Assignment in “Industrial Relationships in Bangladesh” Submitted To Professor Doctor Moniruzzaman Study course Teacher Dept: Business Operations Stamford University Bangladesh Published by Posted Date Date: 10/04/2014 Page of Transmittal April 12, 2014 Professor Dr . Moniruzzaman Department of Business Administration Stamford College or university Bangladesh. Subject matter: Submission of Internship Survey. Dear Friend, It is a great delight and privilege to present the report named “Industrial Relations in Bangladesh” which was assigned to me being a part for the competition of MBA Software.

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Throughout the research I have tried with the best of my ability to accommodate as much information and relevant issues as possible and tried to follow the instructions because you have recommended. I attempted my far better make this survey as much useful as possible. We sincerely believe it will satisfy your requirements.

My spouse and i however seriously believe that this kind of report is going to serve the objective of my training course (Industrial Relation). I am grateful to you for your guidance and kind co-operation at every stage of my personal endeavor on this report. My effort will probably be reworded as long as it brings value towards the research materials. Introduction One of the main functions of human resource management should be to maintain soft industrial relations (IR). It is additionally treated among the oldest functions of HRM.

It is fundamentally allied with the relations involving the employer as well as the workers in the marketplace (Singh & Kumar, 2011: 3). According to Weeratunga (2003: 5) “Industrial Contact or Labor Relations, the terms employed interchangeably, can be viewed as the interaction between the various interested parties involved in job. The employer plus the employee happen to be obvious functions.

The state, in ensuring a good playing discipline for both equally sides, provides the legal framework within just which these kinds of relations may take place”. In industrial relations, workers are usually represented by way of a trade unions formed beneath chapter 13 of Bangladesh Labor Act–2006 whereas organisations are showed by their interactions such as Bangladesh Employers Federation. HR managers mediate the relationships among workers and employers nevertheless they are equiped by the representatives of business employers. Another related term can be ‘Employee Relations’.

Though both terms commercial relations and employee associations are structurally similar (Decenzo& Robbins, 1999: 18), staff relations involves, in addition to industrial relations, such aspects as participative management, worker wellbeing, employee development, staff compensation, staff protection and health, etc (Aswathappa, 08: 534). Generally industrial relationships cover areas such as transact unions, ordinaire bargaining, arrangement of industrial conflicts, grievance handling procedure, position of government, labor laws, tennis courts and tribunals and function of companies.

In the circumstance of developing countries, professional relations have been influenced by features including high exploitation of workers, low level of worker engagement in making decisions, government and political interferences, high level of illiteracy of personnel, low level of employment, low level of understanding among the laborers regarding privileges, laws, and trade unionism, and low labor efficiency (Khan &Taher, 2008: 222-23). Industrial relationships plays an essential role in establishing and maintaining commercial democracy (Monappa, 2004: 9) and it is the important thing to improve efficiency in professional enterprises (Aswathappa, 2004: 534). Human resource management can play essential roles in enhancing supportive and friendly industrial relationships.

In Bangladesh, collective negotiating on pay out between workplace and workmen is forbidden in the public sector companies as the us government designs uniform pay and benefits for the employees of all public sector enterprises (Mahmood, 2008). The limited range of communautaire bargaining inside the public sector of Bangladesh influences the trade assemblage to develop network with govt, political celebrations and other strong bodies in organizing their very own activities. It hinders successful interactions between the representatives of employers and workers for enterprise level.

Though functionality based shell out is considered to obtain significant impact on employee efficiency (Dessler&Varkkey, 2010: 15), it is not at all practiced by the public sector enterprises in Bangladesh. As a result, community sector businesses in Bangladesh have been taking on huge deficits. On the other hand, all kinds of collective negotiating takes place at enterprise level in case of personal sector enterprises (Khan, 1996). Mahmood (2008) mentioned the industrial relationships process in the private sector was often disturbed by simply links among private and public sector unions.

Aims: a) To research the differences between public and private sector industrial enterprises of Bangladesh with respect to overall status of IRGI. b) To place forward plan implications of overall improvement in MARCHAR of Bangladesh. Industrial Relationships Studies in Bangladesh Khan (1986) analyzed industrial relationships in Bangladesh with particular emphasis on transact unionism. … Trade Unions Trade Union is a company of staff who have joined together to achieve common goals such as safeguarding the integrity of it is trade, achieving higher pay out, increasing the number of employees a company hires, and better operating conditions. – An organized association of workers in a trade, group of trades, or perhaps profession, formed to protect and further their rights and pursuits. – A grouping of employees in a particular sector, whose goal is to discuss with personnel over pay out, job protection, working several hours, etc . using the collective power of the associates.

