Problems & prospects of trade union in Bangladesh

Date of Submission: 14.10.2015

Course name – Industrial law

Course code- 209

Present Scenario of Trade union in Bangladesh and Its Problems and Prospects

Submitted ToEthica Tanjin

Assistant professorDepartment of management studies

University of Dhaka

Submitted ByGroup 11

Department of Management Studies 20th Batch

University of Dhaka

Group Profile-11

SL NO NAME ID NO01 Atoshi Borna Podder 26002 Fakrul amin siddiqui 11703 Mariya koly 14404 Selim Joarder 17705 Saddan shan 12906 Shovon Raj 21107 LailaHamda 132

Letter of Transmittal

04th July 2015

Ethica jahan

Assistant Professor

Department of Management Studies,

University of Dhaka,

Dear Madam,

It is honor and great pleasure for us to present our Project Report on “problems & prospects of trade union of 2015-16”This report was assigned to us as a partial requirement of the “problems & prospects of trade union” (course-209) in the 4thsemester.

The project program was an experience of rediscovering our potentials and full excitements. This report has given us an opportunity to apply our theoretical expertise, sharpen our views, ideas, and skills, and bridge them with the real world of practical experience.During the preparation of the report we faced some problems that have been erased out with your profound lecture and assistance. Without your cooperation and guidelines this report would have been an incomplete one.

Finally, thank you for your supportive thought and kind consideration for formulating an idea.

Lastly we would be thankful once again if you please give your judicious advice or our effort.

Sincerely yours,………………………….…………………………Atoshi Borna podderOn behalf of………Department of Management StudiesSection-B20th Batch University of Dhaka

Executive Summary

During the past three decades, the garments factory has developed from a virtually nonexistent industry to a large and open industry. This fast growing economy coupled with the largest population in the world, rising personal income, and economic system reform could not only explain the rapid growth of garments factory, but also foretell the increasing importance of Bangladeshi’s garments sector in the future.

Garments sector is based on the works of the workers. Most of the workers in our country are illiterate. They are not aware of their right. But day by day their concern about their rights is developing. Now they have a trade union. Through this they can demand their rights. This is the legal & transparent way to do achieve their rights.

After the collapse 2013, the foreign buyers of our company are more concern about this sector, about the safety of the workers, about the work environment & others which are related to the workers.

But the major concern is that, after the investigation we have found out that in the most of the cases the trade union is not used in the concerned issues. Sometime, it takes illegal ways, sometimes it is only used for the personal interest. But it is not expected. In the investigation we have found out that some garments factory got closed because of the conspiracy of the trade union people.

Acknowledgements

We take this opportunity to express our profound gratitude and deep regards to our guide Ethica Tanjin for his exemplary guidance, monitoring and constant encouragement throughout the course of this study. The blessing, help and guidance given by her time to time shall carry us a long way in the journey of life on which we are about to embark.

We also take this opportunity to express a deep sense of gratitude to Md. S.A. Shikder, Lyric Garments Factory, for his/her cordial support, valuable information and guidance, which helped us in completing this task through various stages.

We are grateful to other respondents for the valuable information provided by them in their respective fields. We are grateful for their cooperation during the period of survey.

Lastly, we thank almighty, our classmates and friends for their constant encouragement without which this report would not be possible.

Group 10

Table Of contents

Chapter Name Subject

Chapter one

1.1Origin of the report

In BBA program along with other courses ‘Industrial law’ is a compulsory course. While studying this course we realized the only academic knowledge is not sufficient for acquire efficiency and skill in Insurance. So we have been given a “Term paper” to prepare by our honorable course conductor to apply our academic knowledge practically. This reportis also aimed at increasing the student’ capability to managing and arranging their knowledge in a formal recognized way. In the way of preparing this ‘term paper’ we have extracted knowledge from insurance business. The overall process would help students to be skilled and to make themselves potential human resources to work in insurance sector. To prepare this we had to visit an industry which has helped us to make practical knowledge & practical

1.2 Specific objectives

Broad objectives

To understand the problems, propects & current situations in Bangladesh.

Specific objectives

1. To observe what are the current scenario of trade union?

2. Why trade unions are necessary for the workers & employers?3. How the situations of the trade unions can be developed?4. To gather practical knowledge on insurance5. To make some recommendations to the problems of insurance in Bangladesh.

1.3 Scope of the study

There were huge scopes to work in the area of this Report. Considering the dead line, and exposure of the paper has been wide-ranging. The study “Problems and Prospects of Trade union Business in Bangladesh” has covered overall scenario of problems and prospects of trade union industry in Bangladesh. It has measured the living standard of mass people. We have a chance to work on the financial sector used in modern economic world. By doing the report, we are able to know that the importance of trade union in case of the garments sector. In the report we have showed how the trade union face the problems and how they can overcome the problems in Bangladesh. And what will be the position of the trade union in nearby decades.

