HRM 450 Aci Limited

“Labor Management Relations in Bangladesh:
A Comparative Study between Two Industries”

Labor Management Relations in Bangladesh: A Comparative Study between Two Industries
Labor Management Relations (HRM 450)
Section 01
Final Group Project

On
“Labor Management Relations in Bangladesh: A Comparative Study between
Two Industries”
Submitted to
Md Al-Amin
Lecturer
Department of Management
North South University
Submitted by:
Name Id
Mahfuza Akter Shahinoor 1431035030
Moumita Hossain 1510356030
Aainul Haq Abir 1511497030
Reesana Sifat 1511694030
Maisha Anika Tahsin Mumu 1531107630
Date of submission: 18th December, 2018
2
Letter of Transmittal
December 18th, 2018

To,
Md Al-Amin (Mli)
Lecturer,
Department of Management
School of Business & Economics (SBE)
North South University
Bashundhara, Dhaka.
Subject: Submission of Final Group Project
Dear Sir,
With due respect, we are the undersigned students of BBA have been assigned to prepare a
report on Labor Management Relations between ACI Pharmaceutical and PHP Ship Breaking
Industry. Under the course: HRM 450. We have tried to prepare this report according to the
instruction you have given us.
Though we are the learning curve this report has enabled us to gain insight in the core fact of
‘Labor Management Relations’. So it has become an interesting experience. Thank you for your
supportive consideration. Without your support and inspiration this report would have been an
incomplete one. Thank you again to give us the opportunity to present what we have learned
from this course through working on this report.
Lastly, we hope that you will find this report satisfactory. Your kind review, advice and
comment on this report are highly appreciated.
Sincerely,
1. Mahfuza Akter Shahinoor
2. Ainul Haq Abir
3. Reesana Sifat
4. Moumita Hossain
5. Maisha Anika Tahsin Mumu
3
Executive Summary
In the report we have chosen two different industries one is pharmaceutical and other is ship
breaking industry. We have studied the two companies ACI pharmaceuticals Ltd. and PHP Ship
Breaking Industry Ltd. We have find the industrial relations of these companies, their labor
management relations, practices of labor management relations, trade union framework, activity,
structure of collective bargaining agents, function of collective bargaining agents, salary and
wages structure, incentives and benefits etc.
We identified what are the major differences between these two industries in terms of labor
management relations, their main problems and tried to give best solutions according to it.
4
Table of Content
Contents
1.0 Introduction:..............................................................................................................................6
2.0 Methodology:.............................................................................................................................6
3.0 Background Information about the companies:.........................................................................7
3.1 Industrial Relation:................................................................................................................7
3.1.1 ACI Pharmaceuticals Ltd................................................................................................7
3.1.2 PHP Ship Breaking Industry LTD..................................................................................7
3.2 Trade Union:..........................................................................................................................8
3.3 Framework:............................................................................................................................8
3.4 Trade Union Activities:.........................................................................................................9
3.5 Trade Union Limitations:....................................................................................................10
3.6 Background Introduction:....................................................................................................10
3.7 Structure of Collective Bargaining Agent:..........................................................................12
3.8 Function of collective bargaining Agent:............................................................................13
3.8 Collective Bargaining Process:............................................................................................16
3.9 Strategies that the Organization Uses to Resolve Industry Disputes:..................................17
3.10 Employee Engagement Program:................................................................................19
3.11 Job Evolution Methods of the Companies:.................................................................21
3.12 Incentives and Benefits:..............................................................................................23
3.12.1 Incentives and Benefits:..............................................................................................23
3.13 Impact of Trade Union on Collective Bargaining:............................................................24
4.0 Findings and Analysis:............................................................................................................25
5.0 Recommendations:..................................................................................................................26
6.0 Conclusion:..............................................................................................................................27
7.0 Limitations...............................................................................................................................28
8.0 Reference:................................................................................................................................29
8.1 Bibliography........................................................................................................................29
9.0 Appendices:.............................................................................................................................30
5
1.0 Introduction:
The term “labor-management relations” refers to interactions between employees, as represented

