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Problems & prospects of
trade union in Bangladesh
Date of Submission: 14.10.2015
Course name – Industrial law
Course code- 209
Present Scenario of Trade union in Bangladesh and Its Problems and Prospects
Submitted To
Ethica Tanjin
Assistant professor
Department of management studies
University of Dhaka
Submitted By
Group 11
Department of Management Studies
20th Batch
University of Dhaka
Group Profile-11
SL NO NAME ID NO
01 Atoshi Borna Podder 260
02 Fakrul amin siddiqui 117
03 Mariya koly 144
04 Selim Joarder 177
05 Saddan shan 129
06 Shovon Raj 211
07 LailaHamda 132
Letter of Transmittal
04th July 2015
Ethica jahan
Assistant Professor
Department of Management Studies,
University of Dhaka,
Dear Madam,
It is honor and great pleasure for us to present our Project Report on “problems & prospects of trade union of 2015-16”
This report was assigned to us as a partial requirement of the “problems & prospects of trade union” (course-209) in the 4thsemester.
The project program was an experience of rediscovering our potentials and full excitements. This report has given us an opportunity to
apply our theoretical expertise, sharpen our views, ideas, and skills, and bridge them with the real world of practical experience.
During the preparation of the report we faced some problems that have been erased out with your profound lecture and assistance.
Without your cooperation and guidelines this report would have been an incomplete one.
Finally, thank you for your supportive thought and kind consideration for formulating an idea.
Lastly we would be thankful once again if you please give your judicious advice or our effort.
Sincerely yours,
………………………….
…………………………
Atoshi Borna podder
On behalf of………
Department of Management Studies
Section-B
20th Batch
University of Dhaka
Executive Summary
During the past three decades, the garments factory has developed from a virtually nonexistent industry to a large and open industry.
This fast growing economy coupled with the largest population in the world, rising personal income, and economic system reform
could not only explain the rapid growth of garments factory, but also foretell the increasing importance of Bangladeshi’s garments
sector in the future.
Garments sector is based on the works of the workers. Most of the workers in our country are illiterate. They are not aware of their
right. But day by day their concern about their rights is developing. Now they have a trade union. Through this they can demand their
rights. This is the legal & transparent way to do achieve their rights.
After the collapse 2013, the foreign buyers of our company are more concern about this sector, about the safety of the workers, about
the work environment & others which are related to the workers.
But the major concern is that, after the investigation we have found out that in the most of the cases the trade union is not used in the
concerned issues. Sometime, it takes illegal ways, sometimes it is only used for the personal interest. But it is not expected. In the
investigation we have found out that some garments factory got closed because of the conspiracy of the trade union people.
Acknowledgements
We take this opportunity to express our profound gratitude and deep regards to our guide Ethica Tanjin for his exemplary guidance,
monitoring and constant encouragement throughout the course of this study. The blessing, help and guidance given by her time to time
shall carry us a long way in the journey of life on which we are about to embark.
We also take this opportunity to express a deep sense of gratitude to Md. S.A. Shikder, Lyric Garments Factory, for his/her cordial
support, valuable information and guidance, which helped us in completing this task through various stages.
We are grateful to other respondents for the valuable information provided by them in their respective fields. We are grateful for their
cooperation during the period of survey.
Lastly, we thank almighty, our classmates and friends for their constant encouragement without which this report would not be
possible.
Group 10
Table Of contents
Chapter Name Subject
Chapter one
1.1Origin of the report
In BBA program along with other courses ‘Industrial law’ is a compulsory course. While studying this course we realized the only
academic knowledge is not sufficient for acquire efficiency and skill in Insurance. So we have been given a “Term paper” to prepare
by our honorable course conductor to apply our academic knowledge practically. This reportis also aimed at increasing the student’
capability to managing and arranging their knowledge in a formal recognized way. In the way of preparing this ‘term paper’ we have
extracted knowledge from insurance business. The overall process would help students to be skilled and to make themselves
potential human resources to work in insurance sector. To prepare this we had to visit an industry which has helped us to make
practical knowledge & practical
1.2 Specific objectives
Broad objectives
To understand the problems, propects & current situations in Bangladesh.
Specific objectives
1. To observe what are the current scenario of trade union?
2. Why trade unions are necessary for the workers & employers?
3. How the situations of the trade unions can be developed?
4. To gather practical knowledge on insurance
5. To make some recommendations to the problems of insurance in Bangladesh.
1.3 Scope of the study
There were huge scopes to work in the area of this Report. Considering the dead line, and exposure of the paper has been wide-
ranging. The study “Problems and Prospects of Trade union Business in Bangladesh” has covered overall scenario of problems and
prospects of trade union industry in Bangladesh. It has measured the living standard of mass people. We have a chance to work on the
financial sector used in modern economic world. By doing the report, we are able to know that the importance of trade union in case
of the garments sector. In the report we have showed how the trade union face the problems and how they can overcome the problems
in Bangladesh. And what will be the position of the trade union in nearby decades.
1.4 Methodology
To prepare this report, standard methods of report writing have been used. Required information has been collected from both primary
and secondary sources.
1.4(a)Primary data
Primary data was collected through business executive interview with a structured questionnaire. The questionnaire comprises
15 questions of which most of them are open-ended. We had only 1 respondent. After editing the data, these were sorted into
different categories.
1.4(b)Secondary information
The sources of secondary information include relevant books, journals, newspapers, web address and annual reports of some
insurance companies and so on.
1. Different documents of the companies & central trade union.
2. Website.
1.4(c)Time Period:
We have taken three weeks to prepare the report.
1.5 Limitations of the Study
Preparing the term paper we have faced some obstructions which are
1. Lack of necessary information in the journals and official publication of the trade unions.
2. Lack of proper information in the websites.
3. Inexperience and time constraint is the limitation restricting this report from being more detailed.
4. Secondary data has been collected from the hand books, magazines, whichmay biased to the insurance business.
5. Lack of co-operation of the officer of the company.
6. Lack of transperancy of the officer to the public.
Questionnaire
1.Do you have any trade union?
 Ans: A) Yes B) No
2.Why is the cause to create trade union?
Ans: Trade union is mainly created for maintaining or improving the conditions of their employment. It also works as a
bargaining agent. Besides these, it works to achieve some goals such as protecting the integrity of trade, ensuring improved
healthcare condition, safety and also higher payment benefit and ultimately for better working condition.
3.What are the facilities of trade union in case of owner and the workers?
Ans: : Both parties, owners and workers get benefit from trade union.
Owner’s facilities:
a) For better negotiation process, the owners can deal with the head of labor union for workforce more efficiently not to
talk with multiple workers.
b) If the owners deals with trade union, the employees satisfied as the leader raise their voice to speak with the employer
for ensuring higher wages and better benefit package on favor of workers.
c) When the employers and trade union works together, it is easy to facilitate changing positive environment easier as all of
the concerned parties are on the same and right track.
Workers facilities:
a) To negotiate a better payment and working hour facilities.
b) To ensure healthcare facilities and working environment by pressurizing the employer.
c) To get advice support, welfare support and financial support from trade unions.
4.What is the proportion of men & women in the trade union?
Ans: If there are more than 20% workers, there will be selected one female member among six members of the trade
union.
5.When the membership is discarded of a member?
Ans: The membership will be discarded when he or she involves in-
a) Unfair activities
b) Violate the rules of trade union
c)Disqualification
6.What are the disqualifications of being a member?
Answer: the required qualifications which are assigned by the trade union if any member don’t possess such as leadership
power, will be disqualified for being a member.
7.Have you any register book?
 A) Yes B) No
8.How do you maintain the register book?
Answer: we maintain the register book according to the provision of industrial act.
9. What are the problems of trade union?
Answer: the followings are the problems of trade union-
a) Lack of efficient leaders
b) Shortage of adequate financial fund
c) Political influences
d) Employers opposition
10.Do they demand anything unfair through the trade union?
Answer: sometimes the leader of the trade union demanded money illegally fortheir own interest from the owners.
11.How does the company sort out?
Answer: when the mutual understanding between workers and owners keep very well, then the production power of the
organization increases which increases profit.
12.How do you select your bargaining agent?
Answer: the following is the process of selecting bargaining agent-
a) By casting a secret ballot among the union members.
b) Bargaining with a joint committee
c) Bargaining with negotiation committee which consists of selected representatives from every department.
13.Does the collective bargaining agent take any illegal actions in maintaining representatives in case of the workers and officers?
 A) No B) Yes
14.Are you satisfied with your trade union? If not, then why?
Answer: I, including with other owners is not satisfied about trade union because of-
a) Misuse of power
b) Uneducated leaders
c) Misguiding workers
d) Instigating employer in a silly matter
e) Preferring own interest rather than organizational interest.
15.What is about the relationship among the workers, officers and the trade union?
Answer: Not so well, but as the environment of trade union is improving because of joining of educated leaders, if this change
increases day by day, ultimately the relationship among those people will be milestone for the organization to gain the
organizational ultimate goal, that means production maximization which leads to profit maximization.
1.6 Various Problems we face:
There are several problems we face described below:
1. At first we tried to take a conversation with the workers. But we failed because of the embargo of the officers to do this. After
that we were obliged to talk with the selected officer.
2. They were not so eager to share their information with us. When we promised that we will do this confidentially, then they
agreed to talk with us.
