Industry Visit Report of Coast to coast (pvt). ltd

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4 Introduction: Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management). Industrial relations is a multidisciplinary field that studies the employment relationship. Industrial relations is increasingly being called employment relations or employee relations because of the importance of non-industrial employment relationships; this move is sometimes seen as further broadening of the human resource management trend. Indeed, some authors now define human resource management as synonymous with employee relations . Other authors see employee relations as dealing only with non-unionized workers, whereas labor relations are seen as dealing with unionized workers. Industrial relations studies examine various employment situations, not just ones with a unionized workforce. However, according to Bruce E. Kaufman "To a large degree, most scholars regard trade unionism, collective bargaining and labor management relations, and the national labor policy and labor law within which they are embedded, as the core subjects of the field. Brief history of the Company: The three enterprising entrepreneur set up Coast to Coast as a private limited company in 1992. Over the years it has excelled in developing its human resource to produce quality woven and knit garments. Today Coast to Coast is recognized as one of the outstanding factories in Bangladesh exporting to large institutions in USA. The vision of Coast to Coast is clearly defined to contribute to community development through its consistent effort in developing and providing economic security of the human resources employed in the company Legal Status: Private Company with Limited Liability. Board of Directors: 1. ASHRAF UZ ZAMAN (SHIRAJ) Chairman and Managing Director 2. SYED IBNE ABBAS Director 3. H.M.MAZHARUL ISLAM Director, Administration and Compliance Name of Factories: 1. COAST TO COAST APPARELS LTD. 2. COAST TO COAST FASHION LTD. 3. COAST TO COAST (PVT) LTD. 4. ATHLETIC SUPPORT LTD.

Transcript of Industry Visit Report of Coast to coast (pvt). ltd

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Introduction:

Industrial relations has become one of the most delicate and complex problems of modernindustrial society. Industrial progress is impossible without cooperation of labors andharmonious relationships. Therefore, it is in the interest of all to create and maintain goodrelations between employees (labor) and employers (management).

Industrial relations is a multidisciplinary field that studies the employment relationship.Industrial relations is increasingly being called employment relations or employee relationsbecause of the importance of non-industrial employment relationships; this move is sometimesseen as further broadening of the human resource management trend. Indeed, some authors nowdefine human resource management as synonymous with employee relations. Other authors seeemployee relations as dealing only with non-unionized workers, whereas labor relations are seenas dealing with unionized workers. Industrial relations studies examine various employmentsituations, not just ones with a unionized workforce. However, according to Bruce E. Kaufman"To a large degree, most scholars regard trade unionism, collective bargaining and labormanagement relations, and the national labor policy and labor law within which they areembedded, as the core subjects of the field.

Brief history of the Company:

The three enterprising entrepreneur set up Coast to Coast as a private limited company in1992. Over the years it has excelled in developing its human resource to produce qualitywoven and knit garments.Today Coast to Coast is recognized as one of the outstanding factories in Bangladeshexporting to large institutions in USA.The vision of Coast to Coast is clearly defined to contribute to community developmentthrough its consistent effort in developing and providing economic security of the humanresources employed in the company

Legal Status: Private Company with Limited Liability.

Board of Directors:

1. ASHRAF UZ ZAMAN (SHIRAJ) – Chairman and Managing Director2. SYED IBNE ABBAS – Director3. H.M.MAZHARUL ISLAM – Director, Administration and Compliance

Name of Factories:

1. COAST TO COAST APPARELS LTD.2. COAST TO COAST FASHION LTD.3. COAST TO COAST (PVT) LTD.4. ATHLETIC SUPPORT LTD.

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Address of the Factories:

Village Itahata, Union Bason, Mouja 35 (Chandana), Gazipur Sadar, Gazipur.

Type of business: 100% Export oriented Garments Manufacturer & Exporter.

Number of machines: 2400 Machines in Operation.

Number of workers: 4800.

PRODUCTS:

Jog Suit, Warm Up Jacket, Warm Up Pant, Vest, Cargo Shorts, Board Short, Swim Short, T-Shirt, Polo Shirt, etc. [specialty in woven light weight garments (Microfiber, Taffeta), WarpKnit, Cotton Pant & Fleece Sherpa Jacket, Trench Coat]

MONTHLY PRODUCTION CAPACITY:

Jacket/trench coat - 25000 to 30000 dozen.

Pant/short - 50000 to 60000 dozen.

Tee shirt/polo shirt- 70000 to 80,000 dozen.

