Introduction: From starting of industrial the all economy trade union is the

most common figure in a country. Trade unions are the controller of the labor
force of an industry which works for the betterment of the country’s trade by
ensuring the right of the labor force. The economic importance of trade unions
in developing countries is not commensurate with the size of their
membership. The behavior of Bangladeshi trade unions is characterized by
political activism, and momentous strikes, called ‘HORTAL’. There, have played
a crucial part in most political changes in this country. In Bangladesh, the share
of the active population concerned by unionization was officially estimated
between 3% and 4 % in 1992. However, this figure is largely irrelevant for an
evaluation of their power, as the urban population was only about 18 % of the
total Bangladeshi population in 1995, and virtually no trade unions exist in the
rural sector. Within the urbanite working population, and especially in the
formal sector, the picture is quite different. Almost 100% of the workers and
employees of the public sector are unionized, while one out of six of the wage
earners in the private formal sector are unionized. The aim of this discussion is
to provide a simple theoretical framework for analyzing this dimension of trade
union activity, and to test its main implication in the case of Bangladesh.
History: The history of trade union movement in Bangladesh date back to early
19th century when modern industrial concept entered into the sub-Indian
continent. Like many other movement, the trade union movement also was
similar in India Bangladesh. The number of trade unions which was 411,
increased into 1174 in 1971 after the bloody liberation war and the
independence of Bangladesh. Bangladesh Trade Union Kendra (BTUC) which
was backed by the socialist party, it was nationalized after the war of
liberation. Awami league got the governing power and changed the
constitutions of trade union. From that very day political influence was
imposed on the trade unions of Bangladesh. Democratic functions which were
backed in the 60’s were changing by the aggression of ruling party men. Unions
were forcibly captured. Political, administrative and managerial influences
make it difficult to work independently for trade unions. From1975-1983, 217
factories were privatized. For that reason there was no influence of trade
union on those. But after all systems, outsider’s influence has made alive the
trade unions. The jute and cotton sectors, which were nationalized in 1971, in
the wake of the struggle for independence, and then privatized to some extent
in the 1980s, are the most unionized sectors. Unions are also important in the
transport sector and in various services. As emphasized by Pencavel (1995),
among others, unions in developing countries get their power from their
privileged relationship with political parties and in many cases with the
government. The Bangladeshi trade unions are no exception, and are well
known for their lobbying the government rather than acting vis-à-vis the
private sector. The influence of unions goes beyond the standard reach of
industrial relations, and extends to the political arena. All the political parties,
even the smallest ones, exert some control over a trade union. The three main
political parties have their own trade union federation, which accounts for 64
% of the unionized workers. The unions have played an active role in most
major political events of this country, like the massive demonstrations (hartals)
that brought General Ershad down in 1990, or those which pushed the
democratically elected government of Begum Khaleda Zia to resign in 1996.
According to the World Bank (2001), an average of 21 full working days was
lost annually due to hartals .In the 1980s, and an average of 47 full working
days per year in the 1990s. This report estimates that about 5 % of GDP is lost
on average in the 1990s. Since independence of Bangladesh, no major
development took place in the history of labor legislation till the enactment of
the Bangladesh Labor Act, 2006. The Bangladesh Labor Act, 2006 is a major and
comprehensive enactment regarding industrial relation system-- partly as a
response to demand of stakeholders for improving regulatory framework on
trade union and partly by demand for codification of existing labor laws in
order to avoid overlapping and inconsistencies. It brought some significant
changes in industrial relation system. However, the Act has not been able to
bring the desired changed due to its in-built weaknesses, suspension of many
labor rights under state of emergency and lack of institutional capacity to
implement the laws. On trade union and partly by demand for codification of
existing labor laws in order to avoid overlapping and inconsistencies. It brought
some significant changes in industrial relation system. However, the Act has
not been able to bring the desired changed due to its in-built weaknesses,
suspension of many labor rights under state of emergency and lack of
institutional capacity to implement the laws. Still in today’s era the trade union
of Bangladesh is captured by the power parties of different interested arena.
Definition A trade union is an organization made up of members (a
membership-based organization) and its membership must be made up mainly
of workers. One of a trade union's main aims is to protect and advance the
interests of its members in the workplace. Most trade unions are independent
of any employer. However, trade unions try to develop close working
relationships with employers. This can sometimes take the form of a
partnership agreement between the employer and the trade union which
identifies their common interests and objectives. • negotiate agreements with
employers on pay and conditions • discuss major changes to the workplace
such as large scale redundancy • discuss their members; concerns with
employers • accompany their members in disciplinary and grievance meetings
• provide their members with legal and financial advice • provide education
facilities and certain consumer benefits such as discounted insurance Different
scholars have defined a trade union in different ways. Sydney and Beatrice
Webb have defined a trade union as “a continuous association of wage earners
for the purpose of maintaining or improving the conditions of their working
lives”. A trade union is also called as a labor union. A labor union is an
organization of workers who have banned or unified together to achieve
common goals such as better working conditions. The trade union, through its
voluntary; bargains with the employer on behalf of the union members and
collective bargain with the employers. This may include the negotiation of
working conditions like wages, rules, time, and job security etc. the
agreements are strictly negotiated by the union leader on behalf of the whole
trade union with the employers. In some cases nonmember workers also
bargain with the employer. Trade union recognition Employers which
recognize a union will negotiate with it over members' pay and conditions.
Many recognition agreements are reached voluntarily, sometimes with the
help of the Labor Relations Agency. If agreement can't be reached and the
organization employs more than 20 people, a union may apply for statutory
recognition. To do so, it must first request recognition from the employer in
writing. If this is unsuccessful, the union can apply to the Industrial Court for a
decision. In considering the union's application, the Court must assess many
factors including the level of union membership and the presence of any other
unions. Often, the Court will organize a ballot among the affected workforce to
decide whether recognition should be awarded. Throughout the process, the
emphasis is on reaching voluntary agreement. Why join a union? Some
workers join a trade union because they believe that a union can: • To
negotiate better pay • To negotiate better working conditions, like more
holidays or improved health and safety • Provide training for new skills • Give
general advice and support • They believe that there is strength in number and
they will be listened to when they in a group. • To negotiate a better pay, more
holidays and less hours of work. • To pressurise the employer to provide them
with a healthier and safer working environment. • Improved benefits for
retrenched workers • To get the benefits of advice, financial support and
welfare activities carried out by Trade Unions. • Many workers may also join a
trade union because there is a closed shop policy. Union members have the
right to be accompanied to a discipline or grievance hearing by a trade union
representative (although trade unions are not compelled to provide this). All
employees, regardless of whether they are union members or not, are entitled
to be accompanied by a work colleague.

