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Scenario of Trade Unions in Bangladesh

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Submitted to:Farhad Hossain

Senior LecturerDepartment of Business Administration

Leading University, Sylhet

Md. Alimuzzaman1201010249

Mahmudul Hasan1201010181

Anjomy Akter1201010072

Masum Hussain1201010202

Zakiatunnessa Uma1201010007

Rabeya Rahman1201010091

Submitted By,

Torch Bearer’s

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Trade Union

Trade union is an organization of workers which is formed to improve the condition of workers in the organization and also for collective bargaining with the management.

It talks about three relationships. They are relationship between the: • Workmen and workmen • Workmen and employers • Employers and employers.

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History of trade union (Contd.)

The predominance of employer-employee relation is associated with rise of modern industry and large production units .The great transformation which ushered in the industrial society began in Great Britain in the latter half of the 18th century. During the 19th century, the movement spread to a dozen of the other countries .

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.

History of Trade Unions (Contd.)

Bangladesh Period (1971-onwards)1. 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.

2. In 1973, the right to strike and lockout, as granted by ILO, 1969 was withdrawn.

3. In 1974 Act completely suspended the democratic rights of workers by prohibiting trade union activities such as strikes, lock-outs, collective bargaining.

4. The military regime of 1975 imposed restrictions on the rights of collective bargaining.

5. The Industrial Relations (Amendment) Ordinance, 1977 liberalized the Rights of Freedom of Association

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History of Trade Unions

6. The Labor Policy of 1980 restored the right to freedom of association to a considerable extent

7. In 1982 the military regime banned trade union activities, strikes, and right of freedom of association.

8. Full trade union activities were restored by the democratic government in 1991.9. In 2006, an updated, consolidated and unified version of labor laws was enacted.10. 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.

11. However, full trade union activities were restored by the democratic government in 2009.

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Scenario of Garment Industry (Contd.)

1. 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.

2. 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.

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Scenario of Garment Industry

3. The history of the garment industry dates back to 1977 when the first consignment was exported to then West Germany by Jewel Garments.

4. Several factors account for the outstanding successes of the RMG industry in Bangladesh. At the same time

5. 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.

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Some cases about accident of garment sectors in Bangladesh (Contd.)

Rana Plaza tragedyThe collapse of an eight-storey garment factory in Rana Plaza on the outskirts of Dhaka on April 24th killed at least 1,135 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.

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Some cases about accident of garment sectors in Bangladesh

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.

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Principles of Trade Unionism

Trade unions function on the basis of three fundamental principles.

• Unity is strength.• Equal pay for equal work or for the same job.• Security of service.

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Features of trade unions

1. It is an organisation formed by employees or workers.

2. It is formed on a continuous basis. It is a permanent body and not a casual or temporary one.

3. It is formed to protect and promote all kinds of interests –economic, political and social-of its members. The dominant interest with which a union is concerned is, however, economic.

4. It includes federations of trade unions also.

5. It achieves its objectives through collective action and group effort

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Objectives of Trade Union

To improve the economic lot of employees by securing for them better wages.

To secure better working conditions for the workers.

To secure bonus for the employees from the profit of the concern,

To resist schemes of the management which reduce employment, e.g., rationalization and automation.

To secure welfare of employees through group schemes which give benefit to every employee.

To protect the interests of employees by taking active participation in the management.

To secure social welfare of the employees.

To secure organizational stability, growth, and leadership.

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Functions of Trade Unions (Contd.)

Militant Functions. One set of activities performed by trade unions leads to the betterment of the position of their members in relation to their employment. The aim of such activities is to ensure adequate wages, secure better conditions of work and employment, get better treatment from employers, etc.

Fraternal Functions. Another set of activities performed by trade unions aims at rendering help to its members in times of need, and improving their efficiency. Trade unions try to foster a spirit of cooperation and promote friendly relations and diffuse education and culture among their members.

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Functions of Trade Unions

Another broad classification of the functions of unions may be as follows

Intra-mural activities. These consist of those functions of the unions that lead to

the betterment of employment conditions such as ensuring adequate wages and

salaries, etc. for which the methods adopted may be collective bargaining,

negotiations, strikes, etc.

