INDEPENDENT UNIVERSITY, BANGLADESH

HRM380

Industrial Law and Relations

Section: 02

Date: 06/April/2020

Group Number# 13
Mob: 01759692207

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 Submitted to:
Shafiqul Alam

Submitted by:
Name ID
Shahzeen Shams 1730547
Mahfuz Ahmed Sajib 1621520
Salma Binte Osman 1721040
Lamia Nazifa 1620405

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Letter of Transmittal

6 April, 2020
To,
Md. Shafiqul Alam
Lecturer,
Independent University, Bangladesh.
Subject:

Dear Sir,
With due respect, it is our pleasure and honor to be your students and have the opportunity to
present practices and overviews of talent management. While preparing this report, we have tried
our level best to focus thoroughly on the topic. We provided all relevant information and we
believe and hope that our plan will provide a clear idea about our business.
While preparing the business plan, we all have given our best to accumulate needed information
and we will be available to answer any question for clarification. Thank you for all your help and
support.
Sincerely yours,
Shahzeen Shams

Mahfuz ahmed sajib

Salma Binte Osman

Lamia Nazifa

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 Acknowledgement

In performing our assignment, we had to take the help and guideline of our respected faculty,
who deserve our greatest gratitude. The completion of this assignment gives us much pleasure.
We would like to show our gratitude to Md Shafiqul Alam, Lecturer, Independent University,
Bangladesh, for giving us a good guideline for the report throughout consultations. We would
also like to expand our deepest gratitude to all those who have directly and indirectly guided us
in writing this report.

Many people, especially our team members themselves, have made valuable comment
suggestions on this proposal which gave us an inspiration to improve our assignment. We thank
all the people for their help directly and indirectly to complete our assignment.

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 Table of Contents

Contents
Informal Labour Market:.............................................................................................................................6
Why Informal Labour Market is an Issue?...............................................................................................6

Informal Job sector in BD............................................................................................................................7

Informal Job Sector in Asia-Pacific...........................................................................................................8

Vulnerabilities among the floating labor in Bangladesh:...........................................................................10

Labor right/labor law abused against floating labor in BD:.......................................................................12

CONCLUSION.............................................................................................................................................13

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Informal Labour Market:
The informal labour market is both an overt and covert activity where cash becomes the standard
of exchange. This is commonly referred to as being “off the books” and “under the table.” Some
people who labour in the informal sector work within the private sphere of their own homes.

For an example: Day labour, housecleaning, gardening and landscaping, street vending (food
and merchandise), and child care are all forms of work within the informal labour market.

Why Informal Labour Market is an Issue?

Informal employment in Bangladesh is estimated at about 89% of the total number of jobs in the
labour market. It is more prevalent in the rural areas than in urban areas. Women are also more
likely to be under informal employment arrangements and the highest contributions in
agriculture, fishery, trade, and industries where capitalization is relatively lower. Informal
Labour Market is a great issue in Bangladesh for some reasons. These reasons are in below:

 Workers who have no education or primary education are more likely to hold informal
jobs.
 The majority of the formal jobs are associated with semi to high-skilled workers, while
unskilled work is associated with informal jobs.
 Informal workers are less likely to receive pension, social protection, and a notice of
termination compared to formal workers.
 Common places of informal work are in farms, markets, bazaar stalls, and trade fairs.
 Casual/irregularly paid workers work an average of 54 hours a week, while the unpaid
family worker work 35 hours per week.

 Almost 77% of the jobs available in the country's labour market in 2010 are undertaken
in informal production units composed mainly of unpaid family workers and "daily wage
workers" both in the agriculture and non-agriculture sectors.

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Informal Job sector in BD
Participation of worker in informal sector in Bangladesh is increasing over the last 20 years. the
amount of utilized labour (15+ years) in informal sector has augmented from twenty nine.3
million in 1999-2000 to forty seven.3 million in 2010 with associate degree annual rate of six.14
% (Figure 1). This rate of increse within the recent years has occured at associate degree
accelerated pace than that of the before. to boot, the speed of increase in feminine worker once a
year is thrice on top of their male counterparts. The annual rate of increase in informal sector, for
male, was 4.27 % from twenty two.7 million in 1999-2000 to thirty two.4 million in 2010,
whereas feminine worker has full-grown from six.6 million in 1999-2000 to fourteen.9 million in
2010 with a rate of twelve.58 % once a year. the upper rate of increase within the participation of
girls than their male counterparts could be the results of some indicators like feminine square
measure naturally thought as calm, less educated, less powerful and practiced than their male
counterparts, having low voices within the society. Moreover, lack of access to data, markets,
finance, coaching and technology boosting the informal labour up within the country.