Trade union activities:

When a union is recognized by an employer, members have the right to time

off at an appropriate time to take part in trade union activities. These may
include: • voting in ballots on industrial action • voting in union elections •
meeting to discuss urgent matters • attending the annual conference Scenario
of Garment Industry: Bangladeshi Garment Industry is the largest industrial
sector of the country. Though the history of Readymade Garment Industry is
not older one but Bangladeshi clothing business has a golden history. Probably
it started from the Mughal age in the Indian subcontinent through Dhakai
Muslins. It had global reputation as well as demandable market around the
globe especially in the European market. After industrial revolution in the west
they were busy with technological advancement & started outsourcing of
readymade garments to meet up their daily demands. Many LDC’s took that
chance & started readymade garment export at that markets. As an LDC
Bangladesh took this chance enjoyed quota & other facilities of them. Thus
readymade garment industry started to contribute in our economy from late
eighties (1977). The history of the garment industry dates back to 1977 when
the first consignment was exported to then West Germany by Jewel Garments.
The number of units, however, remained a meager 46 until the end of 1983.
From a humble beginning the sector has thus made phenomenal growth over
the last two decades, the number of units growing to around 4500. The RMG
industry achievement is noteworthy, particularly for a country plagued with
poor resource endowments and adverse conditions for industrialization.
Exports increased from approximately 32 million US dollars in 1983/84 to 1.4
billion dollars in 1992/93. In 1987/88, the RMG export share surpassed that of
raw jute and allied products. The figure further rose to 5.7 billion dollars in
2003/04, representing a contribution of about 75 percent of the country’s total
export earnings in that year. The employment generated by the sector is
estimated to be around 1.5 million workers. Several factors account for the
outstanding successes of the RMG industry in Bangladesh. At the same time
the tremendous success of readymade garment exports from Bangladesh over
the last two decades has surpassed the most optimistic expectations. Today
the apparel export sector is a multi-billion-dollar manufacturing and export
industry in the country. The overall impact of the readymade garment exports
is certainly one of the most significant social and economic developments in
contemporary Bangladesh. With over one and a half million women workers
employed in semi-skilled and skilled jobs producing clothing for exports, the
development of the apparel export industry has had far-reaching implications
for the society and economy of Bangladesh.