Chapter two
2.1 Literature review
2.2 Trade union’s Definition
An organization whose membership consists of workers and union leaders, united to protect and promote their common interest. Trade
union is an organization of employers formed in a continuous basis for the purpose of securing diverse rate of benefits. It is a
continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives .A trade
union can be seen as a group of employees. The principal purposes of labor union are to
(1) Negotiate wages and working condition terms,
(2) Regulate
relations between workers (its members) and the employer,
(3) Take collective actions to enforce the enforce the terms of collective
bargaining,
(4) Raise new demands on behalf of its members, and
(5)Help settle their grievances. A trade union may be :
(a) A company union that represents interest of only one company and may not have any connection with other unions. Also called a
house union, a company union is often a bogus one and generally illegal.
(b) A general union that represents workers from several companies in the same industry. Also called Indusrial union.
(c) A craft union that represents skilled workers in a particular field such as carpentry or welding. Trade Union Movement in
Bangladesh: Issues, Agenda and Legislation
Background of the trade union in Bnagladesh
Trade Union Movement in Bangladesh has very long past. The beginning of labour agitation in India was in Bengal. In 1860 in Bengal
a noted dramatics and social reform Dinbandhu Mitra along with some of his journalist friends protested the inhuman working
condition and hardship of cultivation workers. This was beginning of labour movement. The first Factory commission was, thereafter,
appointed in 1875 and as a result the Factories Act,1881 was enacted. But this Act did not reflect the aspiration of workers. There was
no provision about child labour and women workers. Another Factory Commission was appointed in1884.In 1917, the workers of
Ahmedabad Mills resorted to a strike in demand of an increase in wages. Ahmedabad textile workers organised themselves in a trade
union in December4,1917. The strike was in success and workers got a wage
increase. The first regular Union was formed in Ahmedabad in 1920 for the Throstle Department Workers. The growth of trade union
movement got momentum at the end of the First World War. The growth of industry and trade had rise following the War. There were
a number of strikes during 1919 to 1922. In 1920 All-India Trade Union Congress was formed. This was initiated by forces of
different ideology. The communist and also nationalist forces were there. The colonial ruler finally introduced Indian Trade Union
Act, 1926. Before that the Indian workers were denied the fundamental rights of freedom of association. The Indian Trade Union act,
1926 was enacted with a view to provide for the registration of trade Unions and in certain respects to define the law relating to
registered trade unions. After liberation of Bangladesh workers have enjoyed a great deal of freedom and trade
union rights.The most of the plant level trade unions had joined with the ruling party trade union center Jatiyo Sramik League.Many
new plant level trade unions were registered.The trade union was a powerful menace to get authority on factories,mills and
establishment abandon by previous owner and subsequently taken over by the
government.The political local elite had joined in trade union to control and have benefits of the taken over industries and
establishments. Labour Legislation From the period of the British colonial rule, till now Bangladesh has many labour laws, rules and
resolutions, legislated and declared by government in different time and period. Often many laws and rules contradict each other.
Example can be site about definition of labour, is not same every law, it differs in employment of labour (standing order) Act 1965,
Industrial Resolution Ordinance 1969,
Shops and Establishment Act 1965, Factories Act 1965, Wages Act 1936, Workmen’s Compensation Act 1923.
The existing main laws relating to workers are the following:
The Workman’s Compensation Act 1923
Children (Pledging of labour) Act 1923
The Payment of Wages Act 1937
Employer’s Liability Act 1938
The Minimum Wages Ordinance 1961
The Shops and Establishment Act 1965
The Employment of Labour (Standing Orders) Act 1968
The Factories Act 1965
The Industrial Relations Ordinance 1969
These laws on the whole provide the basis for classification of workers and determine the working conditions applicable to them like
leave facilities, payment of wages and other benefits and also ways of termination of employment including procedures for
adjudication of grievances. The Structure of Trade Union Industrial Relations Ordinance, 1969 (as amended up or date) is intended to
regulation trade union activities permits workers to organize themselves into trade unions. The trade union is required to be registered
with the Register of Trade Unions. The trade unions in Bangladesh may be divided in structure in to three categories, first is basic
Trade union – a primary organisation of workers at their working place. The second is the Industrial Federation or trade federation
compose of a number of basic trade unions related to the same type of industry, such as Jute Workers Federation, Textile Workers
Federation, Garments Workers Federations and third is National Trade Union is federation of basic unions irrespective of job
categories.
Registration of Trade Union
For registration of trade union the applicants have to apply to the Joint Director of Labour and Register of Trade Unions with fulfilling
certain requirements and procedure. For Industrial and national federation or national unions the Director of Labour and Register of
Trade Unions office is responsible for registration. The National Union means those have members throughout the country – such as
banks, railway and others.
The trade union executive committee shall be consists of 5 to 30 people depending on its membership. Till 50 members the committee
will be consists of 5 persons and 30 persons of committee where are more than 5000 members. The applicants of union registration
have to submit all the application of membership of proposed union in prescribed form and also the register of membership, resolution
of the meeting where resolution was taken to form a trade union, list of committee members, list of general members and the
constitution of the union along with application.
The Employment of Labour (Standing Orders) Act 1965
The Act covers workers leave and holidays stoppage of work by employers in certain reason, layoff and lockout; procedure for
retrenchment, dismissal and settlement of grievances of industrial workers. Beside this Act there are other similar Acts like the
Shops and Establishment Act 1965, the Inland Water Transport (Regulation of Employment) Act 1965, the Newspaper Employees
(Condition of Service) Act 1974, and the Dock Workers (Regulation Employment) Act 1980. These acts regulate workers and
employees of those category of establishments is not obligatory on the part of any shop or commercial or industrial establishment to
have its own standing orders under the employment of Labour Act 1965. According to section 3(1) of the Act, any establishment,
“may have its own rules regulation employment of workers or any class there of, but no such rules shall be less favorable to any
worker other than the provisions of this. So there are flexibility, employers who wish to frame their own rules can do so. They have
liberty to add, delete or modify any rules to their needs. But they have to maintain a general standard of uniformity in the terms and
conditions of employment of the workers and conditions of employment in each establishment. The Service Rules or Standing Orders
have to be submitting to the Inspector of Factories and Establishment for approval. The laws discussed above shows a lot of good set
of laws in favour of workers. Strength and weakness As many 23 central federation till now being registered. No central federation has
strength that they can launch nation wide struggle independently. They do not have such organisational or financial resource either.
Almost all political party has a trade union. All these except a few trade union, mostly depend on support and financial help from the
political party. That is also a reason that the ruling party’s trade union center has much more affiliate unions than others. When there is
shift of government will be shift in affiliation also. The trade unions here also depends on support from International Trade
Union Federation and Foundations. They gets funds from International Trade Union Federation and Foundations for holding seminars,
publications and other activities. The get free passage to go abroad to attend seminars and meetings. The foreign visit is so frequent for
some trade union leaders that they are almost occupy with arrangements of travel – procure visa, preparing seminar paper and others
and left hardly any time to do
trade union work.
Chapter 3
3.1 Company profile
3.2 Analysis on the female & male ratio in the trade union in bangladesh
Participation of the female workers in the trade union:
Name of National Centres Total Membership Female Membership
Jatiya Sramik Federation – JSF 38,000 12,500
Bangladesh Trade Union Kendra
– BTUC
80,970 9,000
Bangladesh Sanjukta Sramik
Federation – BSSF
249,616 4,999
Bangladesh Trade Union Shangha
– BTUS
150,000 300
Jatiya Sramik Jote – JSJ 45,000 2,000
Bangladesh Jatiyatabadi Sramik
Dal – BJSD
220,000 32,000
Bangladesh Mukto Sramik
Federation – BMSF
205,007 65,000
Jatiya Sramik Federation,
Bangladesh - JSF,B
20,000 1,000
Jatiya Sramik League –JSL 215,000 10,000
Bangladesh Free Trade Union
Congress – BFTUC
106,150 22,650
Bangladesh Sramik federation –
BSF
5,989 593
Bangladesh Labour Federation – 102,000 20,000
BLF
Bangladesh Jatiya Sramik
Federation – BJSF
10,050 1,250
Shamajtantrik Sramik Front - SSF 22,000 1,300
Jatiya Sramik Jote Bangladesh –
JSJB
65,000 6,500
Bangladesh Jatiya Sramik Jote –
BJSJ
82,000 35,000
Jatiya Sramik Party – JSP 110,000 25,000
Total 17,26,782 2,49,092
Source: Interviews of Respective Trade Union Federation’s
In lyric group of industries, the ratio of female & male member in the trade union is 1:6
The ration in the Bangladesh Sanjukta Sramik Federation – BSSF i
The ratio in the female & male workers in the Bangladesh Labour Federation – BLF is:
2
98
ratio
female
male
The average ratio of female & male workers in Bangladesh is
19.6
80.4
ratio
female
male
3.3 Problems of Trade Union
We have divided the problems of the trade union from two sides.
3.3(a) From the workers side
a) To understand the main goal
Although trade union works for the welfare of the employees, the workers don’t understand the main goal of the trade union
as they are uneducated.
b) Indifferent about the rules
14.2
85.8
ratio
female
male
They are indifferent about the rules and regulations of trade union. Most of the cases they are not aware of the rules of the
trade union, as they are not educated enough.
c) Raise their voice
As they are not enough educated they don’t know how to communicate with the others, how to create a motion against the
injustice. As a result the workers are unable to raise their voice with trade union.
d) Guideline of the leaders
Sometimes they don’t want to follow the guidelines of the union leaders. There are some workers who are really desperate
and they always do the things according to their willingness. They never follow the rules of the trade union. As a result they
dilute the atmosphere.
e) Extortion
Sometimes they extort money from the workers. They tell the workers they will work for a issue, they raise subscription, but
after that they actually do not do anything. By they, they cheat with the workers.
f) Uneducated workers
The workers of Bangladesh are uneducated. Most of the cases, they don’t know what are they doing. As a result they just
follow the leaders of the trade union whether they right or wrong.