1.4 Methodology

To prepare this report, standard methods of report writing have been used. Required information has been collected from both primary and secondary sources.

1.4(a)Primary data

Primary data was collected through business executive interview with a structured questionnaire. The questionnaire comprises 15 questions of which most of them are open-ended. We had only 1 respondent. After editing the data, these were sorted into different categories.

1.4(b)Secondary information

The sources of secondary information include relevant books, journals, newspapers, web address and annual reports of some insurance companies and so on.

1. Different documents of the companies & central trade union.2. Website.

1.4(c)Time Period:

We have taken three weeks to prepare the report.

1.5 Limitations of the Study

Preparing the term paper we have faced some obstructions which are

1. Lack of necessary information in the journals and official publication of the trade unions.

2. Lack of proper information in the websites.

3. Inexperience and time constraint is the limitation restricting this report from being more detailed.

4. Secondary data has been collected from the hand books, magazines, whichmay biased to the insurance business.

5. Lack of co-operation of the officer of the company.

6. Lack of transperancy of the officer to the public.

Questionnaire

1.Do you have any trade union?

Ans: A) Yes B) No

2.Why is the cause to create trade union?

Ans: Trade union is mainly created for maintaining or improving the conditions of their employment. It also works as a bargaining agent. Besides these, it works to achieve some goals such as protecting the integrity of trade, ensuring improved healthcare condition, safety and also higher payment benefit and ultimately for better working condition.

3.What are the facilities of trade union in case of owner and the workers?

Ans: : Both parties, owners and workers get benefit from trade union.

Owner’s facilities:

a) For better negotiation process, the owners can deal with the head of labor union for workforce more efficiently not to talk with multiple workers.

b) If the owners deals with trade union, the employees satisfied as the leader raise their voice to speak with the employer for ensuring higher wages and better benefit package on favor of workers.

c) When the employers and trade union works together, it is easy to facilitate changing positive environment easier as all of the concerned parties are on the same and right track.

Workers facilities:

a) To negotiate a better payment and working hour facilities.b) To ensure healthcare facilities and working environment by pressurizing the employer.c) To get advice support, welfare support and financial support from trade unions.

4.What is the proportion of men & women in the trade union?

Ans: If there are more than 20% workers, there will be selected one female member among six members of the trade union.

5.When the membership is discarded of a member?

Ans: The membership will be discarded when he or she involves in-

a) Unfair activitiesb) Violate the rules of trade union

c)Disqualification

6.What are the disqualifications of being a member?

Answer: the required qualifications which are assigned by the trade union if any member don’t possess such as leadership power, will be disqualified for being a member.

7.Have you any register book?

A) Yes B) No

8.How do you maintain the register book?

Answer: we maintain the register book according to the provision of industrial act.

9. What are the problems of trade union?

Answer: the followings are the problems of trade union-

a) Lack of efficient leadersb) Shortage of adequate financial fundc) Political influencesd) Employers opposition

10.Do they demand anything unfair through the trade union?

Answer: sometimes the leader of the trade union demanded money illegally for their own interest from the owners.

11.How does the company sort out?

Answer: when the mutual understanding between workers and owners keep very well, then the production power of the organization increases which increases profit.

12.How do you select your bargaining agent?

Answer: the following is the process of selecting bargaining agent-

a) By casting a secret ballot among the union members.b) Bargaining with a joint committeec) Bargaining with negotiation committee which consists of selected representatives from every department.

13.Does the collective bargaining agent take any illegal actions in maintaining representatives in case of the workers and officers?

A) No B) Yes

14.Are you satisfied with your trade union? If not, then why?

Answer: I, including with other owners is not satisfied about trade union because of-a) Misuse of powerb) Uneducated leadersc) Misguiding workersd) Instigating employer in a silly mattere) Preferring own interest rather than organizational interest.

15.What is about the relationship among the workers, officers and the trade union?

Answer: Not so well, but as the environment of trade union is improving because of joining of educated leaders, if this change increases day by day, ultimately the relationship among those people will be milestone for the organization to gain the organizational ultimate goal, that means production maximization which leads to profit maximization.

1.6 Various Problems we face:

There are several problems we face described below:

1. At first we tried to take a conversation with the workers. But we failed because of the embargo of the officers to do this. After that we were obliged to talk with the selected officer.

2. They were not so eager to share their information with us. When we promised that we will do this confidentially, then they agreed to talk with us.

