Industrial Relations

Chapter Two
Approaches to Industrial Relations
& Context of Bangladesh
 Collective
Bargaining
 History of Collective Bargaining
• The term "collective bargaining" was first used in 1891 by Beatrice Webb, a founder of
the field of industrial relations in Britain.
• Refers to the collective negotiations and agreements
• In the United States, the National Labor Relations Act of 1935 made it illegal for any
employer to deny union rights to an employee.
• The issue of unionizing government employees in a Public-sector trade union was much
more controversial until the 1950s.
• In 1962 President John F Kennedy issued an executive order granting Federal
employees the right to unionize.
 Collective Bargaining
Collective bargaining is a process of negotiations between employers and the
representatives of a unit of employees aimed at reaching agreements that regulate
working conditions.

According to David and Robbins,

The term collective bargaining typically refers to the negotiation, administration and
interpretation of a written agreement between two parties that covers a specific period
of time.

Collective agreements usually deals with - wage scales, working hours, training,
health and safety, overtime, grievance mechanism, rights to participate in
workplace or company affairs.
 Collective Bargaining 3 distinct functions
Prof. Neil Chamberlain, a noted Labor Economist, has made 3 distinct functions of
collective bargaining.
Collective bargaining may be looked upon from three angles:

• A market or economic function - outlines the basic terms and conditions under which
a worker will be employed in an organization.  
• A governmental function –Implementation of legislations 
• A decision-making function – Workers are allowed to participate in the determination
of policies which affect the terms and conditions of their employment. 
 Types of Collective Bargaining
Conjunctive/Distributive Bargaining :
• Distributive bargaining is the most
common type of bargaining
• Involves zero-sum negotiations, in
other words, one side wins and the
other loses.
• Both parties try to maximize their
respective gains.
• They try to settle economic issues such
as wages, benefits, bonus
For Example, Unions negotiate for
maximum wages & the management
wants to yield as little as possible while
getting things done through workers.
Cooperative/Integrative Bargaining:
• Integrative bargaining is similar to
problem solving sessions in which both
sides are trying to reach a mutually
beneficial alternative.
• A win-win situation
• Both the employer & the union try to
resolve the conflict to the benefit of
both parties
• Both sides share information about
their interests and concerns and they
create a list of possible solutions to
best meet everyone s needs
 Rules regarding CB according Labor law 2006/2013

Rules regarding CB according Labor law 2006/2013

Section 202 of the new labor code deals with the provisions relating to the determination
of Collective Bargaining Agent. The Law provides the following procedure:
1. Where there is only one trade union, that trade union will be treated to be the Collective
Bargaining Agent in that establishment.
2. Where there are more than one trade union in an establishment , the Registrar will take
necessary steps to elect the Collective Bargaining Agent
3. The Registrar will send written notice communicate all the trade unions as to whether
they want to contest for the secret ballot for determination of CBA or not. Within a given
time limit of fifteen days.
 Process of CBA

Negotiation

Propose

Discuss

Prepare

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 Process of CBA

Process of CBA
1. Prepare:
• Composition of a negotiation team.
• The negotiation team should consist of representatives of both the parties with adequate
knowledge and skills for negotiation.
• examine their situation in order to develop the issues
• Discuss:
• The parties decide the ground rules that will guide the negotiations.
• An environment of mutual trust and understanding is also created so that the collective
bargaining agreement would be reached.
 Process of CBA

Process of CBA
3. Propose: This phase involves the initial opening statements and the possible options
that exist to resolve them. In a word, this phase could be described as
‘brainstorming’. The exchange of messages takes place and opinion of both the
parties is sought.
4. Negotiation:
• Negotiations are easy if a problem solving attitude is adopted.
• Final drafting of agreements take place.
ADR – Alternative dispute resolution

• If there is a dispute it's not necessary we always take to trade Union or collective
bargaining, there are steps before that which we can use to solve the problem bracket
(open phone gallery check NO NEED FOODL) Step 1- Open door policy – IUB VC
,DEAN example .... We directly meet and resolve
Step 2- PR review- Before incorporating any policy we take review/feedback from various
personnel so that idea is more accurate and efficient
Step 3- Mediation- like an agent, 3rd party, middle ground , his verdict should be
accepted by both party Both party should chose a trusted mediator trusted by 2 sides, he
will analyze problem and give solution. It's not necessary we have to listen to the
mediator ,It can be our friend A mutual one.
Step 4- Arbitrator- There are legally recruited Mainly government agency or master
Union (BGMEA)unlike Mediator when arbitrator gives some decision we usually accept
that decision because it is mostly unbiased

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 Roles of Collective Bargaining Agents
Main purpose is to establish a communication channel between 2 parties

Roles of Collective Bargaining Agents

To promote mutual trust, understanding and co operation between the employer and the workers;

To ensure application of labor laws to foster a sense of discipline

To improve and maintain safety, occupational health and working condition;

To encourage vocational training, workers education, and family welfare training;

To adopt measures for improvement of welfare services for the workers and their families;

To fulfill production target, reduce production cost, and wastes and raise quality of products.
 Practices of CB in Bangladesh

Practices of CB in Bangladesh
Collective bargaining is generally carried out at three levels,
i) Plant level
ii) industry or corporation level
iii) National level.
In public sector, the issues which cannot be settled at the plant level
become the subject matter of bargaining at the corporation/ or national
level.
In private sector, collective bargaining is generally held at the plant level
between the representative of workers (CBA) and representatives of
employers.
PARTIES TO INDUSTRIAL
RELATIONS

