1201010091 1201010072 1201010181 1201010249 1201010202 Major: Human Resource Management Department of Business Administration Date of Submission: 1 Surma Tower, Sylhet An Assignment on o of Trade Unions in Bangladesho of Trade Unions in Bangladesho of Trade Unions in Bangladesho of Trade Unions in Bangladesh Course title: Industrial RelationsIndustrial RelationsIndustrial RelationsIndustrial Relations Course code: HRM-406 Submitted to: Farhad HossainFarhad HossainFarhad HossainFarhad Hossain Senior Lecturer Department of Business Administration Leading University, Sylhet Prepared by: Torch BeareTorch BeareTorch BeareTorch Bearer’sr’sr’sr’s Name 1201010007 Zakiatunnesa Uma 1201010091 Rabeya Rahman 1201010072 Anjomy Akter 1201010181 Mahmudul Hasan 1201010249 Md. Alimuzzaman 1201010202 Masum Hussain Semester: 11th Batch: 30th Major: Human Resource Management Department of Business Administration Leading University, Sylhet Date of Submission: 31 August, 2015 o of Trade Unions in Bangladesho of Trade Unions in Bangladesho of Trade Unions in Bangladesho of Trade Unions in Bangladesh”””” 31 August, 2015
  • 2. 2 Contents Subjects pages 1. Introduction 5 2. History 5 3. Definition 6 4. Trade union recognition 7 5. Why join a union? 7 6. Trade union activities 8 7. Scenario of Garment Industry 8 8. Trade union benefits in the garment industry in Bangladesh 9 9. Causes of organizing trade unions 10 10. Objectives 11 11. From the management’s point of view the objectives as written 11 12. Limitations 11 a) Lack of consciousness 11 b) Lack of Unity 11 c) Lack of knowledge 12 d) Political influence 12 e) Division of trade union 12 f) Wage Inflation 12 13. Impact of trade union on management 12 a) Positiveimpacts 12 b) Negativeimpacts 13 14. Present Scenario of trade union 13 15. Some cases about accident of garment sectors in Bangladesh 14 16. Rana plaza 14 17. Tazrin Fashion 15 18. Suggestions 16 19. Conclusion 17 20. References 18
  • 3. 3 Executive Summary A trade union is an organization of worker who have come together to achieve common goals such as protecting the integrity of its trade, improving safety standards, achieving higher pay and benefits such as health care and retirement, increasing the number of employees an employer assigns to complete the work, and better working condition. Trade unions are the controller of the labor force of an industry which works for the betterment of the country’s trade by ensuring the right of the labor force. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labor contract with employers. The most common purpose of these associations or unions is "maintaining or improving the conditions of their employment. This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies. Unions may organize a particular section of skilled workers like craft unionism a cross-section of workers from various trades or attempt to organize all workers within a particular industry. Trade unions traditionally have a constitution which details the governance of their bargaining unit and also have governance at various levels of government depending on the industry that binds them legally to their negotiations and functioning. Trade unions try to develop close working relationships with employers. Globalization businesses are expanding rapidly for that reason the workforce in the industries are increasing hugely. To maintain the whole work force alone by the management is a very tough job. Trade unions are the only way to manage, compliant, and control the labor force. Lots of objectives are there to organize trade unions. In perspective of Bangladesh the immediate objectives and activities of trade unions include protection and promotion of the interests of their members. Regulating the relations between workers and employers or workers and workers or employers and employers is another objective of trade unions. Trade Union has become a necessary part but trade union can’t run properly due to various reasons. These are lack of consciousness, lack of utility, lack of knowledge, political influence division of trade union. The rate of unionization has increased in the RMG sector, trade union affiliation is low in Bangladesh compared to many other developing countries. The main reasons for this are the fall in employment in previously highly organized sectors, rise of the service sector and increasing flexible types of employment relationships .Data available indicates fragmentation and contradiction in membership of employers and workers organizations.
