Report on

TRADE UNION

NINJA
Section-A, 8th Batch

Department of Management Studies

Faculty of BBA
Jagannath University

February 2015

Report on
TRADE UNION

NINJA
Section-A, 8th Batch

SL

NAME

ID

01
FATIMA-TUZ-ZOHRA

B120202003

AHANAF TAHMID ALVEE

B120202005

S. M. MOMINUL ISLAM

B120202006

NOUSHIN SHIKDER

B120202007

MD. SADIKUR RAHMAN

B120202008
B 120202009

02
03
04
05
06
07

SABBER AHMED
NAZIM UDDIN FAKIR
B120202014

08

MD. MASUD CHOWDHURY

B120202015

Supervisor
Mr. Dewan Badrul Hasan
Lecturer
Department of Management Studies
Faculty of BBA
Jagannath University

October 2015
2

REMARK

Supervisor Forwarding

Mr. Dewan Badrul Hasan

Lecturer
Department of Management Studies
Faculty of BBA
Jagannath University
October 2015

February 24, 2015

Mr. Dewan Badrul Hasan
Lecturer
Department of Management Studies
Jagannath University
Dear Sir,
We are submitting the report entitled Trade Union.
This report examines the trade union and its impact on the organization.
A trade union or Labour union is an organization of workers who have banded together to
achieve common goals in key areas and working conditions . According to The
Bangladesh Labor Act, 2006 , workers/employers, without distinction whatsoever shall have
the right to form trade union for the purpose of regulating the relations between workers and
employers or workers and workers or employers and employers and, subject to the constitution
of the union concerned, to join trade union of their own choosing. The industrial relation
system is pre-dominantly confrontational in nature rather than cooperative in Bangladesh. It is
characterized by the pre-dominant position of informal economy, fragmented unions, weak
labor institutions, lack of enforcement of labor laws and conflict ridden employer-employee
relations
I hope you find this report satisfactory.
Sincerely yours,

S.M. MOMINUL ISLAM

On Behalf of the Group NINJA
Section-A
BBA 8th Batch

Declaration
I do hereby solemnly declare that the work presented in this Report has been carried out by us
and my group members has not been previously submitted to any other University/
College/ Organization for an academic qualification/certificate/diploma or degree. The work we
have presented does not breach any existing copyright and no portion of this report is copied
from any work done earlier for a degree or otherwise.

I further undertake to indemnify the Department against any loss or damage arising
from
Breach of the foregoing obligations.

.
S.M. MOMINUL ISLAM
On Behalf of The Group NINJA
Section-A
BBA 8th Batch

Date

Acknowledgment
Praise is to almighty Allah who has given us the strength and opportunity to complete this
Report. This report is the outcome of the contributions and sin care cooperation of my group
members. For the fear of sounding like a vote of thanks speech, I could not possibly thank all of
those marvelous people who have contributed something of them directly or indirectly in
preparing this report successfully. They are of course some very special people who cannot go
without mention. It gives me immense thank them for their cordial cooperation and
encouragement.
First of all, I would like to thanks Almighty Allah and my parents and I express
heartfelt Gratitude to my honorable Supervisor,
Mr. Dewan Badrul Hasan ,Lecturer,
Department of Management Studies, Faculty of Business Studies, Jagannath University who
provided us all out help, supports and guidelines in preparing this report. Without his inspiration
and advice it could be very difficult to prepare this report. In spite of sincere and denoted
efforts, there might be some mistakes in the study report. I take the entire responsibility for such
unintended errors and omissions.

S. M. MOMINUL ISLAM
On behalf of the group NINJA
Id: B120202006, Section-A, 8th batch
Department of Management Studies
Faculty of BBA
Jagannath University