Employees

Government Employers

Parties to
Industrial
relations

Courts and Employee

Tribunals Associations

Employers
Associations

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 Systems approach (Dunlop 1958)

• IR - a social sub-system within the econ. & political systems

• Components
– actors
– contexts (influences & constraints on decisions & action e.g. market,
technology, demography, industrial structure)
– ideology - beliefs affecting actor views - shared or in conflict
– rules - regulatory elements i.e. the terms & nature of the employment
relationship developed by IR processes
– Stable & orderly or Unstable & disorderly?
 Comparative approach

• Difference between:
– Comparative (analyzing different countries)
– International (transnational institutions and phenomena)
• Importance of comparative approach
– Inform public policy debate
– Changing world economy
– Development of ‘fair’ international employment standards
• Problems of comparison
– Lack of common terminology and definitions
– Differences between stated institutional framework and reality of actual
practice
– Problems of transferability
 Labor Market - how work is distributed within society
• Issues
– increase in women’s activity rates
– level + nature of unemployment, long vs. short-term jobs
– manufacturing or service + globalization vs. local
– market regulation strategies
• Economic labor market model
Pay = price mechanism (Supply/Demand, elasticity & equilibrium)
– One market (same £ for all) or differentiated by skill, job, location etc.
– assumes Pricing +
• Work - disutility. Wages compensate for less leisure
• Marginal productivity gain from using one extra unit of labor
• “institutionalized” labor market - wage floor, "going rate", range, collective
bargaining vs. individual negotiation.
 A Safe Workplace

Can
Can the
the ILO’s
ILO’s Better
Better Factories
Factories Cambodia
Cambodia Program
Program
Benefit
Benefit Bangladesh’s
Bangladesh’s Dangerous
Dangerous Garment
Garment Factories?
Factories?
Bangladesh

• Densely populated - 150 million people

• Garment industry is relatively young but it

is the source of 76% of Bangladesh’s
exports

• 2 million garment workers – 85% are

women

• Among the lowest paid in the world

• Face opposition for their right to unionize

• Hazardous conditions are ‘normal’

Labor Rights Issues

• Safety: More than 2000 people have died in Bangladesh since 2006,
according to the Clean Clothes Campaign.(3 parts -1health
hazard,2-harassment &violence 3- Safety measures)

• Working Conditions: Many of the factories lack fire escapes,

windows or emergency exits.

• Living Wages: The average wage for a workers in Bangladesh is 10

to 30 cents an hour.(less than fair wage more than minimum wage,
in between min and fari wage)

• Fair Wage- more than minimum wage to enjoy life a bit better ,can
ensure minimum living standard, after spending he can save some
money SAVINGS
Garment Industry Deaths since 1990-2010
• 21 killed at Garib and Garib Factory, Gazipur, 2010
• 62 killed at KTS Garments, Chittagong, 2006
• 23 killed at Shan Knitting, Narayanganj, 2005
• 74 killed at Spectrum Sweater, Dhaka, 2005
• 23 killed at Chowdhury Knitwear, Narsingdi, 2004
• 23 killed at Macro Sweater, Dhaka, 2000
• 12 killed at Globe Knitting, Dhaka, 2000
• 24 killed at Shanghai Apparels, Dhaka, 1997
• 20 killed at Jahanara Fashion, Narayanganj, 1997
• 22 killed at Lusaka Garments, Dhaka, 1996
• 32 killed at Saraka Garments, Dhaka, 1990

(Source: The Daily Star, March 1, 2010)

 Spectrum Factory collapse April 2005

• 74 workers buried alive

• Built on marshland

• Four-floor building approved

• Nine-floor building was built

 Rana Plaza Collapse April 2013

Loss of Life Garment

factory accidents in
Bangladesh have claimed lives of
many workers.
The most deadly collapse of a
factory building in April 2013 that
killed 1,134.
It is considered the deadliest
structural failure accident in
modern human history, and
therefore also the deadliest
garment-factory accident in
history.
Making strides, but a long way to go

“Unprecedented Improvements to Factory Safety”

– The New York Times, March, 01, 2020

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Minimum wage
Minimum wage
 Minimum wage by country : Asia

India China Pakistan Cambodia

●
176 Indian rupees ($3) for RMB2,420 ($348.02)
● 17500 Pakistani
●
US$182 per month,
●

an eight-hour work day, but

local authorities can set per month, or RMB21. rupees ($128) per for the garment and
their own lower rate 00 ($3.02) in Shanghai month. shoe industry.
Minimum wage: Bangladesh
• Minimum wage raised to 8,000 taka
($95) per month since 1 December
2018 in the garment industry. 
• 48 hours work week (8*6)
• 167 BDT per hour
• $1.97 per hour

• The minimum wage is set nationally

every five years by the National
Minimum Wage Board in a tripartite
forum industry by industry.
Which Workers Are Exempt From the Federal Minimum
Wage?

• Independent contractors (only employees are entitled to the minimum wage)

(muchi,cng ala, plumber etc)
• Outside salespeople
• Workers on small farms(agriculture,fisheries,tea)
• Employees of seasonal amusement or recreational businesses
• Apprentices, students, and learners, as defined by law.

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