Bangladesh University of Professionals

Faculty of Business Studies

Masters of Business Administration (Professionals)

Assignment on

Wages & Payment Provision under the Labour Act, 2006 and its practice”

Course Name: Legal Environment of Business (BUS7305)

Submitted to

Syed Robayet Ferdous

Assistant Professor

Faculty of Business Studies

Bangladesh University of Professional

Submitted by

Tunaza Meher

19020028

20(B)

Submission Date: 23thMay 2020

Table of Contents
Chapter 1.......................................................................................................................................2
1.1 Introduction:.......................................................................................................................2
1.2 Background of study...........................................................................................................3
1.2 Problem Statement.............................................................................................................5
1.3 Objective..............................................................................................................................6
1.4 Research Questions.............................................................................................................6
1.5 Limitation of the study.......................................................................................................7
1.6 Scope....................................................................................................................................7
Chapter 2 Method and Methodology..........................................................................................9
2.1 Data collection.....................................................................................................................9
2.2 Data Analysis.....................................................................................................................10
Chapter 3 Literature Review.....................................................................................................12
Chapter 4 Discussion of the study.............................................................................................15
Implementation and Violation of Labor Code, 2006................................................................15
4.1 Wages and Payments........................................................................................................15
4.2 RMG sector’s Minimum Wage Rate of Bangladesh......................................................16
4.3 Minimum wage related other legal issues.......................................................................17
4.4 Assurance of minimum wages.........................................................................................19
4.5 Fixing minimum rates of wages.......................................................................................19
4.6 Components to be considered in wage fixing.................................................................21
4.7 Importance of national minimum wage or real minimum wage..................................22
4.8 Role of trade union and employers’ organizations in wage fixing mechanisms.........25
4.9 Challenges of Collective Bargaining as a methods for wage assurance.......................26
4.10 Wage discrimination.......................................................................................................27
Chapter 5 Findings at a Glance.................................................................................................29
Chapter 6 Recommendation......................................................................................................30
Chapter 8 Conclusion.................................................................................................................32
Chapter 9 References.................................................................................................................33
Executive Summery

The main purpose of this term paper is to provide an insight view of the condition of the
workers minimum wages and payment rates in one of the major industries of
Bangladesh. The comparison is totally centered on the Bangladesh Labor code, 2006.

Wages and payments contains special definition of wages, responsibility for payment of
wages, fixation of wage-periods, time of payment of wages, wages to be paid in current
coin or currency notes, deductions for absence from duty, etc. (Section 120-126,
Bangladesh labor Act 2006)

The focus of this report is mainly on the wages and payments regarding the Bangladesh
Labor Code, 2006. This paper will provide a brief view of the Labor code as well as its
implication and application in different situation. It will also explain how the workers are
deprived of their legal rights and how the industries consciously violating the Labor
code.

The comparative analysis shows that only a few numbers of visited RMG covers the
majority of the labor code. Most of the companies as well as the workers are unaware of
the labor code and the rights and limitations provided on the labor code. So the workers
are constantly deceived of their rights in these industries.

The revision on the Bangladesh labor code in 2006 covers a lot of the common standard
issues like environmental condition, health and safety, as well as wages and working
hours. This revision complies with international standards and ensuring the implication
of these codes, our industries will definitely attract foreign market.

Chapter 1

1.1 Introduction:

Bangladesh Labour Act, 2006 was promulgated on the 11th October 2006 repealing 25
important Labour Laws after prolonged tripartite negotiation. A good number of
important items like retirement benefits, death benefit, appointment letter, enhancement
of compensation for both death and permanent disability, introduction of provident fund
for workers, punishment of sexual harassment etc. were introduced by the law.
Bangladesh Employers’ Federation (BEF) was deeply involved in formulating the
Bangladesh Labour Act, 2006 right from the beginning. Since the law was enacted BEF
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had felt that an English version of the law would be beneficiated not only for its
members, but also for the international organizations and foreign investors who need to
know about labour laws of the country.

In view of the above BEF initiated a progamme for publication of a handbook on

Bangladesh Labour Act 2006 comprising of an English translation of the Act and some
other related information. Labour laws, no doubt, play a critical role in the industrial
relations system, labour law were enacted times to meet the surge of current problems
and in most of the cases relationship with another law was not taken into consideration
which necessary led into anomalies and contradiction with another. The labour court Bar
Association in 1990 placed a demand to the government to simply the laws and made a
comprehensive single labour code. The Government responded to the same and formed a
commission namely labour law commission. 1992 with members from both employer,
workers side as well as government representative and legal expert. The. Commission
submitted its report to then prime minister on 31st March 1994.

Work Law implies those guidelines and customs of state by which the connection of
business Labor is directed so as to make sure about harmony in the Industrial field. The
advanced Labor law is assembled by the state. In the eye of Labor law, the capital and
the work both are similarly significant. In present day time, the essential motivation
behind work law is to make select connection between capital and work. The Bangladesh
work code is one of the exceptionally ongoing laws with major updating changes in the
documented of work enactment. The law overseeing work relations is one of the midway
significant parts of the law the lawful premise on which the vast large part of the
individuals gain their living. The degree of the wages-ostensible or genuine which is the
imperative issue must be hardly impacted by legitimate standards and organizations.
Labor law concerns the disparity of dealing power among bosses and laborers. Work law
(or "work", or "business" law) is the assortment of laws, authoritative decisions, and
points of reference which address the lawful privileges of, and limitations on, working
individuals and their associations. All things considered, it intercedes numerous parts of
the connection between worker's organizations, bosses and representatives.

Law is a procedure for the guideline of social force. This is valid for work law for what
it's worth of different parts of my legitimate framework. Force – the limit viably to
coordinate the conduct of others-is on uniformly dispersed in all social orders. There can
be no general public without subjection of a portion of its individuals to other people,
without order and dutifulness, without rule creator and choices producers. The ability to
make strategy, to settle on rules and settle on choices and to guarantee that those are
obeyed is a social force. It is same bolstered and now and again controlled and now and
again even made by the law yet the law isn't the chief wellspring of social force.

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1.2 Background of study

Laws regulating employer and establishment with regard to the rights and interests of
workers were introduced during the colonial time before the emergence on Bangladesh as
an independent country. The Factories Act, 1881 was the first law of this kind. Women’s
Compensation Act, 1923, Trade Disputes Act, 1929, Payment of Wages Act, 1936,
Maternity Benefit Act, 1939 and the Employment of Children Act, 1938 are subsequent
legislations of colonial era.

As stated above the Factories Act, 1881 was first labour law legislation of Bangladesh. it
was subsequent repealed by the Factories Act 1934, which was again repeated by the
Factories Act,1965, which gave effect to some of the ILO conventions. The act of 1996
applies to manufacturing establishments employing ten to more person with or without
the aid of any mechanical power. The Shops and Establishment Act, 1965 was applied
for those workers who were not covered by the Factories Act of 1965.