Extra-mural activities. These activities help the employees to maintain and

improve their efficiency or productivity, e.g., measures intended to foster a spirit

of cooperation, promote friendly relations, and diffuse education among members

and various other types of welfare measures.

Political activities. Modern trade unions also take up political activities to achieve

their objectives. Such activities may be related to the formation of a political party.

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Motivation to Join Unions (Contd.)

• Greater Bargaining Power. The individual employee possesses very little bargaining

power as compared to that of his employer. If he is not satisfied he can leave the

job.

• Make their Voices Heard. The desire for self-expression is a fundamental human

drive for most people. All the workers wishes to share their feelings, ideas and

opinions with the management to listen to them.

• Minimize Discrimination. The personal relationships existing between the

supervisor and each of his subordinates may influence the management. Thus,

there are chances of favoritisms and discriminations.

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Sense of Security: The employees may join the unions because of their belief

that it is an effective way to secure adequate protection from various types of

hazards.

Sense of Participation: The employees can participate in management of

matters affecting their interests only if they join trade unions.

Sense of Belongingness: Those who are members of a union feel that they

gain respect in the eyes of their fellow workers. They can also discuss their

problem with’ the trade union leaders.

Motivation to Join Unions

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Structure of Trade Unions

Plant level Unions: This comprises the unions in one organization or

factory where only seven members are required to form a union.

Local Level federations. The local trade union federation holds together

the plant level unions at the local level in a particular craft and industry.

Regional level federations. These are the organizations of all the

constituent unions in a particular state or region.

National federations. These are national level bodies to which plant

level unions, local unions or regional level unions may get affiliated.

These are the apex bodies at the top of the structure.

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DemographyBangladesh with 160 million people is listed as the 7th largest country population. 25% of the population is considered urban. 4% of its population is over 65 years of age.

EconomyBangladesh is ranked 47th by GDP and its GDP per Capita is $1300 and is ranked 196th. External debt is $316.7 per $ 1000 GDP.

Poverty and inequalityBangladesh has the 2nd highest % population below $1 a day income in the region after Afghanistan.

Human DevelopmentHuman Development Report (2014) ranked Bangladesh 142 among 177 countries which is consistent with medium human development.

Bangladesh at a glance

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1. Active Labor force is estimated at 58 million (aged 15 and over) with 38% women of total workforce.

2. Youth (aged 15–29) account for 41 per cent of the working-age population.

3. The unemployment rates are higher among females (7 per cent) and youth (8.1 per cent).

4. By sector, agriculture accounts for 48.1 per cent of employment, services account for 37.4 per cent and manufacturing and other industries account for 14.5 per cent.

5. The population growth rate 1.48% and estimated literacy rate is 56%6. GDP growth rate 6.2% and rate inflation 1.6%7. Only 28 per cent of workers had a written contract or appointment

card.

Labour force of Bangladesh

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Trade union movement started in Bangladesh early 19th century when modern industrial concept entered into the sub-continent

Trade union plays a significant role to protect workers rights in Bangladesh Trade union rights are not adequately protected in Law/Employers are not

respected Labour Law or Trade Union Rights

The Bangladesh constitution provides for freedom of association; in order to register

- Unions must at least 30% of the workers representation of an enterprise

- Must obtain authorization from the government- The Registrar may also cancel the registration with Labour Court approval

Trade union situation in Bangladesh (Contd.)

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Trade union situation in Bangladesh (Contd.) In general, only current employees can be union members, which mean that

the loss of a job also leads to the loss of union membership The trade unions are very strong in Bangladesh, although only 3.5 percent of

the workforce is unionized, but most of the unions are limited to the public sector or state-controlled enterprises.

The private sector is less unionized and trade unions are practically banned from the Export Processing Zones (EPZ), as the EPZ is exempted from certain labor laws.

About 1.8 million of the country's workers belong to unions, out of a total workforce of approximately 58 million.

Most of the federations are financially weak and don't have in-house development programmes for the activists. Education level of the workers are not in a satisfactory level. Offices are not equipped with modern communication system.

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There are three tier structure of trade union in BangladeshBasic Union: This is the main union formed by the direct participation of the workers Grass root level.