BUYERS:Sears, K-Mart, Paradies, Bodek & Rhodes, Belk Store, K&G, Value City, Meijers, Costco,Burlington, Shopko, Bass Pro Shop, Saks, Reebok, Casual Male, Haband, Federated Stores,Tema, Regatta.

CERTIFICATIONS:We are certified by wrap approvals. we are also approved by c-tpat and

Lafuma annual Turn over: USD 30 million.

Industrial Visit at Coast To Coast (Pvt) Ltd.:

During the visit, the day started with the presentation of HR Department (Human ResourceDepartment) of Coast To Coast (Pvt) Ltd. Highlighting mainly the growth, status,accomplishments, future projects, achievements and key milestones of the company. Althoughthe company specializes in manufacturing almost every possible dosage forms starting from theirproducts variation. Apart from this department, I had the opportunity to visit differentdepartment and sections of the industry like- Production Unit, Quality Control, QualityAssurance, Dispensing, Manufacturing, Packaging, Warehouse sections etc. Additionally, theyhad the opportunity to watch the manufacturing products.

All the products of the plant are manufactured as per the regulatory guidelines of FAM. The

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various large-scale RMG manufacturing products and their applications were also keenlyobserved by us. This enabled correlate their theory with practical application in RMGmanufacturing field. The officials at Coast To Coast (Pvt) Ltd. were also very impressed with thecuriosity of students to learn the subject. They tried to answer every question that we had asked.I was very happy and felt enriched after visiting the manufacturing plant.The purpose of organizing these visits is to make us get an idea about the industrial work andmanufacturing process from a practical point of view. It also helps us to make our studiesinteresting as we can observe the things we study from our theory books.

Concept of Industrial Relations:

The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry”refers to “any productive activity in which an individual or a group of individuals is/areengaged”. By “relations” we mean “the relationships that exist within the industry between theemployer and his workmen.” The term industrial relations explains the relationship betweenemployees and management which stem directly or indirectly from union-employerrelationship.

Industrial relations are the relationships between employees and employers within theorganizational settings. The field of industrial relations looks at the relationship betweenmanagement and workers, particularly groups of workers represented by a union. Industrialrelations are basically the interactions between employers, employees and the government, andthe institutions and associations through which such interactions are mediated.

The term industrial relations has a broad as well as a narrow outlook. Originally, industrialrelations were broadly defined to include the relationships and interactions between employersand employees. From this perspective, industrial relations cover all aspects of the employmentrelationship, including human resource management, employee relations, and union-management (or labor) relations. Now its meaning has become more specific and restricted.Accordingly, industrial relations pertains to the study and practice of collective bargaining, tradeunionism, and labor-management relations, while human resource management is a separate,largely distinct field that deals with nonunion employment relationships and the personnelpractices and policies of employers.

Introduction to Industrial Relation at Coast To Coast (Pvt.) Ltd.:

The relationship between employer and employee or trade unions is called Industrial Relation(IR). Harmonious relationship is necessary for both employers and employees to safeguard theinterests of both parties of the production. In order to maintain good relationship with theemployees, the main functions of Coast To Coast (Pvt) Ltd. avoiding any dispute with them orsettle it as early as possible so as to ensure industrial peace and higher productivity.

IR is also concerned with determination of wages and conditions of employment. Industrialrelations and human relations are distinctly two indispensable factors in RMG industry, onedepending on the other. Coast To Coast (Pvt) Ltd. have good industrial relations in a RMG

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industry. Good industrial relations provide the necessary background for human relations. In anyundertaking, good relations between the management and workers depend upon the degree ofmutual confidence which can be established. This, in turn, depends upon the recognition by theemployees of the goodwill and integrity of the management in the day-to-day handling ofquestions, which are of mutual concern. The first requisite for the development of good industrialrelations is a good labor policy. The aim of such a policy Coast To Coast (Pvt) Ltd. secured thebest possible co-operation of the employees.

Coast To Coast (Pvt) Ltd. have to establish industrial peace; their workers must be assured of fairwages, good conditions of work, responsible working, holidays and minimum facilities of life.The objectives of good industrial relations should be the development and progress of industrythrough democratic methods, stability, total well-being and happiness of the workers, andindustrial peace. Hence, industrial peace is the fruit of good industrial relations.

Employee Involvement & participation:

Provident Fund: Contribution made by the company on monthly basis in separate PF trustaccount. A separate trustee Board is maintained as per PF Act.

Gratuity Fund: Terms and conditions for Gratuity Entitlement (A separate trustee Board ismaintained) as per gratuity Act.