Result of economic process and privatization of some state-owned enterprises, by the pressure
and prescription of the globe Bank (WB), Asian Development Bank (ADB) and International
fund (IMF), square measure increasing the informal sector and consequently, reducing the rights
of the labour within the geographic point. Moreover, lack of talent, inadequacy of correct or
teaching, shortage of employment in formal sectors, political instability, requisite for
involvement in governmental politics and alienation of labour square measure escalating and
boosting the labour up within the informal sectors of Bangladesh. during this context,
significantly, merely having access to employment isn't enough, rather each amount and quality
of the use ought to be emphasized for the trail of economic process (ILO, 2012a).

Percentage of utilized Person naturally of Employment and Region in 2010. The number of
individuals formally utilized in multiple jobs is zero2 that's the workers WHO square measure
committed formal sectors demonstrate less necessity to involve with multiple sectors. However,
the worker in informal economy WHO is engaged in multiple jobs is zero.6 % (Figure 2). just in
case of urban rural disparities, the proportion of informally utilized in multiple jobs is higher (0.7
percent) in geographical region against their urban counterparts (0.4 percent). Moreover,
additional utilized persons holding one informal job (91.5 percent) square measure found within
the rural areas and additional utilized persons holding one formal job (23.9 percent) square
measure found within the urban areas. additionally, low or irregular incomes, long operating
hours, insecured and unhealthy operating conditions among informal labour certain them to have
interaction in multiple jobs for further financial gain. On the opposite hand, labour in formal

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sector gets their desired chance, principally however not all of them, in their geographic point
inflicting less involvement in multiple jobs.

Figure: Labor in Informal Sectors from 1999-2010 [ CITATION MdA13 \l 1033 ]

Informal Job Sector in Asia-Pacific

Informal employment is predominant in rural areas (85.2 % of employment) and is nearly half
employment (47.4 per cent) in urban areas.

• Almost all of agricultural employment (94.7 per cent) is informal within the region, and it
reaches a high of ninety nine.3 per cent in Southern Asia. Informal employment
represents the next share within the industrial sector (68.8 per cent) than within the
services sector (54.1 per cent).
• Southern Asia and South-Eastern Asia and also the Pacific have higher shares of informal
employment than jap Asia. In 2016, shares were fifty.7 per cent in jap Asia, 75.2 per cent
in Southern Asia and also the Pacific and eighty seven.8 per cent in Southern Asia.
• The economic development of nations within the Asia and Pacific region varies
significantly, and this is often mirrored within the proportions of informally employed:

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 the share of informal employment is on the average seventy one.4 per cent in developing
and rising Asian countries and twenty one.7 per cent in developed Asian countries
• At the country level, the share of informal employment ranges from the best level of over
ninety per cent (94.3 per cent in Nepal, 93.6 per cent in Lao and ninety three.1 per cent in
Cambodia) to the bottom with proportions below twenty per cent in Japan.
• Own-account staff and tributary family staff ar preponderantly in informal employment
however additionally fifty per cent of paid workers ar informal in Asia-Pacific.
• In jap Asia, men ar additional probably to be in informal employment than ladies,
however in South-Eastern Asia and also the Pacific and Southern Asia, ladies working ar
additional probably engaged in informal work than men.
• Informality is current among the young population aged 15-24 with eighty six.3 per cent
of young staff in informal employment within the region compared with sixty seven.1 per
cent of adult staff (25+).
• The higher the education level, the upper the possibility to get formal employment; thirty
one per cent of tertiary-educated staff are in informal employment compared to ninety per
cent of staff with primary education.

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Vulnerabilities among the floating labor in Bangladesh:

In 2017, 57.45% of the people working in Bangladesh were in vulnerable jobs, the International
Labor Organization (ILO) has said, vulnerable employment is defined as jobs that are unlikely to
have formal work arrangements, and therefore more likely to lack decent working conditions,
adequate social security and representation. According to ILO’s flagship report titled “World
Employment and Social Outlook: Trends 2018,” of the 63.7 million totals employed in
Bangladesh in the last year, 36.6 million were in these sorts of jobs. The findings reveal a labor
market characterized by low participation rate and low overt unemployment. Poor quality jobs
and vulnerable employment effects more than 900 million men and women in the Asia-Pacific,
the report said. The ILO has their own areas of expertise. The ILO’s expertise is in labor
standards, international labor laws and worker management, as well as health and safety and fire
and safety. The ILO provides an organized voice for business and workers, and has the ability to
advise governments on policy and possible approaches to solving some of the major issues. The
ILO works directly with the ministries of labor in various countries. ILO has needed for working
on a viable solution in the garment industry because they can leverage their counterparts to build
a more complete solution. A big reason for better work to be in Bangladesh is to help change the
worker and management culture at factories.