The other labour law legislations which were in force immediately before enactment of
the 2006 Act were the followings:

i. The Workmen’s compensation Act, 1923

ii. The children Act, 1833
iii. The Dock Laborers Act, 1934
iv. The Workmen’s Protection Act, 1934
v. The Payment of Wages Act, 1936
vi. The Employer’s Liability Act, 1938
vii. The Employment of Children Act, 1938
viii. The Maternity Benefit Act. 1939
ix. The Mines Maternity Benefits Act, 1941
x. The Motor Vehicles Ordinance, 1942
xi. The Maternity Benefit Act, 1950
xii. The Employment Act, 1952
xiii. The Bangladesh Provident Fund Ordinance, 1959
xiv. The Coal Mines Ordinance, 1960
xv. The Road Transport Workers Ordinance, 1961
xvi. The Minimum Wages Ordinance, 1961
xvii. The Plantation Labour Ordinance, 1961
xviii. The Employees Social Insurance Ordinance, 1962
xix. The Apprenticeship Ordinance, 1962
xx. The Employment of Labour Act, 1965

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xxi. The Companies Profit Act, 1968
xxii. The Industrial Relations Ordinance, 1969
xxiii. The Dock Workers Act, 1980

Applicable of Bangladesh labour code, 2006-

According to the Bangladesh labour code, 2006 see-1(3) defines save as otherwise
specified close where in this code, it shall apply to the whole of Bangladesh. And
According to see-1(4) defines, Hot with standing anything contained in sub-section (3),
this code shall not apply to-
1. Offices of or under the government
2. Society printing press.
3. Ordinance factories.
4. Foundations for the interment or care of the debilitated, educate matured,
distillate, mortally unhinged, vagrant deserted worn and additionally youngster or
widow which are not run for benefit or gains.
5. Shops or slows down in any open presentation or show to the extent that such
shops or slows down arrangement in retail exchange which is exclusively
auxiliary or subordinate to the principle reason for such display or show.
6. Shops or slows down in any open reasonable or bazaar held for strict or
magnanimous reason;
7. Educational, training or research institutions;
8. Profit or gain were not maintained for hostels and messes;
9. In regard of Chapter-II, any shop or business or mechanical foundation claimed
and legitimately oversaw by the Government where the laborers are represented
by the Government Conduct Rules.
10. Laborers whose enrollments and states of administration are administered by laws
or jobs made under Articles 62, 79, 113 or 133 of the Constitution, aside from, for
the reasons for Chapters Twelve, Thirteen and Fourteen, laborers utilized by the –
1. Railway Department;
2. Telephone, Telegraph and Postal Departments;
3. Public Works Department;
4. Public Health Engineering Department;

4
 5. Bangladesh Government Press.
11. Labors who were employed in any establishment referred to in clauses (b), (c),
(d), (e), (f), (g) and (h), except, for the purposes of Chapters Twelve, Thirteen And
Fourteen, workers other than teachers, employed by any university;
12. Seamen, except for the purposes of Chapters Twelve, Thirteen and Fourteen.
13. Ocean going vessels, except for the purposes Chapter Sixteen.
14. Agricultural farms where less than ten workers are normally employed;
15. Domestic servants; and
16. Establishments run by owners with the aid of family members and without
employing workers for wages.

1.2 Problem Statement

In 1994 the lowest pay permitted by law for a laborer in the article of clothing division
was 930 taka for every month. Afterward, in 1997, the legislature re-fixed the lowest pay
permitted by law as 1550 taka for every month (Elyus Rahman, 2006). In any case, the
piece of clothing production line proprietors didn't perceive this. The article of clothing
division laborers requested that the proprietors perceive the lowest pay permitted by law.
They additionally requested the foundation of a lowest pay permitted by law board.
In July 2001, the legislature announced a lowest pay permitted by law structure for the
private area laborers fixing 1350 taka as the base month to month pay, however the
businesses dismissed the proposition of the Government. An individual from the
organization moved to the High Court and the High Court proclaimed the administration
request illicit on specialized grounds. (Elyus Rahman, 2006)
Presently the article of clothing assembly line laborers have been getting an immaterial
sixty US pennies for each day, while the manufacturing plant proprietors are getting
more extravagant step by step. They are building ultra-current houses in the more astute
zones of the city and their kids go to Europe and America for advanced education. The
article of clothing laborers need to work 10 to 12 hours every day, seven days per week,
yet are paid no extra time (Elyus Rahman, 2006). The article of clothing laborers
exhibited for an acclimation to the lowest pay permitted by law, safe working condition,
week after week occasion and a conclusion to provocation. Regularly, the laborers were
sacked without sensible ground and notice or remuneration according to the
arrangements of work law. For this very explanation the unconstrained, extraordinary
dissent was watched.

5
1.3 Objective

Significant goal:
The point of the examination is to investigate the Minimum pay strategy and its training
under Labor Act 2006.
Explicit targets:
 To comprehend the associations wage rehearses.
 Another objective of this paper is to understand the Labor laws related with wages and
payment according to labor law 2006.
 To comprehend the arrangements taken by the administration for the lowest pay
permitted by law strategy according to labor law 2006.
 To examined the effect of unevenness of installments, excessively low or too high a
compensation on worker advancement and authoritative turn of events.
 To give proposals about the lowest pay permitted by law strategy rehearses in the
associations.

1.4 Research Questions

The principle objective of our investigation is to discover the correct ramifications of
Minimum compensation approach and its training such in RMG Industry. Some
applicable to address of least wages are given underneath:

i. How we can solve the labour conditions related with wages and payment in
the RMG Industry of Bangladesh?
ii. What is the violations of Minimum Wage?
iii. Is there any solution for non-installment of and undue conclusion from
wages?

1.5 Limitation of the study

(1) In the investigation zone there are such huge numbers of industry however my
respondents were just from RMG industry. As the working condition and monetary
advantage of laborers changes an enormous degree from pieces of clothing to articles of
clothing, a large portion of the respondents got homogeneous in some degree. Therefore
the exploration lost a portion of its representativeness. For instance, an importance

6
 segment of the respondents were from 'Virtual Garments which is the greatest pieces of
clothing in Bangladesh and it keeps the work laws and some work recipient's exercises.
(2) Because of my failure, I was unable to turn out to be sufficient personal with the
laborers to remove out the real answer. So the absence of legitimacy is won through this
exploration.
(3) Garments laborers and articles of clothing the board or delegates are consistently
occupied with their own assignments, so they had little open door for giving me such
time in such manner.
(4) In a few cases is appears to me that the laborers are not receptive outlook to address
me about my inquiry. It might be they are dread of the executives or maybe they couldn't
recognize my well-meaning goal of the examination.
(5) In a few cases the executives didn't co-work me to get immediate meeting of the
laborers.

1.6 Scope

This research project for the most part manages a couple RMG enterprises of Bangladesh
and will cover the regions with respect to wages and payments related issues.
The lowest wage permitted by law is an alluring strategy apparatus for destitution
decrease and social equity. It is a basic and noticeable path for the legislature to
demonstrate its promise to help those at the base of the salary appropriation, requiring no
noteworthy direct government consumptions and can without much of a stretch be
focused to the working poor. As per the ILO's Global Wage Report, least wages are an
almost widespread arrangement applied in some structure or another in excess of 90
percent of nations on the planet (ILO 2010). Considering the noteworthiness of the
lowest wage permitted by law The International Labor Organization (ILO) has assigned
the lowest wage permitted by law as a worldwide work standard and has embraced three
shows relating the minimum wage permitted by law—the Minimum Wage-Fixing
Machinery Convention, 1928 (No.26), The Minimum Wage Fixing Machinery
(Agriculture) Convention (No. 99,) and the Minimum Wage Fixing.