3.3(b) From the owners side
a. Unwillingness to communicate
Employers have unwillingness to communicate with trade union leaders. There is lack of mutual understanding.
b. Negative impact
Owners have negative impact as they instigate the workers against the owners illegally. Sometimes, they don’t work
in a concern willingly. But they create pressure on the owner to pay the wages to them.
c. Unfair activities by the trade union leaders
As some leaders want to take unfair activities, so the owners don’t want to give free access to do work with them.
Sometimes the owner give bribe the trade union leaders to make a negotiation with the workers. As the workers are
uneducated they believe the leaders blindly, but they can not understand that they are cheated by their leaders.
d) Political influence
Most of the trade union are connected with the political groups. When the political leaders arrange a seminar they
leave the workplace without any notice. In addition they create pressure to pay the of the regarding day.
3.4 Recentstories oftrade union
3.4(a)Recent stories of trade union regarding lyric groups
From the above discussion we have seen that the trade unions consequences in Bangladesh are developing day by day.
As an example, we have visited the Lyric group of industries. It had three sectors before. But now one of them has been closed. There
were several reasons behind the screen why one of the sections got closed.
Now the reasons are described below:
Now a day the trade union workers are more concern than they were before. They can fight with the owner for their right. Lyric
garments factory is sincere but it faced some problems. The problems are described below:
1. Sometimes the workers didn’t work in together. But they made obliged to pay their wage on that day.
Consequences of that: We know a garment factory produces a lot when they work in a single day. When the production is
closed, then they have to face loss. When they have to have to pay the wages of the workers in addition they have to face over
loss.
2. Now-a- days, the workers are associated with many political group. When the selected political group has any program, they
join in that in altogether. But also in that day, the management had to pay the wages.
For these, this section was faced loss day by day.
For these reasons the lyric group of garments factory, the garments factory technically shows some reasons to close the garment
factory.
They collect several certificates from the auditing company. Which have helped them in closing the factory. These are describe below:
1. The bad situations of the building: This section used the building was not capable to carry the load. The workers & the
machineries were overloaded. They showed this reason to close the company.
2. Safety problems: There were some safety problems according to the provisions of the law. As the members o the committee
are concern about the workers so they will not continue the factory.
3. Fire fighting apparatus: They showed that, they could not provide the fire fighting apparatus according to the law.
3.4(b)The protection of the trade unions:
As the factory were facing losses day by day, the management committee tried to pay less than one month salary as nearly to 25-30%
less than the actual salary.
But the members of the trade union protected this. They discussed with the management & then agreed to take 10% less than their
actual salary.
3.4(c)Newly registered Trade Union
A day-long orientation programme on Freedom of Association (FoA) for the officials of newly registered trade unions
In the readymade garment sector was held in Dhaka 22 April, 2014.
Presidents and General Secretaries of over 140 newly registered trade unions in the RMG sector attended the orientation programme
along with a number senior leaders from RMG trade union federations. The programme was aimed at sensitizing the trade union
leaders on the issues of
1. freedom of association,
2. collective bargaining and
3. related issues in the context of Bangladesh & existing labor law.
The changes in registration process and the change in the Labour Law in 2013 created an opportunity for more and more trade unions
in the ready-made garment factories to be formed. The Government of Bangladesh encourage the workers of the garment factories to
come forward and take this opportunity as positive & sustainable change in this sector.
Registration of over 140 trade unions in the RMG sector in the last 15 months is a staggering growth compared to registration figures
for the preceding years. The formation and registration of new trade unions is a sign of a new era of collective bargaining and freedom
of association in Bangladesh which can act as a catalyst for change in other industries.
The programme was jointly organized by the National Coordination Committee for
Workers’ Education (NCCWE), Industrial Bangladesh Council (IBC),
The new trend of trade unions in RMG factories is welcome but it is just the beginning. The ILO is committed to supporting workers’
and employers’ organizations to build the capacity of factory based on to realize the rights in the long run.
3.4(d)Some list of registered trade union in Bangladesh:
Name of National Centres
JatiyaSramikFederation –JSF
BangladeshTrade UnionKendra- BTUC
BangladeshSanjuktaSramikFederation - BSSF
BangladeshTrade UnionShangha- BTUS
JatiyaSramikJote – JSJ
BangladeshJatiyatabadi SramikDal –BJSD
BangladeshMuktoSramikFederation –BMSF
JatiyaSramikFederation,Bangladesh - JSF,B
JatiyaSramikLeague –JSL
BangladeshFree Trade UnionCongress –BFTUC
BangladeshSramikfederation - BSF
BangladeshLabourFederation - BLF
BangladeshJatiyaSramikFederation - BJSF
ShamajtantrikSramikFront - SSF
JatiyaSramikJote Bangladesh –JSJB
BangladeshJatiyaSramikJote - BJSJ
JatiyaSramikParty – JSP
3.4(e)Online registration of the trade union:
Online registration is now in the process in the current Bangladesh. After the collapse of the Rana Plaza the Gov.t is more concern
about the garment sector in Bangladesh as it is one of the earning sector in Bangladesh. And Paper-based submissions would also
continue in order “to maximize the ability of worker groups to file applications.
The labour rights groups, international buyers and the UN have stressed on trade union formation in Bangladesh since 2013 after the
worst ever building collapse that killed more than 1,100 workers in Savar.
It should bring more transparency and accountability in processing trade union registrations.
3.4(f)The Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment) Order 2013
The Secretary of State makes this Order in exercise of the powers conferred by sections 197(1)(a) and 286(2) of the Trade Union and
Labour Relations (Consolidation) Act 1992(1).
In accordance with sections 197(2) and 286(4) of that Act, a draft of this instrument was laid before Parliament and approved by a
resolution of each House of Parliament.
Citation and commencement
1. This Order may be cited as the Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment) Order 2013 and
comes into force on 6th April 2013.
Application
2.—(1) The amendments made by paragraphs (2) and (3) of article 3 below apply to proposals to dismiss as redundant 100 or more
employees at one establishment within a period of 90 days or less which are made on or after 6th April 2013.
(2) The amendment made by paragraph (4) of article 3 below applies to proposals to dismiss as redundant 20 or more employees at
one establishment within a period of 90 days or less which are made on or after 6th April 2013.
Amendments to the Trade Union and Labour Relations (Consolidation) Act 1992
3.—(1) The Trade Union and Labour Relations (Consolidation) Act 1992(2) is amended as follows.
(2) In section 188 (length of period between beginning of consultation and the first dismissal taking effect), in paragraph (a) of
subsection (1A), for “90 days” substitute “45 days”.
(3) In section 193 (length of period between notifying the Secretary of State and the first dismissal taking effect), in paragraph (b)
of subsection (1), for “90 days” substitute “45 days”.
(4) For section 282 (short term employment), substitute—
“Fixed term employment
282.—(1) In this section, “fixed term contract” means a contract of employment that, under its provisions determining
how it will terminate in the normal course, will terminate—
(a)on the expiry of a specific term,
(b)on the completion of a particular task, or
(c)on the occurrence or non-occurrence of any other specific event other than the attainment by the employee of any normal and bona
fide retiring age in the establishment for an employee holding the position held by him.
(2) The provisions of Chapter II of Part IV (procedure for handling redundancies) do not apply to employment under a
fixed term contract unless—
(a)the employer is proposing to dismiss the employee as redundant; and
(b)the dismissal will take effect before the expiry of the specific term, the completion of the particular task or the occurrence or non-
occurrence of the specific event (as the case may be).”.
Effects in the trade union after the several accidents in 2013
As a Least Developed Country (LDC), Bangladesh benefits from the most favorable regime available under the EU's Generalized
Scheme of Preferences (GSP), namely the Everything But Arms (EBA) arrangement. EBA grants the 48 Least Developed Countries –
including Bangladesh – duty free quota, free access to the EU for exports of all products, except arms and ammunition.
In 2013, serious accidents in garment factories in Bangladesh have highlighted the need to ensure that factories across the country
comply with international labour standards, including (ILO) conventions. Following these dramatic accidents, the then Commissioner
De Gucht and High Representative Ashton made joint statements, expressing their concerns about the labour conditions, including
health and safety provisions, for workers in factories across the country.
In this regard the EU commission works with the trade union to ensure the regular safety of the workers. An simultaneously this
commission is trying to arrange seminar or workshops in case of the trade union.
Concern after the accident in Bangladesh & amendment of the law
After the collapsion of an illegally-constructed building containing garment factories in Savar, just outside Dhaka in Bangladesh, on
Wednesday 24 April 2013, the building’s construction were finally becoming clear to the world. That year the the fire & the
collapsion killed thousands of people which made more concern about the safety of the workers & so the trade union got more power.
After that, several things happened:
 As Bangladesh’s largest trade partner, the European Union got very concerned about the labour conditions, including health
and safety provisions, established for workers in factories across the country.
 In light of all these events, the European Union called upon the Bangladeshi authorities to act immediately to ensure that
factories across the country comply with international labor standards including International Labour Organisation (ILO)
conventions.