EXECUTIVE SUMMARY
A trade union is an organization of worker who have come together to achieve common goals
such as protecting the integrity of its trade, improving safety standards, achieving higher pay
and benefits such as health care and retirement, increasing the number of employees an
employer assigns to complete the work, and better working condition. Trade unions are
the controller of the labor force of an industry which works for the betterment of the
countrys trade by ensuring the right of the labor force. The trade union, through its
leadership, bargains with the employer on behalf of union members and negotiates labor
contract with employers. The most common purpose of these associations or unions is
"maintaining or improving the conditions of their employment. This may include the
negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and
promotion of workers, benefits, workplace safety and policies. Unions may organize a
particular section of skilled workers like craft unionism a cross-section of workers from
various trades or attempt to organize all workers within a particular industry. Trade unions
traditionally have a constitution which details the governance of their bargaining unit and
also have governance at various levels of government depending on the industry that binds
them legally to their negotiations and functioning. Trade unions try to develop close working
relationships with employers. Globalization businesses are expanding rapidly for that reason
the workforce in the industries are increasing hugely. To maintain the whole work force alone by
the management is a very tough job. Trade unions are the only way to manage, compliant, and
control the labor force. Lots of objectives are there to organize trade unions.
In perspective of Bangladesh the immediate objectives and activities of trade unions include
protection and promotion of the interests of their members. Regulating the relations between
workers and employers or workers and workers or employers and employers is another
objective of trade unions. Trade Union has become a necessary part but trade union cant run
properly due to various reasons. These are lack of consciousness, lack of utility, lack of
knowledge, political influence division of trade union. The rate of unionization has increased in
the RMG sector, trade union affiliation is low in Bangladesh compared to many other
developing countries. The main reasons for this are the fall in employment in previously highly
organized sectors, rise of the service sector and increasing flexible types of employment
relationships .Data available indicates fragmentation and contradiction in membership of
employers and workers organizations.

Table of content
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Title
Introduction on Trade union
Trade Union Functions: Top 6 Main Functions Performed by
Trade Unions
Objectives of trade union in Bangladesh:Characteristics of trade union
Why join a union?
Trade union activities
Penalties for Trade Union Leader
How Union Leadership can be developed?
Cancelation of Trade Unions in Bangladesh:
Effects of Cancellation of Trade Union in Bangladesh:
Impact of Trade Unions on National Development
Impact of trade union on management:
Findings of trade unions
Findings of trade unions
conclusion
Reference

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What is trade union?

A trade union is an organization made up of members (a membership-based organization) and
its membership must be made up mainly of workers. One of a trade union's main aims is to
protect and advance the interests of its members in the workplace.
Most trade unions are independent of any employer. However, trade unions try to develop close
working relationships with employers. This can sometimes take the form of a partnership
agreement between the employer and the trade union which identifies their common interests
and objectives.
Meaning and Definition:
Trade union is a voluntary organisation of workers formed to protect and promote their interests
through collective action. It may be formed on plant basis, industry basis, firm basis, regional
basis or national basis. Different writers and thinkers have defined the trade union differently.
A few definitions are given below:
1. Trade union is a continuous association of wage earners for the purpose of maintaining and
improving the conditions of their working lives. According to Web
2. A trade union means an association of workers in one or more occupation an association
carried on mainly, for the purpose of protecting and advancing the members economic interests
in connection with their daily work. According to G.D.H. Gole
3. A trade union is an association of employees designed primarily to maintain or improve the
conditions of employment of its members. According to Lester
4. A trade union is a continuous association of persons in industry, whether employers,
employees or independent workersformed primarily for the purpose of the pursuit of the
interest of its members and of the trade they represent. The Trade Union Act 1926
Any combination, whether temporary or permanent, formed primarily for the purpose of
regulating the relations between workmen and employers, or between workmen and workmen,
or between employers and employers, and for imposing restrictive conditions on the conduct of
any trade or business and includes any federation of two or more trade unions.

