Assignment on

Industrial Relations in Bangladesh

 Executive Summary

This report is prepared as a requirement of the BBA program .This report has been prepared on
the basis of the situation of Industrial Relations of Bangladesh.

.In this report, mainly talks about Introduction of the study, Definition of Industrial Relations,
Situation of Industrial Relations in Bangladesh.

Finally we try to give some recommendation for the Industrial Relations. This report express
what are the obstructs of IR in Bangladesh , what is the performances of IR, Problems of trade
union , workers expectations from leaders of trade union and so on.
 INTRODUCTION
Industrial relations has become one of the most delicate and complex problems of
modern industrial society. Industrial progress is impossible without cooperation of labors and
harmonious relationships. Therefore, it is in the interest of all to create and maintain good
relations between employees (labor) and employers (management).

Concept of Industrial Relations:

The term Industrial Relations comprises of two terms Industry and Relations. Where the
industry" refers to any productive activity in which an individual (or a group of individuals) is
(are) engaged". On the other hand the relations" we mean the relationships that exist within the
industry between the employer and his workmen.

"The term industrial relations explain the relationship between employees and management
which stem directly or indirectly from union &employer relationship. Industrial relations are the
relationships between employees and employers within the organizational settings. The field of
industrial relations looks at the relationship between management and workers, particularly
groups of workers represented by a union. Industrial relations are basically the interactions
between employers, employees and the government, and the institutions and associations through
which such interactions are mediated.

The term industrial relations have a broad as well as a narrow outlook. Originally, industrial
relations were broadly defined to include the relationships and interactions between employers
and employees. From this perspective, industrial relations cover all aspects of the employment
relationship, including human resource management, employee relations, and union &
management (or labor) relations. Now its meaning has become more specific and restricted.
Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade
unionism, and labor & management relations, while human resource management is a separate,
largely distinct field that deals with nonunion employment relationships and the personnel
practices and policies of employers.

Objective of the study:

To know about the Industrial relations in Bangladesh
Hindrance of IR in Bangladesh
Bangladesh present situation of IR
Some suggestions of IR in Bangladesh
Methodology:
For preparing this report we used secondary source of data to collect information. so in
this case to collect information secondary source we followed some articles like Current
Status and Evolution of Industrial Relations system in Bangladesh" which is about
this IR in Bangladesh and we also took the information from different website and forum. And
apart from this we have gone through this book which is Industrial Relations by Dr. Abdul Awal
Khan.

Limitations:
We have faced some limitations as follow:

Knowledge constraint
Source constraint
Non availability of required information in particular format.
Human errors and omission.
 Overview of Industrial Relations
Definitions
Industrial Relation is a relation between employer and workers, workers and workers and
workers and trade unions and the process by which people and their organizations interact at the
place of work to establish the terms and conditions of employment.

Objectives of Industrial Relations

Main Objective

To develop & maintain congenial labor management relations

Other Objectives

(i) To enhance the economic status of the workers

(ii) To regulate the productivity by minimizing industrial conflicts

(iii) To extend & maintain industrial democracy

(iv) To avoid industrial conflict & their consequences

(vi) To develop & encourage trade unions to improve the workers strength

But in todays reality the Objectives are:

1. To safeguard the interest of labor and management who are participate in the process of
production is being securing the highest level of mutual understanding and goodwill among all
those sections in the industry.

2. To avoid industrial conflict or strife and develop harmonious relations, which are an essential
factor in the productivity of workers and the industrial progress of a country. To eliminate, as far
as is possible and practicable, strikes, lockouts and gathers by providing reasonable wages,
improved living and working conditions, said fringe benefits.

3. To raise productivity to a higher level in an era of full employment by lessening the tendency
to high turnover and frequency absenteeism.

4. To establish and nurse the growth of an Industrial Democracy based on labor partnership in
the sharing of profits and of managerial decisions, so that ban individuals personality may grow
its full stature for the benefit of the industry and of the country as well.
5. To establish government control of such plants and units which are running at a loss or in
which productions has to be regulated in the public interest. In fact the subsidy is to provide for
stable of the productions. It is necessary for mankind.

Role of 3 Actors:

Government

Government plays a balancing role as a custodian of the nation

influences industrial relations through labor laws & other policies
regulates the activities & behavior of both workers organizations & employers organizations
Employers:

Employer is a crucial factor in industrial relations

employs the worker& pays the wages
regulates the working relations through various rules, regulations & by enforcing labor laws
The difference between the demands of worker & employer results in industrial conflicts

Workers:

The total worker , is a concept, plays an important role in industrial relations

The total worker includes working age, educational background, family background,
psychological factors, social background, etc.