 The EU is presently considering appropriate action, including through the Generalized System of Preferences (GSP) – through
which Bangladesh currently receives duty-free and quota-free access to the EU market under the ‘Everything But Arms’
scheme – in order to incentivise responsible management of supply chains involving developing countries.
 The EU is willing and ready to assist the Bangladeshi authorities in any way it can to meet the required international standards.
 At the same time, we continue to encourage European and international companies to promote better health and safety
standards in garment factories in Bangladesh in line with internationally recognized Corporate Social Responsibility (CSR)
guidelines."
Then we follow the several consequences in case of the trade union:
1. The trade union of Bangladesh of Bangladesh got some power. As it is the responsibility of the trade union to take over of the
workers.
2. According to the amendment, if the EU will supervise the organizations at any time & if they find that these rules are not
followed then the buyer company can cancel the contract.
3. If the trade union complain anything negative against the company, then the buyer will also cancel the contract.
4. So, we can see after the 2013, the trade union has got supreme power to deal with their organization.
5. The EU grants Bangladesh, as well as 47 other Least-Developed Countries, duty-free and quota-free access to the EU market
for all products under the “Everything But Arms (ЕВА)” scheme, which is part of the Generalised System of Preferences.
So, for the improvement of the RMG sector in Bangladesh The Bangladesh Government & the owner of the trade union re
obliuged to care about the workers & the trade union.
6. The EU is Bangladesh’s largest trade partner; 57% of Bangladesh’s exports go to the EU. Bangladesh is the third provider of
clothing to the EU (after China and Turkey), with textile imports worth €8.9 billion in 2013. So, when the buyers are
concern about the safety of the workers of the workers so, the organization will also try to deal with the trade union & to
ensure the safety of the trade workers.
http://trade.ec.europa.eu/doclib/press/index.cfm?id=864
1 Business Social Compliance Initiative (BSCI) Monitoring System
The Business Social Compliance Initiative (BSCI) Monitoring System is the European approach to improving social performance in
supplier countries through a uniform social standards monitoring solution.
The BSCI is based on the labor standards of the International Labour Organization (ILO) and other important international regulations
like the UN Charta for Human Rights, as well as on national regulations. This initiative aims at continuously improving the social
performance of suppliers, ultimately enhancing working conditions in factories worldwide.
The BSCI monitoring system:
 Provides standardized management tools for all companies in all countries
 Supplies a database: information pool to optimize coordination of the process
 Is open to retailers, importers, and manufacturers
 Involves all stakeholders in Europe and supplier countries
 Report valid for two years.
Intertek is an accredited monitor for the BSCI system. Intertek has well trained auditors in over 100 countries prepared to support your
BSCI monitoring needs no matter where your suppliers are located.
 Factory Evaluations – Intertek auditors inspect factories to ensure processes and equipment meet standards as well as to
evaluate working conditions.
http://www.intertek.com/consumer/auditing/
Name of the company:
Nature of Project:
Office & factory address: Shasongaon, Panchabati to Bakatbali road, Enayatnagar, Fatullh, narayanganj-1400.
Tel:
Fax:
Year of establishment:
Managing body:
Bank:
Bond liensce no:
Vat registration No:
Buyer
Product
Floor space
Manpower
Production capacity
Name of the Company : Knit Radix Limited
Nature of Project : 100% export oriented knit garments industry.
Office & Factory Address :
Shasongaon, Panchabati to Baktabali road,
Enayatnagar, Fatullah, Narayanganj-1400,
Bangladesh.
Tel.: +88 02 7670503, +88 02 7670504,
Fax: +88 02 7670505
Year of Establishment : 2007
Managing Body :
Masud Ahmed (Managing Director)
Mobile : +88 01711594727 & +88 01919594727
E-mail: masud@knitradix.com
Sagar Kumar Saha (Director)
Mobile : +88 01713002265 & +88 01919002265
E-mail: sagar@knitradix.com
Bank :
IFIC Bank Ltd.
Narayanganj Branch,
66/1 B.B. ROAD, Narayanganj-1400,
SWIFT NO. IFICBDDH003
FC A/C NO: 1003-147353-836
Bangladesh.
Bond License no : 1041/CUS – SBW/2009
VAT Registration no : 9221018548
Buyer :
K&L (Germany),
P&C (Germany),
Disney (Germany),
3 Suisses (France),
DPAM (Spain),
Devianne (France),
Amichi (Spain),
Med (France),
Bizzbee (France),
Marsch (France),
LPP (Poland).
Products :
T-Shirt, Polo Shirt, Sweat Shirt, Jacket, Shorts, Tank-Top, Pajama Set, Children Knitwear & all
kind's of knitwears.
Floor Space : 56,000 s/ft.
Man Power : 800 Persons
Production Capacity :
Knitting : Interlock 4,000 kgs/day
: Rib 4,000 kgs/day
: Single jersey 12,000 kgs/day
Garments : Basic T-Shirt 20.000 pcs/day
:Polo T-Shirt 5,000 pcs/day
Dyeing & Finishing : We have gentleman agreement with Knit Concern Ltd. At present their
capacity is 50 tons per day. Their own requirement is 60% & we are
Chapter 4
Prospectsof trade union in case ofBangladesh
As Bangladeshisadevelopingcountry,here industriesare increasingdaybyday.As a resultmore laborsare beingemployed. Forpreserving
theirrightstrade unionisa must.Thusit has muchpotentialshere inBangladesh.Some of themare goingtobe presentedbelow:
1) The principle dutyof trade unionisto preserve the rightsof the labors.InBangladeshlaborsare deprivedof rights.Trade unionare here
for helpingthemtopreserve theirrights.
2) Governmenthasgivenmuchprovisionstopreserve laborrights.Butlaborsusuallyare ignorantof these provisions.Trade unionmay
helpthemincase of knowingtheirrightsgivenbythe Government.
3) For makinganykindof negotiationwiththe employers,employeestotallydependonthe trade unions.
4) Till now,the wagesthatare beingfixedforthe labors,are setupbynegotiationsamongthe Government,the employersandthe trade
unions(onbehalf of the employeesatlarge).Thustrade unionhasbecome negotiatoranddelegateforthe employees. Sotrade union
has a great opportunityinBangladeshtopreventdiscriminationstothe employees.
5) Recenttragedies,whichtookplace inBangladeshi garmentsfactories,didmuchdestructiontoemployee’slives.Trade unions alongwith
othersocial welfare organizations,triedhardtoensure compensationsforthe injuredemployees.
6) In Bangladeshlike thirdworldcounty,where weakare alwayssuppressed,there isnosubstitute of trade unions.
7) IndustryinBangladeshare increasingdaybyday.In nearfuture itis possible thatthere willbe manyheavyindustriesinBangladesh,as
well asmay businesscorporationsmayestablish.Thentrade unionswill getmore taskstoperform,whichnowtrade unionsin U.S.A,
U.K, Indiaandin otherprogressedcountryhave.
8)
Suggestionsand Recommendations:
Thoughin Bangladeshthere are manytrade unionswhichare active,theyhave manyshortcomings.Forovercomingtheseshortcomingswe
have some suggestionsandrecommendations.
Those are:
1) The main essence of success istoworktogether.Butour trade unionsare divided.The firstandforemostrecommendationforthemis
to be united.Onlythen,they’ll be able tobargainwithboththe Governmentandemployerssuccessfully.
2) In Bangladesh,usuallypeople are dividedon the basisof political views.Thisdisease hasalsobeenenteredinthe trade unions.Mostof
themare createdbasedontheirpolitical views.Whichoftencreatesrivalryamongthem.Foravoidingthis,trade unionsshouldnot
involve intonationalpolitics.
3) The leadersof the trade unionsare oftengettingpositiondue totheirpolitical powerandposition.Thusthe leadershipof the trade
unionshave beentransferredfromthe original employeestothe pseudoemployees.Whoare actuallypolitical leaders, andtheytryto
gainthispost onlyforgettingmuchprivileges.Itisa mustfor the trade unionsto regainthe leadershipfromthese viruses.
4) Most of the trade unionsexistmerelyinname.These are createdonlytogainsome profit.Thistype of trade unionsmustbe identified
and declaredasillegal.
5) A huge numberof trade unionsare not actuallyconnectedtothe labors.Theyappears onlydue toany incidentoraccidentor for
observingMayDay like festivals.Forworkingperfectly,thesetrade unionsmustgetconnectedtothe laborsthroughoutthe year.
6) In Bangladeshindustriesexistnotonlyinthe industrial areabutalsoinsome otherareas,insome cases ina remote area.There,labors
hardlyhearname of any trade union.Theymaycome to knowabout themonlythroughTV!For ensuringthe rightof these labors at
leastsome large trade unionshouldcome forwardandmake connection withthem,andtake care of them.
7) Trade unionsshouldcollectapermanentfundtoconducttheiractivities.Thismaybe collectedfromthe members.
8) More participationof laborsare needed.
9) There are some distrustbetweenthe trade unionsandlabors.These mustbe decreased.
10) Trade unionsmayprovide trainingprogramstosupportthe workers.
11) Trade unionsare sufferingdue tolackof capable leaders.Theyshouldtrytobuildorfindcapable leaders.
12) Our trade unionsare habituatedtoact just opposite tothe employers.Thisisnotalwaysright.Moreover,thishascreatedarivalry
betweenthem.Sotrade unionsshouldtake decisionsaccordingtothe situation.Andtheyshouldappreciatethe gooddecisions takenby
the management.