Trade union benefits in the garment industry in Bangladesh At the recent,

Bangladesh Garment and Industrial Workers Federation (BGIWF) annual
convention, the theme reverberating among the speakers and among the
worker audience was the importance of unionization. One worker-organizer
remarked: “There are three things we must do: educate, organize and
demonstrate.” However, what was equally clear from their speeches was that
unionizing workers in Bangladesh is not an easy task. Almost every trade union
organizer that I interviewed had their own story of being harassed, beaten by
police or factory hooligans frightening them or the workers they were
organizing from forming unions. Labor leader Nazma Akter, founder of
Sommilito Garments Sramik Federation, in an earlier interview spoke to me
about sexual harassment from owners or their managers, and sadly, at times
from fellow male organizers. Since much of organizing work requires meeting
with workers after work, or in the streets in front of their factory, owners try to
disparage the reputation of female organizers by calling them “bad women” or
“prostitutes.” The challenges to unionization explain the paltry number of
unions, in an industry that boasts 4 million workers and over 3500 operative
factories. In just last two years alone, 200 unions registered. But, in contrast,
only 2 unions were registered in 2011 and 2012. They formed in part due to
changes in labor law, international community’s focus on Rana Plaza, and the
suspension of trade benefits by the United States. While BGMEA industry
representatives told me that garment owners are not opposed to unions,
however, this fails to explain their strong opposition when workers do attempt
to organize. This opposition was recently shown in the unionization efforts by
workers in Designer Jeans. In 2010, the current government created a separate
Industrial police in most police precincts to regulate, squash unions, and to
prevent union leaders from organizing. The collusion of the police, state with
industry interests to prevent unionization makes these organizing efforts a
monumental task, and therefore any bit of success a huge achievement.
Recent examples of Tuba Group workers being attacked by police with tear gas
and rubber bullets reveals the role that police and the state play in preventing
unionization, and the violent manner in which labor demands are responded
to. Kalpona Akter, Executive Director of Bangladesh Center for Worker
Solidarity, reminded workers at the convention that they are fighting two
powers: government and owner, so workers need to organize harder. While
the global attention has been on garment workers, there are similar patterns
of discouraging unions in other sectors, notably the rising technology sector.
Grameen phone union organizer remarked, “Whatever industry we are in, we
are all same.” Accenture Employees Union president commended garment
worker organizing, and said at the convention, that they are learning from the
organizing that is happening in the garment industry. In many ways,
employers’ benefit more from unions in that they have one entity with which
they need to bargain with workers. Unions were formed to equalize the
bargaining power between employer and workers, but in practice, serve to
maintain industrial peace and minimize industrial disruptions. Ultimately,
workers give up the right to strike and

seek redress for their grievances though a collective bargaining process which
helps employers to maintain day-to-day functions of their business. While
workers surely benefit in this process, employers have also much to gain from
unions. In absence of a mechanism to redress basic grievances, workers have
no choice but to demand their rights in the street. When workers take to the
street, and if they do this for routine grievances, it only creates disruptions for
the employer. For Bangladesh, unions may help prevent another Rana Plaza,
which the industry cannot afford to happen to crudely protect its economic
interests if not concern for the welfare of fellow Bangladeshi citizens. Unions
will be able to raise safety issues and bring those concerns to the attention of
the factory owner before it becomes serious. Of course, unionization will not
solve many issues that workers experience at the workplace, but it could
minimize much of the disputes that seem factory level problems. In an industry
that is primarily women, unionization provides a vehicle by which women can
seek empowerment, said AmirulHoque Amin, president of the National
Garment Workers Federation. Nomita Nath, president of Bangladesh
Independent Garment Workers Union Federation (BIGUF), echoes this point
that unions provides women a platform to assert their labor rights but it also
helps them asserts their rights as citizens in society. With all these benefits to
women’s empowerment, workers and even employers, it is astounding the
Government of Bangladesh has not made a proactive effort to remove any and
all obstacles to unionization. This is particularly surprising given its coveted
economic relationship with United States hangs in balance for its failure to
demonstrate any genuine progress on labor rights for workers, including their
right to form trade union. Its time for a sophisticated and humane approach to
labor-management relations especially when so much is at stake from worker’s
lives to country’s economic interests. Causes of organizing trade unions: In
earlier times when industry was on a small scale and the few apprentice and
craftsmen whom the master craftsmen employed usually lived with him,
conditions of employment and any grievances were easily discussed
individually or in small groups and quickly settled. Modern industry is very
difficult. It is organized on a large a scale, and the maintenance of the close
direct relation between employee and employer for the settling of differences
is difficult. The status and security which workers had in earlier communities
have gone and in their place they need the protection of trade unions.
Considerably, to answer the question why trade unions are organized; we have
to say that, it is created to bargain and ensure the status, rights, wages and
demands of workers of the modern world of industry. Thus modern industrial
policies are complex due to the expansion on business; it is very much needed
to have a group of people or volunteers who actively work for the labor
negotiations. So it is clear that trade unions are growing rapidly in an economy
because of the expansion of business and economic growth.

Objectives:

Today’s world is globalized. So businesses are also globalized. For this

globalization businesses are expanding rapidly for that reason the workforce in
the industries are increasing hugely. To maintain the whole work force alone
by the management is a very tough job. Trade unions are the only way to
manage, compliant, and control the labor force. Lots of objectives are there to
organize trade unions. From the workers point of view three important
objectives of trade union today are as follows: 1. To defend or improve the
wages and working conditions of workers and to bring about a change in the
economic order. 2. To strengthen their (labor) bargaining power collectively to
establish and achieves all their rights. 3. To dully protect all other interest of
the workers. From the management’s point of view the objectives as written:
1. To reduce the number of negotiation 2. To specify work rules,
disagreements and grievances to give the better solution to workers claim. 3.
To establish the efficient communication between the employers and
management to enforce the predictable standards.