Chapter two

2.1 Literature review

2.2 Trade union’s Definition

An organization whose membership consists of workers and union leaders, united to protect and promote their common interest. Trade union is an organization of employers formed in a continuous basis for the purpose of securing diverse rate of  benefits. It is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives .A trade union can be seen as a group of employees. The principal purposes of labor union are to

(1) Negotiate wages and working condition terms,

(2) Regulaterelations between workers (its members) and the employer,

(3) Take collective actions to enforce the enforce the terms of collectivebargaining,

(4) Raise new demands on behalf of its members, and

(5)Help settle their grievances. A trade union may be :

(a) A company union that represents interest of only one company and may not have any connection with other unions. Also called a house union, a company union is often a bogus one and generally illegal.

(b) A general union that represents workers from several companies in the same industry. Also called Indusrial union.

(c) A craft union that represents skilled workers in a particular field such as carpentry or welding. Trade Union Movement in Bangladesh: Issues, Agenda and Legislation

Background of the trade union in BnagladeshTrade Union Movement in Bangladesh has very long past. The beginning of labour agitation in India was in Bengal. In 1860 in Bengal a noted dramatics and social reform Dinbandhu Mitra along with some of his journalist friends protested the inhuman working condition and hardship of cultivation workers. This was beginning of  labour movement. The first Factory commission was, thereafter, appointed in 1875 and as a result the Factories Act,1881 was enacted. But this Act did not reflect the aspiration of workers. There was no provision about child labour and women workers. Another Factory Commission was appointed in1884.In 1917, the workers ofAhmedabad Mills resorted to a strike in demand of an increase in wages. Ahmedabad textile workers organised themselves in a trade union in December4,1917. The strike was in success and workers got a wageincrease. The first regular Union was formed in Ahmedabad in 1920 for the Throstle Department Workers.  The growth of trade union movement got momentum at the end of the First World War. The growth of industry and trade had rise following the War. There were a number of strikes during 1919 to 1922. In 1920 All-India Trade Union Congress was formed. This was initiated by forces of different ideology. The communist and also nationalist forces were there. The colonial ruler finally introduced Indian Trade Union Act, 1926. Before that the Indian workers were denied the fundamental rights of freedom of association. The Indian Trade Union act, 1926 was enacted with a view to provide for the registration of trade Unions and in certain respects to define the law relating to registered trade unions. After liberation of Bangladesh workers have enjoyed a great deal of freedom and tradeunion rights.The most of the plant level trade unions had joined with the ruling party trade union center Jatiyo Sramik League.Many new plant level trade unions were registered.The trade union was a powerful menace to get authority on factories,mills and establishment abandon by previous owner and subsequently taken over by thegovernment.The political local elite had joined in trade union to control and have benefits of the taken over industries and establishments. Labour Legislation From the period of the British colonial rule, till now Bangladesh has many labour laws, rules and resolutions, legislated and declared by government in different time and period. Often many laws and rules contradict each other. Example can be site about definition of labour, is not same every law, it differs in employment of labour (standing order) Act 1965, Industrial Resolution Ordinance 1969,Shops and Establishment Act 1965, Factories Act 1965, Wages Act 1936, Workmen’s Compensation Act 1923.The existing main laws relating to workers are the following:The Workman’s Compensation Act 1923Children (Pledging of labour) Act 1923The Payment of Wages Act 1937Employer’s Liability Act 1938

The Minimum Wages Ordinance 1961The Shops and Establishment Act 1965The Employment of Labour (Standing Orders) Act 1968The Factories Act 1965The Industrial Relations Ordinance 1969

These laws on the whole provide the basis for classification of workers and determine the working conditions applicable to them like leave facilities, payment of wages and other benefits and also ways of termination of employment including procedures for adjudication of grievances. The Structure of Trade Union Industrial Relations Ordinance, 1969 (as amended up or date) is intended toregulation trade union activities permits workers to organize themselves into trade unions. The trade union is required to be registered with the Register of Trade Unions. The trade unions in Bangladesh may be divided in structure in to three categories, first is basic

Trade union – a primary organisation of workers at their working place. The second is the Industrial Federation or trade federation compose of a number of basic trade unions related to the same type of industry, such as Jute Workers Federation, Textile WorkersFederation, Garments Workers Federations and third is National Trade Union is federation of basic unions irrespective of job categories.

Registration of Trade UnionFor registration of trade union the applicants have to apply to the Joint Director of Labour and Register of Trade Unions with fulfilling certain requirements and procedure. For Industrial and national federation or national unions the Director of Labour and Register of Trade Unions office is responsible for registration. The National Union means those have members throughout the country – such as banks, railway and others.