13) Many timestrade unionshadacted bybelievingfalsenews.Sotheymustexamine the authenticityof the newsfirsthand,before acting
uponthat.
These were some suggestionsandrecommendationsforthe trade unions.If theyactuponthese,we hope theywill be able tope rformtheir
tasksmore successfully.
Conclusions
Bibliography
Problems and prospects of trade union of bangladesh

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Problems and prospects of trade union of bangladesh

  • 1. Problems & prospects of trade union in Bangladesh Date of Submission: 14.10.2015
  • 2. Course name – Industrial law Course code- 209 Present Scenario of Trade union in Bangladesh and Its Problems and Prospects Submitted To Ethica Tanjin Assistant professor Department of management studies University of Dhaka Submitted By Group 11 Department of Management Studies 20th Batch University of Dhaka
  • 3. Group Profile-11 SL NO NAME ID NO 01 Atoshi Borna Podder 260 02 Fakrul amin siddiqui 117 03 Mariya koly 144 04 Selim Joarder 177 05 Saddan shan 129 06 Shovon Raj 211 07 LailaHamda 132
  • 4. Letter of Transmittal 04th July 2015 Ethica jahan Assistant Professor Department of Management Studies, University of Dhaka, Dear Madam, It is honor and great pleasure for us to present our Project Report on “problems & prospects of trade union of 2015-16” This report was assigned to us as a partial requirement of the “problems & prospects of trade union” (course-209) in the 4thsemester. The project program was an experience of rediscovering our potentials and full excitements. This report has given us an opportunity to apply our theoretical expertise, sharpen our views, ideas, and skills, and bridge them with the real world of practical experience. During the preparation of the report we faced some problems that have been erased out with your profound lecture and assistance. Without your cooperation and guidelines this report would have been an incomplete one.
  • 5. Finally, thank you for your supportive thought and kind consideration for formulating an idea. Lastly we would be thankful once again if you please give your judicious advice or our effort. Sincerely yours, …………………………. ………………………… Atoshi Borna podder On behalf of……… Department of Management Studies Section-B 20th Batch University of Dhaka
  • 6. Executive Summary During the past three decades, the garments factory has developed from a virtually nonexistent industry to a large and open industry. This fast growing economy coupled with the largest population in the world, rising personal income, and economic system reform could not only explain the rapid growth of garments factory, but also foretell the increasing importance of Bangladeshi’s garments sector in the future. Garments sector is based on the works of the workers. Most of the workers in our country are illiterate. They are not aware of their right. But day by day their concern about their rights is developing. Now they have a trade union. Through this they can demand their rights. This is the legal & transparent way to do achieve their rights. After the collapse 2013, the foreign buyers of our company are more concern about this sector, about the safety of the workers, about the work environment & others which are related to the workers. But the major concern is that, after the investigation we have found out that in the most of the cases the trade union is not used in the concerned issues. Sometime, it takes illegal ways, sometimes it is only used for the personal interest. But it is not expected. In the investigation we have found out that some garments factory got closed because of the conspiracy of the trade union people.
  • 7. Acknowledgements We take this opportunity to express our profound gratitude and deep regards to our guide Ethica Tanjin for his exemplary guidance, monitoring and constant encouragement throughout the course of this study. The blessing, help and guidance given by her time to time shall carry us a long way in the journey of life on which we are about to embark. We also take this opportunity to express a deep sense of gratitude to Md. S.A. Shikder, Lyric Garments Factory, for his/her cordial support, valuable information and guidance, which helped us in completing this task through various stages. We are grateful to other respondents for the valuable information provided by them in their respective fields. We are grateful for their cooperation during the period of survey. Lastly, we thank almighty, our classmates and friends for their constant encouragement without which this report would not be possible. Group 10
  • 9.
  • 10. Chapter one 1.1Origin of the report In BBA program along with other courses ‘Industrial law’ is a compulsory course. While studying this course we realized the only academic knowledge is not sufficient for acquire efficiency and skill in Insurance. So we have been given a “Term paper” to prepare by our honorable course conductor to apply our academic knowledge practically. This reportis also aimed at increasing the student’ capability to managing and arranging their knowledge in a formal recognized way. In the way of preparing this ‘term paper’ we have extracted knowledge from insurance business. The overall process would help students to be skilled and to make themselves potential human resources to work in insurance sector. To prepare this we had to visit an industry which has helped us to make practical knowledge & practical 1.2 Specific objectives Broad objectives To understand the problems, propects & current situations in Bangladesh. Specific objectives 1. To observe what are the current scenario of trade union? 2. Why trade unions are necessary for the workers & employers? 3. How the situations of the trade unions can be developed? 4. To gather practical knowledge on insurance 5. To make some recommendations to the problems of insurance in Bangladesh. 1.3 Scope of the study There were huge scopes to work in the area of this Report. Considering the dead line, and exposure of the paper has been wide- ranging. The study “Problems and Prospects of Trade union Business in Bangladesh” has covered overall scenario of problems and
  • 11. prospects of trade union industry in Bangladesh. It has measured the living standard of mass people. We have a chance to work on the financial sector used in modern economic world. By doing the report, we are able to know that the importance of trade union in case of the garments sector. In the report we have showed how the trade union face the problems and how they can overcome the problems in Bangladesh. And what will be the position of the trade union in nearby decades. 1.4 Methodology To prepare this report, standard methods of report writing have been used. Required information has been collected from both primary and secondary sources. 1.4(a)Primary data Primary data was collected through business executive interview with a structured questionnaire. The questionnaire comprises 15 questions of which most of them are open-ended. We had only 1 respondent. After editing the data, these were sorted into different categories. 1.4(b)Secondary information The sources of secondary information include relevant books, journals, newspapers, web address and annual reports of some insurance companies and so on. 1. Different documents of the companies & central trade union. 2. Website. 1.4(c)Time Period: We have taken three weeks to prepare the report. 1.5 Limitations of the Study Preparing the term paper we have faced some obstructions which are 1. Lack of necessary information in the journals and official publication of the trade unions.
  • 12. 2. Lack of proper information in the websites. 3. Inexperience and time constraint is the limitation restricting this report from being more detailed. 4. Secondary data has been collected from the hand books, magazines, whichmay biased to the insurance business. 5. Lack of co-operation of the officer of the company. 6. Lack of transperancy of the officer to the public. Questionnaire 1.Do you have any trade union?  Ans: A) Yes B) No 2.Why is the cause to create trade union? Ans: Trade union is mainly created for maintaining or improving the conditions of their employment. It also works as a bargaining agent. Besides these, it works to achieve some goals such as protecting the integrity of trade, ensuring improved healthcare condition, safety and also higher payment benefit and ultimately for better working condition. 3.What are the facilities of trade union in case of owner and the workers? Ans: : Both parties, owners and workers get benefit from trade union. Owner’s facilities: a) For better negotiation process, the owners can deal with the head of labor union for workforce more efficiently not to talk with multiple workers. b) If the owners deals with trade union, the employees satisfied as the leader raise their voice to speak with the employer for ensuring higher wages and better benefit package on favor of workers.
  • 13. c) When the employers and trade union works together, it is easy to facilitate changing positive environment easier as all of the concerned parties are on the same and right track. Workers facilities: a) To negotiate a better payment and working hour facilities. b) To ensure healthcare facilities and working environment by pressurizing the employer. c) To get advice support, welfare support and financial support from trade unions. 4.What is the proportion of men & women in the trade union? Ans: If there are more than 20% workers, there will be selected one female member among six members of the trade union. 5.When the membership is discarded of a member? Ans: The membership will be discarded when he or she involves in- a) Unfair activities b) Violate the rules of trade union c)Disqualification 6.What are the disqualifications of being a member? Answer: the required qualifications which are assigned by the trade union if any member don’t possess such as leadership power, will be disqualified for being a member. 7.Have you any register book?  A) Yes B) No 8.How do you maintain the register book?
  • 14. Answer: we maintain the register book according to the provision of industrial act. 9. What are the problems of trade union? Answer: the followings are the problems of trade union- a) Lack of efficient leaders b) Shortage of adequate financial fund c) Political influences d) Employers opposition 10.Do they demand anything unfair through the trade union? Answer: sometimes the leader of the trade union demanded money illegally fortheir own interest from the owners. 11.How does the company sort out? Answer: when the mutual understanding between workers and owners keep very well, then the production power of the organization increases which increases profit. 12.How do you select your bargaining agent? Answer: the following is the process of selecting bargaining agent- a) By casting a secret ballot among the union members. b) Bargaining with a joint committee c) Bargaining with negotiation committee which consists of selected representatives from every department. 13.Does the collective bargaining agent take any illegal actions in maintaining representatives in case of the workers and officers?  A) No B) Yes
  • 15. 14.Are you satisfied with your trade union? If not, then why? Answer: I, including with other owners is not satisfied about trade union because of- a) Misuse of power b) Uneducated leaders c) Misguiding workers d) Instigating employer in a silly matter e) Preferring own interest rather than organizational interest. 15.What is about the relationship among the workers, officers and the trade union? Answer: Not so well, but as the environment of trade union is improving because of joining of educated leaders, if this change increases day by day, ultimately the relationship among those people will be milestone for the organization to gain the organizational ultimate goal, that means production maximization which leads to profit maximization. 1.6 Various Problems we face: There are several problems we face described below: 1. At first we tried to take a conversation with the workers. But we failed because of the embargo of the officers to do this. After that we were obliged to talk with the selected officer. 2. They were not so eager to share their information with us. When we promised that we will do this confidentially, then they agreed to talk with us.