Limitations:

Bangladesh is still known as a third world country. Though it is a poor

developing country, in this country Trade Unions have a lot of unavoidable
Problems. Some of those are discussed below: 1. Lack of consciousness: The
major numbers of members of trade union are not actually completely aware
about their legal rights and duties. That is the reason they don’t know the
favorable characteristics of trade unions. That is why in Bangladesh trade
unions are not strong enough to complete the need of the economy. 2. Lack of
Unity: Trade union is actually a unity of the labor force for assuring their need.
But in Bangladesh trade unions are separated for political influence. It is a
shock that only for difference in political view, every industry has at least three
major parts of a single union. 3. Lack of knowledge: In our country the level of
workers is not properly educated. They don’t have enough knowledge about
their rights and duties. In this case trade union could be helpful very much to
develop workers KSA, but the whole level of workers is lack in knowledge. That
is why they don’t feel the need or contribution of trade unions; again trade
unions are banged here. 4. Political influence: The most powerful and deep
affecting barrier for the growth of trade union of Bangladesh is its political
environment. Most of the trade unions of Bangladesh is not free from the
political influence. Political leaders use the trade unions for illegal purposes.
For this the actual environment of trade union is not seen in Bangladesh. In
Bangladesh, trade unions work a part of political parties not as a free right
saving association. 5. Division of trade union: Bangladesh is a country where
every organization has more trade unions in name only. Those unions are
driven by the political leaders of various political parties. So a huge verity of
problem arises in the organizations. The overall productivity got down.
Moreover trade union cannot play its role perfectly. That is why disputes are
created and more division is created under different political wings. 6. Wage
Inflation: If unions become too powerful they can bargain for higher wages,
above the rate of inflation. If this occurs it may contribute to general inflation.

Impact of trade union on management:

Every association has impacts in management. Trade union has both positive
and negative impacts on management. Positive impacts: Trade union plays a
major role in creating ideal working conditions. It creates pressure on
management to do a favorable roster for workers. Trade union always helps
management to create better policies for workers and to plan effective
production targets. Labors are treated fairly, only then they will maintain the
working standard. Trade unions negotiate for the standard wage and benefits
with the management. Trade union helps the management to make working
environment more active which increases the productivity as well as the profit.
Political influence’s existence makes the trade union not to interfere in
management decisions. Trade union is hugely helping the management to
cope with the competition by motivating workers to produce more and
implementing management tactics. Negative impacts: Trade unions creating
more positions by the permission of management and appointing more than
need of workers. It’s creating surplus of manpower but not of productivity.
Trade union of Bangladesh bargains more than they understand because of the
limitations of their knowledge. So it becomes difficult to make any decision by
consulting with the TU. If don’t consult then they strike. It is the backend
support of politics what is creating them more powerful. Trade union is legal
and it has the right to discuss with the management. That is why TU think
about its power. When they think they have equal power of management then
clashes are started. In companies labors are awarded for good work and
threatened for bad work. But if it’s punished then trade union interfere and
don’t let to happen the punishment. So it increases crime of the labors. Trade
union leaders always try to save their interest first then the labor. And it is
always communicated that management body did the wrong. So this unethical
performance creates conflict between TU and managerial body. For the power
of politics trade union always dishonor the management. They don’t listen to
them; don’t obey orders even set their compensations by their own. All is
because of the sick environment of politics of Bangladesh. Present Scenario of
trade union Compared to the total labor force in the country, the number of
trade union members is very small. From 1,160 trade unions with a
membership of 450,606 in 1971trade unions had risen to 6,835 with a
membership of 1,904,567 in 2004. The average membership of trade unions
has declined significantly. Trade union density is 1.12 per cent of the total labor
force. The presence of trade unions in the private export-oriented sectors such
as RMG, EPZs, shrimp exporting firms, finished leather and leather goods is
very weak. For instance, although there are more than 40 unions representing
garments workers, the level of unionization among workers is very poor. Most
trade unions in the RMG sector operate outside the factories and therefore
lack active participation of the general workers. A combination of factors such
as lack of enforcement of labor laws, inhibiting legal provisions, and system of
contract labor are responsible for reduced trade union membership in these
sectors. The workers belonging to government sectors, educational
institutions, health sector, private security services, confidential staffs, workers
in security printing press, ordinance factory, are still deprived from the right to
organize and do not have the freedom of collective bargaining. Trade unionism
in sectors such as nursing or rural electrifications banned. Government and
private owners also discourage trade unions inclement factories, re-rolling
mills etc. Furthermore, trade union leaders and members are frequently
intimidated and harassed by employers and security forces. Some cases about
accident of garment sectors in Bangladesh: Rana plaza The collapse of an
eight-storey garment factory in Rana Plaza on the outskirts of Dhaka on April
24th killed at least 400 people and injured many more. It was probably the
worst industrial accident in South Asia since the Bhopal disaster in 1984, and
the worst ever in the garment industry. Local police and an industry association
had warned that the building was unsafe. The owners reportedly responded by
threatening to fire people who did not carry on working as usual. Much of the
blame lies with Bangladeshi governments of all stripes, which have made only
rudimentary attempts to enforce the national building code, especially against
politically well-connected landlords. With luck, the laws will now be applied,
but nobody expects much. Western firms can choose to respond in one of
three ways. The first is to forget CSR, and simply exploit labour wherever it is
cheapest—counting on consumers back home to ignore the blood, sweat and
tears that went into making that cheap T-shirt or pair of trousers. That may be
the implicit strategy of many smaller firms, but it is hard to imagine any large
multinational being daft enough to proclaim it was doing it. Second, they could
quit Bangladesh and buy from factories in countries where the risk of deadly
industrial accidents is far smaller. For, say, a small up market retailer unable to
check everything that may well make sense. It would remove a risk while
putting pressure on Bangladesh to police health-and-safety rules better. But if
large Western firms left in droves, it would damage not just Bangladesh but
also their reputations. Tazrin Fashion The 2012 Dhaka fire broke out on 24
November 2012, in the Tazreen Fashion factory in the Ashulia on the outskirts
of Dhaka, Bangladesh. At least 117 people were confirmed dead in the fire, and
over 200 were injured, making it the deadliest factory fire in the nation's
history. The fire was initially presumed to be caused by an electrical short
circuit, but Prime Minister Sheikh Hasina has since suspected that the fire had
been arson and an act of "sabotage" due to the occurrence of previous
comparable events. This event and others similar to it have led to numerous
reforms in workers' rights and safety laws in Bangladesh. The fire, presumably
caused by a short circuit, started on the ground floor of the nine-story factory,
trapping the workers on the floors above. Because of the large amount of
fabric and yarn in the factory, the fire was able to quickly spread to other
floors, complicating the firefighting operations. The fire burned for more than
seventeen hours before the firefighters were successful in extinguishing it.
Most of the victims were found on the second floor, where at least 69 bodies
were recovered. Witnesses reported that many workers had been unable to
escape through the narrow exits of the building. Twelve of the victims died
leaping from windows in order to escape the flames, some of which died of
those attained injuries after being taken to area hospitals. Some lucky workers
who had been able to escape to the roof of the building were successfully
rescued. The fire department's operations manager Mohammad Mahbub
stated that the factory lacked adequate emergency exits that would have
made it possible to escape from the building. Especially, since the fire broke
out in the warehouse on the ground floor and quickly moved up to the higher
floors. Of the building's three staircases, all three led through the ground floor,
making them extremely dangerous and unusable in the case of the ground
floor fire. This left many workers trapped and unable to get safely out of the
course of the fire. A crowd made up of thousands of relatives and onlookers
gathered at the scene, causing army soldiers to be deployed to maintain order.
Many of the victims were unrecognizable because of the severity of the burns.
This left families with no choice except to wait for the DNA test results which
could have taken up to six months to receive.

Suggestions: In the context of the world industry, Bangladesh is very younger.

So it should follow some measurements in order to increase its stability of
economy. In the light of Japanese and western trade union concept, some
suggestion or steps can be defined to improve and establish the real trade
union culture in Bangladesh. These steps must be taken in both public and
private sectors. These are as follows: • One Union in One Industry: Multiplicity
of unions in the same plant leads to inter- union rivalry that ultimately cuts at
the root of the trade union movement. It weakens the power for collective
bargaining and reduces the effectiveness of workers in securing their
legitimate rights. Therefore, there should be only one union in one industry. •
Paid Union Officials: Generally, the trade unions avail the services of the
honorary workers due to lack of funds. The practice should be stopped
because honorary office bearers cannot do full justice to the task entrusted to
them because of lack of time at their disposal. Suppose that you are asked to
do something in the office, which requires a lot of responsibility. •
Development of Leadership from Within: It is of crucial importance that trade
unions are managed by the workers, and not by outsiders. Leadership should
be developed from within the rank and file of the workers. • Recognition of
Trade Unions. Till recently, the employers refused recognition to the trade
unions either on the basis that unions consisted of only a minority of
employees or two or more unions existed. Some others suggestions are:
Strengthening bilateral collective bargaining for solving problems quickly and
effectively. Multiplicity of trade union creates the rivals in a union. So it must
be reduced. Political involvement must be reduced. A trade union without the
control of politics only can be the way of all solution of the problems of
management and worker. Management must help and guide trade unions to
settle industrial clashes and crisis. It is trade union who has control over the
workers. It helps totally to stop strikes and rivals of workers. The demand of
trade union matters a lot to the economy. If demands are reasonable and real
then it should be worked out. But if it is not, then a strike breaks out. So trade
unions always should demand reasonable thing to the management.