Despite sustained job growth, decent work deficits and informality pose challenges to prospects
of further reduction in working poverty in Asia and the Pacific. A large part of the jobs created in
the region remain of poor quality.

There are some priorities that are obvious. Fire safety and building safety are at the top of the
list. We need to help factory owners and managers understand how to make the sector safer for
their workers and provide basic training. We need to help the workers have a voice and be
empowered regarding their rights. They need to understand that they have the right to refuse to
go into a building that is unsafe. Worker rights awareness is very high on the priority list. Right
now we are continually digging deeper into needs analysis, the fundamental issues, and how the
current culture is influenced by the industrial relations in the country. We also want to
understand how brand influence shapes the culture. Conducting a needs analysis that exists on a
reasonable scale is challenging. The whole process is very resource intensive. We have to face
the same issues that the workers do. Getting from factory to factory in gridlocked traffic, going
into high-rise buildings that potentially have safety issues, and trying to cluster audits so that we
can manage multiple factories in one day is a challenge. We do try to schedule several audits in
the same area at the same time in order to minimize some of the challenges but that can be very
difficult in Dhaka. Aligning our needs analysis with the ongoing and ever changing fundamental
needs is a continual process.

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At the worker level, we will be training workers on building skills for how to deal with
management. We’ll be teaching them how to raise issues and making sure that they are paid
fairly, correctly, and on time.

At the factory level, we will help in assessing compliance to labor laws, educating about core
international labor standards, and advising on worker and management dialogue. Bangladesh
workers and management need help setting up committees for communication, as there is a
hierarchical cultural structure enforce. Understanding what is needed to achieve and maintain
compliance would be the next step and keeping accurate records at the factory is detrimental. As
the factory matures in their process, the workers can take a bigger part in the dialogue.

At the government level, we will help by working with worker organizations the ministries of
labor and commerce, and providing input on their project advisory committees.

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Labor right/labor law abused against floating labor in BD:
The ILO is supporting efforts in Bangladesh to adopt and enforce labor law and policies which
are in compliance with international labor standards. Specific challenges faced by workers’ and
employers’ organizations are being addressed by building local capacity in relation to freedom of
association and collective bargaining.
Efforts are being made to ensure workers and employers have better knowledge and
understanding of labor rights and responsibilities, both in law and in practice through a wide
range of capacity building and outreach activities. Actions are mainly focused on the export-
orientated sectors namely ready-made garments, shrimp processing, shoes and leather.
Government structures with a labor relations and compliance role are also being strengthened.
Bangladesh has ratified most of the core International Labor Organization labor standards,
including Convention No. 87 on freedom of association and Convention No. 98 on the right to
organize and bargain collectively. However, important sections of the Labor Act still do not meet
those standards.
The new amendments deal with only some problematic provisions of the existing law, while
leaving others untouched. For example:
At least 30 percent of the workers in an establishment, which can comprise many factories,
would still have to join a union for the government to register it.
The government has not only missed a golden opportunity to get rid of provisions that limit
workers’ rights, it has even snuck into the law new and harmful regulations,” Robertson said.
“Even after Rana Plaza, the government still is not fully committed to the protection of workers’
rights and safety.

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CONCLUSION
Bangladesh is growing over the years. It is evident that job crisis, poverty and lack of skills are
the more influential factors responsible for the increased labor in informal sectors. In addition,
increasing employment and improving its quality to widen the opportunities to share the benefits
of growth as well as adopt policies to develop the labor force and improve the functioning of the
labor market is required as well. Results from the livelihood study point out that the labor of
informal sector have low awareness about their rights. Moreover, ideology of some of our policy
makers is exploited and government has private some state owned enterprises limiting the
equality, liability and fraternity of the labors. This reduction in the rights of the labor persuades
them to work in informal sector. Therefore, workers should be valued not to sell their labor to the
capitalists for a wage but for direct and purposeful contribution. Since, informal labor has to
work long hours along with low or irregular wages in unsafe and unhealthy working conditions
recognized and protected job creation in the formal economy is essential for the developing
country. In order to meet the job crisis challenge in the labor market, Bangladesh needs to create
jobs for the educated youth at a rapid rate, which will come mostly through rapid expansion of
productive and skill intensive formal and informal sector activities. Moreover, access to
information, markets and technology among the people is needed, especially to youth and
female, to develop human resources. This would also require in labor market reforms and
employment-centered strategy for development of the country. Labor oriented production sectors
should be identified and pro-actively encouraged by building and operating a large number of
training institutes. Enabling the labor force to take up employment in the country, sending the
skilled groups for abroad or to engage in rewarding self-employment schemes would be very
effective strategy as well in this regard.

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