  • 4. 4 AcknowledgementAcknowledgementAcknowledgementAcknowledgement At first, we are grateful to Almighty Allah for creating us in such a beautiful country like Bangladesh and also for controlling our life. For the mercy of Him, we have got such courage to start this assignment on ““““ScenariScenariScenariScenario of Trade Unionso of Trade Unionso of Trade Unionso of Trade Unions in Bangladeshin Bangladeshin Bangladeshin Bangladesh”””” After that we would like to give thanks to our honorable Head of the Department Prof.Prof.Prof.Prof. Dr. Tofayel AhmedDr. Tofayel AhmedDr. Tofayel AhmedDr. Tofayel Ahmed for giving us the opportunity to study in this subject. We would like to express our thanks to the librarian of Leading University for all his help that we have received. Our respected parents who gave us mental support and inspiration for our assignment, there is a special thanks for them. We also would like to give a lot of thanks to our honorable course teacher, Farhad HossainFarhad HossainFarhad HossainFarhad Hossain for giving us a wonderful opportunity to make such an interesting and valuable assignment and giving us a clear concept about the assignment. At last but not the least, without the help of our friends and classmates it was quite impossible to prepare such kind of assignment. They gave us some necessary information about this topic which was unknown to us. So, we would like to give thanks to all of them.
  • 5. 5 Introduction: From starting of industrial the all economy trade union is the most common figure in a country. Trade unions are the controller of the labor force of an industry which works for the betterment of the country’s trade by ensuring the right of the labor force. The economic importance of trade unions in developing countries is not commensurate with the size of their membership. The behavior of Bangladeshi trade unions is characterized by political activism, and momentous strikes, called ‘HORTAL’. There, have played a crucial part in most political changes in this country. In Bangladesh, the share of the active population concerned by unionization was officially estimated between 3% and 4 % in 1992. However, this figure is largely irrelevant for an evaluation of their power, as the urban population was only about 18 % of the total Bangladeshi population in 1995, and virtually no trade unions exist in the rural sector. Within the urbanite working population, and especially in the formal sector, the picture is quite different. Almost 100% of the workers and employees of the public sector are unionized, while one out of six of the wage earners in the private formal sector are unionized. The aim of this discussion is to provide a simple theoretical framework for analyzing this dimension of trade union activity, and to test its main implication in the case of Bangladesh. History: The history of trade union movement in Bangladesh date back to early 19th century when modern industrial concept entered into the sub-Indian continent. Like many other movement, the trade union movement also was similar in India Bangladesh. The number of trade unions which was 411, increased into 1174 in 1971 after the bloody liberation war and the independence of Bangladesh. Bangladesh Trade Union Kendra (BTUC) which was backed by the socialist party, it was nationalized after the war of liberation. Awami league got the governing power and changed the constitutions of trade union. From that very day political influence was imposed on the trade unions of Bangladesh. Democratic functions which were backed in the 60’s were changing by the aggression of ruling party men. Unions were forcibly captured. Political, administrative and managerial influences make it difficult to work independently for trade unions. From1975-1983, 217 factories were privatized. For that reason there was no influence of trade union on those. But after all systems, outsider’s influence has made alive the trade unions. The jute and cotton sectors, which were nationalized in 1971, in the wake of the struggle for independence, and then privatized to some extent in the 1980s, are the most unionized sectors. Unions are also important in the transport sector and in various services. As emphasized by Pencavel (1995), among others, unions in developing countries get their power from their privileged relationship with political parties and in many cases with the government. The Bangladeshi trade unions are no exception, and are well known for their lobbying the government rather than acting vis-à-vis the private sector. The influence of unions goes beyond the standard reach of industrial relations, and extends to the political arena. All the political parties, even the smallest ones, exert some control over
  • 6. 6 a trade union. The three main political parties have their own trade union federation, which accounts for 64 % of the unionized workers. The unions have played an active role in most major political events of this country, like the massive demonstrations (hartals) that brought General Ershad down in 1990, or those which pushed the democratically elected government of Begum Khaleda Zia to resign in 1996. According to the World Bank (2001), an average of 21 full working days was lost annually due to hartals .In the 1980s, and an average of 47 full working days per year in the 1990s. This report estimates that about 5 % of GDP is lost on average in the 1990s. Since independence of Bangladesh, no major development took place in the history of labor legislation till the enactment of the Bangladesh Labor Act, 2006. The Bangladesh Labor Act, 2006 is a major and comprehensive enactment regarding industrial relation system-- partly as a response to demand of stakeholders for improving regulatory framework on trade union and partly by demand for codification of existing labor laws in order to avoid overlapping and inconsistencies. It brought some significant changes in industrial relation system. However, the Act has not been able to bring the desired changed due to its in-built weaknesses, suspension of many labor rights under state of emergency and lack of institutional capacity to implement the laws. On trade union and partly by demand for codification of existing labor laws in order to avoid overlapping and inconsistencies. It brought some significant changes in industrial relation system. However, the Act has not been able to bring the desired changed due to its in-built weaknesses, suspension of many labor rights under state of emergency and lack of institutional capacity to implement the laws. Still in today’s era the trade union of Bangladesh