Conclusion: A trade union or Labour union is an organization of workers who

have banded together to achieve common goals in key areas and working
conditions. According to The Bangladesh Labour Act, 2006,
workers/employers, without distinction whatsoever shall have the right to
form trade union for the purpose of regulating the relations between workers
and employers or workers and workers or employers and employers and,
subject to the constitution of the union concerned, to join trade union of their
own choosing [Sec: 176, The Bangladesh Labour Act, 2006 / Sec: 3, ILO, 1969].
The trade union, through its leadership, bargains with the employer on behalf
of union members and negotiates with employers. This may include the
negotiation of wages, work rules, complaint procedures, rules governing hiring,
firing and promotion of workers, benefits, workplace safety and policies. The
agreements negotiated by the union leaders are binding on the rank and file
members and the employer and in some cases on other non-member workers.
The industrial relation system is pre-dominantly confrontational in nature
rather than cooperative in Bangladesh. It is characterized by the pre-dominant
position of informal economy, fragmented unions, weak labor institutions, lack
of enforcement of labor laws and conflict ridden employer-employee relations.
Although in recent times the rate of unionization has increased in the RMG
sector, trade union affiliation is low in Bangladesh compared to many other
developing countries. The main reasons for this are the fall in employment in
previously highly organized sectors, rise of the service sector and increasing
flexible types of employment relationships .Data available indicates
fragmentation and contradiction in membership of employers and workers
organizations. Moreover, data on membership does not reflect the role these
organizations play in political and socio-economic processes and institutions.
The promotion of independent trade unions and collective bargaining can
contribute to political and social stability and consequently create more
favorable climate for foreign investment. Several studies of the World Bank
and ILO support the view that freedom of association and collective bargaining
contribute to improving economic and trade performance and have found no
negative correlation. Rather, highly coordinated bargaining accompanied by
higher rates of unionization can contribute to positive economic trends. Trade
unions have an important role to play in settling disputes between workers and
management over wages by way of collective bargaining. However, empirical
data show that the experience is far from satisfactory.

Assignment and Report Solution Point

Friday, May 1, 2015

Problems and Prospects of Trade Union in Bangladesh

Problems and Prospects of Trade Union in Bangladesh

1. Introduction:

Trade Union is the most common figure in a country. Trade unions are the
controller of the labor force of an industry which works for the betterment of
the country’s trade by ensuring the right of the labor force. The economic
importance of trade unions in developing countries is not commensurate with
the size of their membership. The behavior of Bangladeshi trade unions is
characterized by political activism, and momentous strikes, called Hartal there,
have played a crucial part in most political changes in this country. In
Bangladesh, Almost 100 % of the workers and employees of the public sector
are unionized, while one out of six of the wage earners in the private formal
sector are unionized. The aim of this discussion is to provide a simple
theoretical framework for analyzing this dimension of trade union activity, and
to test its main implication in the case of Bangladesh.

1.1. Trade Union:

Different scholars have defined a trade union in different ways. Sydney and
Beatrice Webb have defined a trade union as “a continuous association of
wage earners for the purpose of maintaining or improving the conditions of
their working lives”. A trade union is also called as a labor union. A labor union
is an organization of workers who have banned or unified together to achieve
common goals such as better working conditions. The trade union, through its
voluntary; bargains with the employer on behalf of the union members and
collective bargain with the employers. This may include the negotiation of
working conditions like wages, rules, time, job security etc. the agreements are
strictly negotiated by the union leader on behalf of the whole trade union with
the employers. In some cases non member workers also bargain with the
employer.