Very nearly 90 percent of part nations have sanctioned ILO's both of the three shows on
minimum wages and numerous different nations have built up the minimum wage
permitted by law fixing techniques despite the fact that they have not confirmed the
applicable Conventions.
7
Chapter 2 Method and Methodology

2.1 Data collection

To prepare this report, standard methods of report writing have been used. To complete,
tabulate and analyze this report for writing different types of data were needed. And also
I had to research different condition of related business. Using only secondary sources, I
collected the require data. For collecting secondary data from sources internet, existing
business document of related business, articles and other materials were used. This
exploration was directed through a writing survey and report examination.
For doing online research went through some research papers which were already
published on the internet. A questionnaire was also developed and depending on that a
data were collected through fieldwork. The primary sources were several RMG
industries and a few numbers of labors. A number of textbooks, journals, newspapers and
the Labor Code, 2006 itself.
Company Principle Summary:

8
Policy 1: Compliance with the law and workspace regulation-production the products will obey
laws and regulations in all locations where they take place Business
Policy 2: Restriction of force-products will not be used unintentionally or compulsory
laborindentured, bonded and otherwise.
Policy 3: Child labor prohibited - Salinized products will not be produced Intermediate
intervention in an employee or compulsory school is less than 14 years old or under the
minimum age established by law, which is more.
Policy 4: Prohibition of abuse is prohibited – produced products Offer free of charge to harass,
abusive or physical punishment of any work environment Form
Policy 5: Compensation and Benefits – produced products minimum compensation required by
local law, including all mandatory wages, Facilities and extra payment
Policy 6: Work hours work hours a day, and work every week The products are manufactured,
which do not exceed the country's legal limitation The products will offer one-day offers within
seven days, Without the need to meet emergency business needs.
Policy 7: Discrimination prohibited - will produce products, Instead of working, promoting and
stopping employees on the basis of job promotion based on their personal characteristics or
beliefs
Policy 8: Health and Safety- The product will provide health and safety work environment,

2.2 Data Analysis

One of the respondents list -

Gender Male Female Total
74 26 100
Age 18-30 age 31-40 age 41- 45 age
37 42 21 100
Working 0-10 years 11-20 years 21-30 years
Experience
26 63 11 100
Employment Permanent Temporary
Status 32 68 100
Employment Labour Trade union Supervisor
Role leader

80 10 10 100

9
 In the study online respondent was 100. Both male and female was considered as
respondent. Among 100 respondents 26 were male and 74 females. As RMG is laborious
work, most of the workers are female. Factories which are maintaining systematic
process they employ female worker. But organizations those are depend on male worker.
As garment is a laborious industry most of the workers are between18 to 40 years old. 37
respondents were between 18 to 30 years and 45years old. A word is well known in
garments industry that is tannery labors are by born labour. Among respondents 26 have
less than 10 years experiences, 63 respondents have 11 to 20 years’ experience. This s
the largest group. Only 11 respondents have 21 to 30 years’ experience. As garment is a
highly challenging profession very few workers can increase their works experience
more than 25 years. Work status is a significant issue for work law practice. All
provisions in Bangladesh Labour Code-2006 are for permanent worker. But in garment
industry scenario is different. Here most of the workers are temporary except some well-
known organization. Among my respondents 68 was brief laborers and 32 were perpetual
specialists. To get a proper view of labour law practice in tannery industry the feedback
from both general workers, trade union leaders and supervisors who are the
representative of owner or management. Trade union assume a fundamental job in RMG
industry. They always active to negotiate with owners. Among the respondent 80 was
workers, 10 were trade union leaders and 10 supervisors who are responsible to maintain
workers.
Questionnaire
Respondent Name (Optional):
Designation: Organization: Gender: Male/Female

1-Strongly Disagree, 2-Disagree, 3-Neutral, 4-Agree, 5-Strongly Agree

You are satisfied with the payment system of this organization 1 2 3 4 5

The structure of the factory you are working in is safe

Your factory provides payment for over times

Your factory's bonus policy is adequate

10
 Your factory has adequate and comprehensive payment policy

Your factory has an effective performance evaluation monitor

There are bonuses for festivals

Managers takes proper recording of work schedule

No discrimination on male and female wage policy

Your factory environment is safe

All supervisors are visits frequently to monitor work

Bonuses are given on time

Chapter 3 Literature Review

The researchers searched the workplace of Bangladesh the business really doesn't satisfy the
guidelines for RMG sector below the environmental standards and meet the ILO standards.
Wages and payment rights are generally ignored by RMG factories in Bangladesh. The absence
of trade union of weak traditions, informal recruitment, and irregular payments, casual wear,
wage discrimination, excessive work and child labor abuse. In addition, workers suffer from
various types of financial crisis. A suitable process is missing for sure law enforcement is
available to protect and maintain the rights of workers security of the work is going on as
concerns of RMG sector.
The RMG business is a low-innovation and work serious industry. Being work surplus economy
Bangladesh consistently appreciate low wages. With respect to exact, Bangladesh can beat the
vast majority of its rivals. Costs are identified with the expense of creation which in the event of
attire promoting is enormously controlled by the work costs. The weight of the jobless work
power and the extremely low expectation for everyday comforts permit the articles of clothing
compensation in Bangladesh to be kept at a level that is one of the most minimal among
contending nations.
That Bangladesh has a huge work preferred position can be seen by taking a gander at the similar
time-based compensations. Three variables have been principally liable for the lower work cost

11
in the article of clothing industry contrasted with most different enterprises in Bangladesh
(Mondal 2003). In the first place, the article of clothing industry is portrayed by a power of
female laborers who are set up to acknowledge lower compensation than their male partners
because of their chance expense of time. Second, the lowest pay permitted by law fixed by the
legislature has been lower for the piece of clothing industry contrasted with different ventures.
Third, piece of clothing business visionaries have prevailing with regards to diminishing work
costs by and large denying laborers of "better than average" working conditions.
In July 2001, the legislature pronounced a lowest pay permitted by law structure for the private
division laborers fixing 1350 taka as the base month to month pay, yet the businesses dismissed
the proposition of the Government. An individual from the organization moved to the High
Court and the High Court proclaimed the administration request unlawful on specialized
grounds. (Elyus Rahman, 2006)
Presently the article of clothing assembly line laborers have been getting an immaterial sixty US
pennies for every day, though the plant proprietors are getting more extravagant step by step.
They are building ultra-present day houses in the more brilliant territories of the city and their
youngsters go to Europe and America for advanced education. The piece of clothing laborers
need to work 10 to 12 hours per day, seven days per week, however are paid no additional time
(Elyus Rahman, 2006). The article of clothing laborers exhibited for an acclimation to the lowest
pay permitted by law, safe working condition, week after week occasion and a conclusion to
provocation. Regularly, the laborers were sacked without sensible ground and notice or
remuneration according to the arrangements of work law. For this very explanation the
unconstrained, exceptional dissent was watched.
Planned its own set of accepted rules for the business, as a team with the significant worker's
organizations, and has set up a consistence unit that screens work conditions in its individuals'
plants (UNIFEM 2008). In 2006, the Government passed another work code, following 12 years
of consideration and activism. It applies to all laborers, and the new areas applicable to the
article of clothing industry incorporate composed agreements and personality cards, auspicious
installment of wages, reexamined the lowest pay permitted by law, paid maternity.
As indicated by Amin (2009), Coordinator of the Bangladesh Garment Workers Unity Council
(BGWUC), "The piece of clothing laborers of Bangladesh might be the most denied work power
on the planet. Most are paid somewhere in the range of US$14 and US$16 every month, the least
pay on the planet." He additionally included "Just a couple of production lines here keep up
universal principles, and huge numbers of them don't actualize any specialist wellbeing and
security measures."
The Financial Express (2008), a day by day English paper of Bangladesh, alluded to an ongoing
report directed by a nearby research organization that has uncovered that speculators in the RMG
segment have dramatically increased their profit in the previous seven years. Regardless of this
expansion, notwithstanding, it is a regret that numerous proprietors are not paying their workers

12
normally and a wide range of incidental contentions are advanced for non-installment of their
pay rates.
New Age (2009), another unmistakable day by day English paper, announced that most of article
of clothing production lines don't yet follow many compensation and work environment gauges
determined in the tripartite understanding of 2006.
Research demonstrated that when organizations that managed outside purchasers clung to sets of
principles, conditions improved for the laborers in the production lines expressed by (Mahmud)
in one of her articles. In some enormous production lines, wellbeing and security principles
improved and different advantages were presented, for example, opportune installment of pay
rates, legitimate additional time rates and maternity leave.
Individuals' Daily Online China (2008) detailed that the Bangladeshi overseer government is to
make harsh move from August 1 against proprietors of article of clothing production lines who
neglected to execute consistence issues like giving the lowest pay permitted by law to laborers.