Trade Union Functions: Top 6 Main Functions Performed by Trade Unions

Some of the most important functions of the trade union are as follows: i. Increasing Cooperation and Well-being among Workers ii. Securing Facilities for Workers iii. Establishing
Contacts between the Workers and the Employers iv. Trade Unions working for the Progress of
the Employees v. Safeguarding the Interests of the Workers vi. Provision of Labor Welfare.
i. Increasing Co-operation and Well-being among Workers:
The modern industry is complex and demands specialization in jobs. This results in extreme
division of labor, which leads to the growth of individualism and development of impersonal
and formal relationships. There is no common unifying bond among the workers.
It is in this context that the trade unions come into the picture and they promote friendliness and
unity among the workers. Besides this, the trade unions also discuss the problems, which are
common to all the workers. It is a platform where workers come together and know each other.
The trade unions also provide some kind of entertainment and relaxation to the workers.
ii. Securing Facilities for Workers:
Most of the industrialists are not very keen on providing the facilities and proper working
conditions to the workers. They are more interested in getting their work done to the maximum
extent. In such conditions, trade unions fight on behalf of the workers and see that the facilities
have been provided by the management.
iii. Establishing Contacts between the Workers and the Employers:
In present days, there are many industries, which have grown into giants. A single unit in a
particular industry may employ hundreds of employees. Many times a worker or employee may
not have a chance to see their managers. In this situation, the workers are not able to express
their grievances before their employers, and even the management does not know the
difficulties faced by the workers.
The trade unions play an important role in bringing to the notice of the employers the difficulties and grievances of the employees. They try to arrange face-to-face meetings and thus try
to establish contacts between the employees and the employers.
iv. Trade Unions working for the Progress of the Employees:
The trade unions try to improve the economic conditions of the workers by representing their
cases to the employers and try to get adequate bonus to the workers.
v. Safeguarding the Interests of the Workers:
Most of the industries try to exploit the workers to the maximum. They do not provide any
benefits such as increasing their wages, granting sick leaves, giving compensation in case of
accidents, etc. The workers are not made permanent even after many years of service and in
some cases they are removed from service summarily. The trade unions provide security to the
employees in such situations.
vi. Provision of Labor Welfare:

The economic conditions of the industrial workers in India are very poor. The standard of living
is very low. A majority of industrial workers in India are illiterate or semi-literate. It is the
responsibility of the trade unions to get them proper housing facilities and promote the socioeconomic welfare of the laborers. The trade unions also try to arrange educational facilities for
the children of the workers.
Trade unions perform a number of functions in order to achieve the objectives. These
functions can be broadly classified into three categories:
1. Militant Functions
One set of activities performed by trade unions leads to the betterment of the position of their
members in relation to their employment. The aim of such activities is to ensure adequate
wages, secure better conditions of work and employment, get better treatment from employers,
etc. When the unions fail to accomplish these aims by the method of collective bargaining and
negotiations, they adopt an approach and put up a fight with the management in the form of goslow tactics, strike, boycott, gherao, etc. Hence, these functions of the trade unions are known
as militant or fighting functions. Thus, the militant functions of trade unions can be summed up
as:
1. To achieve higher wages and better working conditions
2. To raise the status of workers as a part of industry
3. To protect labors against victimization and injustice
2. Fraternal Functions
Another set of activities performed by trade unions aims at rendering help to its members in
times of need, and improving their efficiency. Trade unions try to foster a spirit of cooperation
and promote friendly industrial relations and diffuse education and culture among their
members. They take up welfare measures for improving the morale of workers and generate self
confidence among them. They also arrange for legal assistance to its members, if necessary.
Besides, these, they undertake many welfare measures for their members, e.g., school for the
education of children, library, reading-rooms, in-door and out-door games, and other
recreational facilities. Some trade unions even undertake publication of some magazine or
journal.
These activities, which may be called fraternal functions, depend on the availability of funds,
which the unions raise by subscription from members and donations from outsiders, and also on
their competent and enlightened leadership. Thus, the fraternal functions of trade unions can be
summed up as:

1.
2.
3.
4.
5.

To take up welfare measures for improving the morale of workers

To generate self confidence among workers
To encourage sincerity and discipline among workers
To provide opportunities for promotion and growth
To protect women workers against discrimination

3. Social Functions
Besides the main economic functions consisting basically of organising unions and improving
their terms and conditions of employment to enable workers to meet their physical needs, some
unions have now started undertaking and organizing welfare activities and also providing
variety of services to their members and sometimes to the community of which they are a part,
which may be grouped under following heads:
1) Welfare activities provided to improve the quality of work life including organisation of
mutual fund, cooperative credit societies for providing housing, cooperative stores, cultural
programmes, banking and medical facilities and training for women in various crafts to help
them to supplement their family income.
2) Education: Education of members in all aspects of their working life including improving
their civic life, awareness in the environment around them, enhancement of their knowledge
particularly in regard to issues that concern them, their statutory and other rights and
responsibilities, workers participation in management.
3) Scheme, and procedure for redressing their grievances. Some central union organizations are
also assisting the Government in implementing the Workers Education Scheme.
4) Publication of periodicals, newsletters or magazines for establishing communication with
their members, making the latter aware of union policy and stand on certain principal issues and
personnel matters concerning members, such as births, deaths, marriages, promotion and
achievements.
5) Research: Of late, this is gaining importance and is intended mainly to provide updated
information to union negotiators at the bargaining table. Such research is to be more practical
than academic, concerning problems relating to day-today affairs of the union and its activities
and union and management relations. Some of the research activities are : (i) collection and
analysis of wage data including fringe benefits, and other benefits and services through surveys
of comparative practices, data on working conditions and welfare activities; (ii) preparation of
background notes for court cases and also position papers for union officials; (iii) collection and

