HRM-410

FINAL PRESENTATION ON
 OBJECTIVES

 The Objective of our research is to analyze whether an organization

follows certain laws or regulations from the Bangladesh Labor Act,
2006 or not.

 The implementation of certain labor acts in ACI ltd.

 To prescribe certain remedies that can be useful to get more efficiency

in the organization.
 Methodology

In preparing the report we have maintained some steps. Which are given bellow-

 At first, we select ACI-LTD for making our report on

implementation of the Bangladesh Labor Act-2006 specially chapter 1, 15 and
19.

 We have prepared a questioner and conducted a personal interview from MR.

Kaiser Rajib For primary research

 We have used the website of ACI ltd. along with some other research and
reports that discussed about labor laws
 Company background
 ICI Bangladesh Manufacturers Limited was a subsidiary of world
renowned multinational ICI Plc. and was a listed public limited company
under Dhaka Stock Exchange. In 1992 ICI Plc. divested its shareholding
through a management buyout and the company name was changed from
ICI Bangladesh Manufacturers Limited to Advanced Chemical Industries
(ACI) Limited. ACI Formulations Limited, a subsidiary of ACI, became a
public listed company through direct listing.

 ACI has diversified into four major strategic business divisions which
include Health Care, Consumer Brands, Agribusinesses and Retail Chain.
 Company Background (Cont.)
Strategic Business Units:
 Pharmaceuticals
 Consumer Brands &
Commodity Products
 Agribusinesses:
 Crop Care Public Health
 Animal Health
 Fertilizer
 Cropex
 Seeds
 ACI Formulations Ltd.
ACI has the following subsidiaries
 ACI Agrochemicals
 Apex Leather crafts Limited
 ACI Salt Limited
 ACI Pure Flour Limited
 ACI Foods Limited
 Premiaflex Plastics Limited
 Creative Communication Limited
 ACI Motors Limited
 ACI Logistics Limited
 Labor acts that are covered
 Chapter
: 1- Primary laws including definitions and
commencements

 Chapter : 15 – workers participation in companies profit.

 Chapter : 19- Penalty and procedures

Data Analysis and Findings

Chapter 1
(BLA,2006 and 2013 amendment)
(Section 1 and 2)
Preliminary
 Male female ratio is 75:25
 Retirement age is 57
 Trade union is only visible in Pharmaceutical sector
 No chance of going slow as all the equipment used in production is automatic.
 Employee turnover rate is very rare and found the employees and workers very satisfied about the work and
working condition.
 Gratuity is paid as per their work age.
 Employees and workers get festival as well as privilege leave as per as company policy and their requirement.
 Employee salary and workers wages are paid on 1 st day of a month.
 Both workers and employee salaries are paid in their own bank account.
 They have housing arrangement for some of the worker.
 Provide insurance to workers and employee.
 Workers overtime limit 5 hours a day.
 They Provide two work shifts for their worker.
 Data Analysis and Findings

CHAPTER 15
(BLA,2006 AND 2013 AMENDMENT)
(SECTION 231-252)
WORKERS PARTICIPATION IN COMPANIES PROFIT

  Section 232: Paid up capital TK 343,941,0001 crore and  

Fixed Asset TK 3013,476,000 2 crore.  

 Section 234: a) Established Workers Participation Fund Tk 297,966,000  

Established Employee Fund Tk 157,224,000

X

b) Share of profit from established workers Participation Fund(Tk

35,551,000) 5%  

 Section 235: Among 4 SBU’s of ACI there is only one Labor Union in
Pharmaceutical. However, the company doesn’t have any
Board of Trustees. X
 Section 236: where any company or board of trustee fails to comply with
the provisions of section 234, the government may, by an order in
writing, require it to comply those provisions within such time as may be
specified in the order. If fail to comply within the time specified therein,
pay by way of penalty a sum which may extend to maximum one lac
Taka and in the case of continuing failure, a further sum of which may
extend to five thousand taka for every day. (BLA,2006)

 Section 241: The employees who have passed the initial 6 months
probationary period are allowed to participate in that profit sharing.  

 Section 242: Two third of the participatory fund (Tk 35,551,000) is

 
distributed in equal proportion to all beneficiaries in cash. ( According to ACI
quarter report September 2014)

 
 Section 246: ACI exempts the income of the worker from income tax.
 Data Analysis and Findings

Chapter 19
(BLA,2006 and 2013 amendment)
(Section 283-316)
offences, Penalties and Procedure
 Section 284: The whole organization has a restriction on child labor. The
candidates have to submit the National ID or any relevant
documentation that proves that s/he is 18+.

 Section 286: ACI proves 4 months of maternity leave to its female workers

 Section 289: ACI has maintained the minimum wage level in the
organization.

 Section 292: 5 year ago there was a little worker’s unrest in their
pharmaceutical factory but was dissolved within a few hours. Till now
no illegal lockout or this kind of incident took place in their organization

 Section 297: If there are cases that went to the Labor Court and the
worker is found fresh with no guilt then after the settlement the authority
pays the basic payments of days
 Section 303: Giving false statement of anything or information disclosure
are taken care according to their level of damage and
decisions are made according to that.
 In case of absence in working place without prior notice for 3 or more days
which is a compliance as per BLA-2006, the authority asks for the reason and
the company has to show cause.
 If the reasons are proper then they get consideration but if the information
or documents are not satisfactory then the authority takes actions as per the
labor law.
 Moreover, still there is no report on illegal strike or lock out, go-slow activity,
misappropriation of provident funds or trade union funds, dual membership,
obstruction, violation of dangerous consequence, if occur in future they will
take action according to BLA, 2006.
 For any kind of illegal activities like theft or fraud in funds is taken care by
the COC .
 Recommendation
 Establish worker fund according to section 234, BLA,2006
 ACI should establish medical center with registered practitioner in their
factory site.
 ACI need to establish Board of Trustees as soon as possible according
to section 235, or else they might have to pay fine according to section
236 of BLA, 2006.
 Strictly
follow their workers working time as they don’t have fixed
working time in all the SBU’s.
 Limitation
 Time Constrain
 Difficulty in managing appointment with HR manager of
ACI.
 Some of the sophisticated data were not revealed properly.
 Datacollection about labor union was not up to the mark as
ACI has trade union only in their pharmaceutical sector.
 Conclusion
 ACI believe in empowerment and delegation. They practice modern
HR Policies and procedures for Recruitment & Selection, Manpower
Planning and succession planning. They use a combination of
qualitative aspects and Balanced Score Card for performance
appraisal.
 We found a little bit gaps between their commitment and the reality in
different HR practice. We did not find out any major violations, but
there were minor mismatches with the laws which might create
problem in long run. But most of the time they are very concern about
their HR issues very strictly and they follow the Bangladesh Labor
Act-2006 and 2013 amendment in different issues regarding the HR.
Any Questions

?
Thank You