  • 17. 2.2 Trade union’s Definition An organization whose membership consists of workers and union leaders, united to protect and promote their common interest. Trade union is an organization of employers formed in a continuous basis for the purpose of securing diverse rate of benefits. It is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives .A trade union can be seen as a group of employees. The principal purposes of labor union are to (1) Negotiate wages and working condition terms, (2) Regulate relations between workers (its members) and the employer, (3) Take collective actions to enforce the enforce the terms of collective bargaining, (4) Raise new demands on behalf of its members, and (5)Help settle their grievances. A trade union may be : (a) A company union that represents interest of only one company and may not have any connection with other unions. Also called a house union, a company union is often a bogus one and generally illegal. (b) A general union that represents workers from several companies in the same industry. Also called Indusrial union. (c) A craft union that represents skilled workers in a particular field such as carpentry or welding. Trade Union Movement in Bangladesh: Issues, Agenda and Legislation Background of the trade union in Bnagladesh Trade Union Movement in Bangladesh has very long past. The beginning of labour agitation in India was in Bengal. In 1860 in Bengal a noted dramatics and social reform Dinbandhu Mitra along with some of his journalist friends protested the inhuman working condition and hardship of cultivation workers. This was beginning of labour movement. The first Factory commission was, thereafter, appointed in 1875 and as a result the Factories Act,1881 was enacted. But this Act did not reflect the aspiration of workers. There was no provision about child labour and women workers. Another Factory Commission was appointed in1884.In 1917, the workers of
  • 18. Ahmedabad Mills resorted to a strike in demand of an increase in wages. Ahmedabad textile workers organised themselves in a trade union in December4,1917. The strike was in success and workers got a wage increase. The first regular Union was formed in Ahmedabad in 1920 for the Throstle Department Workers. The growth of trade union movement got momentum at the end of the First World War. The growth of industry and trade had rise following the War. There were a number of strikes during 1919 to 1922. In 1920 All-India Trade Union Congress was formed. This was initiated by forces of different ideology. The communist and also nationalist forces were there. The colonial ruler finally introduced Indian Trade Union Act, 1926. Before that the Indian workers were denied the fundamental rights of freedom of association. The Indian Trade Union act, 1926 was enacted with a view to provide for the registration of trade Unions and in certain respects to define the law relating to registered trade unions. After liberation of Bangladesh workers have enjoyed a great deal of freedom and trade union rights.The most of the plant level trade unions had joined with the ruling party trade union center Jatiyo Sramik League.Many new plant level trade unions were registered.The trade union was a powerful menace to get authority on factories,mills and establishment abandon by previous owner and subsequently taken over by the government.The political local elite had joined in trade union to control and have benefits of the taken over industries and establishments. Labour Legislation From the period of the British colonial rule, till now Bangladesh has many labour laws, rules and resolutions, legislated and declared by government in different time and period. Often many laws and rules contradict each other. Example can be site about definition of labour, is not same every law, it differs in employment of labour (standing order) Act 1965, Industrial Resolution Ordinance 1969, Shops and Establishment Act 1965, Factories Act 1965, Wages Act 1936, Workmen’s Compensation Act 1923. The existing main laws relating to workers are the following: The Workman’s Compensation Act 1923 Children (Pledging of labour) Act 1923 The Payment of Wages Act 1937 Employer’s Liability Act 1938 The Minimum Wages Ordinance 1961 The Shops and Establishment Act 1965 The Employment of Labour (Standing Orders) Act 1968 The Factories Act 1965 The Industrial Relations Ordinance 1969
  • 19. These laws on the whole provide the basis for classification of workers and determine the working conditions applicable to them like leave facilities, payment of wages and other benefits and also ways of termination of employment including procedures for adjudication of grievances. The Structure of Trade Union Industrial Relations Ordinance, 1969 (as amended up or date) is intended to regulation trade union activities permits workers to organize themselves into trade unions. The trade union is required to be registered with the Register of Trade Unions. The trade unions in Bangladesh may be divided in structure in to three categories, first is basic Trade union – a primary organisation of workers at their working place. The second is the Industrial Federation or trade federation compose of a number of basic trade unions related to the same type of industry, such as Jute Workers Federation, Textile Workers Federation, Garments Workers Federations and third is National Trade Union is federation of basic unions irrespective of job categories. Registration of Trade Union For registration of trade union the applicants have to apply to the Joint Director of Labour and Register of Trade Unions with fulfilling certain requirements and procedure. For Industrial and national federation or national unions the Director of Labour and Register of Trade Unions office is responsible for registration. The National Union means those have members throughout the country – such as banks, railway and others. The trade union executive committee shall be consists of 5 to 30 people depending on its membership. Till 50 members the committee will be consists of 5 persons and 30 persons of committee where are more than 5000 members. The applicants of union registration have to submit all the application of membership of proposed union in prescribed form and also the register of membership, resolution of the meeting where resolution was taken to form a trade union, list of committee members, list of general members and the constitution of the union along with application. The Employment of Labour (Standing Orders) Act 1965 The Act covers workers leave and holidays stoppage of work by employers in certain reason, layoff and lockout; procedure for retrenchment, dismissal and settlement of grievances of industrial workers. Beside this Act there are other similar Acts like the Shops and Establishment Act 1965, the Inland Water Transport (Regulation of Employment) Act 1965, the Newspaper Employees (Condition of Service) Act 1974, and the Dock Workers (Regulation Employment) Act 1980. These acts regulate workers and employees of those category of establishments is not obligatory on the part of any shop or commercial or industrial establishment to have its own standing orders under the employment of Labour Act 1965. According to section 3(1) of the Act, any establishment,
  • 20. “may have its own rules regulation employment of workers or any class there of, but no such rules shall be less favorable to any worker other than the provisions of this. So there are flexibility, employers who wish to frame their own rules can do so. They have liberty to add, delete or modify any rules to their needs. But they have to maintain a general standard of uniformity in the terms and conditions of employment of the workers and conditions of employment in each establishment. The Service Rules or Standing Orders have to be submitting to the Inspector of Factories and Establishment for approval. The laws discussed above shows a lot of good set of laws in favour of workers. Strength and weakness As many 23 central federation till now being registered. No central federation has strength that they can launch nation wide struggle independently. They do not have such organisational or financial resource either. Almost all political party has a trade union. All these except a few trade union, mostly depend on support and financial help from the political party. That is also a reason that the ruling party’s trade union center has much more affiliate unions than others. When there is shift of government will be shift in affiliation also. The trade unions here also depends on support from International Trade Union Federation and Foundations. They gets funds from International Trade Union Federation and Foundations for holding seminars, publications and other activities. The get free passage to go abroad to attend seminars and meetings. The foreign visit is so frequent for some trade union leaders that they are almost occupy with arrangements of travel – procure visa, preparing seminar paper and others and left hardly any time to do trade union work.