The trade union executive committee shall be consists of 5 to 30 people depending on its membership. Till 50 members the committee will be consists of 5 persons and 30 persons of committee where are more than 5000 members. The applicants of union registration have to submit all the application of membership of proposed union in prescribed form and also the register of membership, resolution of the meeting where resolution was taken to form a trade union, list of committee members, list of general members and the constitution of the union along with application.The Employment of Labour (Standing Orders) Act 1965

The Act covers workers leave and holidays stoppage of work by employers in certain reason, layoff and lockout; procedure for retrenchment, dismissal and settlement of grievances of industrial workers. Beside this Act there are other similar Acts like theShops and Establishment Act 1965, the Inland Water Transport (Regulation of Employment) Act 1965, the Newspaper Employees (Condition of Service) Act 1974, and the Dock Workers (Regulation Employment) Act 1980. These acts regulate workers andemployees of those category of establishments is not obligatory on the part of any shop or commercial or industrial establishment to have its own standing orders under the employment of Labour Act 1965. According to section 3(1) of the Act, any establishment, “may have its own rules regulation employment of workers or any class there of, but no such rules shall be less favorable to any worker other than the provisions of this. So there are flexibility, employers who wish to frame their own rules can do so. They have liberty to add, delete or modify any rules to their needs. But they have to maintain a general standard of uniformity in the terms and conditions of employment of the workers and conditions of employment in each establishment. The Service Rules or Standing Orders have to be submitting to the Inspector of Factories and Establishment for approval. The laws discussed above shows a lot of good set of laws in favour of workers. Strength and weakness As many 23 central federation till now being registered. No central federation hasstrength that they can launch nation wide struggle independently. They do not have such organisational or financial resource either. Almost all political party has a trade union. All these except a few trade union, mostly depend on support and financial help from thepolitical party. That is also a reason that the ruling party’s trade union center has much more affiliate unions than others. When there is shift of government will be shift in affiliation also. The trade unions here also depends on support from International TradeUnion Federation and Foundations. They gets funds from International Trade Union Federation and Foundations for holding seminars, publications and other activities. The get free passage to go abroad to attend seminars and meetings. The foreign visit is so frequent for some trade union leaders that they are almost occupy with arrangements of travel – procure visa, preparing seminar paper and others and left hardly any time to dotrade union work.

Chapter 3

3.1 Company profile

3.2 Analysis on the female & male ratio in the trade union in bangladesh

Participation of the female workers in the trade union:

Name of National Centres Total Membership Female Membership

Jatiya Sramik Federation – JSF 38,000 12,500

Bangladesh Trade Union Kendra – BTUC

80,970 9,000

Bangladesh Sanjukta Sramik Federation – BSSF

249,616 4,999

Bangladesh Trade Union Shangha – BTUS

150,000 300

Jatiya Sramik Jote – JSJ 45,000 2,000

Bangladesh Jatiyatabadi Sramik Dal – BJSD

220,000 32,000

Bangladesh Mukto Sramik Federation – BMSF

205,007 65,000

Jatiya Sramik Federation, Bangladesh - JSF,B

20,000 1,000

Jatiya Sramik League –JSL 215,000 10,000

Bangladesh Free Trade Union 106,150 22,650

Congress – BFTUC

Bangladesh Sramik federation – BSF

5,989 593

Bangladesh Labour Federation – BLF

102,000 20,000

Bangladesh Jatiya Sramik Federation – BJSF

10,050 1,250

Shamajtantrik Sramik Front - SSF 22,000 1,300

Jatiya Sramik Jote Bangladesh – JSJB

65,000 6,500

Bangladesh Jatiya Sramik Jote – BJSJ

82,000 35,000

Jatiya Sramik Party – JSP 110,000 25,000

Total 17,26,782 2,49,092

Source: Interviews of Respective Trade Union Federation’s

In lyric group of industries, the ratio of female & male member in the trade union is 1:6

The ration in the Bangladesh Sanjukta Sramik Federation – BSSF i

2

98

ratio

femalemale

The ratio in the female & male workers in the Bangladesh Labour Federation – BLF is:

19.6

80.4

ratio

femalemale

The average ratio of female & male workers in Bangladesh is

14.2

85.8

ratio

femalemale

3.3 Problems of Trade Union

We have divided the problems of the trade union from two sides.