1.2. Historical background of Trade Union in Bangladesh:

The history of Trade union movement in Bangladesh dated back to early 19th
century when modern industrial concept entered into the sub-Indian
continent. Like many other movement, the trade union movement also was
similar in India Bangladesh. The number of trade unions which was 411,
increased into 1174 in 1971 after the bloody liberation war and the
independence of Bangladesh. Bangladesh Trade Union Kendra (BTUC) which
was backed by the socialist party, it was nationalized after the war of
liberation. Awami league got the governing power and changed the
constitutions of trade union. From that very day political influence was
imposed on the trade unions of Bangladesh. Democratic functions which were
backed in the 60’s were changing by the aggression of ruling party men. Unions
were forcibly captured. Political, administrative and managerial influences
make it difficult to work independently for trade unions. From 1975-1983, 217
factories were privatized. For that reason there was no influence of trade
union on those. But after all systems, outsiders influence has made alive the
trade unions. The jute and cotton sectors, which were nationalized in 1971, in
the wake of the struggle for independence, and then privatized to some extent
in the 1980s, are the most unionized sectors. Unions are also important in the
transport sector and in various services. As emphasized by Pencavel (1995),
among others, unions in developing countries get their power from their
privileged relationship with political parties and in many cases with the
government. The Bangladeshi trade unions are no exception, and are well
known for their lobbying the government rather than acting vis-à-vis the
private sector. The influence of unions goes beyond the standard reach of
industrial relations, and extends to the political arena. All the political parties,
even the smallest ones, exert some control over a trade union. The three main
political parties have their own trade union federation, which accounts for 64
% of the unionized workers. The unions have played an active role in most
major political events of this country, like the massive demonstrations (hartals)
that brought General Ershad down in 1990, or those which pushed the
democratically elected government of Begum Khaleda Zia to resign in 1996.
According to the World Bank (2001), an average of 21 full working days was
lost annually due to hartals in the 1980s, and an average of 47 full working
days per year in the 1990s. This report estimates that about 5 % of GDP is lost
on average in the 1990s. Since independence of Bangladesh, no major
development took place in the history of labor legislation till the enactment of
the Bangladesh Labor Act, 2006. The Bangladesh Labor Act, 2006 is a major and
comprehensive enactment regarding industrial relation system-- partly as a
response to demand of stakeholders for improving regulatory framework on
trade union and partly by demand for codification of existing labor laws in
order to avoid overlapping and inconsistencies. It brought some significant
changes in industrial relation system. However, the Act has not been able to
bring the desired changed due to its in-built weaknesses, suspension of many
labor rights under state of emergency and lack of institutional capacity to
implement the laws. Still in today’s era the trade union of Bangladesh is
captured by the power parties of different interested arena.

1.3. Causes of organizing Trade Union:

In earlier times when industry was on a small scale and the few apprentice and
craftsmen whom the master craftsmen employed usually lived with him,
conditions of employment and any grievances were easily discussed
individually or in small groups and quickly settled. Modern industry is very
difficult. It is organized on a large a scale, and the maintenance of the close
direct relation between employee and employer for the settling of differences
is difficult. The status and security which workers had in earlier communities
have gone and in their place they need the protection of trade unions.
Considerably, to answer the question why trade unions are organized; we have
to say that, it is created to bargain and ensure the status, rights, wages and
demands of workers of the modern world of industry. Thus modern industrial
policies are complex due to the expansion on business; it is very much needed
to have a group of people or volunteers who actively work for the labor
negotiations. So it is clear that trade unions are growing rapidly in an economy
because of the expansion of business and economical growth.

1.4. Objectives of the study:

Today’s world is globalized. So businesses are also globalized. For this

globalization businesses are expanding rapidly for that reason the workforce in
the industries is increasing hugely. To maintain the whole work force alone by
the management is a very tough job. Trade unions are the only way to manage,
compliant, and control the labor force. Lots of objectives are there to organize
trade unions.

From the workers point of view three important objectives of trade union
today are as follows:

To defend or improve the wages and working conditions of workers and to

bring about a change in the economic order.

To strengthen their (labor) bargaining power collectively to establish and

achieve all their rights.

To dully protect all other interest of the workers.

And from the management’s point of view the objectives as written:

To reduce the number of negotiation

To specify work rules, disagreements and grievances to give the better solution
to workers claim.

To establish the efficient communication between the employers and

management to enforce the predictable standards.

To enhance the overall organizational effectiveness workers can also be

sometimes inspired to form and organize trade union.

In fact, objectives of a trade union are not defined; rather these are changing
according to the need of the economy and overall industry. When these
objectives are not settled then the rivals are started.

1.5. Scope and limitations of the study:

There are huge scopes to work in this field. The scope & exposure of the paper
has been wide ranging. The study, ‘‘Problems and prospect of Trade Union in
Bangladesh” has covered the impact of different in internal and external
factors in the Garments Sector. By preparing this report it becomes more
understandable about the real conditions of Trade Union in the Bangladesh.

There are also some limitations were faced during the preparation of the
report. These are:

1. Limited access into factories

2. Difficulties to communicate with factory owners

3. Time constraint

4. Unwillingness of Company owner & other respondent to disclose their

identities

2. Methodology of the study:

2.1. Sources of Data:

Here we used data from two sources. These sources are,

a. Primary Source:

Ø Face to face conversation with the owner of the garments, workers, labor
union leaders and staff.