  • 22. 3.2 Analysis on the female & male ratio in the trade union in bangladesh Participation of the female workers in the trade union: Name of National Centres Total Membership Female Membership Jatiya Sramik Federation – JSF 38,000 12,500 Bangladesh Trade Union Kendra – BTUC 80,970 9,000 Bangladesh Sanjukta Sramik Federation – BSSF 249,616 4,999 Bangladesh Trade Union Shangha – BTUS 150,000 300 Jatiya Sramik Jote – JSJ 45,000 2,000 Bangladesh Jatiyatabadi Sramik Dal – BJSD 220,000 32,000 Bangladesh Mukto Sramik Federation – BMSF 205,007 65,000 Jatiya Sramik Federation, Bangladesh - JSF,B 20,000 1,000 Jatiya Sramik League –JSL 215,000 10,000 Bangladesh Free Trade Union Congress – BFTUC 106,150 22,650 Bangladesh Sramik federation – BSF 5,989 593 Bangladesh Labour Federation – 102,000 20,000
  • 23. BLF Bangladesh Jatiya Sramik Federation – BJSF 10,050 1,250 Shamajtantrik Sramik Front - SSF 22,000 1,300 Jatiya Sramik Jote Bangladesh – JSJB 65,000 6,500 Bangladesh Jatiya Sramik Jote – BJSJ 82,000 35,000 Jatiya Sramik Party – JSP 110,000 25,000 Total 17,26,782 2,49,092 Source: Interviews of Respective Trade Union Federation’s In lyric group of industries, the ratio of female & male member in the trade union is 1:6 The ration in the Bangladesh Sanjukta Sramik Federation – BSSF i
  • 24. The ratio in the female & male workers in the Bangladesh Labour Federation – BLF is: 2 98 ratio female male
  • 25. The average ratio of female & male workers in Bangladesh is 19.6 80.4 ratio female male
  • 26. 3.3 Problems of Trade Union We have divided the problems of the trade union from two sides. 3.3(a) From the workers side a) To understand the main goal Although trade union works for the welfare of the employees, the workers don’t understand the main goal of the trade union as they are uneducated. b) Indifferent about the rules 14.2 85.8 ratio female male
  • 27. They are indifferent about the rules and regulations of trade union. Most of the cases they are not aware of the rules of the trade union, as they are not educated enough. c) Raise their voice As they are not enough educated they don’t know how to communicate with the others, how to create a motion against the injustice. As a result the workers are unable to raise their voice with trade union. d) Guideline of the leaders Sometimes they don’t want to follow the guidelines of the union leaders. There are some workers who are really desperate and they always do the things according to their willingness. They never follow the rules of the trade union. As a result they dilute the atmosphere. e) Extortion Sometimes they extort money from the workers. They tell the workers they will work for a issue, they raise subscription, but after that they actually do not do anything. By they, they cheat with the workers. f) Uneducated workers The workers of Bangladesh are uneducated. Most of the cases, they don’t know what are they doing. As a result they just follow the leaders of the trade union whether they right or wrong. 3.3(b) From the owners side a. Unwillingness to communicate Employers have unwillingness to communicate with trade union leaders. There is lack of mutual understanding. b. Negative impact Owners have negative impact as they instigate the workers against the owners illegally. Sometimes, they don’t work in a concern willingly. But they create pressure on the owner to pay the wages to them. c. Unfair activities by the trade union leaders As some leaders want to take unfair activities, so the owners don’t want to give free access to do work with them. Sometimes the owner give bribe the trade union leaders to make a negotiation with the workers. As the workers are uneducated they believe the leaders blindly, but they can not understand that they are cheated by their leaders. d) Political influence Most of the trade union are connected with the political groups. When the political leaders arrange a seminar they
  • 28. leave the workplace without any notice. In addition they create pressure to pay the of the regarding day. 3.4 Recentstories oftrade union 3.4(a)Recent stories of trade union regarding lyric groups From the above discussion we have seen that the trade unions consequences in Bangladesh are developing day by day. As an example, we have visited the Lyric group of industries. It had three sectors before. But now one of them has been closed. There were several reasons behind the screen why one of the sections got closed. Now the reasons are described below: Now a day the trade union workers are more concern than they were before. They can fight with the owner for their right. Lyric garments factory is sincere but it faced some problems. The problems are described below: 1. Sometimes the workers didn’t work in together. But they made obliged to pay their wage on that day. Consequences of that: We know a garment factory produces a lot when they work in a single day. When the production is closed, then they have to face loss. When they have to have to pay the wages of the workers in addition they have to face over loss. 2. Now-a- days, the workers are associated with many political group. When the selected political group has any program, they join in that in altogether. But also in that day, the management had to pay the wages. For these, this section was faced loss day by day. For these reasons the lyric group of garments factory, the garments factory technically shows some reasons to close the garment factory. They collect several certificates from the auditing company. Which have helped them in closing the factory. These are describe below:
  • 29. 1. The bad situations of the building: This section used the building was not capable to carry the load. The workers & the machineries were overloaded. They showed this reason to close the company. 2. Safety problems: There were some safety problems according to the provisions of the law. As the members o the committee are concern about the workers so they will not continue the factory. 3. Fire fighting apparatus: They showed that, they could not provide the fire fighting apparatus according to the law. 3.4(b)The protection of the trade unions: As the factory were facing losses day by day, the management committee tried to pay less than one month salary as nearly to 25-30% less than the actual salary. But the members of the trade union protected this. They discussed with the management & then agreed to take 10% less than their actual salary. 3.4(c)Newly registered Trade Union A day-long orientation programme on Freedom of Association (FoA) for the officials of newly registered trade unions In the readymade garment sector was held in Dhaka 22 April, 2014. Presidents and General Secretaries of over 140 newly registered trade unions in the RMG sector attended the orientation programme along with a number senior leaders from RMG trade union federations. The programme was aimed at sensitizing the trade union leaders on the issues of 1. freedom of association, 2. collective bargaining and 3. related issues in the context of Bangladesh & existing labor law. The changes in registration process and the change in the Labour Law in 2013 created an opportunity for more and more trade unions in the ready-made garment factories to be formed. The Government of Bangladesh encourage the workers of the garment factories to come forward and take this opportunity as positive & sustainable change in this sector.
  • 30. Registration of over 140 trade unions in the RMG sector in the last 15 months is a staggering growth compared to registration figures for the preceding years. The formation and registration of new trade unions is a sign of a new era of collective bargaining and freedom of association in Bangladesh which can act as a catalyst for change in other industries. The programme was jointly organized by the National Coordination Committee for Workers’ Education (NCCWE), Industrial Bangladesh Council (IBC), The new trend of trade unions in RMG factories is welcome but it is just the beginning. The ILO is committed to supporting workers’ and employers’ organizations to build the capacity of factory based on to realize the rights in the long run. 3.4(d)Some list of registered trade union in Bangladesh: Name of National Centres JatiyaSramikFederation –JSF BangladeshTrade UnionKendra- BTUC BangladeshSanjuktaSramikFederation - BSSF BangladeshTrade UnionShangha- BTUS JatiyaSramikJote – JSJ BangladeshJatiyatabadi SramikDal –BJSD BangladeshMuktoSramikFederation –BMSF JatiyaSramikFederation,Bangladesh - JSF,B JatiyaSramikLeague –JSL BangladeshFree Trade UnionCongress –BFTUC BangladeshSramikfederation - BSF BangladeshLabourFederation - BLF BangladeshJatiyaSramikFederation - BJSF ShamajtantrikSramikFront - SSF
  • 31. JatiyaSramikJote Bangladesh –JSJB BangladeshJatiyaSramikJote - BJSJ JatiyaSramikParty – JSP 3.4(e)Online registration of the trade union: Online registration is now in the process in the current Bangladesh. After the collapse of the Rana Plaza the Gov.t is more concern about the garment sector in Bangladesh as it is one of the earning sector in Bangladesh. And Paper-based submissions would also continue in order “to maximize the ability of worker groups to file applications. The labour rights groups, international buyers and the UN have stressed on trade union formation in Bangladesh since 2013 after the worst ever building collapse that killed more than 1,100 workers in Savar. It should bring more transparency and accountability in processing trade union registrations. 3.4(f)The Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment) Order 2013 The Secretary of State makes this Order in exercise of the powers conferred by sections 197(1)(a) and 286(2) of the Trade Union and Labour Relations (Consolidation) Act 1992(1). In accordance with sections 197(2) and 286(4) of that Act, a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament. Citation and commencement 1. This Order may be cited as the Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment) Order 2013 and comes into force on 6th April 2013. Application 2.—(1) The amendments made by paragraphs (2) and (3) of article 3 below apply to proposals to dismiss as redundant 100 or more employees at one establishment within a period of 90 days or less which are made on or after 6th April 2013.
  • 32. (2) The amendment made by paragraph (4) of article 3 below applies to proposals to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less which are made on or after 6th April 2013. Amendments to the Trade Union and Labour Relations (Consolidation) Act 1992 3.—(1) The Trade Union and Labour Relations (Consolidation) Act 1992(2) is amended as follows. (2) In section 188 (length of period between beginning of consultation and the first dismissal taking effect), in paragraph (a) of subsection (1A), for “90 days” substitute “45 days”. (3) In section 193 (length of period between notifying the Secretary of State and the first dismissal taking effect), in paragraph (b) of subsection (1), for “90 days” substitute “45 days”. (4) For section 282 (short term employment), substitute— “Fixed term employment 282.—(1) In this section, “fixed term contract” means a contract of employment that, under its provisions determining how it will terminate in the normal course, will terminate— (a)on the expiry of a specific term, (b)on the completion of a particular task, or (c)on the occurrence or non-occurrence of any other specific event other than the attainment by the employee of any normal and bona fide retiring age in the establishment for an employee holding the position held by him. (2) The provisions of Chapter II of Part IV (procedure for handling redundancies) do not apply to employment under a fixed term contract unless— (a)the employer is proposing to dismiss the employee as redundant; and (b)the dismissal will take effect before the expiry of the specific term, the completion of the particular task or the occurrence or non- occurrence of the specific event (as the case may be).”.
  • 33. Effects in the trade union after the several accidents in 2013 As a Least Developed Country (LDC), Bangladesh benefits from the most favorable regime available under the EU's Generalized Scheme of Preferences (GSP), namely the Everything But Arms (EBA) arrangement. EBA grants the 48 Least Developed Countries – including Bangladesh – duty free quota, free access to the EU for exports of all products, except arms and ammunition. In 2013, serious accidents in garment factories in Bangladesh have highlighted the need to ensure that factories across the country comply with international labour standards, including (ILO) conventions. Following these dramatic accidents, the then Commissioner De Gucht and High Representative Ashton made joint statements, expressing their concerns about the labour conditions, including health and safety provisions, for workers in factories across the country. In this regard the EU commission works with the trade union to ensure the regular safety of the workers. An simultaneously this commission is trying to arrange seminar or workshops in case of the trade union. Concern after the accident in Bangladesh & amendment of the law After the collapsion of an illegally-constructed building containing garment factories in Savar, just outside Dhaka in Bangladesh, on Wednesday 24 April 2013, the building’s construction were finally becoming clear to the world. That year the the fire & the collapsion killed thousands of people which made more concern about the safety of the workers & so the trade union got more power. After that, several things happened:  As Bangladesh’s largest trade partner, the European Union got very concerned about the labour conditions, including health and safety provisions, established for workers in factories across the country.  In light of all these events, the European Union called upon the Bangladeshi authorities to act immediately to ensure that factories across the country comply with international labor standards including International Labour Organisation (ILO) conventions.
