Assignment: MGT-424 Trade Unions under the Industrial Relation System of Bangladesh

Introduction
From the starting of industrial 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 countrys trade by ensuring the right of the labor force. 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.

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. So, trade union 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.

History
The history of trade union movement in Bangladesh date back to early 19 th 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 60s 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--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 todays era the trade union of Bangladesh is captured by the power parties of different interested arena.

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 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.

Present Scenario
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 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.

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. 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.