Department of Management Studies

An assignment on: The nature of trade unionism in

Bangladesh
Course Code: MGT-4102
Course Title: Industrial Relations

Submitted To:
Dr. A.K.M. Moniruzzaman

Profssor

Department of Management Studies

Jagannath University

Submitted By:
Abdullah Al Shafi

B170202134

4th year, 1st semester

Date of submission: 13th June, 2022

 Definition of Trade Union

A trade union is an organisation made up of members (a membership-based organisation) 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.

Trade unions:

 negotiate agreements with employers on pay and conditions

 discuss major changes to the workplace such as large scale redundancy

 discuss members' concerns with employers

 accompany members in disciplinary and grievance meetings

 provide members with legal and financial advice

 provide education facilities and certain consumer benefits such as discounted insurance

History of Trade Union in Bangladesh

As the trade union movement in Bangladesh originated in British India and Pakistan, it naturally
retained its old character of working more as a nationalist force against colonial domination than
as a class force vis-a-vis capitalist exploitation. As a result, the trade union movement of the
region that had gained momentum in the hands of political leaders stood divided along the
political and/or ideological lines in independent Bangladesh.
In the early 1980s, the military government of Bangladesh banned all trade union activities in the
country. Then an alliance of the National Federation of Trade Unions (NFTUs) emerged in the
name of SRAMIK KARMACHARI OIKYA PARISHAD (SKOP) to establish the democratic
rights of workers as well as to fulfil their economic demands. Most NFTUs were in SKOP and
since 1983, most trade union movements in Bangladesh have been organised under the
leadership of SKOP.

The opportunism and lenient attitude of the trade union leaders including SKOP gave the ruling
regimes a chance to disregard the agreements signed between the government and the trade
union leaders. At present, the leaders of nineteen of the twenty three NFTUs are included in the
SKOP. After its formation, SKOP submitted a 5-point charter of demands for establishing their
democratic rights and higher wages through rallies, torch processions, demonstrations, strikes,
HARTALS, blockades etc.

Ironically, SKOP failed to yield any tangible results for the working class people of the country.
The effectiveness of the trade union movement under the leadership of SKOP gradually
weakened because most SKOP leaders have political affiliations and therefore, cannot escape the
influence of their respective political parties. Moreover, lack of active support by the major
political parties to SKOP's programmes, excessive pressures on government by the private
employers and donor agencies to disregard SKOP's demands using repressive measures to
disrupt the trade union movement, forcible occupation of unions, bribing of trade union leaders,
opportunistic and compromising attitude of the union leadership rendered the SKOP demands
ineffective. In fact, SKOP has become a moribund forum of the working class with little to offer
to the country's future trade union movements. [Abdul Awal Khan]

Why join a trade Union

1.industrial action privileges

2.you could get higher pay

3.support for workplace issues and disputes.

4.job security.
5.improved training opportunities.

6.safer workplace.

How unions work

It can be very difficult for a single worker to speak to management about a workplace problem
(for example, forced overtime or late wages) and to resolve their difficulty individually –
assuming they even have the confidence to raise the issue. Unions work on the principle that if
all workers speak with the same voice, their concerns are more likely to be addressed. This
involves union members in the same workplace getting together to talk about common problems,
democratically taking collective decisions on workplace issues, and putting these views to the
employer. Individual members usually elect someone to speak on their behalf – a shop „steward‟
or „representative‟ (rep) – and to discuss their concerns with management. Where the union has a
recognition agreement with management (this is where the employer has agreed to negotiate with
the union to set staff terms and conditions), they will have regular formal discussions. These
negotiations are referred to as „collective bargaining‟. Unions are financed through the
individual contributions of their members. Unions continually seek to recruit members
(encouraging new members to join by „organising‟) and to build an active membership, as this
gives unions stronger bargaining power in negotiations with employers.

Trade Union and IR in Bangladesh: An Overview

Democracy in the larger society is a prime and essential condition for the development of
industrial

relations. In Bangladesh, the extent of democracy is very poor. It is surprising to note that after
independence,

the frequent changes in government and emergence of military rule during 1975-1979 and 1982-
1990 hampered

the democratic environment for industrial relations in general and trade unionism in particular.

The level of industrialization in Bangladesh is very poor. The level of employment is very poor
too.
Here the supply of labour is always much higher than that of the demand for labour. So the
labour cost is low.

Out of a total civilian labour force of 70 million about 2 millions are unemployed. Here the
industrial workers

are not at all class conscious. Due to very poor literacy level, workers of Bangladesh are
completely in the dark

about their rights and obligations. The labour force participation rate in trade unionism is only
12%. 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 satisfactory
level of minimum

wage for the workers (Khan and Taher, 2009).

Multiplicity of trade unions is one of the great weaknesses of labour politics in Bangladesh. As a
result

of weak strength, trade unions in Bangladesh is facing a number of problems like increasing
political influence,

inter and intra-union rivalries, unhealthy competition in Collective Bargaining Agreement

(CBA) election,

employers, tendency to avoid CBA process, etc. The opportunistic nature of trade union
leadership has been

responsible for poor labour movements. Most of the time, the trade union leaders acted as agents
of employers
and of the political governments. Another major hindrance to good industrial relations is the
politicization of

labour unions by outside political leaders. This leads to multiple unions on the one hand and
inter-union rivalry

on the other. Inter-union rivalry depresses both a union‟s membership and its finance. The
final result is that a

union finds itself unable to carry out constructive activities or to play an effective role in
collective bargaining.