The most common reason for these interactions or assemblage is “maintaining or improving the conditions with their employment”. Factors behind organizing transact unions Dotacion of benefits to members: professional training, legal advice and portrayal for people is still an important benefit of operate union membership rights. Industrial actions: Trade assemblage may impose strikes or resistance to lockouts in promotion of particular goals.

Politics activity: Control unions might promote guidelines favourable for the interests of their members or workers as a whole. To this end they may go after campaigns, carry out lobbying, or financially support individual prospects or celebrations. Conditions of employment and any grievances — happen to be settled through trade assemblage. Bargaining rights: Trade assemblage bargain and ensure the position, rights, wages and requirements of staff of the modern world of sector. Contribution in economical progress: Trade unions are developing rapidly within an economy as a result of expansion of business and economical development.

Objectives Transact unions would be the only approach to manage, compliant, and control the time force. Lots of objectives exist to organize trade unions. To protect or increase the wages and working circumstances of employees and to lead to a change in the economic order. 2 . To strengthen their (labour) bargaining electricity collectively to determine and obtain all their privileges. 3. To dully shield all other fascination of the employees.

And through the management’s viewpoint the aims as drafted: a) To minimize the number of negotiation. b) To specify function rules, disagreements and grievances to give the better solution to employees claim. c) To establish the efficient interaction between the business employers and administration to impose the expected standards. To boost the overall company effectiveness personnel can also be occasionally inspired to form and set up trade union. In fact , targets of a control union are not defined; somewhat these are changing according to the need of the economic climate and total industry.

Once these goals are not completed then the competitors are began History of Trade Unions The Pakistan Period (1947-71) -The East Pakistan Trade Unions Act, 1965 was passed repealing the Trade Assemblage Act, 1926. -The Labor Disputes Action, 1965 was enacted. -Industrial Relations Code, 1969 was enacted adding the above two Acts. The commercial Relations (Amendment) Ordinance, 1977 liberalized the Rights of Freedom of Association -The Labor Coverage of 80 restored the right to freedom of association into a considerable extent -In 1982 the armed service regime banned trade union activities, strikes, and right of liberty of affiliation.

Limitations In Bangladesh Transact Unions possess a lot of unavoidable concerns: 1 . Insufficient consciousness: Trade union are certainly not actually totally aware about employees legal rights and duties. installment payments on your Lack of Oneness: In Bangladesh trade assemblage are separated for personal influence. three or more. Lack of knowledge: The workers of Bangladesh don’t have enough know-how about their legal rights and duties. 4. Politics influence: In Bangladesh, control unions work a part of politics parties quite a bit less a free right saving connection. 5. Trademark trade union: Bangladesh is actually a country wherever every corporation has more trade unions in name only. The overall output got down.

Suggestions Strengthening bilateral collective bargaining intended for solving problems quickly and effectively. Multiplicity of trade union produces the competitors in a union. So it must be reduced. Politics involvement should be reduced.

Organization must support financially as trade unions support the worker. Schooling programs underneath trade union should be helpful to develop the skill sets of the staff. Trade union’s function should be increased and widened throughout the organization. Union leader must be given importance and encourage the members. If perhaps trust between workers and management increases, productivity improves.

Management must help and guide trade unions to stay industrial dissension and catastrophe. Trade unions always should demand reasonable thing to the managing.. What is a argument? Academically speaking, industrial challenge refers to virtually any conflict between employees and employers, among employers and employers and between employers and staff. • However in reality, argument is understood as the conflict between employees and employers. • There are 3 types of Disputes: • Disciplinary conflicts • Grievance disputes • Industrial arguments • According to Commercial Dispute Work, 1947, Professional dispute means any argument or big difference between companies and companies, or among employers and workmen, or perhaps between workmen and workmen, which is linked with the employment or perhaps nonemployment or perhaps terms of employment or with the conditions of time of anybody.

Causes of Commercial Disputes: A number of the prominent factors behind industrial differences may be listed thus: Work: The list here includes arguments over pay, allowances, added bonus, benefits, working, condition, unjust dismissals, retrenchment of staff, methods of task evaluation, within methods of development, non-implement of awards of tribunals, and so forth The Countrywide Commission in Labor remarked “though in majority of events industrial differences were based in claims associated with the conditions and current condition of employment, at times economic problems of a basic character dominated and, once in a while, purely motives”. The causes of industrial disputes can be broadly categorized into two categories: monetary and noneconomic causes.