is captured by the power parties of different interested arena. Definition A trade union is an organization made up of members (a membership-based organization) and its membership must be made up mainly of workers. One of a trade union's main aims is to protect and advance the interests of its members in the workplace. Most trade unions are independent of any employer. However, trade unions try to develop close working relationships with employers. This can sometimes take the form of a partnership agreement between the employer and the trade union which identifies their common interests and objectives. • negotiate agreements with employers on pay and conditions • discuss major changes to the workplace such as large scale redundancy • discuss their members; concerns with employers • accompany their members in disciplinary and grievance meetings • provide their members with legal and financial advice • provide education facilities and certain consumer benefits such as discounted insurance Different scholars have defined a trade union in different ways. Sydney and Beatrice Webb have defined a trade union as “a continuous association of wage earners for the purpose of maintaining or improving the conditions of their working lives”. A trade union is also called as a labor union. A labor union is an organization of workers who have banned or unified
  • 7. 7 together to achieve common goals such as better working conditions. The trade union, through its voluntary; bargains with the employer on behalf of the union members and collective bargain with the employers. This may include the negotiation ofworking conditions like wages, rules, time, and job security etc. the agreements are strictly negotiated by the union leader on behalf of the whole trade union with the employers. In some cases nonmember workers also bargain with the employer. Trade union recognition Employers which recognize a union will negotiate with it over members' pay and conditions. Many recognition agreements are reached voluntarily, sometimes with the help of the Labor Relations Agency. If agreement can't be reached and the organization employs more than 20 people, a union may apply for statutory recognition. To do so, it must first request recognition from the employer in writing. If this is unsuccessful, the union can apply to the Industrial Court for a decision. In considering the union's application, the Court must assess many factors including the level of union membership and the presence of any other unions. Often, the Court will organize a ballot among the affected workforce to decide whether recognition should be awarded. Throughout the process, the emphasis is on reaching voluntary agreement. Why join a union? Some workers join a trade union because they believe that a union can: • To negotiate better pay • To negotiate better working conditions, like more holidays or improved health and safety • Provide training for new skills • Give general advice and support • They believe that there is strength in number and they will be listened to when they in a group. • To negotiate a better pay, more holidays and less hours of work. • To pressurise the employer to provide them with a healthier and safer working environment. • Improved benefits for retrenched workers • To get the benefits of advice, financial support and welfare activities carried out by Trade Unions. • Many workers may also join a trade union because there is a closed shop policy. Union members have the right to be accompanied to a discipline or grievance hearing by a trade union representative (although trade unions are not compelled to provide this). All employees, regardless of whether they are union members or not, are entitled to be accompanied by a work colleague.
  • 8. 8 Trade union activities When a union is recognized by an employer, members have the right to time off at an appropriate time to take part in trade union activities. These may include: • voting in ballots on industrial action • voting in union elections • meeting to discuss urgent matters • attending the annual conference Scenario of Garment Industry: Bangladeshi Garment Industry is the largest industrial sector of the country. Though the history of Readymade Garment Industry is not older one but Bangladeshi clothing business has a golden history. Probably it started from the Mughal age in the Indian subcontinent through Dhakai Muslins. It had global reputation as well as demandable market around the globe especially in the European market. After industrial revolution in the west they were busy with technological advancement & started outsourcing of readymade garments to meet up their daily demands. Many LDC’s took that chance & started readymade garment export at that markets. As an LDC Bangladesh took this chance enjoyed quota & other facilities of them. Thus readymade garment industry started to contribute in our economy from late eighties (1977). The history of the garment industry dates back to 1977 when the first consignment was exported to then West Germany by Jewel Garments. The number of units, however, remained a meager 46 until the end of 1983. From a humble beginning the sector has thus made phenomenal growth over the last two decades, the number of units growing to around 4500. The RMG industry achievement is noteworthy, particularly for a country plagued with poor resource endowments and adverse conditions for industrialization. Exports increased from approximately 32 million US dollars in 1983/84 to 1.4 billion dollars in 1992/93. In 1987/88, the RMG export share surpassed that of raw jute and allied products. The figure further rose to 5.7 billion dollars in 2003/04, representing a contribution of about 75 percent of the country’s total export earnings in that year. The employment generated by the sector is estimated to be around 1.5 million workers. Several factors account for the outstanding successes of the RMG industry in Bangladesh. At the same time The tremendous success of readymade garment exports from Bangladesh over the last two decades has surpassed the most optimistic expectations. Today the apparel export sector is a multi-billion-dollar manufacturing and export industry in the country. The overall impact of the readymade garment exports is certainly one of the most significant social and economic developments in contemporary Bangladesh. With over one and a half million women workers employed in semi-skilled and skilled jobs producing clothing for exports, the development of the apparel export industry has had far-reaching implications for the society and economy of Bangladesh.