A sector important foreign currency earning material, some changes are needed. On technique
and rationale of the examination: This report is extremely gainful and supportive for an instant
article of clothing producer Establish an association to guarantee appropriate wellbeing and safe
condition Correct Health and Safety Planning Only this report won't give the official rules line
HS can be utilized to make arrangements, however then again it will assist with creating. In view
of the necessities of the arrangement to comprehend the models and a portion of the created
nations item creation is referenced here. From the investigation of the unforeseen instances of
the past Discovery of what sort of harm can be found in the past creation of article of clothing
producing Due to absence of wellbeing and security strategy, diverse piece of clothing
associations have happened the auxiliary information assortment technique.

13
Chapter 4 Discussion of the study

Implementation and Violation of Labor Code, 2006

4.1 Wages and Payments

Chapter 10 of the Labor code manages provisions identified with payments and wages of
the labor. Wages incorporate the accompanying things according to segment 120
a. Any reward or extra compensation payable according to the terms of employment.
b. Any compensation payable in regard of occasions, leave or extra time work.
c. Any compensation payable under request of any court or any honor or settlement
between the parties.
d. Any sum payable under this code or any agreement by reason of termination of
employment whether by way of discharge, retrenchment, retirement, removal,
resignation, dismissal, or otherwise.
e. Any sum payable due to lay off or suspension.
f. Compensation at the expiry of the employment by any means like dismissal, discharge
or otherwise shall be treated as wages.
g. Gratuity on discharge or other gratuity shall be treated as wages.

14
 h. House rent allowance shall be treated as wages.
i. Wages during leaves and holidays should be treated as wages.

Reality:
There are two significant method of installment in RMG industry. The first is 'month to
month wages' and the other one is 'installment on every day bases'. Month to month
compensation are paid in the prominent RMG where the laborers hold a perpetual
activity. Be that as it may, in the position of safety ventures few industries pays their
specialist in regular routine and their employments are impermanent or restrictive. They
really recruit work for a fixed period through a temporary worker. After the finish of
employment the laborers are free specialists.. The changeless laborers are paid around
7000-10000 BDT relying upon their abilities and experience. Then again the
impermanent laborers get their wages in term of hours. It is around 130-200 BDT every
hour.
The changeless specialists appreciate the advantages of extra time while the regular
routine laborers are denied of it. They perpetual laborers are furnished with an additional
time of 35-50 BDT for every hour. So for the impermanent specialists SECTION-120 is
disregarded where there is a reasonable word about extra time.
The prominent tannery doesn't deduct any part of wages for non-appearance or leave
however most of the tanneries doesn't give installment on leaves or nonappearances.
Which again abuse of area 120.
There is a couple of quantities of tanneries like Samina Tannery which gives a restrictive
development compensation which is an extremely uncommon case in the tannery
business. Be that as it may, this advantage of advance pay totally relies upon
understanding and ability of the laborer.

4.2 RMG sector’s Minimum Wage Rate of Bangladesh

The Bangladesh pieces of clothing produces and exporters affiliation (BGMEA) is the
exchange body that speaks to the fare situated woven, weave and sweater articles of
clothing makers and fare of the nation. Readymade Garments (RMG) is the main part of
Bangladesh as far as business, creation and remote profit. RMG area alone records for
around 80% of the yearly remote trade profit of the nation. Around 4 million individuals
are utilized in this part. The significance of pieces of clothing area can be scarcely be
over underlined. There has been a consistent development in the field of RMG during
most recent two decades. The RMG business delighted in a fleeting ascent from 30
undertakings in 1980 expanded to around 4222 of every 2013-14 financial years.

15
 The lowest pay permitted by law is a significant macroeconomic instrument for the
prosperity and smooth advancement of any economy. Albeit Minimum Wage isn't
characterized in the Bangladesh work law, it proposed to the Minimum Wage Board: "In
making its suggestion the Wage Board will think about Cost of living, way of life, cost of
creation, efficiency, cost of items, business capacity, monetary and social states of the
nation and of the region concerned and other significant elements" (Labor Act 2006,
referred to in CPD report, 2013).

From the definition, the lowest pay permitted by law ought to be set at the level that
covers the base fundamental need of the most reduced paid representative, grade
7workers in Bangladeshi setting, however the ongoing correction of wages was for all
laborers (grade 1 to 7). In spite of the fact that there are seven distinct evaluations, the
distinctions among the evaluations are little. In addition, the connection between wage
level and position isn't kept up appropriately in the circulation of wages among every
single other evaluation. The compensation distinction between two degrees of
representatives is too little to even think about inspiring them to work for quite a while in
a similar association. The at last outcomes in high turnover, hinder efficiency.

On the activities of Bangladesh Institute of Labor Studies (BILS), delegates of all

worker's guilds and alliances met in the capital in April, 2006 and arranged a 10-point
sanction of requests. Interest for month to month least wages worth taka 3000 was one of
them. With the proceeded with work development, a tripartite understanding was marked
in May, 2006 between government, BGMEA (Bangladesh Garments Manufacturers and
Exporters Association) and RMG (Ready Made Garments) part laborers and Minimum
Wages Board was set up in continuation of this development. After delayed thought a
7grade the lowest pay permitted by law structure was pronounced for RMG area laborers
in which the lowest pay permitted by law or wages of most reduced evaluation (seventh
grade) was resolved as 1662.50 taka every month. The assertion was made in November
19, 2006 with impact from October 22, 2006. All students or learner laborers will get
1200 taka for every month as their preparation remittance. Apprenticeship will be for a
quarter of a year. In the wake of preparing, they will join as right hand sewing machine
administrator (partner) at seventh grade.

4.3 Minimum wage related other legal issues

a) How should working hours of a labor for portion of wages choose? Working
hours of a worker for portion of wages will be settled in the going with propensities:
• A worker needs to work generally eight hours of the day.

16
• In return for additional time allowance, a master can remain at work recent hours
2 hours of the day. A worker can be secured for additional time commitment
exactly when he/she agrees thereto.
• Including additional time, an authority's most outrageous working hour is 60
hours consistently. In any case, ordinary yearly working hours can't outperform
56 hours of the week. As it were, an authority can't be secured for additional time
commitment in each working day of the year.
• Every worker will get following leaves with full wages:
• One step by step event
• 10 days nice leave;
• 14 days cleared out leave;
• 11 days festivity leave
• One day earned leave for predictably of work in the previous a year.
b) What is the portion strategy for the wages?
• Wages and extra time reward must be paid inside 7 days of remuneration period.
• Wage period will be 30 days.
• All pay must be paid in working days;
• Wages must be paid in the present cash in genuine cash taka or check.
c) What are some critical pieces of wages?
• Grades of wages must be fixed dependent on comprehension and profitability.
• Wage slips must be offered resulting to enlisting the assessment smart wages.
• Contract workers' secured by the brief specialists will in like manner be seen as
'workers' and the legally binding laborers as 'supervisors'. Under the Labor Act
2006 if the transitory specialist doesn't pay remuneration chief will be liable for
portion of wages. The business will later on change the identical from the
transitory specialist.