by labor unions, and their employers. Labor unions are organizations of employees in particular
industries, companies, or groups of industries or companies, who join together in order to further
workers’ individual interests.
In this report we choose two different industries one is pharmaceutical and other is ship breaking
industry. We have researched the two companies ACI pharmaceuticals Ltd. and PHP Ship
Breaking Industry Ltd. We have indentified the industrial relations of these companies, their
labor management relations, practices of labor management relations, salary and wages structure
etc.
Basically we try to find out what are the differences between these two industries in terms of
labor management relations.
2.0 Methodology:
We prepared this report by collecting information from two sources.
They are:
i. Primary source: For collecting primary data we have take interview of one
employee from each organization.
ii. Secondary source: For collecting secondary data we have used following methods
 Discussion of related book and publication
 Articles
 Journals
 Internet etc.
6
3.0 Background Information about the companies:
3.1 Industrial Relation:
British rulers first introduced trade union act in 1926 and this is the beginning of
Industrial relation system. Trade union is for the workers of any company. Maintaining a
smooth industrial relation is one of the major functions of Human Resource Management.
3.1.1 ACI Pharmaceuticals Ltd.
ACI pharmaceuticals now one of the leading pharmaceuticals company in

Bangladesh. They have trade union for their workers benefit and well being. They
believe in empowerment and delegation also they arrange family get together and
some family events to get to know each other. Even they believe there workers
are the most important asset in the company. The HR head of ACI
pharmaceuticals always try to keep their workers happy and give them maximum
facilities which they needed. But as a coin has two sides there is another side of
this. ACI pharmaceuticals really don't like to have trade union. Because they think
having trade union create lot of issue. They always want to keep the power of
authority within themselves. This indicates to the system approach and pluralistic
approach in Industrial Relationship.
3.1.2 PHP Ship Breaking Industry LTD.
PHP Ship Breaking Industry is one of the oldest industries in Bangladesh. It is

now growing industry in Bangladesh. HR head of the company always try to think
about their workers. Ship breaking job is one of the hardest jobs. Every day 3 or 4
people get injure also weekly one dies in average. In addition ship breaking also
affects our environment negatively. Workers health also gets affected. That's why
7
PHP always tries to help their workers and always try to listens their problem.
Whenever there any problem with the workers with company or outside, PHP
stands forward and try to solve their problem. It indicates to the system approach
in industrial relationship.
3.2 Trade Union:
Trade union is also called as labor union. Organization worker come together for their own
benefits and form a new association. In Bangladesh there also trade unions for the workers.
Bangladesh Trade Union Kendra, Bangladesh Labor federation, Bangladesh Jatiya Sramik
League , Bangladesh Garments and Manufacturing Association and so on are the largest Trade
Union in Bangladesh. Trade union activities are huge. They actually work for the workers not
employers. Whenever any disputes happen or any solution is needed this association come
forward to help.
3.3 Framework:
ACI Pharmaceuticals LTD
They are following the "legal Framework for Trade Unionism in Bangladesh". Almost 45%
employees are engaged with the union.
PHP Ship Breaking Industry LTD
They follow the International of Ship Breaking Industry. Bangladesh Ship Breakers Association
works as trade union for the ship breaking industry. In Hong Kong 2011 February 12 there was a
conference about this issue. And there they decided to follow this framework.
8
3.4 Trade Union Activities:
ACI Pharmaceutical LTD
Trade Union major activities are-
 Benefits and well being of the workers.

 Salary ensure
 Safety ensure
 Hygiene ensure
 If any disputes happen always try to solve it
 Women rights
 Follows Bangladesh Labor Act, 2006
PHP Ship Breaking Industry
Bangladesh Ship Breakers Association Works as trade union. They always try for the well being
of the workers. As we already know that ship breaking is very growing industry in Bangladesh
also it associated with lot of risk factors. That's why trade union is there for them. Trade Union
major activities are-
 Ensure workers safety because of the risk factor while doing the job
 Workers benefit and well being
 Ensure women right also they work for no child labor
 Dissolve disputes
 Ensure safety and hygiene
 Follows Bangladesh Labor Act, 2006
9
3.5 Trade Union Limitations:
The limitation of trade union here is lack of unity. The employees and workers can't raise voice
properly because the high authority like top down approach.
Bangladesh ship breakers association is not known to everyone. The main limitation of this is
there is no law for ship breakers. But due to lot of NGO fights to close it down the Supreme
Court announced two laws for this.
3.6 Background Introduction:
ICI multinational company established a subsidiary in 1973. IT was UK based company. In 1992
the company divested its share to the local company and then it named ACI (Advanced Chemical
Industries) pharmaceutical ltd. They make wide range of products like injections, cream,
medicines and so on. It is very well known brand. ACI trying makes new medicines for future
benefits. Quality management system was first introduced by ACI pharmaceuticals. They
maintain supporting relationship with healthcare. They also think about the environment. ACI
always try to make friendly medicines which will not harm environment. They try to make
satisfactory medicines for their customers. The mission is to achieve business through quality by
understanding, accepting, and meeting customers' expectation. They follow Industrial Relations
to ensure quality of their product.
10
PHP recycling company established in 1982 which situated at Bhatyari, Chattagram. They
establish it for supporting the steels making. This company can handle and cut approximately
400000 MT every year to recover steel. The area is 21 acres of land including 500 employees
with casual labor workers. They also have ISO certificate which is the first company to have it.
11
3.7 Structure of Collective Bargaining Agent:
President - 1
Senior Vice-President-1
Vice-President Vice-President Vice-President Vice-President
General Secretary-1
JointSecretary-1
Assistant Secretary Assistant Secretary Assistant Secretary Assistant Secretary
Labor Secretary Social Welfare Secretary Religion Secretary
Interrelated Law-Related Secretary