  • 9. 9 Trade union benefits in the garment industry in Bangladesh At the recent, Bangladesh Garment and Industrial Workers Federation (BGIWF) annual convention, the theme reverberating among the speakers and among the worker audience was the importance of unionization. One worker-organizer remarked: “There are three things we must do: educate, organize and demonstrate.” However, what was equally clear from their speeches was that unionizing workers in Bangladesh is not an easy task. Almost every trade union organizer that I interviewed had their own story of being harassed, beaten by police or factory hooligans frightening them or the workers they were organizing from forming unions. Labor leader Nazma Akter, founder of Sommilito Garments Sramik Federation, in an earlier interview spoke to me about sexual harassment from owners or their managers, and sadly, at times from fellow male organizers. Since much of organizing work requires meeting with workers after work, or in the streets in front of their factory, owners try to disparage the reputation of female organizers by calling them “bad women” or “prostitutes.” The challenges to unionization explain the paltry number of unions, in an industry that boasts 4 million workers and over 3500 operative factories. In just last two years alone, 200 unions registered. But, in contrast, only 2 unions were registered in 2011 and 2012. They formed in part due to changes in labor law, international community’s focus on Rana Plaza, and the suspension of trade benefits by the United States. While BGMEA industry representatives told me that garment owners are not opposed to unions, however, this fails to explain their strong opposition when workers do attempt to organize. This opposition was recently shown in the unionization efforts by workers in Designer Jeans. In 2010, the current government created a separate Industrial police in most police precincts to regulate, squash unions, and to prevent union leaders from organizing. The collusion of the police, state with industry interests to prevent unionization makes these organizing efforts a monumental task, and therefore any bit of success a huge achievement. Recent examples of Tuba Group workers being attacked by police with tear gas and rubber bullets reveals the role that police and the state play in preventing unionization, and the violent manner in which labor demands are responded to. Kalpona Akter, Executive Director of Bangladesh Center for Worker Solidarity, reminded workers at the convention that they are fighting two powers: government and owner, so workers need to organize harder. While the global attention has been on garment workers, there are similar patterns of discouraging unions in other sectors, notably the rising technology sector. Grameen phone union organizer remarked, “Whatever industry we are in, we are all same.” Accenture Employees Union president commended garment worker organizing, and said at the convention, that they are learning from the organizing that is happening in the garment industry. In many ways, employers’ benefit more from unions in that they have one entity with which they need to bargain with workers. Unions were formed to equalize the bargaining power between employer and workers, but in practice, serve to maintain industrial peace and minimize industrial disruptions. Ultimately, workers give up the right to strike and
  • 10. 10 seek redress for their grievances though a collective bargaining process which helps employers to maintain day-to-day functions of their business. While workers surely benefit in this process, employers have also much to gain from unions. In absence of a mechanism to redress basic grievances, workers have no choice but to demand their rights in the street. When workers take to the street, and if they do this for routine grievances, it only creates disruptions for the employer. For Bangladesh, unions may help prevent another Rana Plaza, which the industry cannot afford to happen to crudely protect its economic interests if not concern for the welfare of fellow Bangladeshi citizens. Unions will be able to raise safety issues and bring those concerns to the attention of the factory owner before it becomes serious. Of course, unionization will not solve many issues that workers experience at the workplace, but it could minimize much of the disputes that seem factory level problems. In an industry that is primarily women, unionization provides a vehicle by which women can seek empowerment, said AmirulHoque Amin, president of the National Garment Workers Federation. Nomita Nath, president of Bangladesh Independent Garment Workers Union Federation (BIGUF), echoes this point that unions provides women a platform to assert their labor rights but it also helps them asserts their rights as citizens in society. With all these benefits to women’s empowerment, workers and even employers, it is astounding the Government of Bangladesh has not made a proactive effort to remove any and all obstacles to unionization. This is particularly surprising given its coveted economic relationship with United States hangs in balance for its failure to demonstrate any genuine progress on labor rights for workers, including their right to form trade union. Its time for a sophisticated and humane approach to labor-management relations especially when so much is at stake from worker’s lives to country’s economic interests. Causes of organizing trade unions: In earlier times when industry was on a small scale and the few apprentice and craftsmen whom the master craftsmen employed usually lived with him, conditions of employment and any grievances were easily discussed individually or in small groups and quickly settled. Modern industry is very difficult. It is organized on a large a scale, and the maintenance of the close direct relation between employee and employer for the settling of differences is difficult. The status and security which workers had in earlier communities have gone and in their place they need the protection of trade unions. Considerably, to answer the question why trade unions are organized; we have to say that, it is created to bargain and ensure the status, rights, wages and demands of workers of the modern world of industry. Thus modern industrial policies are complex due to the expansion on business; it is very much needed to have a group of people or volunteers who actively work for the labor negotiations. So it is clear that trade unions are growing rapidly in an economy because of the expansion of business and economic growth.