3.3(a) From the workers side

a) To understand the main goalAlthough trade union works for the welfare of the employees, the workers don’t understand the main goal of the trade union as they are uneducated.

b) Indifferent about the rules

They are indifferent about the rules and regulations of trade union. Most of the cases they are not aware of the rules of the trade union, as they are not educated enough.

c) Raise their voiceAs they are not enough educated they don’t know how to communicate with the others, how to create a motion against the injustice. As a result the workers are unable to raise their voice with trade union.

d) Guideline of the leadersSometimes they don’t want to follow the guidelines of the union leaders. There are some workers who are really desperate and they always do the things according to their willingness. They never follow the rules of the trade union. As a result they dilute the atmosphere.

e) ExtortionSometimes they extort money from the workers. They tell the workers they will work for a issue, they raise subscription, but after that they actually do not do anything. By they, they cheat with the workers.

f) Uneducated workersThe workers of Bangladesh are uneducated. Most of the cases, they don’t know what are they doing. As a result they just follow the leaders of the trade union whether they right or wrong.

3.3(b) From the owners side

a. Unwillingness to communicateEmployers have unwillingness to communicate with trade union leaders. There is lack of mutual understanding.

b. Negative impact Owners have negative impact as they instigate the workers against the owners illegally. Sometimes, they don’t work in a concern willingly. But they create pressure on the owner to pay the wages to them.

c. Unfair activities by the trade union leaders As some leaders want to take unfair activities, so the owners don’t want to give free access to do work with them. Sometimes the owner give bribe the trade union leaders to make a negotiation with the workers. As the workers are uneducated they believe the leaders blindly, but they can not understand that they are cheated by their leaders.

d) Political influence

Most of the trade union are connected with the political groups. When the political leaders arrange a seminar they

leave the workplace without any notice. In addition they create pressure to pay the of the regarding day.

3.4 Recent stories of trade union

3.4(a)Recent stories of trade union regarding lyric groups

From the above discussion we have seen that the trade unions consequences in Bangladesh are developing day by day.

As an example, we have visited the Lyric group of industries. It had three sectors before. But now one of them has been closed. There were several reasons behind the screen why one of the sections got closed.

Now the reasons are described below:

Now a day the trade union workers are more concern than they were before. They can fight with the owner for their right. Lyric garments factory is sincere but it faced some problems. The problems are described below:

1. Sometimes the workers didn’t work in together. But they made obliged to pay their wage on that day. Consequences of that: We know a garment factory produces a lot when they work in a single day. When the production is closed, then they have to face loss. When they have to have to pay the wages of the workers in addition they have to face over loss.

2. Now-a- days, the workers are associated with many political group. When the selected political group has any program, they join in that in altogether. But also in that day, the management had to pay the wages.For these, this section was faced loss day by day.

For these reasons the lyric group of garments factory, the garments factory technically shows some reasons to close the garment factory.

They collect several certificates from the auditing company. Which have helped them in closing the factory. These are describe below:

1. The bad situations of the building: This section used the building was not capable to carry the load. The workers & the machineries were overloaded. They showed this reason to close the company.

2. Safety problems: There were some safety problems according to the provisions of the law. As the members o the committee are concern about the workers so they will not continue the factory.

3. Fire fighting apparatus: They showed that, they could not provide the fire fighting apparatus according to the law.

3.4(b)The protection of the trade unions:

As the factory were facing losses day by day, the management committee tried to pay less than one month salary as nearly to 25-30% less than the actual salary.

But the members of the trade union protected this. They discussed with the management & then agreed to take 10% less than their actual salary.

3.4(c)Newly registered Trade Union

A day-long orientation programme on Freedom of Association (FoA) for the officials of newly registered trade unions

In the readymade garment sector was held in Dhaka 22 April, 2014.

Presidents and General Secretaries of over 140 newly registered trade unions in the RMG sector attended the orientation programme along with a number senior leaders from RMG trade union federations. The programme was aimed at sensitizing the trade union leaders on the issues of

1. freedom of association, 2. collective bargaining and 3. related issues in the context of Bangladesh & existing labor law.

The changes in registration process and the change in the Labour Law in 2013 created an opportunity for more and more trade unions in the ready-made garment factories to be formed. The Government of Bangladesh encourage the workers of the garment factories to come forward and take this opportunity as positive & sustainable change in this sector.