  • 34.  The EU is presently considering appropriate action, including through the Generalized System of Preferences (GSP) – through which Bangladesh currently receives duty-free and quota-free access to the EU market under the ‘Everything But Arms’ scheme – in order to incentivise responsible management of supply chains involving developing countries.  The EU is willing and ready to assist the Bangladeshi authorities in any way it can to meet the required international standards.  At the same time, we continue to encourage European and international companies to promote better health and safety standards in garment factories in Bangladesh in line with internationally recognized Corporate Social Responsibility (CSR) guidelines." Then we follow the several consequences in case of the trade union: 1. The trade union of Bangladesh of Bangladesh got some power. As it is the responsibility of the trade union to take over of the workers. 2. According to the amendment, if the EU will supervise the organizations at any time & if they find that these rules are not followed then the buyer company can cancel the contract. 3. If the trade union complain anything negative against the company, then the buyer will also cancel the contract. 4. So, we can see after the 2013, the trade union has got supreme power to deal with their organization. 5. The EU grants Bangladesh, as well as 47 other Least-Developed Countries, duty-free and quota-free access to the EU market for all products under the “Everything But Arms (ЕВА)” scheme, which is part of the Generalised System of Preferences. So, for the improvement of the RMG sector in Bangladesh The Bangladesh Government & the owner of the trade union re obliuged to care about the workers & the trade union.
  • 35. 6. The EU is Bangladesh’s largest trade partner; 57% of Bangladesh’s exports go to the EU. Bangladesh is the third provider of clothing to the EU (after China and Turkey), with textile imports worth €8.9 billion in 2013. So, when the buyers are concern about the safety of the workers of the workers so, the organization will also try to deal with the trade union & to ensure the safety of the trade workers. http://trade.ec.europa.eu/doclib/press/index.cfm?id=864 1 Business Social Compliance Initiative (BSCI) Monitoring System The Business Social Compliance Initiative (BSCI) Monitoring System is the European approach to improving social performance in supplier countries through a uniform social standards monitoring solution. The BSCI is based on the labor standards of the International Labour Organization (ILO) and other important international regulations like the UN Charta for Human Rights, as well as on national regulations. This initiative aims at continuously improving the social performance of suppliers, ultimately enhancing working conditions in factories worldwide. The BSCI monitoring system:  Provides standardized management tools for all companies in all countries  Supplies a database: information pool to optimize coordination of the process  Is open to retailers, importers, and manufacturers  Involves all stakeholders in Europe and supplier countries  Report valid for two years.
  • 36. Intertek is an accredited monitor for the BSCI system. Intertek has well trained auditors in over 100 countries prepared to support your BSCI monitoring needs no matter where your suppliers are located.  Factory Evaluations – Intertek auditors inspect factories to ensure processes and equipment meet standards as well as to evaluate working conditions. http://www.intertek.com/consumer/auditing/
  • 37. Name of the company: Nature of Project: Office & factory address: Shasongaon, Panchabati to Bakatbali road, Enayatnagar, Fatullh, narayanganj-1400. Tel: Fax: Year of establishment: Managing body: Bank: Bond liensce no: Vat registration No: Buyer Product Floor space Manpower
  • 38. Production capacity Name of the Company : Knit Radix Limited Nature of Project : 100% export oriented knit garments industry. Office & Factory Address : Shasongaon, Panchabati to Baktabali road, Enayatnagar, Fatullah, Narayanganj-1400, Bangladesh. Tel.: +88 02 7670503, +88 02 7670504, Fax: +88 02 7670505 Year of Establishment : 2007 Managing Body : Masud Ahmed (Managing Director) Mobile : +88 01711594727 & +88 01919594727 E-mail: masud@knitradix.com Sagar Kumar Saha (Director) Mobile : +88 01713002265 & +88 01919002265 E-mail: sagar@knitradix.com Bank : IFIC Bank Ltd. Narayanganj Branch, 66/1 B.B. ROAD, Narayanganj-1400, SWIFT NO. IFICBDDH003 FC A/C NO: 1003-147353-836 Bangladesh. Bond License no : 1041/CUS – SBW/2009
  • 39. VAT Registration no : 9221018548 Buyer : K&L (Germany), P&C (Germany), Disney (Germany), 3 Suisses (France), DPAM (Spain), Devianne (France), Amichi (Spain), Med (France), Bizzbee (France), Marsch (France), LPP (Poland). Products : T-Shirt, Polo Shirt, Sweat Shirt, Jacket, Shorts, Tank-Top, Pajama Set, Children Knitwear & all kind's of knitwears. Floor Space : 56,000 s/ft. Man Power : 800 Persons Production Capacity : Knitting : Interlock 4,000 kgs/day : Rib 4,000 kgs/day : Single jersey 12,000 kgs/day Garments : Basic T-Shirt 20.000 pcs/day :Polo T-Shirt 5,000 pcs/day Dyeing & Finishing : We have gentleman agreement with Knit Concern Ltd. At present their
  • 40. capacity is 50 tons per day. Their own requirement is 60% & we are Chapter 4 Prospectsof trade union in case ofBangladesh As Bangladeshisadevelopingcountry,here industriesare increasingdaybyday.As a resultmore laborsare beingemployed. Forpreserving theirrightstrade unionisa must.Thusit has muchpotentialshere inBangladesh.Some of themare goingtobe presentedbelow: 1) The principle dutyof trade unionisto preserve the rightsof the labors.InBangladeshlaborsare deprivedof rights.Trade unionare here for helpingthemtopreserve theirrights. 2) Governmenthasgivenmuchprovisionstopreserve laborrights.Butlaborsusuallyare ignorantof these provisions.Trade unionmay helpthemincase of knowingtheirrightsgivenbythe Government. 3) For makinganykindof negotiationwiththe employers,employeestotallydependonthe trade unions. 4) Till now,the wagesthatare beingfixedforthe labors,are setupbynegotiationsamongthe Government,the employersandthe trade unions(onbehalf of the employeesatlarge).Thustrade unionhasbecome negotiatoranddelegateforthe employees. Sotrade union has a great opportunityinBangladeshtopreventdiscriminationstothe employees.
  • 41. 5) Recenttragedies,whichtookplace inBangladeshi garmentsfactories,didmuchdestructiontoemployee’slives.Trade unions alongwith othersocial welfare organizations,triedhardtoensure compensationsforthe injuredemployees. 6) In Bangladeshlike thirdworldcounty,where weakare alwayssuppressed,there isnosubstitute of trade unions. 7) IndustryinBangladeshare increasingdaybyday.In nearfuture itis possible thatthere willbe manyheavyindustriesinBangladesh,as well asmay businesscorporationsmayestablish.Thentrade unionswill getmore taskstoperform,whichnowtrade unionsin U.S.A, U.K, Indiaandin otherprogressedcountryhave. 8) Suggestionsand Recommendations: Thoughin Bangladeshthere are manytrade unionswhichare active,theyhave manyshortcomings.Forovercomingtheseshortcomingswe have some suggestionsandrecommendations. Those are: 1) The main essence of success istoworktogether.Butour trade unionsare divided.The firstandforemostrecommendationforthemis to be united.Onlythen,they’ll be able tobargainwithboththe Governmentandemployerssuccessfully. 2) In Bangladesh,usuallypeople are dividedon the basisof political views.Thisdisease hasalsobeenenteredinthe trade unions.Mostof themare createdbasedontheirpolitical views.Whichoftencreatesrivalryamongthem.Foravoidingthis,trade unionsshouldnot involve intonationalpolitics. 3) The leadersof the trade unionsare oftengettingpositiondue totheirpolitical powerandposition.Thusthe leadershipof the trade unionshave beentransferredfromthe original employeestothe pseudoemployees.Whoare actuallypolitical leaders, andtheytryto gainthispost onlyforgettingmuchprivileges.Itisa mustfor the trade unionsto regainthe leadershipfromthese viruses.
  • 42. 4) Most of the trade unionsexistmerelyinname.These are createdonlytogainsome profit.Thistype of trade unionsmustbe identified and declaredasillegal. 5) A huge numberof trade unionsare not actuallyconnectedtothe labors.Theyappears onlydue toany incidentoraccidentor for observingMayDay like festivals.Forworkingperfectly,thesetrade unionsmustgetconnectedtothe laborsthroughoutthe year. 6) In Bangladeshindustriesexistnotonlyinthe industrial areabutalsoinsome otherareas,insome cases ina remote area.There,labors hardlyhearname of any trade union.Theymaycome to knowabout themonlythroughTV!For ensuringthe rightof these labors at leastsome large trade unionshouldcome forwardandmake connection withthem,andtake care of them. 7) Trade unionsshouldcollectapermanentfundtoconducttheiractivities.Thismaybe collectedfromthe members. 8) More participationof laborsare needed. 9) There are some distrustbetweenthe trade unionsandlabors.These mustbe decreased. 10) Trade unionsmayprovide trainingprogramstosupportthe workers. 11) Trade unionsare sufferingdue tolackof capable leaders.Theyshouldtrytobuildorfindcapable leaders. 12) Our trade unionsare habituatedtoact just opposite tothe employers.Thisisnotalwaysright.Moreover,thishascreatedarivalry betweenthem.Sotrade unionsshouldtake decisionsaccordingtothe situation.Andtheyshouldappreciatethe gooddecisions takenby the management. 13) Many timestrade unionshadacted bybelievingfalsenews.Sotheymustexamine the authenticityof the newsfirsthand,before acting uponthat. These were some suggestionsandrecommendationsforthe trade unions.If theyactuponthese,we hope theywill be able tope rformtheir tasksmore successfully. Conclusions Bibliography