  • 11. 11 Objectives Today’s world is globalized. So businesses are also globalized. For this globalization businesses are expanding rapidly for that reason the workforce in the industries are increasing hugely. To maintain the whole work force alone by the management is a very tough job. Trade unions are the only way to manage, compliant, and control the labor force. Lots of objectives are there to organize trade unions. From the workers point of view three important objectivesof tradeuniontodayareasfollows: 1. To defend or improve the wages and working conditions of workers and to bring about a change in the economic order. 2. To strengthen their (labor) bargaining power collectively to establish and achieves all their rights. 3. To dully protect all other interest of the workers. From the management’s point of view the objectives as written: 1. Toreducethenumberofnegotiation 2. To specify work rules, disagreements and grievances to give the better solution to workers claim. 3. To establish the efficient communication between the employers and management to enforce thepredictablestandards. Limitations Bangladesh is still known as a third world country. Though it is a poor developing country, in this country Trade Unions have a lot of unavoidable Problems. Some of those are discussedbelow: 1. Lack of consciousness: The major numbers of members of trade union are not actually completely aware about their legal rights and duties. That is the reason they don’t know the favorable characteristics of trade unions. That is why in Bangladesh trade unions are not strong enough to complete the need oftheeconomy. 2. Lack of Unity: Trade union is actually a unity of the labor force for assuring their need. But in Bangladesh trade unions are separated for political influence. It is a shock that only for difference in political view, everyindustryhasatleastthreemajorpartsofasingleunion. 3. Lack of knowledge: In our country the level of workers is not properly educated. They don’t have enough knowledge about their rights and duties. In this case trade union could be helpful very much to develop workers KSA, but the whole level of workers is lack in knowledge. That is why they don’t feel the need or contribution of trade unions; again trade unions are banged here. 4. Political influence: The most powerful and deep affecting barrier for the growth of trade union of Bangladesh is its political environment. Most of the trade unions of Bangladesh is not free from the political influence. Political leaders use the trade unions for illegal purposes. For this the actual environment of trade union is not seen in Bangladesh. In Bangladesh, trade unions work a part of political parties not as a free right saving association.
  • 12. 12 5. Division of trade union: Bangladesh is a country where every organization has more trade unions in name only. Those unions are driven by the political leaders of various political parties. So a huge verity of problem arises in the organizations. The overall productivity got down. Moreover trade union cannot play its role perfectly. That is why disputes are created and more division are created under differentpoliticalwings. 6. Wage Inflation: If unions become too powerful they can bargain for higher wages, above the rate of inflation. If this occurs it may contribute to general inflation. Impact of trade union on management: Every association has impacts in management. Trade union has both positive and negative impactsonmanagement. Positiveimpacts: Trade union plays a major role in creating ideal working conditions. It creates pressure onmanagementtodoafavorablerosterforworkers. Trade union always helps management to create better policies for workers and to plan effectiveproductiontargets. Labors are treated fairly, only then they will maintain the working standard. Trade unions negotiate for the standard wage and benefits with the management. Trade union helps the management to make working environment more active which increases the productivity as well as the profit. Political influence’s existence makes the trade union not to interfere in management decisions. Trade union is hugely helping the management to cope with the competition by motivating workers to produce more and implementing management tactics. Negativeimpacts: Trade unions creating more positions by the permission of management and appointing more than need of workers. It’s creating surplus of manpower but not of productivity. Trade union of Bangladesh bargains more than they understand because of the limitations of their knowledge. So it becomes difficult to make any decision by consulting with the TU. If don’t consult then they strike. It is the backend support of politics what is creating them more powerful.