Industrial Federation: It is the body of unions from the same industrial sector. It deals with common problems and demands of the sector. Basic unions within the sector are its members.

National Federation: National Trade Union federation consists of basic unions irrespective

of job categories. Total number of registered trade unions in Bangladesh

Trade union structure

Categories Total number of unions/federations

Number of unions included

Number of members

Basic union 5,242 - 2,069,614

Industrial federation 108 721 640,221

Garments federation 26 80 50,149

National federation 32 1,264 1,263,665

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Membership Potential membership : 57,100Actual membership : 52,800Thereof women : 17,277

Baseline information on membershipTextile: Male : 29,120 Female : 1,605Garments: Male : 6,403 Female : 14,147Home workers: Male : - Female : 1,525 

Gender distribution in decision-making structure (female Percentage) Federal level 16%Union level 10%Branch level 3% – 5%

Bangladesh textile & garment workers

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Bangladesh has ratified almost all ILO conventions related to human fundamental needs except conventions 138.

Although Bangladesh has not yet ratified conventions 138, but government has already formed a committee to make a door to ratify the convention

The convention 187 has yet to ratify by the Government of Bangladesh Bangladesh Textile & Garment Workers League having a long journey to

push government for ratification of convention 29, 182 The trade union is continuing its pressure to ratify 138 & 187 to uphold the

labour standard in the country

ILO conventions

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Eight Core Rights (ILO)

1. Forced on Compulsory Labour.2. Freedom of Association.3. Right for Collective Bargaining.4. Equal Remuneration.5. Abolition of Forced Labour.6. Discrimination in Employment.7. Minimum Age for Employment.8. Worst forms of Child Labour Convention.

Problems & weaknesses of Trade Unions (Contd.)

Uneven Growth. The trade unionism in Bangladesh is characterized by uneven

growth, both industry-wise and area-wise.

Limited Membership. The number of trade unions in Bangladesh has increased

considerably. But this has been followed by the declining membership per union.

Indifferent Attitude of Workers. The attendance at the general meetings of the

unions is very low. Under such circumstance, trade unionism cannot be expected to

make much progress.

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Problems & weaknesses of Trade Unions

Outside Leadership: Outsiders (politicians, intellectuals and professionals ) who

have no experience of work in industry continue to dominate the trade unions to

advance their personal interests.

Financial Problems. The financial position of the trade unions is weak because

their average yearly income is very low and inadequate.

Multiplicity of Unions. There exist several trade unions in the same establishment.

The multiplicity of unions is the result of outside leadership and labour laws.

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Criticism of Trade Unions

Lack of education makes the workers narrow-minded, and prevents them from

taking long-term views.

Trade unions may not welcome rationalization and improved methods of

production for the fear of losing job.

When labor unions strike because of illogical grounds, incalculable losses occur

to producers, community and the nation.

They create artificial scarcity of labor by demanding that only union personnel

should be employed.

By undue insistence on the payment of standard rates of wages, they have only

leveled down the earnings of the efficient workers.

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Suggestions for the development Unions (Contd.)

• One Union in One Industry: There should be only one union in

one industry otherwise multiplicity of unions may weakens the

power for collective bargaining.

• Paid Union Officials: Paid union officials should be employed

who are persons of proven integrity.

• Development of Leadership from Within: Leadership should be

developed from within the rank and file of the workers.

• Recognition of Trade Unions. Till now, the employers refused

recognition of the trade unions.

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Suggestions for the development Unions

1. Strengthening bilateral collective bargaining for solving problems.2. Multiplicity of trade union creates the rivals in a union.3. Political involvement must be reduced.4. Organization must support financially as trade unions support the

worker.5. Training programs under trade union can be helpful to develop the

skills.6. Trade union’s function should be increased and widened.7. Union leader must be given importance and encourage the members.8. If trust between workers and management increases, productivity

increases.9. Management must help and guide trade unions to settle industrial

clashes.10. Trade unions always should demand reasonable thing to the

management.

Conclusion

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.-Trade unions have an important role to play in settling disputes between workers and management over wages by way of collective bargaining.-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.

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