The economic triggers will include issues relating to settlement like pay, bonus, allowances, and conditions for job, working several hours, leave and holidays with no pay, unjust layoffs and retrenchments. The non financial factors includes victimization of workers, ill treatment by simply staff members, sympathetic strikes, personal factors, indiscipline etc . Salary and allowances:  Since the price tag on living index is raising, workers generally bargain for higher income to meet the rising cost of living index also to increase their criteria of living. In 2002, 21.

4% of arguments were due to demand of higher wages and allowances. This percentage was 20. 4% during the year 2003 and during 2004 increased up to 26. 2%.

In june 2006, wages and allowances accounted for 21. 8% of arguments. Personnel and retrenchment:  The personnel and retrenchment have also been an important factor which will accounted for arguments. During the year 2002, disputes brought on by personnel were 14. 1% while individuals caused by retrenchment and layoffs were 2 . 2% and 0. 4% respectively.

In 2003, the same trend could be seen, where 11. 2% of the conflicts were due to personnel, when 2 . 4% and 0. 6% of disputes were caused by retrenchment and layoffs. In 12 months 2005, just 9. 6% of the arguments were caused by personnel, and later 0. 4% were caused by retrenchment.

Indiscipline and assault:  From the given table, it is apparent that the range of disputes brought on by indiscipline has shown an increasing pattern. In 2002, 29. 9% of conflicts were induced because of indiscipline, which increased up to thirty six.

9% in 2003. In the same way in 2004 and june 2006, 40. 4% and forty one. 6% of disputes had been caused because of indiscipline correspondingly.

During the year 2003, indiscipline accounted for the highest percentage (36. 9%) of the total time-loss of disputes, accompanied by cause-groups wage and permitting and workers with 20. 4% and11. A similar craze was noticed in 2004 where indiscipline accounted for 40. 4% of differences.

Bonus:  Bonus has always been a key factor in professional disputes. 6. 7% of the disputes were because of benefit in 2002 and the year 2003 as compared to a few. 5% and 3. 6% in 2005 and 2005 respectively. Keep and functioning hours: Leaves and functioning hours never have been essential causes of professional disputes. During 2002, zero.

5% from the disputes had been because of keep and hours of work whilst this percentage increased to 1% in 2003. During 2004, only 0. 4% of the differences were because of leaves and working several hours. The miscellaneous factors include – � Inter/Intra Union Rivalry – � Charter of Needs – � Work Load – � Position orders/rules/service conditions/safety measures   – � Non-implementation of agreements and awards and so forth Collective Negotiating Collective bargaining includes not only negotiations between your employers and unions nevertheless also includes the resolving labor-management conflicts. Hence, collective bargaining is, essentially, a recognized method of creating a system of industrial tendu.

It acts as a method of presenting civil legal rights in the industry, that may be, the management should be carried out by rules rather than irrelavent decision making. This establishes rules which establish and minimize the traditional power exercised by the management. Importance to staff? Collective club aining grows a sense of home respect and responsibility among the employees.

That increases the power of the staff, thereby, elevating their negotiating capacity as a group, be it natural or processed. Collective bargaining increases the comfort and output of staff. It restricts management’s freedom for irrelavent action up against the employees. In addition, unilateral actions by the workplace are also disheartened.

Effective communautaire bargaining machines strengthens the trade assemblage movement. The employees feel determined as they can easily approach the management on various concerns and discount for bigger benefits. It helps in protecting a quick and fair settlement of grievances. It provides a flexible means for the adjusting of pay and job conditions to economic and technological modifications in our industry, as a result of which the chances for clashes are decreased.

It becomes easier for the management to resolve issues on the bargaining level rather than taking up complaints of individual staff. 2 . Collective bargaining has a tendency to promote a feeling of job protection among staff and therefore tends to reduce the cost of labor turnover to management. three or more. Collective negotiating opens up the channel of communication between your workers as well as the management and increases worker participation in decision making.

4. Collective negotiating plays a vital role in deciding and stopping industrial conflicts. Collective bargaining leads to industrial peace in the country 2 . That results in organization of a unified industrial environment which supports which helps the speed of a nation’s efforts towards economic and social creation since the obstacles to this sort of a advancement can be reduced considerably. three or more. The discrimination and fermage of staff is constantly getting checked. some.

It provides a method or the regulation of the conditions of employment of the people who will be directly worried about them.

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