FUTURE CHALLENGES OF INDUSTRIAL RELATIONS IN BANGLADESH

Submitted To,
Md Mizanur Rahman
Associate Professor
Department of Management Studies
Jagannath University
Submitted By,

Name Id
Alauddin Molla B-160202090
Estiar Ahmed Tayev B-160202097
Sadia Hassan(G.L) B-160202099
Anqur Das B-160202111
Rafid Sadman B-160202129
Adrita Bhowmick B-160202130
Moumita Tanjila B-160202145
Md. Nafiul Ibn Sarker B-150202187
Letter of Transmittal

Md Mizanur Rahman

Associate Professor

Department of Management Studies

Jagannath University

Subject: Letter of Transmittal.

Dear Sir,

It is our great pleasure to submit the report as on to you. As per requirement of the
course, we have completed our assignment which is done by the help of 8 members in our
group. We have tried to exert all the knowledge that we gathered through an online group
discussion and information taken from online research. Before facing the real business
world, we have gathered prior knowledge about the industries, their relations, problems
of industrial relation and lastly the future challenges of industrial relation.

Thank you very much for your kind co-operation without which this report cannot be
completed. We like to take every opportunity to express our gratitude of indebtedness to
you.

Thank you once again for your kind co-operation.

We sincerely hope that you will accept the report and we would be thankful once again if
you give your judicious advice on our effort.

Sincerely,

Sadia Hassan,

On behalf of all my group members

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 Table of Content

NAME PAGE NUMBER

INTRODUCTION 4

METHODOLOGY 4

FUTURE CHALLENGES OF INDUSTRIAL

4-7
RELATIONS IN BANGLADESH

PROBLEM OF INDUSTRIAL RELATION 7-8

RECOMMENDATION 8-11

CONCLUSION 11

REFERENCE 11

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FUTURE CHALLENGES of INDUSTRIAL RELATIONS in BANGLADESH

Industrial relations is a fancy word that really means the ways in which employee and
employer react with each other within an organization. Regardless of your organizational
structure, there will always be challenges in employee relations that a company must
handle before these challenges become major problems. These challenges are the result of
the divide that exists at companies between those who make decisions and those who
must implement those decisions. Understanding the common problems faced by
employees in organization is the key to maintaining a harmonious relationship between
management and staff.

METHODOLOGY

This is exclusively a descriptive research on present condition of IR practices in Bangladesh

of a few selected financial and nonfinancial organizations of Bangladesh. The study is done on
those that are broadening their organizational activities beyond stakeholders' benefits.

The study uses:

 Secondary data; and

 Archival information from the selected samples.

DATA COLLECTION AND PROCESSING PROCEDURES

For this study, the secondary data is collected through extensive review of literature, related
articles, texts (including online books), and newspapers (including Financial Express).
Available national and international research works publications of different organizations.
Web portal, articles or publication of Bangladesh Bank (BB) and other organization. Website &
various published documents on internet.
FUTURE CHANLLANGES OF INDUSTRIAL RELATION:
Discussion:
The condition of industrial relationship has changed than before because of the current
pandemic. Many organizations have been facing economical loss and they are forcing to
terminate their employees. All this thing has created a negative effect on industrial relationship.
Those are,

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1) Maintaining relationship of employees and employer:

One of the future challenges of IR will be maintaining the relationship among the employees and
their superior. As after COVID-19 many companies will operate digitally (as it's less costly than
hiring a room or building). Because of working digitally it's will be hard to interact with each
other than before. It's will not affect the same as it would have been in physically. Employees
may find it hard to integrate into the digital workplace without the interaction of employees.
2)Lack of knowledge in Technology:
The lack of knowledge of Technology will lead to problem for the employer. In Bangladesh
many people don't know how to use the computer or mobile phone well. Specially in Industry
like RMG and others many people from lower or lower middle class they don't have a proper
phone rather than have the knowledge to use them.
3) Providing employees salary in time:
Because of COVID-19 many companies are under loss. The Covid-19 pandemic has made it
abundantly clear to the garment industry that accounted for 84 percent of the country's exports
worth $40 billion last fiscal year. The industry has already faced cancellation and holding off
orders worth nearly $3 billion due to the impact of global pandemic.
They are having financial problem and many of them are unable to provide salary to the
employees or are force to pay cut an amount from the salary of the workers
4) Adjusting to Work from Home Style:
Many worker may face difficulty in work from home working style. As you have to seat one
place and work for hours. The communication is not as easy as before. Meetings are long and
facing difficulty in understanding everything.
And many companies like RMG where you need physical work can't adopt this style.
5) Changed Working Hour:
Employers now need to change their employees' working hours to help manage the impacts of
coronavirus. Employers may also want to make changes to the duties that employees perform.
These changes may affect an employer’s obligations when changing their employees’ hours or
duties.
6) Privacy issues:
Many companies have policies that allow security personnel to monitor internet use, phone calls,
voicemails, and email correspondence. Because of COVID-19 all the communication have been
conducting digitally. Technology has also increased the problems faced by employees in
organization because of the increased intrusion of video and audio surveillance. Which increases
the chance of lacking all the important information, decisions and future strategies of an

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company. Also when employees feel as if every move they make is being monitored, they lose
trust in upper management and company leaders.
7) Lack of Digital Equipment:
Many small and medium industry may not have the equipment which is need to perform work
digitally. Also, many workers don't have the knowledge and money to buy the equipment to
work online.
Which lead the companies to lag behind in long run as many industries now adopting digital
working style.
8) Adjusting new laws:
Government now introducing new law because of the pandemic.
(Like 1 feet away from each other while working this may be hard for the industry in Bangladesh
where many worker work in same place)
Adjusting the laws, implementing them and how workers react to them maybe a new challenge
for the industry.
9) Handling conflict management:
In past it was easy to manage conflict between the employees as the employer can seat with them
and try to solve this thing by just talking with them.
But now because of COVID-19 employer may find difficulty to communicate, many employees
may not willing to communicate, also the rate of conflict among the parties will increase because
of misunderstanding and miscommunication.
10) Maintaining employee’s welfare:
Many employees are getting effected by COVID-19 and many of them now facing financial
difficulty.
During this loss time companies are facing challenges to help them or providing employees
welfare.
11) Force to terminate employees:
Organization now terminating employees because of lack of financial fund or hard of
maintaining a large number of employees online.
It's now became challenge for the companies to decide who to keep and who to say goodbye.
Also, it's increasing the fear and frustration in the employees mind for loosing job.
12) Ensuring safety measurements:
During and after COVID-19 it will be a challenge for the industry to provide full safety
measurements. As they will be costly and many employees doesn't maintain them properly.

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So, they will be a risk of spreading the virus again.
13) Adapting to Changes in the Industry
The business of manufacturing has not only gotten more complex but also more “digital.”
Manufacturers have recognized that the old way of doing things isn’t as flexible or adaptable to
changes in customer demand and managing the effect that demand has on the supply chain.
Legacy systems that were built to handle transactions but not to share information or integrate
with others can no longer keep up with the pace of change occurring in manufacturing.

PROBLEM OF INDUSTRIAL RELATION:

1. Industry Problem with Technology:

To form a tightly knit and integrated system after covid-19, every stage of the procurement
process will need automation. Business leaders can empower their teams with visibility of their
supply chain in real-time. This would help them absorb demand fluctuations faster. Combined
with an automated supply chain system can create a sustainable ecosystem that can be used by
generations to come. Digitalization of the supply chain is what will enable the packaging
industry to operate at full potential.
2. Macro-Economic Problems:
At a macro level, the GDP growth slowed down. The National Statistical Office has pegged the
economic growth at 5 percent for FY 2019-20 in its second advance estimates. These factors
have directly impacted employment rates and have hit the consumer sentiment putting a brake on
spending. This coupled with the COVID-19 pandemic is straining the supply side and hurting the
economy as well.
3. Keeping up with legislation:
The industrial action is changing at a rapid pace due to covid-19. It seems like the government
releases new regulations that affect business owners almost every day. In order to understand and
follow new legislation and changes, business owners will need to monitor news from the local,
state, and federal government daily. Most importantly, they need to make sure they are getting
information’s from an official source, such as a government website, a bank representative,
accountant, or other professionals’ network.
4. The Mentality
Employees often consider the employer as the ‘other’. This can cause a significant divide
between the employees and the employer of the company. And even though this is a natural
reaction but it can still cause a number of problems like the problem in contract negotiation,
strikes, and other problems.
5. Wage Disparity
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According to research, there is a significant gap in the wages which are paid to men and wages
which are paid to women. There are also some steps which are taken to bridge that gap but there
are still a number of companies where this fact can cause problems. These problems can also
accelerate in companies which are male-dominated.
6. Adequate Safety at Work
Accidents can happen, but prevention must be taken at all costs. It’s about educating, having
proper safety equipment and safety guidelines. But sadly, most of the companies in Bangladesh
doesn’t provide proper safety measurement to their workers and the worker have to work in a
poor working environment. Which lead to a huge number or accident and dead.
7. Proper Remuneration:
Due to improper physical fitness and lack of sufficient skill the productivity of our workers is
very low. As a result, they cannot contribute towards the higher level of profitability to the
employers,
thereby causing their level of wages to remain low Till now the Government of Bangladesh
could not ensure a the satisfactory level of minimum wage for the workers.
8. Multiplicity of trade unions:
Multiplicity of trade unions: is one of the great weaknesses of labor. Trade unions in our country
are facing a number of problems like increasing political influences, inter and intra-union
rivalries, unhealthy competition in CBA, labor politics in election, employers, tendency to avoid
CBA process, etc.
9. Proper Labor rights:
The level of industrialization in Bangladesh is very poor. The level of employment is very poor
too. Here industrialization is higher than that of the demand for labor. So, the labor cost is low.
Out of a total civilian labor force of 70 million about 2 million are unemployed. Here the
industrial workers are not at all class conscious.
Here the labor poor literacy level, workers of our country are completely in the dark workers are
not at about their rights and obligations. The labor force participation rate in all class-conscious
trade unionism is only 12%.

RECOMMENDATION:

Even as there are discussions on whether the industry will go back to a pre-Covid reality, most
people are of the opinion that social distancing and remote working are the new normal.
Corporate entities are taking efforts to re-imagine their workspaces and facilitate seamless
remote working to ensure productivity and continuity. Countries across the globe have been

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experiencing some or the other form of lockdown for over two months and people are striving to
adapt to the present scenario.
Organizations are now deliberating with IR on how to tackle employee issues once the lockdown
is lifted, with options like multiple shifts, alternate workdays and re-arranged workspaces being
considered.
As the economy enters a new phase, post-covid, the role of IR will also expand substantially.
With the lockdown affecting various sectors, increments and promotions are being deferred and
IR must step up to ensure employee understanding and satisfaction. Employees will need up-
skilling and re-skilling to ensure they are prepared for the current scenario.
Here a checklist is given as a guideline which can be used for post Covid-19 situation to build a
strong industrial relationship -
1. Workforce planning: Many Businesses have completed aspects of this phase while making
decisions during Covid-19 impact but should continue in workforce planning activities after
Covid-19 pandemic:
 Talent assessment to determine what positions and skill levels are needed throughout
each phase of re-opening.
 Does organization staffing needs changes?
 What are essential positions to keep business running at normal operation levels?
 What additional resources will organization need if employees decide not to return or are
uncomfortable returning?
 Is industry expecting a potential business surge upon re-opening where additional or
temporary staffing may be needed?
 Will employees who were out of the business for several weeks need any additional
training to get up to speed on new business procedures?

2. Employee recall procedures: Things to consider before employee’s return are given below -
 District, local laws and industry specific guidelines.
 Designate a point person or team to have ownership to co-ordinate and communicate
return to work.
 Determine which employees will return to work (when and how).
 Determine selection methodology for who will be returning to work.
 Document selection methodology of recall to protect against potential claims.
 Will employees be returning to work onsite or remote working?
 Consider potential barriers of employees returning to work.
 Provide employees recall letter to designate if employees returning or declining recall.