secretary
12
3.8 Function of collective bargaining Agent:
Function of Collective Bargaining Agent of ACI Pharmaceuticals Ltd:
a) They make sure that their corporate are not complicit with human rights violation: ACI
Pharmaceuticals Ltd is much respected company in all over the country. As it has
factory so here must be some dangerous work there. How they are operating should be
inspected and ACI pharmaceuticals Ltd. collective bargaining agent always makes it
sure that their corporate can not involve any kind of interaction which violates human
rights. They ensure the right of the employees and workers as well as employees.
Violation like hazardous environment, labor rights, sexual orientation etc.
b) To end discrimination in work place: Women in the country are still facing
discrimination in very stage of the society. Their experience in work place is the most.
Often they have to face. The discriminations they are facing at their workplaces include
unequal wages, sexual harassment, shortage of rest rooms as well as toilets, absence of
maternity leave. They face these problems in both the formal and the informal sectors.
The women and labor rights activists said the government should form specific rules
and regulations for informal sector while implementation of the existing law is needed
in formal sector for curbing the gender-based discrimination. In this situation it
becomes a major function for the agent to ensure that their corporate can to
discriminate any worker.
c) Abolition of child labor: Collective bargaining agent not only arranges collective
bargaining but also take care of abolition of child labor. The Bangladesh Labor Act
2006 (Act XLII of 2006) also defines the “child” and the “adolescent” on the basis of
age. As per section 2(8) of the Act, a person who has attained the age of 14 but below
the age of 18 is considered to be an „adolescent‟ and as per section 2(63), a person not
13
attaining the age of 14 is defined as a “child”. So they also look at the age that no child
under 14 years can work in their factory any circumstance.
d) The right to collective bargaining and recognition of freedom of association: As a

collective bargaining agent they definitely hold the right to do collective bargaining
with the management of ACI pharmaceuticals Ltd. With the use of the right they sit
with management to negotiate to settle issues. And it also maintains freedom, freedom
of performing its activities and also completes independence.
e) To eliminate the use of forced and compulsory labor: According to the labor act 2006
chapter ix section 100 explained the daily hours “No adult worker shall ordinarily be
required or allowed to work in an establishment for more than eight hours in any day”
But often we see the violation. Workers even employee have to worker more than 8
hours but it is not be counted as over time. Here collective bargaining agent of ACI
pharmaceuticals Ltd. plays a vital role. They ensure that no labor could be forced to
work more than 8 hours even if they do they ask for over time from the management.
Function of Collective Bargaining Agent of PHP Ship Breaking & Recycling Industries
Limited:
Nowadays ship breaking industries have been drawn a great attention in economics of
Bangladesh. In 2007 alone 70 vessels have been cleared in Bangladesh. Bangladesh became the
third largest in this sector but the situation of the workers is very miserable. They face many
problems:
I. Limited or no access to treatment, emergency services and compensation when a