Ø Survey through Questionnaire

b. Secondary Source:

Ø Different books and articles

Ø Evidence from newspapers

3. Present Scenario of Trade Union in Bangladesh:

Compared to the total labor force in the country, the number of trade union
members is very small. From 1,160 trade unions with a membership of 450,606
in 1971 trade unions had risen

Categories

Total number of unions/federations

Number of unions included

Number of members

National federation

32

1,264

1,263,665

Industrial federation

108

721
640,221

Garments federation

15

80

50,149

Basic union

5,242

2,069,614

to 6,835 with a membership of 1,904,567 in 2004. The average membership of

trade unions has declined significantly. Trade union density is 1.12 per cent of
the total labor force. The presence of trade unions in the private
export-oriented sectors such as RMG, EPZs, shrimp exporting firms, finished
leather and leather goods is very weak. For instance, although there are more
than 40 unions representing garments workers, the level of unionization
among workers is very poor. Most trade unions in the RMG sector operate
outside the factories and therefore lack active participation of the general
workers. A combination of factors such as lack of enforcement of labor laws,
inhibiting legal provisions, and system of contract labor are responsible for
reduced trade union membership in these sectors. The workers belonging to
government sectors, educational institutions, health sector, private security
services, confidential staffs, workers in security printing press, ordinance
factory, are still deprived from the right to organize and do not have the
freedom of collective bargaining. Trade unionism in sectors such as nursing or
rural electrification is banned. Government and private owners also discourage
trade unions in cement factories, re-rolling mills etc. Furthermore, trade union
leaders and members are frequently intimidated and harassed by employers
and security forces.

3.1. Prospects of Trade Union in Bangladesh:

Every association has impacts in management. Trade union has both positive
and negative impacts on management. These positives impacts are given
below.

Trade union plays a major role in creating ideal working conditions. It creates
pressure on management to do a favorable roster for workers.

Trade union always helps management to create better policies for workers
and to plan effective production targets.

Labors are treated fairly, only then they will maintain the working standard.
Trade unions negotiate for the standard wage and benefits with the
management.

Trade union helps the management to make working environment more active
which increases the productivity as well as the profit.

Political influence’s existence makes the trade union not to interfere in

management decisions.

3.2. Problems of Trade Union in Bangladesh:

There are also some negative impacts. These impacts are given below.

Trade unions creating more positions by the permission of management and

appointing more than need of workers. It’s creating a surplus of manpower but
not of productivity.

Trade union of Bangladesh bargains more than they understand because of the
limitations of their knowledge. So it becomes difficult to make any decision by
consulting with the TU. If don’t consult then they strike.

Trade union is legal and it has the right to discuss with the management. That
is why TU think about its power. When they think they have equal power of
management then clashes are started.

In companies labors are awarded for good work and threatened for bad work.
But if its punished then trade union interfere and don’t let to happen the
punishment. So it increases crime of the labors.
Trade union leaders always try to save their interest first then the labor. And it
is always communicated that management body did the wrong. So this
unethical performance creates conflict between TU and managerial body.

4.1. Recommendations:

In the context of the world industry, Bangladesh is very younger. So it should

follow some measurements in order to increase its stability of economy. In the
light of Japanese and western trade union concept, some suggestion or steps
can be defined to improve and establish the real trade union culture in
Bangladesh. These steps must be taken in both public and private sectors.
These are as follows:

1. Strengthening bilateral collective bargaining for solving problems quickly

and effectively

2. Multiplicity of trade union creates the rivals in a union. So it must be

reduced.

3. Political involvement must be reduced. A trade union without the control

of politics only can be the way of all solution of the problems of management
and worker.

4. Organization must support financially as trade unions support the worker,

it will change the motives of worker and will be more productive for company.

5. Workers are less knowledgeable, so training programs under trade union

should be helpful to develop the skills of the workers.

6. Trade union’s function should be increased and widened throughout the

organization. It will help workers to work voluntarily for organizational growth.

7. Union leader must be given importance and encourage him many ways to
play positive role in the union as his power implications.

8. Trust is a big asset of an organization. If trust between workers and

management increases, productivity increases. This is the job of an effective
trade union.
9. Management must help and guide trade unions to settle industrial
clashes and crisis. It is trade union who has control over the workers. It helps
totally to stop strikes and rivals of workers.

10. The demand of trade union matters a lot to the economy. If demands are
reasonable and real then it should be worked out. But if it is not, then a strike
breaks out. So trade unions always should demand reasonable thing to the
management.

4.2. Conclusion:

The industrial relation system is pre-dominantly confrontational in nature

rather than cooperative in Bangladesh. It is characterized by the pre-dominant
position of informal economy, fragmented unions, weak labor institutions, lack
of enforcement of labor laws and conflict ridden employer-employee relations.
Although in recent times the rate of unionization has increased in the RMG
sector, trade union affiliation is low in Bangladesh compared to many other
developing countries. The main reasons for this are the fall in employment in
previously highly organized sectors, rise of the service sector and increasing
flexible types of employment relationships. The promotion of independent
trade unions and collective bargaining can contribute to political and social
stability and consequently create more favorable climate for foreign
investment. Several studies of the World Bank and ILO support the view that
freedom of association and collective bargaining contribute to improving
economic and trade performance and have found no negative correlation.
Rather, highly coordinated bargaining accompanied by higher rates of
unionization can contribute to positive economic trends. Trade unions have an
important role to play in settling disputes between workers and management
over wages by way of collective bargaining. However, empirical data show that
the experience is far from satisfactory