Registration of over 140 trade unions in the RMG sector in the last 15 months is a staggering growth compared to registration figures for the preceding years. The formation and registration of new trade unions is a sign of a new era of collective bargaining and freedom of association in Bangladesh which can act as a catalyst for change in other industries. The programme was jointly organized by the National Coordination Committee for

Workers’ Education (NCCWE), Industrial Bangladesh Council (IBC), The new trend of trade unions in RMG factories is welcome but it is just the beginning. The ILO is committed to supporting workers’ and employers’ organizations to build the capacity of factory based on to realize the rights in the long run.3.4(d)Some list of registered trade union in Bangladesh:

Name of National Centres

Jatiya Sramik Federation – JSF

Bangladesh Trade Union Kendra - BTUC

Bangladesh Sanjukta Sramik Federation - BSSF

Bangladesh Trade Union Shangha - BTUS

Jatiya Sramik Jote – JSJ

Bangladesh Jatiyatabadi Sramik Dal – BJSD

Bangladesh Mukto Sramik Federation – BMSF

Jatiya Sramik Federation, Bangladesh - JSF,B

Jatiya Sramik League –JSL

Bangladesh Free Trade Union Congress – BFTUC

Bangladesh Sramik federation - BSF

Bangladesh Labour Federation - BLF

Bangladesh Jatiya Sramik Federation - BJSF

Shamajtantrik Sramik Front - SSF

Jatiya Sramik Jote Bangladesh – JSJB

Bangladesh Jatiya Sramik Jote - BJSJ

Jatiya Sramik Party – JSP

3.4(e)Online registration of the trade union:

Online registration is now in the process in the current Bangladesh. After the collapse of the Rana Plaza the Gov.t is more concern about the garment sector in Bangladesh as it is one of the earning sector in Bangladesh. And Paper-based submissions would also continue in order “to maximize the ability of worker groups to file applications.

The labour rights groups, international buyers and the UN have stressed on trade union formation in Bangladesh since 2013 after the worst ever building collapse that killed more than 1,100 workers in Savar.

It should bring more transparency and accountability in processing trade union registrations.

3.4(f)The Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment) Order 2013

The Secretary of State makes this Order in exercise of the powers conferred by sections 197(1)(a) and 286(2) of the Trade Union and Labour Relations (Consolidation) Act 1992(1).

In accordance with sections 197(2) and 286(4) of that Act, a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.

Citation and commencement

1.  This Order may be cited as the Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment) Order 2013 and comes into force on 6th April 2013.

Application

2.—(1) The amendments made by paragraphs (2) and (3) of article 3 below apply to proposals to dismiss as redundant 100 or more employees at one establishment within a period of 90 days or less which are made on or after 6th April 2013.

(2) The amendment made by paragraph (4) of article 3 below applies to proposals to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less which are made on or after 6th April 2013.

Amendments to the Trade Union and Labour Relations (Consolidation) Act 1992

3.—(1) The Trade Union and Labour Relations (Consolidation) Act 1992(2) is amended as follows.

(2) In section 188 (length of period between beginning of consultation and the first dismissal taking effect), in paragraph (a) of subsection (1A), for “90 days” substitute “45 days”.

(3) In section 193 (length of period between notifying the Secretary of State and the first dismissal taking effect), in paragraph (b) of subsection (1), for “90 days” substitute “45 days”.

(4) For section 282 (short term employment), substitute—

“Fixed term employment

282.—(1) In this section, “fixed term contract” means a contract of employment that, under its provisions determining how it will terminate in the normal course, will terminate—

(a)on the expiry of a specific term,

(b)on the completion of a particular task, or

(c)on the occurrence or non-occurrence of any other specific event other than the attainment by the employee of any normal and bona fide retiring age in the establishment for an employee holding the position held by him.

(2) The provisions of Chapter II of Part IV (procedure for handling redundancies) do not apply to employment under a fixed term contract unless—

(a)the employer is proposing to dismiss the employee as redundant; and

(b)the dismissal will take effect before the expiry of the specific term, the completion of the particular task or the occurrence or non-occurrence of the specific event (as the case may be).”.

Effects in the trade union after the several accidents in 2013

As a Least Developed Country (LDC), Bangladesh benefits from the most favorable regime available under the EU's Generalized Scheme of Preferences (GSP), namely the Everything But Arms (EBA) arrangement. EBA grants the 48 Least Developed Countries – including Bangladesh – duty free quota, free access to the EU for exports of all products, except arms and ammunition.

In 2013, serious accidents in garment factories in Bangladesh have highlighted the need to ensure that factories across the country comply with international labour standards, including (ILO) conventions. Following these dramatic accidents, the then Commissioner De Gucht and High Representative Ashton made joint statements, expressing their concerns about the labour conditions, including health and safety provisions, for workers in factories across the country.

In this regard the EU commission works with the trade union to ensure the regular safety of the workers. An simultaneously this commission is trying to arrange seminar or workshops in case of the trade union.