worker is injured or killed on the job.
II. Less than minimum wages
14
III. Lack of job security: no work no pay
But for the betterment of the workers Ship Breakers Association has been established.
a) Ensure right wage: The first and foremost function of the association is ensuring the
right wage. Ship breaking labor do not get their wage, they are always deprived. Even
they do not have any power to talk on the management, so it becomes a matter of
concern. To ensure the right wage Bangladesh Ship Breakers Association negotiates
with the PHP Ship Breaking & Recycling Industries Ltd. They always make it sure
that the labor gets the right amount of wage.
b) Safe working conditions: Ship breaking carries a very real life risk. Ship breaking
industry imports high toxic foreign vessels. There is an unsafe and hazardous
environment. Consequently workers suffer from different yes of fatal diseases like
lung cancer. It causes temporary sometimes permanent disability of work. So it is
very significant to make the environment as much as safe they can make.
c) Right working tools & Practice: There’s hardly any testing system for the
utilization of cranes, lifting machinery or a motorized machine. The yards re-use
ropes and chains recovered from the broken ships while not testing and examining
their strength. There’s no marking system of loading capability of the chains of cranes
and alternative lifting machineries. The overwhelming majority of employees wear
no protecting gear and lots of of them work barefoot. The gas cutter and their helper
cut steel plate without any glasses. So they try to make sure enough working tools and
ensure the right use of those tools.
15
d) To protect extensive working hours: Workers have to work for long hours with very
little pay. Even they do not get sick leave, annual leave or overtime and as they are
hired on an hourly basis, they have no idea whether they’ll have work the next day.
Association still is working on that. They are trying to fix a working hour (8 hours) so
that they do not need to work for unlimited time.
3.8 Collective Bargaining Process:
The process of collective bargaining is strongly maintained by both of the company. The
processes are listed below:
 Preparation
 Discussion
 Proposal
 Bargaining
 Settlement
a) Preparation: At first, both the parties prepare the topic on which negotiations to
be carried out during the meeting. Each member is well versed with the issues to
be raised at the meeting. The management always well prepared for the proposals
of change required in the employment terms. On the other hand, the union gathers
proper information regarding the issues of the issues and the desires of the
workers.
b) Discuss: Here, both the parties decide the guidelines to guide the negotiations and
the prime negotiator is from the management team who will lead the discussion.
Also, the issues for which the meeting is held are identified at this stage.
16
c) Propose: At this stage, the negotiators begin the conversation with an opening
statement and then both the parties put forth their initial demands. This is also
called as a brainstorming, where each party gives their opinion that leads to
arguments and counter arguments.
d) Bargain: The negotiation begins with bargaining where both parties try to

dominate over the other. Sometimes the negotiation goes for days until a
settlement. If they cannot settle down the dispute the third party intervenes into
the negotiation.
e) Settlement: This is the final stage of the collective bargaining process, where both
the parties agree on a solution of the problem. If, a mutual agreement is formed
between parties then the agreement statement is signed by each party to give the
decision acceptance.
3.9 Strategies that the Organization Uses to Resolve Industry Disputes:
For ACI Pharmaceuticals Ltd.:
a) Collective bargaining: In ACI Pharmaceuticals Ltd. industrial disputes are not

unfamiliar. The frequency of conflict is not low or high it is in moderate area. But
when issue arises they try to sit for a collective bargaining. The representative of
union meets the representative of employee to resolve disputes and violation.
Collective bargaining is the most effective method for them to resolve disputes.
17
b) Code discipline: This defines ACI Pharmaceuticals Ltd’s duties and responsibilities
of both the worker and the employers. Objectives of code of discipline is:
I. Employers’ and employees’ right and obligations.
II. Eliminating all forms of intimidation, and violence in industrial
relations.
III. Avoiding work stoppage. Workers cannot go for the strike whenever
they want.
IV. Maintaining discipline.
c) Conciliation: If both parties cannot reach in a mutual decision then to conclude the
matter goes for conciliation. Thorough the third party point of view both get a
decision. Sometimes they brought individual as a conciliator or sometimes they
brought a group as a conciliator. It depends on the matter and issues.
For PHP Ship Breaking & Recycling Industry:
a) Collective bargaining: Bangladesh Ship Breakers Association also prefers collective

bargaining for resolving industrial disputes. They sit with the management of PHP
Ship Breaking & Recycling Industry in want of right wage, safe working condition;
protect them from extensive working hours and many more. When they need to
resolve any matters both party go through the process of collective bargaining. By
this they try to resolve the industrial disputes.
b) Avoiding: The avoidance strategy seeks to put off conflict indefinitely. This strategy is
followed mainly by the management. By delaying or ignoring the conflict, the
management tries to resolve the problem itself without a confrontation. As labor has
low esteem and less power they cannot raise their voice every time. In some
circumstances, avoiding can serve as a profitable conflict management strategy, such
18
as after the dismissal of a popular but unproductive employee. The hiring of a more
productive replacement for the position soothes much of the conflict.
c) Adjudication: Adjudication means a mandatory settlement of an industrial dispute by