Its status is reduced to a mere strike-committee

Present scenario of trade union in Bangladesh

This advocacy tool draws on the experience and progress in building the capacities of trade
unions with the support of the ILO ACTRAV, the ILO RMG Programme in Bangladesh and
ACTRAV Turin to strengthen their organizational and technical competencies to promote
occupational safety and health. In recent years, the RMG sector in Bangladesh has experienced a
high number of workplace accidents including the fire at Tazreen Fashions and the collapse of
Rana Plaza, a single incident that claimed the lives of over 1,200 workers. These events have had
tremendous impact on workers‟ safety issues and in the overall RMG sector in the country. A
Joint Tripartite Statement by the Government of Bangladesh (GoB), adopted in 4 May 2014
helped catalyse the process of the development and improvement of policies, advocacy work and
capacity building in the RMG industries, but more work remains to be done. Given the large
presence of women in the RMG sector, efforts to raise awareness and build campaigns will give
special attention to the new generation of women who are making their initial steps in the
workplace as well as in the trade union activities. We wish women to take part in processes and
to make their voices heard to improve working conditions, including Occupational Safety and
Health (OSH) in the RMG sector. As part of the UN system in Bangladesh, the RMGP supports
the Government of Bangladesh in achieving its five years‟ plan and especially SDG Goal 8
(Decent Work and Economic Growth). The main purpose of the advocacy tool is to highlight the
important role and responsibility that unions could continue to play in building proper workers‟
awareness and action on OSH, building a preventative culture and helping establish OSH
committees in workplaces. Trade unions are a centre piece in building safer workplaces.

Pros and cons of trade union

Pro 1: Unions provide worker protections.

In most U.S. states, non-union workers are at-will employees. In short, employers can fire
employees for virtually any reason. Of course, there are limitations in place such as
discrimination. For union members, it‟s different. There must be just cause. And it‟s not a simple
firing. In most instances, this type of decision must go through arbitration or a grievance
procedure.

Speaking of those procedures, unions make it easier for workers to handle disputes and
complaints with management and other workers. Members, regardless of status, are able to use
the processes to raise grievances. In some unions, members will see the organization subsidize
legal fees on disputes related to discrimination and wrongful terminations.

Pro 2: Unions promote higher wages and better benefits.

Through collective bargaining, unions are able to secure higher wages and better benefits. That
said, unionized workers are not the only ones to benefit from this. Employers have also raised
wages for non-unionized workers in order to compete for talent.

Pro 3: Unions are economic trend setters.

Before unions, weekends and provisions for workers did not really exist. Even though the U.S.
workforce has not been 100% unionized, unions do impact trends that benefit all workers. Other
examples include the minimum wage, OSHA guidelines, and overtime rules.

Pro 4: Political organizing is easier.

Unions are able to amplify and advance political causes the working class supports. This doesn‟t
necessarily mean unionized workers always support the political agenda of their union, but
generally speaking, unions help keep candidates focused on issues that matter to the American
worker, unionized or non-unionized.

Cons
Con 1: Unions require dues and fees that some workers don’t want to pay.
Workplaces with unions fall into two categories: open and closed. What‟s the difference between
the two? Open shops don‟t require employees to pay dues or fees to the union. In a closed
environment, employees have to be union members in order to apply for a job. Some will allow
candidates to apply for the job as a non-unionized candidate, but if the candidate is hired, the
non-member must become a member. Some allow employees to work as non-members, but those
workers are required to pay agency fees, which contribute to the work the union is doing.

Opponents say closed environments are unfair to those individuals who have valid reasons for
not supporting the work of the union.

Another reason for this particular con is that union dues are deducted from a worker‟s paycheck.
In most circumstances, that can translate to a deduction of 1.5%-2.5% in their pay. These fees
can reduce or wipe out any pay gain the employee would have had in moving from a previous
job to another.

Con 2: Labor unions discourage individuality

Workers are bound by the decisions of the union even if they disagree with the decision. In some
instances, they only way a unionized employee can get out of the situation is to resign, which
isn‟t always an option.

Also, working in groups encourages “group think” situations, which in turn discourages
individual creativity.

Con 3: Unions make it harder to promote and terminate workers.

Unions focus a lot on the seniority of the worker. This often translates into the lack of
advancement for new and high performing employees to advance. Similarly, it is difficult to
demote those employees who are not performing at high levels.
Going a step further, unions can discount worker education and experience. Because of seniority,
the perfect employee may not get the job because they have not been with the company/union a
specific amount of time.

Con 4: Unions can drive up costs.

Though it is a pro that unions can often get higher compensation for their members, it can
likewise be stated that hiring unionized workers can be more expensive than hiring non-
unionized workers. It also comes with added safeguards and rules and regulations that can lead to
hire litigation and negotiation costs should issues be taken to arbitration or put through a
grievance process.

