Trade Union

Trade Union or labor union is an organization of workers who have banded together to achieve common goals such as protecting the integrity of its trade, achieving higher pay, increasing the number of employees an employer hires, and better working conditions. According to The Bangladesh Labor Act, 2006, workers/employers, without distinction whatsoever shall have the right to form trade union for the purpose of regulating the relations between workers and employers or workers and workers or employers and employers and, subject to the constitution of the union concerned, to join trade union of their own choosing.

The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates with employers. This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies. The agreements negotiated by the union leaders are binding on the rank and file members and the employer and in some cases on other non-member workers. These organizations may comprise individual.

Causes of Organizing Trade Unions:

Provision of benefits to members: professional training, legal advice and representation for members is still an important benefit of trade union membership.

Industrial action: Trade unions may enforce strikes or resistance to lockouts in furtherance of particular goals.

Political activity: Trade unions may promote legislation favourable to the interests of their members or workers as a whole. To this end they may pursue campaigns, undertake lobbying, or financially support individual candidates or parties.

Conditions of employment and any grievances – are settled through trade unions. Bargaining rights: Trade unions bargain and ensure the status, rights, wages and

demands of workers of the modern world of industry. Contribution in economical growth: Trade unions are growing rapidly in an economy

because of the expansion of business and economical growth.

Objectives:Trade unions are the only way to manage, compliant, and control the labor force. Lots of objectives are there to organize trade unions. To defend or improve the wages and working conditions of workers and to bring about a change in the economic order. To strengthen their (labor) bargaining power collectively to establish and achieve all their rights. To dully protect all other interest of the workers .And from the management’s point of view the objectives as written:

a. To reduce the number of negotiation.b. To specify work rules, disagreements and grievances to give the better solution to

workers claim.c. To establish the efficient communication between the employers and management to

enforce the predictable standards.

d. To enhance the overall organizational effectiveness workers can also be sometimes inspired to form and organize trade union. In fact, objectives of a trade union are not defined; rather these are changing according to the need of the economy and overall industry. When these objectives are not settled then the rivals are started.

History of Trade Unions:The British rulers introduced Trade Union Act, 1926. The main purpose of the Act was to

provide registration for trade unions and in certain respects. But the Act did not contain any provision regarding strikes.

In 1929, the Trade Disputes Act put restrictions on strikes in public utility services and laid provision for the establishment of tribunals to adjudicate upon the labor disputes.

In 1947, the Industrial Disputes Act placed the conciliation and adjudication machinery for the settlement of industrial disputes on a permanent footing.

The Pakistan Period (1947-71):

• The East Pakistan Trade Unions Act, 1965 was enacted repealing the Trade Unions Act, 1926.

• The Labor Disputes Act, 1965 was enacted.• Industrial Relations Ordinance, 1969 was enacted integrating the above two Acts.

Bangladesh Period (1971-onwards):

• Government of Bangladesh declared a labor policy in 1972. The right to strike and collective bargaining in the nationalized industries was prohibited for six months by Presidential order no.55 in May 1972.

• In 1973, the right to strike and lockout, as granted by IRO, 1969 was withdrawn.• In 1974 Act completely suspended the democratic rights of workers by prohibiting trade

union activities such as strikes, lock-outs, and collective bargaining.• The military regime of 1975 imposed restrictions on the rights of collective bargaining.• The Industrial Relations (Amendment) Ordinance, 1977 liberalized the Rights of

Freedom of Association.• The Labor Policy of 1980 restored the right to freedom of association to a considerable

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

association. • Full trade union activities were restored by the democratic government in 1991.• In 2006, an updated, consolidated and unified version of labor laws was enacted.• During the Emergency in 2007-2008 that lasted for 23 months, trade unions and

collective bargaining were prohibited and the determination of collective bargaining agent could not be made.

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

Limitations:In Bangladesh Trade Unions have a lot of unavoidable problems:

1. Lack of consciousness: Trade union are not actually completely aware about employees legal rights and duties.

2. Lack of Unity: In Bangladesh trade unions are separated for political influence.3. Lack of knowledge: The workers of Bangladesh don’t have enough knowledge about

their rights and duties.4. Political influence: In Bangladesh, trade unions work a part of political parties not as a

free right saving association.5. Division of trade union: Bangladesh is a country where every organization has more trade

unions in name only. The overall productivity got down.

Positive impacts: Trade union plays a major role in creating ideal working conditions. Trade union always helps management to create better policies for workers. Trade unions negotiate for the standard wage and benefits with the management. Trade union helps the management to increases the productivity as well as the profit. Political influence’s existence makes the trade union not to interfere in management

decisions. Trade union is hugely helping the management to produce more and implementing

management tactics.

Negative impacts: Trade Unions are creating a surplus of manpower but not of productivity. Trade union of Bangladesh bargains more than they understand because of the limitations

of their knowledge. If don’t consult then they strike. Trade Unions have equal power of management then clashes are started. In companies labors are awarded for good work and threatened for bad work. But if it’s

punished then trade union interfere and don’t let to happen the punishment. So it increases crime of the labors.

Trade union leaders always try to save their interest first then the labor. For the power of politics trade union always dishonor the management.