analysis of macro data relating to the economy, industry sectors etc. All the above mentioned
activities and services are considered normal activities of unions in the Trade Unions Act which
stipulates the objectives on which general funds of the union can be spent.
4. Political functions: These functions include affiliating the union with a political party,
helping the political party in enrolling members, collecting donations, seeking the help of
political parties during the periods of strikes and lockouts.
Objectives of trade union in Bangladesh:The trade union organisations shall aim at protecting the lawful rights of their members,
defending their interest and improving their working conditions. There are some most important
activities given below:1. To promote professional and occupational standards:- workers do not have a fair position in
the organisations. During a period of time where prosperity growth And rapidly increasing
production. The workers real income and living condition also fixed. so promoting a better
quality of life is most important objectives of trade union.
2. To improve the cultural standard: - Workers of industries are usually from rural areas in
Bangladesh. For make the part of union, cultural standard must be improved
3. To improve health, economic and social standards: - It is one of the objective of trade union
to negotiate for the improvement of conditions of the work place. Because of low wage rate in
the workers social lives, there are arising some challenges. So, they cannot maintain their family
well and can't provide well education for their children.
4. To ensure greater participation: - If a greater number of workers are involved with the union
must sure that their common interest would reflect in the tone and thus a greater participation of
the workers in the management enterprise would be ensured.
5. To develop sense of responsibility: - workers sometimes work only for the sake of work.
Sometimes they do not think about the possibilities and responsibilities. So, trade union should
take initiative to develop sense of responsibility.
6. To promote welfare activities: - Workers usually belong to the low stream of society. They do
not get the proper opportunity for their living better. So, trade union objectives include an aim to
promote welfare activities for the workers.

7. To sign agreement with the employer:- While taking part in the decision making process, it is
necessary to sign agreement where the roles and responsibilities of each party should be well
and clearly mentioned in order to avoid future conflicts. So, it is the most important objectives
of trade union.
8. To help in implementing the agreement:-Its not only that the union would stay relaxed after
signing the agreement with the management, but also very important thing is that to help the
management in implementing the norms and objectives and goals of the stated agreement.
Characteristics of trade union :There are some characteristics of trade unions in Bangladesh. These characteristics may be due
to the size of the industry, nature of work and also number of worker's. Some of characteristics
are given below:1. Lack of awareness about trade unions:- Bangladesh is a developing county and most of our
people still illiterate. They do not have any idea about trade union. That's why they do not feel
interest to be involved in unions for their rights.
2. Lack of proper information:- Most of workers in unions do not get the proper information
about what is happening in the upper level. So, they just fall victims of suck kind of decision
which they may not approved.
3. Leader sometimes forgo common interest: Not only in our country but it also universal that
sometimes leaders do not take the proper care of the employee interest.
4. Provision of equal right of men and women:- Our trade unions have long sought about the
portions enjoyed by the men and women workers.
5. Take part in political activities:- Trade union leaders not only lead the workers of the
organisations but also play an importance role in the political field.
6. Instigated by political interest:- Sometimes the union leaders get to much involved in the
political activities that they use the union as a tool of politics. So that hamper the activities of
the organisations and the lives of the workers.
7. Take part in management process:- Our union leaders take active part in the decision making
process of the organisations management.