Concern after the accident in Bangladesh & amendment of the law 

After the collapsion of an illegally-constructed building containing garment factories in Savar, just outside Dhaka in Bangladesh, on Wednesday 24 April 2013, the building’s construction were finally becoming clear to the world. That year the the fire & the collapsion killed thousands of people which made more concern about the safety of the workers & so the trade union got more power.

After that, several things happened:

As Bangladesh’s largest trade partner, the European Union got very concerned about the labour conditions, including health and safety provisions, established for workers in factories across the country.

In light of all these events, the European Union called upon the Bangladeshi authorities to act immediately to ensure that factories across the country comply with international labor standards including International Labour Organisation (ILO) conventions.

The EU is presently considering appropriate action, including through the Generalized System of Preferences (GSP) – through which Bangladesh currently receives duty-free and quota-free access to the EU market under the ‘Everything But Arms’ scheme – in order to incentivise responsible management of supply chains involving developing countries.

The EU is willing and ready to assist the Bangladeshi authorities in any way it can to meet the required international standards.

At the same time, we continue to encourage European and international companies to promote better health and safety standards in garment factories in Bangladesh in line with internationally recognized Corporate Social Responsibility (CSR) guidelines." 

Then we follow the several consequences in case of the trade union:

1. The trade union of Bangladesh of Bangladesh got some power. As it is the responsibility of the trade union to take over of the workers.

2. According to the amendment, if the EU will supervise the organizations at any time & if they find that these rules are not followed then the buyer company can cancel the contract.

3. If the trade union complain anything negative against the company, then the buyer will also cancel the contract.4. So, we can see after the 2013, the trade union has got supreme power to deal with their organization.5. The EU grants Bangladesh, as well as 47 other Least-Developed Countries, duty-free and quota-free access to the EU market

for all products under the “Everything But Arms (ЕВА)” scheme, which is part of the Generalised System of Preferences. 

So, for the improvement of the RMG sector in Bangladesh The Bangladesh Government & the owner of the trade union re obliuged to care about the workers & the trade union.

6. The EU is Bangladesh’s largest trade partner; 57% of Bangladesh’s exports go to the EU. Bangladesh is the third provider of clothing to the EU (after China and Turkey), with textile imports worth €8.9 billion in 2013. So, when the buyers are concern about the safety of the workers of the workers so, the organization will also try to deal with the trade union & to ensure the safety of the trade workers.

http://trade.ec.europa.eu/doclib/press/index.cfm?id=864

1 Business Social Compliance Initiative (BSCI) Monitoring System

The Business Social Compliance Initiative (BSCI) Monitoring System is the European approach to improving social performance in supplier countries through a uniform social standards monitoring solution.

The BSCI is based on the labor standards of the International Labour Organization (ILO) and other important international regulations

like the UN Charta for Human Rights, as well as on national regulations. This initiative aims at continuously improving the social

performance of suppliers, ultimately enhancing working conditions in factories worldwide.

The BSCI monitoring system:

Provides standardized management tools for all companies in all countries

Supplies a database: information pool to optimize coordination of the process 

Is open to retailers, importers, and manufacturers

Involves all stakeholders in Europe and supplier countries

Report valid for two years.

Intertek is an accredited monitor for the BSCI system. Intertek has well trained auditors in over 100 countries prepared to support your

BSCI monitoring needs no matter where your suppliers are located.

Factory Evaluations – Intertek auditors inspect factories to ensure processes and equipment meet standards as well as to

evaluate working conditions.

http://www.intertek.com/consumer/auditing/

Name of the company:

Nature of Project:

Office & factory address: Shasongaon, Panchabati to Bakatbali road, Enayatnagar, Fatullh, narayanganj-1400.

Tel:

Fax:

Year of establishment:

Managing body:

Bank:

Bond liensce no:

Vat registration No:

Buyer

Product

Floor space

Manpower

Production capacity

Name of the Company : Knit Radix Limited Nature of Project : 100% export oriented knit garments industry. 

Office & Factory Address :

Shasongaon, Panchabati to Baktabali road, Enayatnagar, Fatullah, Narayanganj-1400, Bangladesh.Tel.: +88 02 7670503, +88 02 7670504,Fax: +88 02 7670505

 Year of Establishment : 2007     

Managing Body :

Masud Ahmed (Managing Director)Mobile : +88 01711594727 & +88 01919594727E-mail: masud@knitradix.com

Sagar Kumar Saha (Director)Mobile : +88 01713002265 & +88 01919002265E-mail: sagar@knitradix.com

     

Bank :

IFIC Bank Ltd.Narayanganj Branch,66/1 B.B. ROAD, Narayanganj-1400,SWIFT NO. IFICBDDH003FC A/C NO: 1003-147353-836Bangladesh.