Phone Policy: Only authorized employees shall be entitles to use mobile phone. The Mobilephone set price limit & credit limit of mobile phone usage shall be fixed by the management. Incase of hijacked / lost/ theft first time 50% further purchasing cost will be borne by the users andfor the second time or more full cost. Excess usage of credit limit shall be paid by the user. Inmanufacturing/working space worker can’t use their mobile phone.

Company Car Scheme / Pick Drop Service:

For Corporate Office, Distribution & Factory: Full time vehicle facility is limited toDepartmental Full-Fledged Manager to above only.

Performance / Production Bonus:

Incentive/ performance bonus: As decided by management.

Festival Bonus:

Entitlement: Minimum six months service period entitled half of monthly gross salary. Oncompletion of one year of service, one month gross salary is payable as bonus on.

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Group Life Insurance Policy:

Group life insurance covers the lives of multiple persons such as some or all employees of acompany. Depending on the group life insurance policy, the insured person may receive lifeinsurance coverage as an employee benefit, make a contribution to pay part of the cost, or maypay for the group life insurance policy on their own. As per Section-99, Bangladesh Labor Code-2006, HR & Admin and Accounts are responsible to bring all the employees under group lifeInsurance Policy.

Canteen Facilities:

Canteen facilities will be as per section-92, Bangladesh Labor Code-2006.

WPPF & WF Facilities.

The workers participation of Company profits will be as per Bangladesh Labor code-2006.

Medical Facilities:

As per section- 150 & 151, and schedule- 05 of Bangladesh Labor Code-2006.For Manager & Above: Company will reimburse medical benefits at actual of self, wife and twochildren only.

Day Care Center:

Day care facility of their children for every employees/workers.

Security, Health and Safety:

Coast To Coast (Pvt) Ltd. shall take all such steps as prescribed by the Regulations made underthe Labour Act, 2006 and as amended in order to ensure the health, safety and welfare of all theemployees.

Objectives:

To prevent all downgrading incidents, which could result in personal injuries, fire,property damage and waste, and to create and maintain a safe and healthy workingenvironment for all our employees;

To promote and maintain the highest possible degree of mental and social well being ofall our employees;

To promote and maintain good working conditions so as to safeguard our employeesagainst injuries and occupational health and safety hazards, and to conduct our operationswith due consideration to the protection of the environment;

To train employees at the workplace so that they are well equipped to participate fully inthe identification, reporting and management of unsafe acts and conditions;

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To strive for maximum employee participation in creating a healthy and safe workingenvironment at all hierarchical levels through effective communication.

Management shall:

At all times provide the correct attitude for safety consciousness and leadership; Supply materials, tools and all requirements for safe practices and operations, within

reasonable limits; Encourage all employees at all levels within SBCGT to make suggestions for the

improvement of health and safety, through the appropriate managers, and supervisors. Publicize, praise and criticize safety practices and initiatives wherever warranted.

Security:

A number of measures are in place to ensure adequate security around the office. The entrance tothe premises is guarded round the clock.The doors to the building as well as those of individual offices are locked after working hours.Staff members expecting to work late or over the weekend should obtain a key and an authorityto operate the security locking system from the Finance and Administration ManagerStaff members working after hours should ensure that all the windows are closed and the lightsturned off before leaving. No money or valuables should be left unattended. The insurance forthe building does not cover personal property.

First Aid:

Coast To Coast (Pvt) Ltd. will provide a first aid kid and ensure that at least two staff membersare trained on how to use the aid adequate.

Visitors:

All visitors should report to the reception and entrance is not permitted directly to anydepartment until approval from the concern.

Smoking:

Smoking shall not be allowed inside the building. All employees are urged to make sure thattheir visitors adhere to this.

Emergencies:

In the event of an emergency, e.g. Fire: raise the alarm inform the relevant authority e.g. in the case of fire, inform the Fire Brigade or the Police

explaining what kind of fire it is; disconnect all machinery and close all the windows;

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Evacuate the building.

If the situation is life threatening; Raise the alarm; Evacuate the building immediately.

Collective Bargaining Activities:

Collective bargaining is the oldest form of labor management negotiation in the industrialrelations in Bangladesh. Because of the doctrine of multiple union systems the practice has beendeveloped to select a Collective Bargaining Agent (CBA) from among the registeredunions in an enterprise or group of enterprises to undertake collective bargaining withthe employer on behalf of the workers in that enterprise or group of enterprises. The mainactivities of CBA are as follows:

1. to undertake collective bargaining with the employer or employees on mattersconnected with employment, non-employment, terms of employment or theconditions of work

2. to represent all or any of the workmen in, any proceedings;3. to give notice of and declare a strike in accordance with the provisions of law;4. to nominate representatives of workmen on the board of trustees of any welfare ininstitution or provident fund and of the workers’ participation fund.