8. Bargaining with the employer:- Our union leaders do not hesitate to bargain with employer
about issues. They present the issue from their point of view. They manage to collect the rightful
position of the workers in the organisation.
Why join a union?
Some workers join a trade union because they believe that a union can:
To negotiate better pay
To negotiate better working conditions, like more holidays or improved health and
safety
Provide training for new skills
Give general advice and support
They believe that there is strength in number and they will be listened to when they in
a group.
To negotiate a better pay, more holidays and less hours of work.
To pressurize the employer to provide them with a healthier and safer working
environment.
Improved benefits for retrenched workers
To get the benefits of advice, financial support and welfare activities carried out by
Trade Unions.
Trade union activities
When a union is recognized by an employer, members have the right to time off at an
appropriate time to take part in trade union activities. These may include:
voting in ballots on industrial action
voting in union elections
meeting to discuss urgent matters
attending the annual conference
Penalties for Trade Union Leader
Some penalties are usually imposed on the trade union leaders for many reasons. Laws have
suggested a few penalties due to some certain circumstances. These circumstances vary from
time to time or situation to situation. In the following paragraphs eleven penalties have been
discussed.
1. Campaign for joining: If any trade union leader makes any campaign for joining or to join in
the trade union during the work period, he will be punished.
2. Threats to member: If any member of a union or any officer is given threat by a union leader
for being in a particular position, the union leader would be punished.

3. Resignation from his post: If any kind of allurement such a bribery is offered to any member
of the union by the union leader, then the leader is lo be punished.
4. Physical harajement: Sometimes union leaders try to compel the owner or employer of the
organization to sign any agreement by making physical harassment or giving threats. Such kinds
of activities are also punishable.
5. Compel the owner to sign agreement: If any leader performs activities like cutting the water
line or the telephone line of the owner and blackmail to compel him to sign any kind of
agreement, he should be punished.
6. Threat and harassment to worker: workers have to pay trade union fees. But if any worker is
threatened by union leader so that he does not pay his union fees, that leader is to be punished.
7. Misappropriation of funds: Union leaders have the responsibility of spending the union funds.
But anonym inappropriate use of union fund may cause punishment for the union leader.
8. Blackmailing: If any union leader tries to give or take bribe or blackmail any person during
the CBA election, this would be treated as an illegal activity. And for performing such act, the
union leader shall be punished.
9. Instigation of strikes and lockouts: Sometimes union leaders instigate common workers to go
for strike and lockouts for their personal interest or being instigated by political interest
themselves. In such allegation is proved against any union leader, he shall be punished.
10. Instigation of slow work: Union leaders sometimes instigate common workers to work
slowly than they actually do. This is unexpected behavior from a union leader and for this, he
shall be punished.
11. Penalty for false statement: If any union leader gives any false statement about any activity
to the management or to the common workers to uphold his own personal interest and if it is
proven, he shall be punished.
How Union Leadership can be developed?
One of the most crucial factors is the union leadership that is provided. The leadership provides
the direction and goals for a particular union. The leader's task is to make the union effective by
improving the terms and conditions of the worker and also by being concerned with the viability
of the enterprise. By adopting some important ways leadership can be developed.

1.Eager to make difference: A union leader is someone upon whom the rest of the workers look
forward to. So they have be dynamism. With a view to develop dynamism, different kinds of
training and seminars could be arranged. Leaders will have taken the role of initiator when
situation arises. They would have le be eager to make a difference in the workplace for the
betterment of the workers.
2. Honesty is required: In order to develop the quality of leadership, it is required on the leader's
part to be honest. He or they are the representatives of general people. Common workers pat
their trust in them. So they need to be honest in order to carry out their duties and not to betray
the workers or even the management for any purpose.
3. Commitment for work:
It is necessary to be committed to whatever activity a leader performs. Union leader himself if
does not show any sign of commitment for the work, it would be worthless to prove
commitment from the other workers So leaders should develop commitment for work to guide
his disciples.
4. Technical knowledge: Technical knowledge of the nature of business of particular
organization is needed for a leader. He should know each and everything about the enterprise
which is very important to fulfill the objectives.
5. Sympathy to workers: In order to be a good union leader, one has to have a sympathetic
understanding of the workers, attitudes and their problems.
6. Organizational citizenship: The leader has to be a citizen of the organization, an insider who
is an employee of that organization of which the union is made. Then the leader would be more
sustained with work being concerned as he is with just one enterprise.
7. Good relations with employers: A good leader should always maintain a good relationship
with the common workers. He should know the well and woe of the employees, share their joy
and sympathize in their so mow. He has to be a down
Earth person to get into the worker's style of thinking.
8. Informative: action is the key to power and this is very true in the case of leadership. A leader
should know everything before it happens or just after it happened maintain the work
environment workable and peaceful. So he has to be informative.
9. Problem solving attitude: A leader should possess such a personality that whenever a problem
arise, he should think rationally and logically and try to solve the problem using the best
solution.
10. National commitment: A leader has to keep in mind that, apart from being the leader of a
small community of workers. He is also acting as a motivator and guide to some people who are
part of a big population of a country. So a leader should have national commitment that he or
his union would not perform any kind of activity that might put the whole nation under any
threat.