  • 13. 13 Trade union is legal and it has the right to discuss with the management. That is why TU think about its power. When they think they have equal power of management then clashes are started. In companies labors are awarded for good work and threatened for bad work. But if it’s punished then trade union interfere and don’t let to happen the punishment. So it increases crime of the labors. Trade union leaders always try to save their interest first then the labor. And it is always communicated that management body did the wrong. So this unethical performance creates conflict between TU and managerial body. For the power of politics trade union always dishonor the management. They don’t listen to them; don’t obey orders even set their compensations by their own. All is because of the sick environment of politics of Bangladesh. Present Scenario of trade union Compared to the total labor force in the country, the number of trade union members is very small. From 1,160 trade unions with a membership of 450,606 in 1971trade unions had risen to 6,835 with a membership of 1,904,567 in 2004. The average membership of trade unions has declined significantly. Trade union density is 1.12 per cent of the total labor force. The presence of trade unions in the private export-oriented sectors such as RMG, EPZs, shrimp exporting firms, finished leather and leather goods is very weak. For instance, although there are more than 40 unions representing garments workers, the level of unionization among workers is very poor. Most trade unions in the RMG sector operate outside the factories and therefore lack active participation of the general workers. A combination of factors such as lack of enforcement of labor laws, inhibiting legal provisions, and system of contract labor are responsible for reduced trade union membership in these sectors. The workers belonging to government sectors, educational institutions, health sector, private security services, confidential staffs, workers in security printing press, ordinance factory, are still deprived from the right to organize and do not have the freedom of collective bargaining. Trade unionism in sectors such as nursing or rural electrifications banned. Government and private owners also discourage trade unions inclement factories, re-rolling mills etc. Furthermore, trade union leaders and members are frequently intimidated and harassed by employers and security forces.
  • 14. 14 Some cases about accident of garment sectors in Bangladesh: Rana plaza The collapse of an eight-storey garment factory in Rana Plaza on the outskirts of Dhaka on April 24th killed at least 400 people and injured many more. It was probably the worst industrial accident in South Asia since the Bhopal disaster in 1984, and the worst ever in the garment industry. Local police and an industry association had warned that the building was unsafe. The owners reportedly responded by threatening to fire people who did not carry on working as usual. Much of the blame lies with Bangladeshi governments of all stripes, which have made only rudimentary attempts to enforce the national building code, especially against politically well-connected landlords. With luck, the laws will now be applied, but nobody expects much. Western firms can choose to respond in one of three ways. The first is to forget CSR, and simply exploit labour wherever it is cheapest—counting on consumers back home to ignore the blood, sweat and tears that went into making that cheap T-shirt or pair of trousers. That may be the implicit strategy of many smaller firms, but it is hard to imagine any large multinational being daft enough to proclaim it was doing it. Second, they could quit Bangladesh and buy from factories in countries where the risk of deadly industrial accidents is far smaller. For, say, a small up market retailer unable to check everything that may well make sense. It would remove a risk while putting pressure on Bangladesh to police health-and-safety rules better. But if large Western firms left in droves, it would damage not just Bangladesh but also their reputations.
  • 15. 15 Tazrin Fashion The 2012 Dhaka fire broke out on 24 November 2012, in the Tazreen Fashion factory in the Ashulia on the outskirts of Dhaka, Bangladesh. At least 117 people were confirmed dead in the fire, and over 200 were injured, making it the deadliest factory fire in the nation's history. The fire was initially presumed to be caused by an electrical short circuit, but Prime Minister Sheikh Hasina has since suspected that the fire had been arson and an act of "sabotage" due to the occurrence of previous comparable events. This event and others similar to it have led to numerous reforms in workers' rights and safety laws in Bangladesh. The fire, presumably caused by a short circuit, started on the ground floor of the nine-story factory, trapping the workers on the floors above. Because of the large amount of fabric and yarn in the factory, the fire was able to quickly spread to other floors, complicating the firefighting operations. The fire burned for more than seventeen hours before the firefighters were successful in extinguishing it. Most of the victims were found on the second floor, where at least 69 bodies were recovered. Witnesses reported that many workers had been unable to escape through the narrow exits of the building. Twelve of the victims died leaping from windows in order to escape the flames, some of which died of those attained injuries after being taken to area hospitals. Some lucky workers who had been able to escape to the roof of the building were successfully rescued. The fire department's operations manager Mohammad Mahbub stated that the factory lacked adequate emergency exits that would have made it possible to escape from the building. Especially, since the fire broke out in the warehouse on the ground floor and quickly moved up to the higher floors. Of the building's three staircases, all three led through the ground floor, making them extremely dangerous and unusable in the case of the ground floor fire. This left many workers trapped and unable to get safely out of the course of the fire. A crowd made up of thousands of relatives and onlookers gathered at the scene, causing army soldiers to be deployed to maintain order. Many of the victims were unrecognizable because of the severity of the burns. This left families with no choice except to wait for the DNA test results which could have taken up to six months to receive.
