Industrial Relations-HRM

1. TRADE UNIONS IN BANGLADESH
AND ITS IMPACT
Submitted By:
Md. Omar Faruq Chowdhury -045 12601
Submission Date: 28th November 2012
1

2. Contents
a. Definition
b. Causes of organizing trade unions
c. Objectives
d. History of Trade Unions
e. Limitations
f. Positive impacts
g. Negative impacts:
h. Present Scenario
i. Suggestions
j. Conclusion
2

3. Definition
-Trade Union is an organization of workers who have banded together to achieve common
goals such as protecting the integrity of its trade, achieving higher pay, increasing the
number of employees an employer hires, and better working conditions.
-An organized association of workers in a trade, group of trades, or profession, formed to
protect and further their rights and interests.
-A group of employees in a particular sector, whose aim is to negotiate with employees over
pay, job security, working hours, etc. using the collective power of the members.
-The most common purpose of these associations or unions is "maintaining or improving
the conditions of their employment".
3

4. Causes of organizing trade unions
• Provision of benefits to members: professional training, legal advice and representation for
members is still an important benefit of trade union membership.
• Industrial action: Trade unions may enforce strikes or resistance to lockouts in furtherance of
particular goals.
• Political activity: Trade unions may promote legislation favourable to the interests of their members
or workers as a whole. To this end they may pursue campaigns, undertake lobbying, or financially
support individual candidates or parties.
• Conditions of employment and any grievances – are settled through trade unions.
• Bargaining rights: Trade unions bargain and ensure the status, rights, wages and demands of
workers of the modern world of industry.
• Contribution in economical growth: Trade unions are growing rapidly in an economy because of the
expansion of business and economical growth.
4

5. Objectives
Trade unions are the only way to manage, compliant, and control the labor force. Lots of objectives are
there to organize trade unions.
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 achieve all their rights.
3. To dully protect all other interest of the workers .And from the management’s point of view the
objectives as written:
a. To reduce the number of negotiation.
b. To specify work rules, disagreements and grievances to give the better solution to workers claim.
c. To establish the efficient communication between the employers and management to enforce the
predictable standards.
d. To enhance the overall organizational effectiveness workers can also be sometimes inspired to form
and organize trade union. In fact, objectives of a trade union are not defined; rather these are
changing according to the need of the economy and overall industry. When these objectives are not
settled then the rivals are started.
5

6. History of Trade Unions
-The British rulers introduced Trade Union Act, 1926. The main purpose of the Act was to provide
registration for trade unions and in certain respects. But the Act did not contain any provision
regarding strikes.
-In 1929, the Trade Disputes Act put restrictions on strikes in public utility services and laid
provision for the establishment of tribunals to adjudicate upon the labor disputes.
-In 1947, the Industrial Disputes Act placed the conciliation and adjudication machinery for the
settlement of industrial disputes on a permanent footing.
6

7. History of Trade Unions
The Pakistan Period (1947-71)
-The East Pakistan Trade Unions Act, 1965 was enacted repealing the Trade Unions Act, 1926.
-The Labor Disputes Act, 1965 was enacted.
-Industrial Relations Ordinance, 1969 was enacted integrating the above two Acts.
Bangladesh Period (1971-onwards)
-Government of Bangladesh declared a labor policy in 1972. The right to strike and collective
bargaining in the nationalized industries was prohibited for six months by Presidential order no. 55 in
May 1972.
-In 1973, the right to strike and lockout, as granted by IRO, 1969 was withdrawn.
-In 1974 Act completely suspended the democratic rights of workers by prohibiting trade union
activities such as strikes, lock-outs, collective bargaining.
-The military regime of 1975 imposed restrictions on the rights of collective bargaining.
-The Industrial Relations (Amendment) Ordinance, 1977 liberalized the Rights of Freedom of
Association
-The Labor Policy of 1980 restored the right to freedom of association to a considerable extent
-In 1982 the military regime banned trade union activities, strikes, and right of freedom of association.
7

8. History of Trade Unions
-Full trade union activities were restored by the democratic government in 1991.
-In 2006, an updated, consolidated and unified version of labor laws was enacted.
-During the Emergency in 2007-2008 that lasted for 23 months, trade unions and collective bargaining
were prohibited and the determination of collective bargaining agent could not be made.
-However, full trade union activities were restored by the democratic government in 2009.
8

9. Limitations
In Bangladesh Trade Unions have a lot of unavoidable problems:
1. Lack of consciousness: Trade union are not actually completely aware about employees legal
rights and duties.
2. Lack of Unity: In Bangladesh trade unions are separated for political influence.
3. Lack of knowledge: The workers of Bangladesh don’t have enough knowledge about their
rights and duties.
4. Political influence: In Bangladesh, trade unions work a part of political parties not as a free
right saving association.
5. Division of trade union: Bangladesh is a country where every organization has more trade
unions in name only. The overall productivity got down.
9

10. Positive impacts
• Trade union plays a major role in creating ideal working conditions.
• Trade union always helps management to create better policies for workers.
• Trade unions negotiate for the standard wage and benefits with the management.
• Trade union helps the management to 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 produce more and implementing
management tactics.
10

11. Negative impacts
• Trade Unions are creating a surplus of manpower but not of productivity.
• Trade union of Bangladesh bargains more than they understand because of the limitations of
their knowledge. If don’t consult then they strike.
• Trade Unions 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.
• For the power of politics trade union always dishonor the management.
11

12. Present Scenario
Categories Total number of Number of unions Number of members
unions/federations included
National federation 32 1264 1,263,66
Industrial federation 108 721 640,221
Garments federation 15 80 50,14
Basic union 5,242 - 2,069,61
12

13. Suggestions
• 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.
• Organization must support financially as trade unions support the worker.
• Training programs under trade union should be helpful to develop the skills of the workers.
• Trade union’s function should be increased and widened throughout the organization.
• Union leader must be given importance and encourage the members.
• If trust between workers and management increases, productivity increases.
• Management must help and guide trade unions to settle industrial clashes and crisis.
• Trade unions always should demand reasonable thing to the management.
13

14. Conclusion
-The industrial relation system is pre-dominantly confrontational in nature rather than cooperative in
Bangladesh.
-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 promotion of independent trade unions and collective bargaining can contribute to political and
social stability and consequently create more favorable climate for foreign investment.
-Trade unions have an important role to play in settling disputes between workers and management over
wages by way of collective bargaining.
-All the developing countries trade unions were influenced politically, but they used politics to create a
better solution.
-Bangladesh should also start practicing like Japanese trade union which has a single union for single
enterprise. There is no conflict, no unfair means and no strikes in productivity and the growth of the
overall economy.
14

15. Q&A
15

16. Thanks to All…
16