     Bond License no : 1041/CUS – SBW/2009     VAT Registration no : 9221018548     Buyer : K&L (Germany), 

P&C (Germany), Disney (Germany),3 Suisses (France), DPAM (Spain),Devianne (France),Amichi (Spain),Med (France),Bizzbee (France),Marsch (France),LPP (Poland).

     

Products : T-Shirt, Polo Shirt, Sweat Shirt, Jacket, Shorts, Tank-Top, Pajama Set, Children Knitwear & all kind's of knitwears.

     Floor Space : 56,000 s/ft.     Man Power : 800 Persons     

Production Capacity :

Knitting : Interlock   4,000 kgs/day          : Rib   4,000 kgs/day          : Single jersey   12,000 kgs/day

     Garments : Basic T-Shirt   20.000 pcs/day          :Polo T-Shirt   5,000 pcs/day

     

    Dyeing & Finishing : We have gentleman agreement with Knit Concern Ltd. At present their capacity is 50 tons per day. Their own requirement is 60% & we are 

Chapter 4

Prospects of trade union in case of Bangladesh

As Bangladesh is a developing country, here industries are increasing day by day. As a result more labors are being employed. For preserving their rights trade union is a must. Thus it has much potentials here in Bangladesh. Some of them are going to be presented below:

1) The principle duty of trade union is to preserve the rights of the labors. In Bangladesh labors are deprived of rights. Trade union are here for helping them to preserve their rights.

2) Government has given much provisions to preserve labor rights. But labors usually are ignorant of these provisions. Trade union may help them in case of knowing their rights given by the Government.

3) For making any kind of negotiation with the employers, employees totally depend on the trade unions.4) Till now, the wages that are being fixed for the labors, are setup by negotiations among the Government, the employers and the trade

unions (on behalf of the employees at large). Thus trade union has become negotiator and delegate for the employees. So trade union has a great opportunity in Bangladesh to prevent discriminations to the employees.

5) Recent tragedies, which took place in Bangladeshi garments factories, did much destruction to employee’s lives. Trade unions along with other social welfare organizations, tried hard to ensure compensations for the injured employees.

6) In Bangladesh like third world county, where weak are always suppressed, there is no substitute of trade unions.

7) Industry in Bangladesh are increasing day by day. In near future it is possible that there will be many heavy industries in Bangladesh, as well as may business corporations may establish. Then trade unions will get more tasks to perform, which now trade unions in U.S.A, U.K, India and in other progressed country have.

8)

Suggestions and Recommendations:

Though in Bangladesh there are many trade unions which are active, they have many shortcomings. For overcoming these shortcomings we have some suggestions and recommendations.

Those are:

1) The main essence of success is to work together. But our trade unions are divided. The first and foremost recommendation for them is to be united. Only then, they’ll be able to bargain with both the Government and employers successfully.

2) In Bangladesh, usually people are divided on the basis of political views. This disease has also been entered in the trade unions. Most of them are created based on their political views. Which often creates rivalry among them. For avoiding this, trade unions should not involve into national politics.

3) The leaders of the trade unions are often getting position due to their political power and position. Thus the leadership of the trade unions have been transferred from the original employees to the pseudo employees. Who are actually political leaders, and they try to gain this post only for getting much privileges. It is a must for the trade unions to regain the leadership from these viruses.

4) Most of the trade unions exist merely in name. These are created only to gain some profit. This type of trade unions must be identified and declared as illegal.

5) A huge number of trade unions are not actually connected to the labors. They appears only due to any incident or accident or for observing May Day like festivals. For working perfectly, these trade unions must get connected to the labors throughout the year.

6) In Bangladesh industries exist not only in the industrial area but also in some other areas, in some cases in a remote area. There, labors hardly hear name of any trade union. They may come to know about them only through TV! For ensuring the right of these labors at least some large trade union should come forward and make connection with them, and take care of them.

7) Trade unions should collect a permanent fund to conduct their activities. This may be collected from the members.8) More participation of labors are needed.9) There are some distrust between the trade unions and labors. These must be decreased.10) Trade unions may provide training programs to support the workers.11) Trade unions are suffering due to lack of capable leaders. They should try to build or find capable leaders.12) Our trade unions are habituated to act just opposite to the employers. This is not always right. Moreover, this has created a rivalry

between them. So trade unions should take decisions according to the situation. And they should appreciate the good decisions taken by the management.

13) Many times trade unions had acted by believing false news. So they must examine the authenticity of the news first hand, before acting upon that.

These were some suggestions and recommendations for the trade unions. If they act upon these, we hope they will be able to perform their tasks more successfully.

Conclusions

Bibliography