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3. Policy and procedures: Businesses are no longer operating under normal business
circumstances. Some new policies and procedures need to be adapted in post Covid-19 situation
for better industrial relation in different organization of Bangladesh. Such as -
 Extension of work from home policies.
 Flexible scheduling options.
 Relaxed attendance policy to encourage sick employees to stay home.
 Infectious disease control policy.
 Workplace safety policy (face mask, health screening, cleaning etc.).
 Updated travel policy to designate essential verses non-essential travel.
 Social distancing guidelines and updated working environment.

4. Workplace safety: Employers will be required to ensure their workplaces are safe for
employees upon returning to business in post Covid-19 period. For this here are some measures
which need to be considered for workplace safety -
 Implementing employee health screening procedures.
 Education of employees on how to reduce risk and spread of diseases such as Covid-19.
 Ensuring all employees who are currently ill or have contact with an ill family member
stay home to self-isolate.
 Developing an exposure response plan with an exposure communication plan.
 Providing personal protective equipment such as mask, gloves, hand sanitizer etc.
 Detailed cleaning procedures and procurements of ongoing cleaning supplies.
 Establishing social distancing measurement within the workplace.
 Continue to restrict non-essential business travel.
 Defining Customer and visitor contact protocols.

5. Working arrangements including telework: Teleworking is being introduced in many

countries at national or workplace level. In order to promote teleworking, financial support and
similar procedures have been used in Italy and Japan. Bangladesh also need to give emphasis on
telework in post Covid-19 situation. But the infrastructure of the country is not up to the mark for
teleworking. So it is a great challenge for Bangladesh to establish teleworking environment as
well as maintain industrial relation in post Covid-19 times.
6. Expanded access to paid sick leave: Provisions for paid sick leave are being made available
in many countries for workers who are unwell or in quarantine. In China, the government has
instructed that salary payments should be made to workers who are unable to work due to
quarantine or illness. Ireland, Singapore and South Korea have made sick pay / leave available
for the self-employed, while in the UK, Statutory sick pay will be provided for eligible
diagnosed or self-isolating individuals, payable from the first day instead of the fourth.
Bangladeshi industries should also provide this type of facilities to their employees both present
and post Covid-19 situations so that they can build good industrial relations.

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7. Prevention of discrimination and exclusion: Stagnation, discrimination and exclusion are
being addressed in different ways in many countries. In Japan, where health workers have
reported Covid-19 related harassment, the Ministry of Justice has set up a webpage with links to
hotlines on bullying and harassment. Industries of Bangladesh should also create this sort of
facility for employees so that they can maintain good relationship with their employees.
8. Additional leaves to consider: Employees might request additional personal leave due to
being uncomfortable in the workplace. Industries should consider their leaves and grant leaves in
necessary.
CONCLUSION
This Assignment helps us to achieve our country’s present situation of Industrial relations. We
gain some practical knowledge during the assignment work. We understand that Harmonious
relationship is necessary for both employers and employees to safeguard the interests of both
parties of the production. In order to maintain good relationship with the employees, the main
functions of every organization should avoid any dispute with them or settle it as early as
possible so as to ensure industrial peace and higher productivity. IR may be understood in both
inter and intra terms-that is between employers and employees, between employers and
employees and also between employers and employers. IR is also concerned with determination
of wages and conditions of employment. IR and human relations are distinctly two indispensable
factors in industry, one depending on the other. We can have good industrial relations in an
industry, but bad human relations in the same establishment and vice versa. Good industrial
relations provide the necessary background for human relations. This experience will be a life
time achievement in our memory. Thanks to our honorable Course instructor to give us this
opportunity.
REFERENCE:
1. https://www.google.com/amp/s/tbsnews.net/thoughts/covid-19-and-its-impact-
bangladesh-economy-69541%3famp

2. https://www.yourarticlelibrary.com/employee-management/5-causes-of-poor-employer-
employee-relations/27997

3. https://www.questia.com/library/journal/1G1-323974137/industrial-relations-in-
bangladesh-a-comparative

4. https://ideas.repec.org/a/but/manage/v16y2012i1p55-67.html

5. https://betterwork.org/portfolio/9-4-industrial-relations-disputes/

6. Tamaa Urmi (2010), Lab Unrest in Bangladesh RMG Union Reduce the Risk of Labor in
RMG

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