a labor court. Generally, the government refers a dispute or adjudication depending
on the failure of conciliation proceedings. Section 10 of the Industrial Disputes Act,
1947, provides for reference of a dispute to labor court or tribunal. This is one of the
popular strategy that both the party using. Last year about the use of chemical one
decision had been given by the labor court. The court also restricted in the use of
safety tools about helmet, gloves and eyes protecting glasses.
III.10 Employee Engagement Program:
Employee engagement is the emotional commitment that the employees have to the organization
and the organizational goals. Employee engagement occurs when employees are harnessed to the
organizational goals. It is a workplace approach designed to ensure that employees are
committed to their work roles and willing to go for an extra mile for the organisations. So it is
necessary for all the companies. ACI Pharmaceuticals Ltd. and PHP Ship Breaking & Recycling
Industry is not different from others they also promote employee engage program.
For ACI Pharmaceuticals Ltd.
a) Salary increase: employees and labor get a specific percentage of increment every
year. It is very important drivers of employee engagement for the ACI
Pharmaceuticals Ltd. It keeps attach the employee with the organization. The total
annual employee turnover has been reduced using the tools.
19
b) Safety committee: To ensure the safe working condition and to ensure the safety of
the worker ACI Pharmaceuticals Ltd. established a safety committee. The committee
ensures that the place is secured as well as with hygiene. They also work for
establishment of primary treatment frame work. The committee also works with the
management with safety tools. It makes the feeling of safe in the mind of employees
and workers.
PHP Ship Breaking and Recycling Industry:
a) Suggestion Box: Though it is old-fashioned suggestion box that is rarely opened, but it
is popular in PH. This suggestion box with a kick will involve employees from
throughout the company. The company informs all employees that suggestions from
the previous week will be read on a specific day. They all join and a volunteer is
chosen who picks the cheats from the box and it is read loudly. It feels like they are
part of the organization and organization thinks that they are valuable.
b) Idea campaign: Ideas campaign helps to keep employees involved. When employees
come up with new ideas to make the business run more smoothly, they can put them
on the board. In that sense employee responsible for making it happen. But it is for
white color job holders who can share their idea. It keeps involve in strategy of
organization.
20
III.11 Job Evolution Methods of the Companies:
From our research we found that, both of the companies do not follow any particular job
evolution methods. After going through several articles and reports we have identify that both of
the industry uses multiple job evolution methods depending on the job criteria. More information
is given below following this matter:
ACI Pharmaceutical
ACI Pharmaceutical does not use any particular job evaluation method. They use several or
multiple methods, according to their job structure. ACI Pharmaceutical uses mainly two types of
job evolution methods. They are Classification/ Grading Method and Competitive Marketing
Analysis Method. More details are given below:
a) Classification/ Grading Method: This method is mainly used for administrative

employees, researcher/ scientist, worker etc of the organization. For these job positions
they divide the salary and wages by the employee’s education, experience, expertise,
number of working year in the organization, responsibilities, rank etc. The
organization creates list according to job specification and then gives grade. According
to the list they set the salary and wages structure. Based on the seniority and high
profile employees are classified and gets their salary.
b) Competitive Marketing Analysis Method: Competitive marketing analysis method

means set the salary and wages according to others companies’ salary and wages
21
structure. Here, organization finds out how much the other companies pays to their
employees. They use this method to set for sales representative, development manager,
project manager etc employees.
PHP Ship Breaking Industry Ltd.
In our country ship breaking industry has one of the worst conditions in terms of company salary
and wages policy. There is no specific wages law for this sector. It totally depends on the
company, how they going to pay their employees and workers. In our company research we did
not find any specific job evaluation method that is used by PHP ship Breaking Industry Ltd. But
we do get some idea how they set the salary and wages structure for their workers and
employees. The methods are given below:
a) Ranking Method: The organization mainly use ranking methods to identify job
structure and position. Once they done this part they set the salary based on the
rank. Top employees get higher salary. As the ranking level goes down, so as the
salary goes downward. This method is used in the administrative employees for
only.
b) Classification/ Grading Method: This method is mainly used for the worker of the
organization. For these job positions they divide the wages by the employee’s
experience, expertise, number of working year in the organization, responsibilities,
rank etc. The organization makes a list according to job specification and then
classified them. According to the list the company sets the wages structure. Based
on the high demand and high profile workers are classified and gets their wages.
Classification/ Grading method is used for the workers who work in the yard.
22
III.12 Incentives and Benefits:

ACI pharmaceuticals and PHP both of them give their employees befits and bonuses to keep
them motivated and engaged towards the organization. Both of them offer their employees some
financial and non financial benefits and bonuses.
3.12.1 Incentives and Benefits:

ACI PHP
Quality of Work Efficiency based reward
Production capabilities Safety plans
Monthly sales Attendance and Performance
Safety record
Work attendance
Awards: Awards:
Group Based Awards, Company Standard Stock facilities. Yearly bonus
ACI PHP
Financial Non Financial Financial Non Financial
4 bonuses Technical support Insurances: Life, Paid holidays
Accidental death,
Mental, Family
Share of Profit Job rotation Stock Option Sick Leaves
Special Increment Lunch facilities Equity Plan Employee assistance
program
Medical facilities Break for shift Performance bonus
workers
Gratuity Take part on decision Retirement plan
making
Group Insurance Job Enrichment Pension Plan
Loan Facilities Study leave Family medical
3.13 Impact of Trade Union on Collective Bargaining:
23
ACI Pharmaceutical:
As they have a union for collective bargaining so they go for formal collective bargaining and
take decision. The process is very easy and positively effect on both union and management.
They admire every decision which has been taken through collective bargaining process. Though
the management doesn’t want to have any collective bargaining process, they need to sit for that.
But the maximum power become on the hand of management.
PHP Ship Breaking Industry Ltd.:
As PHP doesn’t have any kind of union but if any problem occurs they solve it through the Ship
Breaking Association. They go for meeting and set the rules and results for the organization. The
impact is very positive here. They admire every decision that has been takes on the meeting
24
4.0 Findings and Analysis:
We have discussed on the matter of labor relation. We have talked with some management
officers and analyzed previous report regarding the organizations. After interviewing and
analyzing we came to a point that is relation between managements and union like that they are
maintaining a very good relation even not a bad relation. That’s mean they r maintaining a are
moderate relationship between them. They both have the willingness to resolve any kind of
disputes. And management play a vital role here, they always keep open their door for their
labor, employees. Though there is a different picture on PHP Ship Breaking & Recycling
Industry. Workers have very little power to express their opinion or their demand their needs.
But Bangladesh Ship Breakers Association helps the worker and they negotiate with the
management of PHP Ship Breaking & Recycling Industry. So that PHP Ship Breaking &
Recycling Industry has to maintain a relation with But Bangladesh Ship Breakers Association. It
is positively affecting the industry, nowadays the accident rate has fallen. In 2009 25 workers
have died but in 2010 the number came in only 12. Along with the exploitation Ship breaking
industry started thinking about the labor. And it happened only for the trade union and their
relationship.
25
5.0 Recommendations:
In the findings and analysis section we found that Labor practice in Bangladesh is moderate.ACI
Pharmaceuticals Ltd. follow top down approach. Even though they believe in employee as asset
but they like to hold the power within them. They have trade union but because of top down
approach they can't raise their voice. If ACI practice proper HR system and imply employee
engagement functions, they can have a nice and well managed organization.
On the other hand PHP Ship Breaking Industry doing really well. But the external factors are
effecting the organization. As there are lots of accidents happening in this organization, there is a
solution for this. The solution is Green ship cycling. This solution indicates the way of reducing
the risk factors. When the worker cuts the ship, they don't follow any process. But if they cut the
ship with right measure they can reduce the risk also the load of the work will be less.
26
6.0 Conclusion:
ACI and PHP both tried to maintain a nice organizational environment as much as they can. As
they have different industry, their strategies, employee management, employee engagement also
very different from one another. ACI has a trade union and do collective bargaining when they
feel there some problems occur. Though the management doesn’t want to participate on
collective bargaining but they need to do. But the maximum power become on the hand of
management. On the other hand PHP doesn’t have any trade union but they solve the problems
through “Ship Breaking Association”. Both of them give bonuses and initiatives as their own
process to the employees. They always try to keep motivated to their employees. As ship
breaking is a risky job, PHP need to keep that in mind. They are providing a lot of insurances to
their employees and facilities also. As labor management relation is a big issue it’s important to
keep in mind that employees are the key. Though both of the companies are doing their job in
their own way, but they need to be concern about their labor management relation.
27
7.0 Limitations
Although we have tried our level best to make our report content as accurate as possible but we
still had some limitations. Shortage of time was one of the main limitations. Due to lack of
experience we maybe couldn’t collect all potential data structured in a complete way in this
report.
If we the chance to get more time for this report we would made it more informative.
28
8.0 Reference:
8.1 Bibliography
Dontigney, E. (2018, june 29). conflict management . Retrieved from Chorn:
https://smallbusiness.chron.com/5-conflict-management-strategies-16131.html?
fbclid=IwAR3WlahLFvTkifUxgv2homu6fGX5SgAogsTBXb9Pd2xPKWFN8nAFS9HqsZU
(2012). END OF LIFE SHIPS. Chattaram: A green space.
Haq, N. (2007). Bangladeshi ship breakers defy court ruling. Al-Jajira .
Uddin, J. (2016, May 1). Business. Retrieved from The daily sun: http://www.daily-
sun.com/arcprint/details/132878/Most-women-face-genderbased-discrimination-in-
workplace/2016-05-01
29
9.0 Appendices:
30