What is Collective Bargaining?

There are two parties---- workers and employer in an industrial establishment. Both have conflicting
interests. Workers always desire higher wages for the service rendered and also better
working conditions at the work-place. On the other hand, employer expects higher and higher
productivity in return of the wages paid.

There are always some differences between the two groups on variety of matters. These differences/
disputes need settlement to harmonies the industrial relations in the organization. Through collective
bargaining, differences/ disputes are resolved on a negotiating table. The objective is to harmonies labor
relations and to promote industrial peace.

Situation of industrial relation in Bangladesh:

Industrial relations system in Bangladesh is characterized by the predominant role played in
it by the government. Being the single major employer and manager, the industrial relation
policies which it pursues with regard to public sector enterprises, have a decisive effect on
the state of industrial relations throughout the country.

The government is responsible for ensuring a sound labor administration and; as an employer
in the public sector it has to play a role in creating an enabling environment for collective
bargaining and protecting freedom of association. The maintenance of a climate of good
industrial relations in society depends largely upon the role played by the state as an actor
 in the industrial relations system because it is the duty of the state to formulate labor laws
and policies, to administer them and also to uphold justice so that neither the workers nor the
employers suffer. Thus the state acts both as a planner and an administrator in the industrial
relations system.

The state has to ensure that there is no interference in the bargaining process from any
political party, government or the employer. It is evident that any kind of state intervention in
industrial disputes may strain the relationship between the workers and employers. But the
government intervention in trade union remains a persistent feature of industrial relation
system in Bangladesh. But the government intervention in trade union remains a persistent
feature of industrial relation system in Bangladesh.

Present condition of trade union in Bangladesh:

In Bangladesh trade union does not go forward for some difficulties. The environment
which is need for establishing an effective trade union is not available in Bangladesh for this bad
labor management relation system are liable. Better labor management relation system creates
discipline among the members. The effect and effort of trade union is very weak in our country.
The main cause behind weak trade union action in Bangladesh is bad labor and management
relation system. Management and labors stands against each other, if the labor management
relation goes wrong. In Bangladesh each and every trade union is established with the help of
political parties. Internal conflict is another problem of trade union. They have contradiction
among them. The trade union is divided into many groups. So, the trade union commotion is
failed. In Bangladesh one trade union stands against another one. This clash does a great obstacle
to the labor commotion. The labors who are engaged in trade union are not well educated. The
labors who are engaged in trade union are not efficient and effective. The trade union of
Bangladesh is financially very weak.

Workers join in a TRADE UNION to protect their ECONOMIC HAZARDS and other
problems, but todays trade union is deviated from their principles and involved into destructive
activities. So the government should take initiatives to stop the unethical and unlawful activities
of trade union.
Practices of Collective Bargaining:
In Bangladesh, Collective bargaining is generally carried out at three levels, i) plant level ii)
industry or corporation level iii) national level.

In the 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 the private sector, on the other hand, collective
bargaining is generally held at the plant level between the representative of workers (CBA) and
representatives of employers. There are some good examples of collective bargaining in multinational
corporations and big national companies. Multinational Corporations like Unilever, Bata, British
American Tobacco, as well as companies in the pharmaceutical sector there is evidence of sound practice
of collective bargaining.

Problems of Trade Union in Bangladesh:

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 dont 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
dont 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 dont 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
are 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 are created under different political wings.

6. Financial Problems: The financial position of the trade unions is weak because their
average yearly income is very low and inadequate. The subscription rates are very low.
Under conditions of multiplicity of unions, a union interested in increasing its membership
figures keeps the subscription rate unduly low. As a result, the funds with the unions are
inadequate and they cannot undertake welfare programmers for their members. Another
reason for the weak financial position of union is that large amounts of subscription dues
remain unpaid by the workers. Besides this, unions do not have proper staff and organization
to collect subscriptions.

Findings:

Doing the assignment we noticed that maximum general workers are not enough aware
about trade unions, their right from management ,

Management also not sincere about works right ,

Many of the workers still dont know that How trade unions work actually!

To observe their industrial situation it could say that

Garment workers rights still a far cry.

'Any increase in the number of trade unions is a positive sign regarding workers rights.
But it is estimated that very few percentage of RMG workers are union members.

Trade unions activity is not clear to general workers

Trade unions are not well organized and powerful of this company

Members are not efficient enough to raise voice for the workers
Recommendations:

Union leaders should well organized

Should give workers a clear concept about their activity

Should avoid political crisis

Management should give attention to the workers right

The Company needs to increase their workers incentives

Try to solve maximum disputes

Should follow governments rule for workers.

Conclusion

This Assignment helps us to achieve our countrys 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 employees 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.