• If remuneration paid starting at now is in excess of the base wages articulated, it

can't be decreased.
• Employers may pay the workers' wages and various settlements at the rates
outperforming the base wages.
• In occasion of piece assessed workers, compensation should be fixed at such rates
that it may not be not actually the base wages reported. Under the present work
law Minimum Wages Board can fix least wages for private section industry
workers on reason of time rate or piece rate or both. For an authentic assessment
see discussion in fragment 4.2.8
• Besides least wages articulated, each other preferred position that would gather to
a worker under the Labor Act 2006 will outline some bit of his/her wages.
d) What are the answer for non-portion of and undue finding from remuneration? •
If least wages are not paid, the unpaid worker needs to serve a made intrigue

17
 notice to the business ensuring his/her wages. If it doesn't work the expert may go to
the work court inside a half year of refusal to pay remuneration.
• In occasion of undue thinking from remuneration or less portion of wages or delay
in portion of wages manhandling the courses of action of the Labor Act 2006, the worker
can go to the work court searching for fix by recording a complaint case. Before
recording the case the worker needs to ensure pay from the business by a made letter.
The complaint must be held up inside a time of the case.
• An supervisor who pays wages to a worker which is underneath the base pace of
wages will be punishable with confinement up to one year or five up to taka 5,000 or
with both.
• If any business who has been condemned for non-portion of least wages is again
arraigned for a comparative offense, he will be repelled with twofold discipline fixed for
such logical inconsistency.
The preparation is that workers ought to ensure a copy of the made enthusiasm for
portion out of wages or stoppage of undue end or lucky portion of wages. A worker may
apply in such way to the Inspector for the individual business. In case no fix is given by
the Inspector, by then the master can go to the work court inside limitation period. A
worker may in like manner search for help from the individual specialist's
association/group.

4.4 Assurance of minimum wages

For the most part compensation is determined in three different ways: through the
negotiation between the employers and the employees, furthermore, under the law of
government and thirdly, through the understanding between the worker's organizations
and the employer's. In Bangladesh compensation are dictated by three separate bodies.
Wages for government representatives are repaired by National Pay Commission (NPC)
that pronounces new compensation scale after each 5/6 years. Though compensation and
related incidental advantages for laborers in the open segment undertakings are resolved
every now and then through the proposal of the National Workers' Wages and
Productivity Commission (Popularly known as Wages and Productivity Commission,
WPC) set up under the State-Owned Manufacturing Industries Workers (Terms and
Conditions of Service) Ordinance, 1985. These commissions are ordinarily set up by the
administration on specially appointed premise every now and then so as to justify the
compensation and pay structure with the progressions of typical cost for basic items, files
and other related variables. For the most part, Wages Commission suggests new
compensation structure by following the compensation scale proclaimed by the Pay
Commission .On the other hand, wages of private segment laborers are dictated by the
Minimum Wages Board shaped under the lawful system. Up until now, the Board has
repaired least wages for 38 private parts. Paces of least wages for private segment

18
 laborers are fixed by the Government on the proposal of the Minimum Wages Board.
The Board embraces the errand after like clockwork either by the immediate order of the
Government or if the laborers or business or both of a specifics industry so requests to
the Government.

4.5 Fixing minimum rates of wages

Legal provisions for fixation of minimum wages can be portrayed as follows:

Where in regard of any private segment industry the Government is of the assessment
that having respect to existing pace of wages of the laborers utilized in the business, it is
practical to fix the base paces of wages for all or any class of laborers, it might guide the
Board to suggest, after such request as the Board might suspect fit, the base paces of
wages either for every single such specialist or for such class as are determined toward
the path. Again on the application presented by the business or laborers or both of a
specific industry the Government may consider the matter of obsession of least paces of
wages for the laborers utilized in such industry. The Board needs to present its proposal
to the Government inside a half year or inside the time stretched out by the Government.
In its suggestion the Board will show, regardless of whether the base paces of wages
ought to be received consistently all through the nation or with such neighborhood
varieties for such areas as are determined in that. The Board may suggest least paces of
wages for all classes of laborers in any evaluation. In such proposal it might determine
a) Minimum paces of wages for time-work or piece-work;
b) Minimum time-paces of wages for laborers utilized on piece-work.
The time-rates suggested by the Board might be on hourly, every day, week after week or
month to month premise. In its suggestion the Board will show, regardless of whether the
base paces of wages ought to be received consistently all through the nation or with such
neighborhood varieties for such areas as are indicated in that.
On getting the suggestion of the Board, the Government will fix least paces of wages for
laborers of the enterprise(s) concerned. In the event that the Government thinks about
that the suggestion isn't, in any regard, fair to the businesses or the laborers, it might
allude it back to the Board for reexamination. The Government needs to do it inside 30
days with its remarks and data. The Board will rethink the suggestion in the wake of
considering the remarks made and data given by the Government. In this regard the
Board has the followings to do:
i it will hold further request and submit to the Government a reconsidered proposal;
or

19
 ii If it thinks about that no correction or change in the proposal is called for, make
report with that impact expressing reasons accordingly.
On getting the amended proposal of the Board, the Government will pronounce, by
Gazette warning, the base paces of wages for the laborers concerned. And still, at the end
of the day, if the rates so fixed appear to be discriminatory to the businesses or laborers,
the Government may again allude it back to the Board for reevaluation as per the system
referenced previously. The base pace of wages announced by the Government is
conclusive and can't be tested by any individual in any court or under the watchful eye of
any court.
In the event that any of the variables referenced above require fundamental changes in
the paces of wages, the Board will audit its proposal. It at that point suggests the
Government any alteration, change or amendment of the base paces of wages proclaimed
before.
Given that no proposal will be checked on sooner than one year from the date on which
it was made (except if the unique conditions of a case so require), and later than three
years from such date.

4.6 Components to be considered in wage fixing

In both open and private parts compensation are resolved under guidelines set out by the
Government. Certain issues ought to be contemplated before fixing the lowest pay
permitted by law. Article 3 of the ILO Convention 131 (with respect to Minimum
Wages) expresses that the lowest pay permitted by law fixing specialists ought to think
about the expectation for everyday comforts of workers and their family, their
requirements, social and different offices and furthermore the way of life of their general
public. A worker and his/her relatives' necessary calories admission, transport
reasonable, instruction cost of his/her kids are considered before fixing his/her pay.
Aside from these, wage is legitimately connected with efficiency and the business
considers the laborers' delivering ability before fixing compensation. In any case, there
are two-overlap issues in thinking about efficiency as a measuring stick to fix
compensation. Right off the bat, we don't have a perfect standard to assess the efficiency
of workers. Besides, efficiency doesn't just mean the physical and mental work of
laborers rather the administration of an association, crude materials, vitality (power, gas)
and apparatuses are connected with it. Along these lines, it is rash to think about
profitability.
As per segment 141 of the Labor Act, 2006 while fixing least wages the Board will think
about the followings:

20
 I) Typical cost for basic items; ii) way of life; iii) creation cost; iv) creation limit; v) price
of delivered merchandise; vi) swelling; vii) nature of work; viii) hazard and standard; ix)
business limit; x) financial states of the nation and the particular zone; and xi) some other
related issues.
While fixing a base national pay it is additionally important to think about present and
likely future cost of fundamental merchandise. Other than this, wages ought to be
expanded in contrast with the expansion in ware costs (present cost climb is 9.60%)) and
on the essence of increment in swelling. Something else, genuine wages of the laborers
would be declined. As wages are not opportune determined in Bangladesh, the laborers
become upset and speak more loudly for their essential rights. At the point when
government frames a compensation commission or wages commission or pay board (all
things considered) after a long interim, pressure on cash is mounted up. Therefore, it puts
sway available. In the event that the administration builds compensation routinely
keeping up the consistency of expansion the issue would not be made. In India, the
administration gives Maggi Bhata (dearness stipend) keeping up the consistency of
expansion rate.