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“Labor Management Relations in Bangladesh:

A Comparative Study between Two Industries”

Labor Management Relations (HRM 450)

Final Group Project

Date of submission: 18th December, 2018

December 18th, 2018

The term “labor-management relations” refers to interactions between employees, as represented

3.0 Background Information about the companies:

3.1 Industrial Relation:

3.1.1 ACI Pharmaceuticals Ltd.

ACI pharmaceuticals now one of the leading pharmaceuticals company in

3.1.2 PHP Ship Breaking Industry LTD.

PHP Ship Breaking Industry is one of the oldest industries in Bangladesh. It is

3.2 Trade Union:

ACI Pharmaceuticals LTD

PHP Ship Breaking Industry LTD

3.4 Trade Union Activities:

ACI Pharmaceutical LTD

Trade Union major activities are-

 Benefits and well being of the workers.

PHP Ship Breaking Industry

3.5 Trade Union Limitations:

ACI Pharmaceuticals LTD

PHP Ship Breaking Industry LTD

3.6 Background Introduction:

ACI Pharmaceuticals LTD

PHP Ship Breaking Industry LTD

3.7 Structure of Collective Bargaining Agent:

Vice-President Vice-President Vice-President Vice-President

Assistant Secretary Assistant Secretary Assistant Secretary Assistant Secretary

Labor Secretary Social Welfare Secretary Religion Secretary

Interrelated Law-Related Secretary

3.8 Function of collective bargaining Agent:

Function of Collective Bargaining Agent of ACI Pharmaceuticals Ltd:

d) The right to collective bargaining and recognition of freedom of association: As a

I. Limited or no access to treatment, emergency services and compensation when a

III. Lack of job security: no work no pay

3.8 Collective Bargaining Process:

d) Bargain: The negotiation begins with bargaining where both parties try to

3.9 Strategies that the Organization Uses to Resolve Industry Disputes:

For ACI Pharmaceuticals Ltd.:

a) Collective bargaining: In ACI Pharmaceuticals Ltd. industrial disputes are not

For PHP Ship Breaking & Recycling Industry:

a) Collective bargaining: Bangladesh Ship Breakers Association also prefers collective

c) Adjudication: Adjudication means a mandatory settlement of an industrial dispute by

III.10 Employee Engagement Program:

For ACI Pharmaceuticals Ltd.

PHP Ship Breaking and Recycling Industry:

III.11 Job Evolution Methods of the Companies:

a) Classification/ Grading Method: This method is mainly used for administrative

b) Competitive Marketing Analysis Method: Competitive marketing analysis method

PHP Ship Breaking Industry Ltd.

III.12 Incentives and Benefits:

3.12.1 Incentives and Benefits:

3.13 Impact of Trade Union on Collective Bargaining:

PHP Ship Breaking Industry Ltd.:

4.0 Findings and Analysis:

(2012). END OF LIFE SHIPS. Chattaram: A green space.

Haq, N. (2007). Bangladeshi ship breakers defy court ruling. Al-Jajira .

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