In any enterprise if there is only one registered union with membership, equivalent to a minimumof one third of the total number of workers employed in an enterprise, that union is, legallyauthorized to work as the CBA without any election. But in case, if there exist morethan one legal union, a CBA is elected from among those unions on the basis of secretballoting under the supervision of the Registrar of Trade Unions. It is stipulated in the law thata union even if it wins in the balloting cannot be declared as the CBA, unless votescastled in its favor amount to at least one third of the total number of workers employed inthat enterprise or group of enterprise

Collective Bargaining Process:

1. 1dentification of the problem: Problem identification influences whole process. Whetherthe problem is very important that is to be cussed immediately or it can bepostponed for some other convenient e or whether the problem is a minor oneso that it can be solved with the other party's acceptance on its presentationand does fluencies following the long process of collective bargaining, etc. It alsoinfluences the selection of represent actives, their size, and period of negotiations andperiod of agreement that is reached ultimately. As such it is important for other theparties to be clear about the problem before entering into the negotiations.

2. Preparing for negotiations: If collective bargaining is deemed essential, both the partiesprepare themselves for negotiation s. The preparation starts with selection of

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representatives. Such representatives should be selected who can carry out negotiationswith patience and sincerity and can present their views effectively. After selection theyshould be educated about the complete problem. Their power and authority duringnegotiations also should beck early spelt out. Other preparations include fixing up timefor negotiations, period of negotiations, etc. But once the parties enter into negotiationsthe period of negotiations may vary depending upon circumstances.

3. Negotiation of agreement: Negotiation usually begins with the union delivering tomanagement a long list of demands. By initiating with the union creates significant roomfor trade off in the later stages of the negotiation. It also disguises the union realposition, leaving it to management to try to figure out which demand isadamant sought, which are moderately sought and which the union is prepared toquickly abandon.

4. Implementation of the contract: Once a contract is agreed upon and ratified, it thenmust be implemented. The agreement can be made on a temporary basis. In such cases,before its expiry both parties consult each other and can terminate or renew theagreement depending upon the circumstances. The union may always demand therenewel of such agreements, which benefit workers before their expiry, management, onthe other hand, may reject this demand taking the financial position of the organizationinto consideration. As a result, this may again lead to negotiations. As such, collectivebargaining is not a temporary accommodation but is a continuous process

Disciplinary Procedure:

All employees are subject to disciplinary measures and liable of different penalties based on thedegree of infringements of company’s policies, dereliction of duty, and breach of contract,indiscipline, misconduct and breach of code of conduct.

Misconducts:

The following acts and omissions shall be treated as 'Misconduct'-

1. Disobedience to any lawful or reasonable orders of a superior, whether alone or alongwith others.2. Theft, fraud, dishonesty and misappropriation of company's cash money / property.3. Damage to or loss of company's goods or property and misappropriation of Company’sfund.4. Habitual late attendance, early leaving of office or returning late from lunch break.5. Absence from duty without permission for more than 10 days at a time.6. Drunkenness, gambling, riotous, disorderly or indecent behaviour while on duty.7. Collection of money within office premises for any purpose.9. Holding of any kind of meeting within the office premises within or beyond officehours without prior permission of the authority in writing.10. Leaving of work without permission, disappearance from the desk or place of workwithout permission during duty hours.

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11. Unauthorized use of company's property.12. Neglect of work.16. Threatening or intimidating any officer within or outside the office premises.17. Taking or giving bribes or any illegal gratification.18. Lending to or borrowing money from a subordinate officer/corporate staff.19. Accepting gifts from subordinate officer/corporate staff.20. Frequent repetition of any act or omissions as mentioned in the above.21. Making false and misleading statements.

Disciplinary Action/Procedure for punishment:

1. The officer concerned has been informed in writing of the charge (s) leveled againsthim.

2. He is given not less than 7 days time to explain his conduct.3. An enquiry is conducted to enquire into the charge(s), if the explanation is not found

acceptable to the management.4. At the time of the enquiry, witnesses are examined in presence of the charge-sheeted

officers in respect of the charges.5. He is given all opportunities of self-defense including the right of cross-examination

and examining himself and other witnesses in his defense.6. The enquiry officer/committee records his/their findings with reasons for the same.7. In case of punishment, a copy of the order inflicting such punishment shall be supplied

to the officers concerned.8. If an officer refuses to accept any notice, letter, charge-sheet, order or any other

document addressed to him by the employer it shall be deemed that it has beendelivered to him if a copy of the same has been exhibited on the notice board andanother copy has been sent to the address of the officer, as available from the recordsof the employer by registered post.