4.7 Importance of national minimum wage or real minimum wage

The principle motivation behind embracing national least wages is to help the powerless
workers (mostly untalented, female and kid) who can't speak more loudly about their
essential rights. In any case talking, the development of the lowest pay permitted by law
is more for the privileges of female and youngster laborers. Managers claim that creation
cost increments as the base wages are expanded. To stay away from misfortune the
businesses attempt to expand works of the workers, enlist incompetent specialists, trim
laborers, abridge the offices of laborers, and increment the pace of creation. They attempt
to stop mastery of pay over benefit and trim incompetent specialists, complete the
employments by low maintenance laborers. As low maintenance laborers are denied
from various offices, coordinators can spare a great deal from wage.
National accord is required to decide sensible and simply least wages appropriate to
satisfy the needs of the laborers. Satisfactory least wages is a certainty of modern
relations. No PRSP will be productive if a laborer's base wages scale isn't balanced with
the value expansion. As a major aspect of neediness decrease objective, the World Bank
has fixed 2 dollars as every day needs of a laborer which is simply over the destitution
level. In this manner, normal month to month least wages of a specialist' family ought to
be (2x30x4.8) or US$ 288. As indicated by UN thousand years advancement objectives
least every day needs of a specialist's family is 1 dollar ($ 144 every month) so as to
battle intense destitution. In any case, as per the current compensation scales in
Bangladesh, this figure doesn't surpass $ 36 every month which is much underneath the

21
above threshold(s). In this way, one can undoubtedly understand the hopeless conditions
that laborers involvement with Bangladesh. Based on day by day fundamental needs, if
monetary year 1973-74 is taken as standard, a laborer's normal need adds up to in excess
of 3000 taka in 2006-07 financial year. Contrasted with 1973-74, a specialist's everyday
cost has expanded multiple times this time.
According to above investigation, how far least wages as proclaimed by the Wages
Commission and Wages Board is practical is an unavoidable issue. Alongside this, in the
event that we think about arrangements of ILO shows (change in money esteems,
government managed savings benefits, relative norms of way of life and financial
variables), all paces of least wages appear to be absolutely without the real world.
Absence of strengthening of the laborers is distinguished as the main driver of
disgraceful states of the laborers in Bangladesh. Question may emerge with respect to
whether a national compensation structure and improved least national wages can be
presented under the overarching conditions of profitability and limit of the enterprises in
the nation. The appropriate response might be certain. For instance our RMG (readymade
pieces of clothing) segment is not any more a frail part. Turnover increment in this
segment has been 12.87% more in 2004-2005 monetary year than in 2003-2004. This
expansion has been over 10% in normal since the most recent two decades.
Consequently, laborers in RMG part merit higher paces of wages thinking about their
key job in thriving this division. Increment in the wages of laborers will by implication
increment the national GDP.
Strikingly enough, even the legally ensured the lowest pay permitted by law can't
guarantee the absolute minimum necessities of a laborer. It is all around recognized that
modern concordance is basic for a smooth financial development and reasonable turn of
events. The Government can not the slightest bit preclude its essential duty from
claiming defining down to business laws and implementing them carefully for security of
privileges of the worked millions. Amusingly the Government of Bangladesh has
neglected to meet both of these commitments. More regrettable even, the preeminent
tradition that must be adhered to or the Constitution that sets out a lot of arrangements
concerning rights including least wages has neglected to set up a particular rule and a
compelling implementation instrument to this end. Article 15 of the Constitution of the
People's Republic of Bangladesh is relevant to be referenced in such manner, which is
expressed as follows:
It will be a principal obligation of the state to accomplish, through arranged monetary
development, a consistent increment of profitable powers and a consistent improvement
in the material and social way of life of the individuals, with the end goal of making sure
about to its residents
a) The arrangements of the fundamental necessities of life, including food,
garments, safe house, training and clinical consideration;

22
b) The option to work, that is the privilege to ensured work at a sensible
compensation having respect to the amount and nature of work; c) The right
to sensible rest, diversion and recreation; and
d) The right to standardized savings, in other words, of open help with instances of
joblessness, disease or disablement, or circumstances endured by widows or vagrants or
in mature age or in other such cases.
That the government assistance provisions of the Constitution are there, the requirement
for a national the lowest pay permitted by law is felt significantly more. It is in this way,
in light of the fact that the current pay structure is in no way, shape or form ready to
satisfy the essential needs of the laborers. In the event that we take the case of one single
segment, for example, the Ready Made Garments (RMG), we locate a confusing
situation. It tends to be referenced here this is the biggest part undoubtedly (contributes
above 76%) with an enormous work of more than 15 million laborers 90% of whom are
ladies. A lowest pay permitted by law solely for this area was resolved in 1994 as tk 930
every month (additional time avoided). Least wages in different areas, for example, jute,
calfskin, horticulture and so on were no different. Until 2006, this remained the base
standard of wages for laborers concerned.
Presently the inquiry emerges that what ought to be the genuine the lowest pay permitted
by law of laborers. Experience shows that expansion in genuine compensation causes
work abbreviation. As joblessness rate goes high, gifted specialists would go under the
market wage structure which is not exactly the lowest pay permitted by law. At that point
informal enrollment of workers will get higher than authentic enlistment. As uniform the
lowest pay permitted by law strategy has not been embraced in our mechanical segments
the vast majority of the workers don't get lasting arrangement much of the time. Along
these lines, female specialists don't get maternal leave according to the work law. The
workers acknowledge this in dread of losing their positions.
For the most part female and youngster workers are not the main winning individual
from their family. Inevitably it is simple for a maker to utilize them for a poor pay. It
brings calamity for those ladies who are the main gaining individual from their family.
They need to work additional hours to address their families' issues. Accessibility of
workers and their poor pay demand the maker to utilize the work based creation strategy.
So they power the workers to include in hazardous employment, though it would be
managed without chance on the off chance that they utilized machine based creation
approach. The lowest pay permitted by law would not stop this barbaric utilization of
labour.Only various standards of work would limit it.
Then again, we see that genuine pay of less expensive workers is high a result of work
development. So private financial specialists attempt to embrace capital based
arrangement or change the example of their business. As tea garden laborers of our
nation are efficient, proprietors of the tea bequests believe that elastic creation is
23
 substantially more beneficial in light of the fact that it needs just a couple of workers. So
the workers lost their employment. We have just said Minimum Wage Law neglects to
stop separation among male and female specialists. Presently the laborers of western
nations sort out development for living pay . They state that laborers ought to be given
the pay which is expected to keep up his life. What's more, it is chosen through the
coordination of three issues: creation ability, expectation for everyday comforts and
swelling of cash. Living compensation is fixed in such a manner by which a worker
doesn't live underneath the destitution level. Individuals, who bolster this procedure,
concede that living pay would be higher than the present. Be that as it may, the business
would be propelled if the legislature announces charge alleviation for actualizing the
lowest pay permitted by law. At the underlying stage, income of government would be
reduced however later on, it
will increment. Extreme salary increases successful interest of workers who will likewise
raise charge (circuitous). It will demand the workers to tolerate the costs of instruction
and medicinal services which will likewise be useful for the legislature. This framework
can be brought into the modern connection component of Bangladesh.