Cancelation of Trade Unions in Bangladesh:

Registration is not given forever. For any illegal activities or for violation of existing provisions
of Laws registration may be cancelled. However, the registration of a trade union may be
cancelled by the register for the following reasons1. If the union applies for cancellation of registration: The registration of a union would
be cancelled if any union applies to the register for the cancellation of registration.
2. If any trade union cease to exist: If any situation occurs that any union was registered
long before but do not have any activities. Under this circumstance, the register may
cancel the registration.
3. If the registration has been done through fraud and inappropriate information: If
the register finds that the information and statement given at the time of registration
about any union was totally fraud and inappropriate the registration should be canceled.
4. If it violates an of the rules in the trade union existing constitution or adds any new
regulations in the constitution: Every trade union has a approved constitution which it
has to follow. But if any of the rules of the constitution is violated or any new rule is
added without the approval of the concern body, then the registration might be
cancelled.
5. If any dishonest labor activity is conducted: If any kind of dishonest activity is
performed by the union and if the register gets the proof of that, the registration might
get cancelled.
6. If the number of members is less than 30% of number of total workers of the
organization: As per the constitution, the trade union must consists of 30% of the total
labor force of the organization. But if the number falls below the percentage, then the
registration can be cancelled.
7. If any of the rules of the decree given by the Government of Bangladesh about the
cancellation of trade union is violated: Government has passed ordinance about the
activities of trade unions. Every union must follow the ordinance. But if any act or
regulations get hampered by the union, the register can cancel the registration of that
trade union.
8. If any union does not submit annual return to the register: Every union has to
submit annual report to the register office. If any union fails to do so, the registration of
that union can be cancelled.
9. If any union elects any convicted person as the union leader: If the register finds that
the union has elected a convicted person as its leader, then he can cancel the registration
of that union.
10. If any union is found to promote anti-national movement: If any union is found to
promote activities which do not go with our national identity rather anti-national, the
register can cancel the registration of that union.

Effects of Cancellation of Trade Union in Bangladesh:

The cancellation of the registration of a trade union does not take effect immediately. When a
trade unions registration is cancelled, it is ceased to enjoy any of the rights, immunities or
privileges of a registered trade union. The effects are as follows-

1.Cease to exist as a corporate body: After cancellation of registration, the trade union cease
to exist as a corporate body, and the register may, notwithstanding anything contained in the
rules of such trade union, forthwith appoint one or more persons to be required thereof.
2. Cease to enjoy right to get subscription: When a trade unions registration is cancelled, it is
ceased to enjoy the right of getting subscription from its members.
3. No one shall take part in management on behalf of the trade union: After the
cancellation, no person would have the right to take part in the decision making process of the
management or organization or act on behalf of the trade union. If so happens, it will be totally
illegal.
4. Cease to have assistance from any legal authority: When a union is dissolved, it does not
process any legal recognition. So after cancellation, a union cannot enjoy the assistance from
any legal authority.
5. Cease to have right of bargaining with management: After cancellation, a union is no
longer a joint body of the workers working in an organization. So, they do not have any right to
bargain collectively with the management regarding any issue.
6. Cease to have right to hold on meetings: As a union, it can always enjoy the right to
assemble when necessary and hold meeting in different issues. But after cancellation of
registration, it do not have the right to hold on meetings any more.
7. Cease to have right to call on strikes: While being a union, the members could call on
strikes if they found it essential because of any disagreement with the management. But after
the registration is cancelled once, it no more has the right to call on strike.
8. Cease to have right to sign agreement: After cancellation, a union cannot sign any kind of
agreement with the management as it no longer a body of workers of that organization.
9. Cease to right to sit in the decision making: When the registration of any union is
cancelled, it cannot take part in the decision making process of the enterprise. It has to oblige by
all the decisions given upon them whether or not it is detrimental to their works and lives.
10. Cease to have recognition from the societies: When the registration of the union is
cancelled, it loses its recognition as a working body in society.