  • 16. 16 Suggestions: In the context of the world industry, Bangladesh is very younger. So it should follow some measurements in order to increase its stability of economy. In the light of Japanese and western trade union concept, some suggestion or steps can be defined to improve and establish the real trade union culture in Bangladesh. These steps must be taken in both public and private sectors. These are as follows: • One Union in One Industry: Multiplicity of unions in the same plant leads to inter- union rivalry that ultimately cuts at the root of the trade union movement. It weakens the power for collective bargaining and reduces the effectiveness of workers in securing their legitimate rights. Therefore, there should be only one union in one industry. • Paid Union Officials: Generally, the trade unions avail the services of the honorary workers due to lack of funds. The practice should be stopped because honorary office bearers cannot do full justice to the task entrusted to them because of lack of time at their disposal. Suppose that you are asked to do something in the office, which requires a lot of responsibility. • Development of Leadership from Within: It is of crucial importance that trade unions are managed by the workers, and not by outsiders. Leadership should be developed from within the rank and file of the workers. • Recognition of Trade Unions. Till recently, the employers refused recognition to the trade unions either on the basis that unions consisted of only a minority of employees or two or more unions existed. Some others suggestions are: Strengthening bilateral collective bargaining for solving problems quickly and effectively. Multiplicity of trade union creates the rivals in a union. So it must be reduced. Political involvement must be reduced. A trade union without the control of politics only can be the way of all solution of the problems of management and worker. Management must help and guide trade unions to settle industrial clashes and crisis. It is trade union who has control over the workers. It helps totally to stop strikes and rivals of workers. The demand of trade union matters a lot to the economy. If demands are reasonable and real then it should be worked out. But if it is not, then a strike breaks out. So trade unions always should demand reasonable thing to the management.
  • 17. 17 Conclusion: A trade union or Labour union is an organization of workers who have banded together to achieve common goals in key areas and working conditions. According to The Bangladesh Labour Act, 2006, workers/employers, without distinction whatsoever shall have the right to form trade union for the purpose of regulating the relations between workers and employers or workers and workers or employers and employers and, subject to the constitution of the union concerned, to join trade union of their own choosing [Sec: 176, The Bangladesh Labour Act, 2006 / Sec: 3, ILO, 1969]. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates with employers. This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies. The agreements negotiated by the union leaders are binding on the rank and file members and the employer and in some cases on other non-member workers. The industrial relation system is pre-dominantly confrontational in nature rather than cooperative in Bangladesh. It is characterized by the pre-dominant position of informal economy, fragmented unions, weak labor institutions, lack of enforcement of labor laws and conflict ridden employer-employee relations. Although in recent times the rate of unionization has increased in the RMG sector, trade union affiliation is low in Bangladesh compared to many other developing countries. The main reasons for this are the fall in employment in previously highly organized sectors, rise of the service sector and increasing flexible types of employment relationships .Data available indicates fragmentation and contradiction in membership of employers and workers organizations. Moreover, data on membership does not reflect the role these organizations play in political and socio-economic processes and institutions. The promotion of independent trade unions and collective bargaining can contribute to political and social stability and consequently create more favorable climate for foreign investment. Several studies of the World Bank and ILO support the view that freedom of association and collective bargaining contribute to improving economic and trade performance and have found no negative correlation. Rather, highly coordinated bargaining accompanied by higher rates of unionization can contribute to positive economic trends. Trade unions have an important role to play in settling disputes between workers and management over wages by way of collective bargaining. However, empirical data show that the experience is far from satisfactory.
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