4.8 Role of trade union and employers’ organizations in wage fixing

mechanisms

Since least wages is a delicate theme on account of its social and political ramifications, the
lowest pay permitted by law fixing specialists have now and then been hesitant to overhaul the
very premise of their frameworks. Similarly as with some other approach instrument, intermittent
survey and changes are vital on account of least wages so as to stay on top of the developing
financial circumstance in a given national setting. While numerous nations have adjusted their
lowest pay permitted by law frameworks to the evolving conditions, there is by all accounts
impressive space for adjustment in others. The best methods for starting this might be
accomplished through meetings among government and agent boss' and laborer's associations in
the nation.
Since compensation and related incidental advantages of the laborers utilized in open segment are
dictated by the Government through the suggestions of the wages and profitability commission,
aggregate anticipating compensation are not commonly reasonable on the issues which are
secured by the commission's proposals. Be that as it may, while the wages commission looks at
and plan the wages structure it contemplates the perspectives on the specialist's and manager's
agents, the monetary reasonability of the ventures, the enthusiasm of the clients, the general
financial states of the nation, the shopper value file and such other significant components. In any
case, Trade associations in private endeavors play or attempt to assume significant job in
deciding least wages by methods for aggregate bartering.
In the national level, SKOP assumed significant job in acknowledging just wages for laborers
particularly in 1980s and 1990s. On the substance of steady weight of requests put by SKOP the

24
 then governments were constrained to sit in a haggling table to think on the issues of wages. In
the business and plant levels, neighborhood worker's organizations or CBA (Collective
Bargaining Agent) through investment board can step up to the plate for aggregate bartering
under the current work laws . Additionally, worker's guild agents to the wages commission and
wages board likewise assume key job in wage fixing. They attempt to seek after pay obsession
component by submitting wage scales reasonable to the laborers' advantages. For instance,
worker's organization agents to the fourth wages and profitability commission gave their
proposition around 16 pay scales the base scale being at taka 3000-150x5-5250. Worker's
organizations assumed momentous job in fixing least wages for articles of clothing area laborers
in 2006. On the essence of their constant requests, the current guardian government has
proclaimed for this present year (2007) least wages rate for all private division businesses in
Bangladesh.

4.9 Challenges of Collective Bargaining as a methods for wage assurance

The significant difficulties and issues in front of applying Collective Bargaining as a powerful
instrument for wage assurance in Bangladesh went under conversation in a round table meeting
of the ILO in Dhaka, Bangladesh in March 2009. Discussants grumbled that there is colossal
absence of information with respect to aggregate bartering in Bangladesh which ends up being a
significant issue. They additionally referenced the lawful impediments of the 2006 Labor Act
which doesn't have any significant bearing in the instances of EPZ laborers. It is realized that
political association of worker's organizations forestalled them to be solid accomplices in
aggregate bartering. Be that as it may, the businesses referenced a few instances of good
aggregate dealing rehearses supported by some MNCs and nearby organizations. Reference
might be made to the practices followed by Unilever Bangladesh, Bata, British American
Tobacco, Glaxo SmithKline, Square, pharmaceutical segment, tea gardens, tannery, calfskin
ventures and so forth. Agents of these organizations referenced that they typically marked two-
year bi-partite concurrences with the laborers. They were of the view that modern relations were
more advantageous in MNCs and national huge aggregates.
One of the principle issues is that most laborers have a place with the casual segment, and
furthermore a few endeavors are not very much aware of the advantages of aggregate dealing.
Discussants likewise alluded to the progressing aggregate dealing process in the tea part which
prompted the development of discrete Wages Board, made by 6 individuals (2 specialist, 2 bosses
and 2 government individuals). The results of this board would be made open very soon. Both the
laborers' and bosses' agents concurred that a solid connection between the laborers and the
executives dependent on shared trust and regard is a sine qua non for a decent modern
relationship. Be that as it may, they have called attention to certain shortcomings in the current
system which forestall the fruitful course of action of aggregate haggling in the unit which over
the long haul influence the obsession of just and sensible wages for the laborers. This additionally
adversely impacts the efficiency of the endeavor concerned. These issues might be referred to
beneath:
1) Weak work organization of our nation can't actualize work laws and ILO mandates.

25
2) Labour Act 2006 has not been confined fittingly and subsequently can't be executed by
the necessities of the laborers.
3) The manager's will in general detour aggregate haggling as a technique for question
settlement and rather, they depend on 'investment council'. They view aggregate haggling
as a peril while, the laborers consistently in demand aggregate expecting investment
advisory group is utilized for an alternate setting. This isn't utilized as debate settlement
instrument. They hold that solitary 5% businesses have Participation Committee, it's
anything but an instrument that would substitute modern question settlement component.
This clearly makes negative effect on the question settlement process.
4) According ILO Convention/standards, laborers/endorsers can pick their own initiative
either from inside or from outside of their association. This standard is missing in the
current Labor Act, 2006. Under the current situation, a laborer/association pioneer is
under danger that he can be sacked at any second.
5) Under the Labor Act, the arrangement for retirement of a specialist at 57 years old isn't
adequate. A laborer with specialized information stays beneficial considerably after 57.
Furthermore, future of normal Bangladeshis has now expanded. Along these lines, multi
year is suggested.
6) NGOs underscored on the need to dispatch an investigation the pattern of losing
aggregate haggling quality in the method of development procedure of Industrial
relations. It is recommended that the concerned specialists ought to distinguish these
foundations for future advancement. Better worker's guild rights were allowed in the
Industrial Relations Ordinance, 1969, at that point reduced in 1977 and reestablished in
1984. Be that as it may, under the Act of 2006 these rights are again shortened. The Act
of 2006 doesn't permit sectorial and different types of bartering. Aggregate haggling is
constrained inside the venture/foundation level.
7) Factors that put danger to aggregate bartering are:
a) An untouchable as worker's organization heads is limited.
b) If a specialist is ended, he loses his solidarity to frame worker's organization and
c) There is a three years bar to worker's guild development after strike.
8) NGO and worker's guild heads grumble that aggregate dealing is routinely held in the
MNCs and some national organizations. Yet, the result of these dealings isn't
acceptable/sufficient. Be that as it may, in the feeling of IR framework still it is acceptable
practice. Again the administration in MNCs settle on recruiting provisional laborers, not
perpetual specialists. There are enormous quantities of easygoing specialists who don't get the
advantage of aggregate dealing. Thus, they are actually denying the laborers to put their requests
on compensation and different advantages. Much of the time, MNCs/managers themselves
submit sanction of requests to the laborers/worker's organizations to put pressures on the laborers.
They additionally go for diminishing of labor and employment re-appropriating which are not
done by global norm. There are likewise colossal contrasts of pay rates/compensation between
top level and junior level positions.

26
 The issues and issues referenced above are the hindrances that unfavorably influence the
advancement of aggregate bartering as the procedure of pay assurance. In spite of the fact that not
allowed by law, by and by, sectorial aggregate dealing is picking up prominence among the
partners to explain their arguments about various issues. Sectorial haggling assumes compelling
job in deciding least wages for laborers. Notice might be made to the obsession of least wages for
RMG segments. Tea, calfskin, tannery and pharmaceutical divisions are depending intensely on
sectorial haggling.