Garments and Textiles in Bangladesh: Trade Unions

The global garment and textile (G&T) industry is one of the most significant industries for
developing countries. This is particularly the case in Bangladesh, both in terms of
contribution to the economy and generating employment. According to 2018–19 data, total
export earnings of this industry reached around US$ 34.13 billion (approximately 84.21 per
cent of total exports of the country). This is a contribution of 13 per cent of the Gross
Domestic Product (GDP) (Centre for Policy Dialogue [CPD], 2019). The G&T industry in
Bangladesh provides 3.6 million jobs, and it is estimated that 53 per cent of employees are
women (CPD, 2019). These female workers have largely migrated from rural areas to
industrial conurbations such as Dhaka, Gazipur, Narayangonj and Chittagong. These workers
have little knowledge or experience of human resource management (HRM)/industrial
relations (IR)-related issues such as health and safety as they have both limited educational
qualifications and almost no previous experience of industrial/factory working practices.

The aftermath of the collapse of the eight-storey building that killed over 1,100 people raised
the profile of health and safety in the Bangladeshi G&T industry. Arguably, the Rana Plaza
building collapse was a catalyst, ushering in a new era of IR/health and safety within the
Bangladeshi G&T environment. It is true that several international organisations such as
Accord, Alliance and the International Labour Organisation (ILO) have galvanised their
activity within Bangladesh. They now provide support and continuously apply pressure upon
 the Bangladeshi government with a view to improve the working environment, with a
particular focus on health and safety issues. It is also accurate to state that regarding health
and safety, the government of Bangladesh has provided a variety of public commitments to
international organisations and buyers. In addition, as part of these commitments, the industry
has launched a number of initiatives designed to improve health and safety in the workplace.
Consequently, there is a case upon which it can be argued that, to date, this has facilitated a
safer working environment for more than four million workers, albeit an environment that is
still rife with dangers. However, the realpolitik is that although the profile of health and safety
in the Bangladesh textile industry rose up the agenda on the international stage, the reality of
daily life for the poorest and most insecure in its workforce did not significantly improve.

Conclusions and Discussions

The focus of this research is trade unions, and health and safety in environments, which
feature international managers. The findings suggest that the majority of MNCs do not have
any trade unions but a few companies have WPCs. This is because (a) international managers
are highly aware of HRM/IR-related issues such as health and safety, (b) trade union officials
do not have sufficient knowledge of these issues as they have only primary or secondary
education, and (c) MNCs do not want a trade union presence within their Bangladeshi
factories. This limited educational qualification may impact on the understanding of the
government regulations such as health and safety. The findings also suggest that the trade
union officials are mainly focused on specific issues, which include increasing the minimum
wage, reducing working hours, holidays and other benefits. As previously explained, the
inability of trade unions to engage in local wage negotiations provides them with an
imperative to pursue these ambitions via the political sphere. This one-dimensional approach
to collective bargaining (little interest in health & safety for example) forces trade unions to
develop links with the influential actors, for example the government. As a result, HRM/IR
involves the interaction between political parties and trade unions rather than management,
employers or employers‟ association. In several instances, employers have taken the initiative
to resolve industrial disputes, enabling unions and management to cooperate at the company
level and avoid government intervention. Employers and employees both view this as a
positive step, because the earlier tripartite nature of the conflict resolution process seems to
have been ineffective owing to government involvement and concealed political motives.
Therefore, the employer‟s associations which are BGMEA (Bangladesh Garment
Manufacturers and Exporters Association) and BKMEA (Bangladesh Knitwear
Manufacturers and Exporters Association) have driven the formation of WPCs at a company
level to avoid political influence, and these participation committees are working better than
trade unions. Moreover, the findings suggest that the trade union officials do not have any
interaction with international managers as the local managers are engaged in daily operational
issues. Additionally, trade union officials have less proficiency in English, and this further
contributes to cultural barriers, particularly in communication with international managers.
International managers do appear to have had a positive impact on working conditions,
however, they encounter a variety of cultural impediments. The G&T industry provides for
over 83 per cent of total exports, and therefore is crucial for both the economic and political
environments. It is this importance that has contributed to laws, which inhibit trade union
activities and unenforced workplace safety legislation. The owners of factories within the
G&T industry are inveigled with political elite, and this contributes complexity and enables
the perpetuation of recidivist companies. International managers are unaccustomed to this
cultural norm. Similarly, the direct influence of national political parties in the workplace
adds a cultural dimension, which is often new for international managers. In addition, trade
union‟s apparent “lack of interest” in safety in factories might seem like an anathema. These
different factors contribute to the construction of a culture that provides an obstacle for the
understanding and effectiveness of international managers.

The article offers a view of the economic, political and social lot of working men and women
within the G&T industry of Bangladesh. It is not the job of a researcher to claim to be an
oracle of future events that are to be. However, it is not unreasonable to observe that, given
the ongoing status quo in this industry, any meaningful improvement in the lives of the
working poor is based on hope rather than any discernible trend or action. To draw upon the
words of Walter Benjamin: “It is only for the sake of those without hope that hope is given to
us.”