Impact of Trade Unions on National Development

Though many people oppose the idea of trade union but it is true that trade unions do play an
important role in the national development of a country. For the economic growth and
prosperity of the country, industrial peace is essential. Both labor and management endeavor to
maintain industrial peace through their active and whole hearted cooperation. Trade union puts a
notable impact on the country development by:
1. Effect on wages: Our workers are extremely low-paid against the inhumanly work which
they perform. But after the emergence of trade unions, a better wage policy have been
developed by collective bargaining between the union leaders a management and now the
workers enjoy an improved age in return of the labor give to the organization. As a result, these

workers are better able to maintain their families and thus affecting the development of the
nation.
2. Seeking to end child labor practices: It is only a few years ago that may adolescent children
were being engaged in to the industrial work which was undoubtedly hampering their childhood
life, opportunity to get educated ultimately leading them to lose all the potential they possess
which could turn them into a fully developed human being. Thus, the nation was losing a great
number of potential future generations. But trade unions have sought to this issue and have
managed to end child labor practices.
3. Raising the entire society's standard of living: our workers are the members of the low
stream of the society. They have been given a very low wage against their inhumanly hard
work. But trade unions have fought the issue with management and by collective bargaining
they brought a positive change in the wage policy so that the workers can get actual return of
their labor. And by thus, the ultimately the standard of living of the whole nation has increased
as thaw workers hold a great no of population of the total population of the country.
4. Provide public education for children: Trade unions provide the opportunity of education to
the children of the workers. By doing this, they are helping to increase the rate of literacy in the
country.
5. Bringing other benefits to working class families: Trade unions also provide other welfare
activities to the workers and their families. They give them the opportunity to organize
cooperative societies, give vocational trainings like sewing, handicrafts etc. to the family
members of the workers specially women, housing facilities. These activities are an important
component of the total role of the trade union which they are playing for the national
development.
6. Decreased discrimination against women and minority workers: In our country women
and minority workers do not get the equal right as a man does, although they put the same
effort. As a result, the women and minority group has always been the victim of discrimination
in the workplace and also in the society. But trade unions have made this and issue and sought
to the management and government. So the men and minority group can enjoy the same right as
men do and thus trade union can have positive impact on the national development.
7. Effects on employment: Earlier management holds all the power to dismiss ot terminate a
worker without giving any notice. It would completely depend on the management's whim. But
after the emergence of trade unions, the security of employment of the workers has been
increased and the number of unemployment has decreased which is ultimately affecting the
nation's unemployment problem positively.
8. Increasing no. of skilled labors: Trade unions provide different kind of training to the
workers to make them more skilled. As a result, the nation is getting increasing number of
skilled labors and potential manpower which is positive for development of the country
manager.
9. Exercise of democracy: Paternalistic, autocratic management had been the and top down
characteristics of social relations in the workplace. But trade unions have changed the scenario
in the workplace. They started exercising the democratic style where not only the management
but the workers making, have a say in the decision workers have a right to speech, right to
assemble, even right to strike and lock-out if needed. By exercising this activities, trade unions

are creating little democratic model in the workplace and impacting directly to the national
governing pattern.
10. Building up potential leaders: Trade unions have delivered couple of political leaders to
the nations who are leading our country now. It has a been an attraction to some people to enter
the field of trade union leadership as there lies the possibility of a political career in the future.
As trade union gives the scope of exercising democracy, these leaders can get educated in the
democratic stream and can play a vital role in the nation's development when they enter the
broader political field.
Impact of trade union on management:

Every association has impacts in management. Trade union has both positive and
negative impacts on management.
Positive
impacts:

Trade union plays a major role in creating ideal working conditions.

Trade union always helps management to create better policies for workers and to
plan effective production targets.
Labors are treated fairly, only then they will maintain the working standard. Trade
unions negotiate for the standard wage and benefits with the management
Trade unions h e l p s t h e management to make working environment more
active which increases the productivity as well as the profit.
Political influences existence makes the trade union not to interfere in management
decisions.
Trade union is hugely helping the management to cope with the competition by
motivating workers to produce more and implementing management tactics.

Negative
impacts:
Trade unions creating more positions by the permission of management and
appointing more than need of workers. Its creating surplus of manpower but not of
productivity.
Trade union of Bangladesh bargains more than they understand because of the
limitations of their knowledge. So it becomes difficult to make any decision by
consulting with the TU. If dont consult then they strike. It is the backend support of politics
what is creating them more powerful.
Trade union leaders always try to save their interest first then the labor.