4.10 Wage discrimination

The truth of compensation structure for laborers out in the open and private divisions is very
unique in relation to lawful system talked about before. Casual segment laborers, who structure
the biggest segments of the all-out workforce in Bangladesh, have not been brought inside the
legitimate system of least wages. Laws identifying with compensation don't have application for
their situation. In certain parts, laborers are paid under the decades old wages structure. For
instance, compensation for agrarian laborers have been resolved in 1984 last and from that point
forward wages structure has not been inspected and no new scale has been re-fixed. As indicated
by the most recent wages scale, least wages of an administration representative including
essential compensation and different advantages has been fixed as taka 4500 every month.
According to the current economic situation, it is hard to lead a conventional vocation with
empathetic nobility out of this 4500 taka. Yet, sheer the truth is that laborers in privates’ parts
don't get this sum as their wages. Those working in casual segments experience increasingly
unfortunate conditions.
Normal least wages for 38 private divisions fixed by the base wages board in 2004 is 1200 taka-a
unimaginably little figure. For instance, until April 15, 2007, least wages for articles of clothing
part was taka 930, i.e. Taka 31 every day. Rice plants laborers get least taka 450 that is taka 15
every day. The most elevated measure of least wages is 1500 which was fixed for dispatch
laborers. These sums fixed as least wages were not the slightest bit perfect with the fast value
swellings in consistently. Along these lines, laborers' wages are diminished consistently and
subsequently forward-thinking wage-scale is required to modify with the expanding value climbs.
From this image of least wages in formal segments one can without much of a stretch see the
miserable states of the laborers in casual segment. In these areas compensation are dictated by the
tact of the business which is away from of ILO shows and other universal and national lawful
standards.

27
Chapter 5 Findings at a Glance

 Most of the RMG industry workers are illiterate.

 They are unaware about their rights and benefits.
 Recruitment on a job is not fair and proper.
 Job security is almost zero.
 Payment of wages is not according to the labor code.
 The payment is poor and nominal bonus and increment is served.  Overtime
facility is not proper  Worker always have to work more.
 No definite working hour.

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Chapter 6 Recommendation

In the light of the above conversations, we can reason that it is the 'demeanor' of the
partners of mechanical relations that is the most significant thing to be changed from the
start. Just star dynamic demeanor of the board and laborers can guarantee legitimate
execution of work laws for the installment of just and sensible wages to the laborers.
Government must remember it that on the off chance that she doesn't orchestrate level
playing field no establishment would exist any longer. Industrialization is
straightforwardly associated with the nation's full scale monetary turn of events. Without
a culture of sound modern connection monetary advancement would just exist as a
legend. The negative disposition of giving less consideration to the prosperity of
mechanical laborers must be changed. Despite the fact that changes are being seen yet
that is only a drop in the sea. Next to each other, industry proprietors must figure out how
to leave up their propensity for exqueezing laborers for their self-glorification. As benefit
mongers they have been fruitful in their intention to deny the poor laborers of their base
right to sensible wages and different advantages including after some time levy and
leaves. Managers, then again, gripe that laborers will in general work gradually than their
ordinary limit and they regularly become brutal and cause harm to the hardware and
manors. It is an intense issue which can't be disregarded at any rate. Most importantly,
political solidness is expected to accomplish the objective of sound mechanical relations
in the nation. The ILO is encouraged to pay attention to the issue very so weights may be
mounted on the administration to give sufficient consideration to the government
assistance of the laborers and to reduce the way of life of supportable advancement in the
nation.

The Minimum Wage Board of Bangladesh ought to acknowledge a legitimate and

adequate definition by all gatherings that considers Bangladesh's monetary and social
Properties. Employee mindfulness is significant for the two representatives and the
association. In the event that representatives know about their privileges, manufacturing
plant proprietors can't trick them, and association and political pioneers can't utilize them

29
for political purposes through bits of gossip. A portion of the ongoing vandalism in the
RMG part has been submitted by blackguards by spreading bits of gossip. To limit this
misfortune, distinctive mindfulness projects ought to be masterminded to instruct
laborers about their rights. As benefits other than compensation are obviously referenced
in the work law, there might be disarray over these issues. Here and there, industrial
facility proprietors decide the advantages as per their will. In this way, advantages ought
to be unmistakably characterized and expressed. The objective for the creation bonus is
the more often than not unreasonable; it additionally ought to be set at a norm.
Additional time pay is another questionable term in this segment. As the laborers value
salary, they lean toward extra time and consider that to be an office. This extra time
culture hurts the two different ways. In this manner, we suggest a roof for extra time and
fixed additional time pay.
A few bosses likewise understood the reality of the issue and the need of relieving these
wrongs for they influenced the creation of the business, they felt that venture on work
government assistance was an approach with seeking after in light of the fact that a
battled laborer would deliver better yields and would build the productivity. The
Government excessively later on understood the gravity of the issue and couldn't stay an
onlooker for the laborers comprised a huge segment the general public. In addition, the
administration needed to intercede to settle the debates in light of a legitimate concern
for national economy and the government assistance of the general public on the loose.
On the off chance that some key industry is tossed out of rigging, the entire framework is
incapacitates. Visit break downs of even a piece of the monetary framework will in
general ruin the network. The counteraction of modern struggle hence expect a
significant job in national approach and the State, in this way, can't stand to stay not
interested in the issues prompting mechanical clash.
After freedom the national government gave a lot of consideration to the improvement of
the states of work in industry, for the thriving of a nation relies on the advancement and
development of industry. No industry can thrive except if there is mechanical harmony
and co-activity. Mechanical harmony is conceivable just with the co-activity of work and
capital. To guarantee better co-activity the breadwinner who is an accomplice in the
creation ought to be permitted to have his due portion of the benefit for expanded
creation. Accordingly, we need to shape our monetary arrangement in such a way as to
give worker his due status by offering him sensible working conditions and due offer
underway. That implies social equity and government managed savings must be
reestablished to the worker. Our Constitution ensures social equity to the individuals of
India. Social equity implies accomplishment of financial destinations. Work enactment is
one of the most dynamic and dynamic instruments for accomplishing financial
advancement. "There is no other part of law which grasps such a wide and compelling
job in social building and social activity. It is here that the modern law separates itself
room different parts of law and anticipates the advancement of completely extraordinary
statute to clarify and explain it"

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Chapter 8 Conclusion

RMG industry is one of the leading industries of Bangladesh. A large portion of the population
of this country depends on this industry. Though this industry violates some of the labor codes
but this could be easily controlled by the strict implication of law enforcement. The Government
has to take this matter seriously and by strict control these problems could be solved. It also
should be kept in mind that RMG industry plays a vital role in national export and national
economy. So any steps toward this industry should be careful enough that it does not affect the
economic condition of Bangladesh

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Chapter 9 References

 [1] Nirmalendu Dhar, Labour &Industrial Laws of Bangladesh,(Remisi Publishers), P.8

 [2] Wikipedia,[http://www.en.wikipedia.org/wiki/labour_ law, accessed 16 April 2010]
 [3] Iqbal Ahmad, Basic labour laws of Bangladesh,p.1-2.
 [4] Principal Md. Altaf Hossain,Bangladesh Labour code,2006 with commentary & case
law(Jolly law book center),p.2
 [5] Nirmalendu Dhar,Student`s Mate Labour & Industrial laws of Bangladesh,(Remisi
Publishers)p.7-9
 [6] Iqbal Ahmad, Basic Labour Laws Of Bangladesh,p-3
 [7] Md.Abdul Halim & Masum Saifur Rahman,The Bangladesh Labour Code,2006(CCB
FOUNDATION: LIGHTING THE DARK,2007),P.258-259,S.353
 [8] http://www.gtz-progress.org/2008/index2.php
 [9] Md.Abdul Halim & Masum Saifur Rahman,The Bangladesh Labour Code,2006( CCB
Foundation:Lighting the dark,2007),p.22-23,s.1(4)
 [10]
 [11] http://www.politiques socials.net /IMG /pdf/…,accessed 15 April 2010
 [12] http://www.politiques socials.net /IMG /pdf/…,accessed 15 April 2010
 [13]Iqbal Ahmad,Basic Labour Laws Of Bangladesh,p.309-311
 [14]Prof. A.A .Khan, Bangladesh labour & Industrial Law(Pravati Prakashani),p.342-343
 [15] S.N.Misra,Labour & Industrial Laws(22nd edition,Central Law Publications),p.5-6

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