9. An officer may be dismissed from service without prior notice or pay in lieu thereof orany compensation if he is convicted for an offence by a court of law or if he is foundguilty of misconduct.

Critical Observation and Recommendation:

During the period of our visit at Coast To Coast (Pvt) Ltd., we found some critical areas

of the Company while working with them. We took these observations into consideration and

Suggested some recommendations to the Coast To Coast (Pvt) Ltd. authorities so that they

aware of a thirds person’s point of view, which they might want to work with in the

near future to bring about some improvements in their working areas.

Observation 1: Standardized facilities for factory workers

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During our visit to the factory and as per our discussion with the Operations supervisor,

we found out that the factory workers are provided with safety and medical facilities.

However after much analysis, we figured out that such facilities provided to the workers

are similar irrespective of the kind of work that each of these workers was associated

with. We feel that this may not be helpful for the workers. As there are a number of stages

involved in the production process of dresses, each of these stages also involves different

type of works which involves different type of risks, thus following a set of standard

facilities to workers that may not be very helpful.

Recommendation:

We have mentioned this issue to the concerned authorities when we were informed that

the authorities responsible for these areas are already working out ways to provide

different kind of medical, health and security facilitations to their factory workers depending on

the nature of their work. For an example, the person responsible for color testing does not

require a medical/health benefit like that similar to a worker involved in mixing the

color in the factory. I had participated in a small meeting which was held to discuss on these

issues.

Observation 2: Working environment in the factory

During our visit in the factory , I noticed that the working environment in the factory is

actually quite organized. The factory workers also seem to be happy with the condition of their

work environment. However, a very minor matter caught our attention. In RMG factory, they

produce lots of garments products. At that time they cut lots of cloth and they throw unused part

in floor and for this obvious reason, there is a lot of dust everywhere around the factory.

Although it is an observation of a couple of hours but however, I noticed some of the

factory workers having serious coughing problems while loading.

Recommendation 2:

To deal this with this situation, we suggested a very simple idea to the Operations manager

Of the company. From my memory of watching a part of an advertisement of a foreign

RMG company. We suggested the factory supervisor to provide the workers, especially the ones

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who are likely to have health issues with face masks. These masks are not only widely

available but are also very affordable and useful to prevent oneself from dust. We

also discussed about this issue with one of the HR Manager and suggested him to

implement and add this point to the code of conduct or to the policies of that of the

factory workers.

Observation 3: Absence of Recognition programs for the employees

I noticed that although the working environment of the factory is very pleasant and the

employees are satisfied with their pay and the facilities that the company provides for them,

however we observed that there was an absence of recognition programs for the employees. It is

very important for the employer of an organization to recognize the efforts of an employee and

appreciate his work. This not only helps to improve the relationship between employers and an

employee but it also helps an employee to understand the pace of his work compared to that of

his co-workers. In this way the employees will also be more satisfied with their jobs and

ultimately, it will be beneficial for the organization in terms of high productivity. Skills and

performance based performance appraisal programs should also be introduced in the

organization.

Recommendation 3:

Their HR department is in the growth stage and they are open to new ideas to improve their

department. We suggested their HR manager to introduce some programs for their employees

that would recognize their efforts and hence they will be rewarded for their performance.

This is most likely to motivate the employees to work harder which would result to an increase

in productivity of the company. Such programs should be introduced not only in the

corporate office of Coast To Coast but also in their factories. Employees and workers may

be rewarded for meeting a target, small crests or certificates could be given to rank the best

employee/factory worker of the month etc.

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Conclusion:

This close interaction benefited us as we were able to gain a lot of knowledge about the

company and the industry by observing, performing the tasks that we were assigned to

and by working with the employees of Coast To Coast (Pvt) Ltd. We feel that the size of the

company and our exposure to all the departments of the company actually helped me to

gain an overall idea of the operations of the company and the industry in Bangladesh.

Our visit to the factory of the company and to the engineer’s and the Mason’s meetings were

also very interesting where we gained some practical knowledge.

The RMG industry is one of the promising industries of the country. There is a huge room for

growth of this industry in Bangladesh in the near future. As a result, We feel that a lot

of students can actually think of building their career with the RMG sectors of the country.

We would be glad to contribute as well if given a chance as this industry not only promises to

build people’s homes but also contribute to the overall development of the country.

Reference:

1. Company profile from www.slideshare.net2.