In companies labors are awarded for good work and threatened for bad work. But if its
punished then t rad e union int erfere and do not l et to happen the punishment.
So it increases crime of the labors
Findings of trade unions
1) Small size: According to the veteran trade union leader V.V.Giri,'the trade union movement
in India is plagued by the predominance of small sized unions'. To quote there were 9023 trade
unions submitting returns during the year 1992.The total membership of these unions was 58
lakhs, with an average membership of 632 per union. Smallness in size of the union implies,
among other things, weakness in bargaining power.
2)Poor Finance: Small size of unions has its direct bearing on its financial health. Total income
and total expenditure of 9073 trade unions with a membership of 58 lakhs were Rs. 3238 lakhs
and Rs.2532 lakhs respectively in 1992.The per member income and expenditure, thus, come to
Rs.56and Rs. 44 .
3) Politicization: A serious defect of trade union movement has been provided by outsiders
specially professional politicians. Ironically, in many cases, the political leaders possess little
knowledge of the background of labour problems, fundamentals of trade unionism, the
techniques of industry and even little general education.
4) Multiplicity of Unions: Of late ,trade unionism is also characterized by multiplicity of
unions based on craft, creed and religion. This is well indicated by the socio-political realities
after the mandalisation of polity and heightened sectarian consciousness after the demolition of
the disputed structure of Ajodhya. As noted earlier, the multiplicity of unions is mind boggling
in the DTC(50).Obviously, multiplicity of unions contributes to fragmentation to workers
leading to small sized unions.
5)Lack of Enlightened Labour Force: The lack of an enlightened labour force capable of
manning and conducting the movement efficiency, purposefully and effectively has been a
major problem in the development of trade unions. Lack of education, division of race religion,
language has been attributed as the causes of enlightened labour force.
6) Miscellaneous Problems:
i) The majority of registered unions are independent as only 16000 units out of 50000
registered unions.
ii)It is also found that about 90%of workers in the public sector are unionized while in case of
private sector only 30% workers are unionized.

iii)Given the fast changing industrial scenario, jobs are moving from the organized formal
sector to informal sector.90%of total workforce does not come out under the purview of the
trade unions.
Recommendations of trade unions
1) Be clam: Conflict change the situation when it is unlike to be clam.
2)Always show respect : However much you disagree with someone, attack the argument, not
the person.
3)Be Magnanimous :In truth, most conflict is over Matters of little substance and often it is
mostly pride or status that is at stake.
4) Discuss or Debate: So often, conflict is created And/or Maintained because there is no real
discussion or debate.
5) Apply Rationality: Much conflict is not about substance but perception. Try to clear through
the perception to discover and agree on how things really are.
6) Be aware of Displacement: Especially where anger is concerned, sometimes the source of a
conflict is not what it appears to be, as anger is displaced.
7)Be Precise: Someone might propose that something be done, Sooner rather than later'.
8)Think creatively : Try presenting different types of solution so far rejected by one of the
parties.
9)Change the environment : Its no coincidence that some of the toughest political Negotiations
of all the times.
10)Compromise :This is an obvious point but frequently neglected. If u do not agree to see
romantic or comedy see one the next weekend.
11)Others:
i) Consider sequencing
ii) Consider staging
iii) Seek arbitration
iv) Seek meditation
v) Experiment.

Conclusion
In perspective of Bangladesh the immediate objectives and activities of trade unions include
protection and promotion of the interests of their members. Regulating the relations between
workers and employers or workers and workers or employers and employers is another
objective of trade unions. Trade Union has become a necessary part but trade union cant run
properly due to various reasons. These are lack of consciousness, lack of utility, lack of
knowledge, political influence division of trade union. The rate of unionization has increased in
the RMG sector, trade union affiliation is low in Bangladesh compared to many other
developing countries. The main reasons for this are the fall in employment in previously highly
organized sectors, rise of the service sector and increasing flexible types of employment
relationships .Data available indicates fragmentation and contradiction in membership of
employers and workers organization

Reference
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Employment Empirics in Bangladesh. Journal of Developing Areas 40(1): 99-114

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Impacts of Policy Reforms in Bangladesh: A Study in a Sequential Dynamic CGE Framework.
MPIA Working Paper 2010-19, Poverty and Economic Policy Research Network
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