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PGD-HRM (BIM)
1/1/2015
BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)
Chapter-1.Name=Industrial Relations
Qus: Meaning and Concept of Industrial Relations [2014-1.a; 2013-1.a; 2012-1.a; 2011-1.a; 2010]
Ans: In the term Industrial Relation, Industry means any productive work or more specifically
production process and Relation is human relation in the production process. Many scholars and
specialists defined Industrial Relation from their own perspective.
In normal sense, the relationship between the owner and the employees is called industrial relation.
But industrial relation is not that the relationship only exists between owner and employees. Industrial
relation is accumulation of seven types relationship. That is:
o Relationship between worker and machine
o Relationship between workers to workers
o Relationship between owner and workers
o Relationship between owners to owners
o The relation between the state and the unions
o The relation between the various unions
o The relation between the employers and the government.
Henry Richardson: Industrial Relation is an art of living together for productivity.
Prof. John T. Dunlop: Industrial Relation as a sum total of relationship between workers, their
organization, managers and government or law.
W.V. Owen & H.V. Finston: Industrial relations deals with people at work or that industrial relations is
concerned with many problems related to employer- employee relation
HRM & Industrial Relations
From the above it stands that Industrial or Labor Management Relation comprises of all the issues of
industrial life connected with wages, conditions of work and work place, trade unionism, industrial
hazards, fatigue, monotony, absenteeism, labor turnover, productivity, collective bargaining and the like.
Industrial relations is treated as a measuring instrument for industrial productivity, the better the industrial
relation, the more is the productivity.
2. Inflation: The more the rate of inflation, the more the pressure on management for wages
enhancement.
3. Demand: Demand for the product but less income for buying the product may create bitter
relations among the employers & employees.
4. Income Gap: Income gap between managers and employees may create dissatisfaction leading
to bad IR
Qus: Conditions for Good Industrial Relations/Pre-Requisites for Sound Industrial Relations
Ans: When in any industry or organization willing co-operation emanates from employees towards the
achievement of organizational goals, there is said to be good industrial relations. Good industrial relations
depend on a great variety of factors. Some of the more important factors are discussed below:
1) History of Good Industrial Relations: A good history of industrial relations means harmonious
relationship between management and workers.
2) Economic Satisfaction of Workers: Industrial relations depend on the economic satisfaction of
workers. Much of man's conduct is dominated by the basic survival need because: s/he wants to
survive.
3) Social and Psychological Satisfaction: Identifying the social and psychological needs of workers is
a very important step to determine the good industrial relations.
4) Off The Job Conditions: For good IRS it is not enough that the worker's factory life alone should be
taken care of. His home life is not totally separable from his work life and his emotional condition is
not separate from his physical condition. Each affects the other. For this reason worker's off the job
conditions should also be improved.
5) Enlightened Labor Unions: Strong and enlightened labor movement can help to promote the status
of labor without hampering the interests of management. Labor unions always talk much of the
employer's obligations to the workers, but say very little about the worker's responsibility to the
employer.
6) Negotiating Skills of Management and Workers: Good industrial relations depend on the ability of
employers, organizations and trade unions to deal with their mutual problems freely, independently
and with responsibility.
7) Public Policy & Legislation: Government becomes a third major force in determining industrial
relations. Government intervention helps in 3 ways;
a) Acts as a check and balance upon different management action
b) Helps in catching and solving problems before they become serious
c) Provides formalized means to the workers and employers for emotional release of dissatisfaction
8) Better Education: Better education provide proper sense of responsibility and thus they will he less
influenced by outside forces.
9) Collective Bargaining: Collective bargaining is the cornerstone of good industrial relations though
the assistance of appropriate government agencies might be necessary in public interest.
10) Harmonious Industrial Relations: The peaceful and harmonious industrial relations depend on the
desire of the employers or management to the bargain with their employees on the basis of equality.
11) Urge on The Part of Employers: Good industrial relations depend on the realization and urge on the
part of employers or management; for the promotion of their workers welfare.
12) Genuine Sympathy: Good industrial relations depend on the genuine sympathy of the general public
towards labor.
Thus, the existence of strong, independent, responsible and democratic trade unions and employers
organizations, the recognition of trade unions and the promotion of collective bargaining, the machinery
for the peaceful settlement of industrial disputes, the existence of good human relations at the level of the
undertaking and the removal of discriminations of all types based on any ground including race, religion,
nationality or language would go a long way to improve the pattern of industrial relations in a country.
Scope of industrial relation involves all the variables of industrial life which is in turn having direct
bearing on total social life. The main objective of industrial relation is to maintain harmoniums
production situation, avoiding industrial unrest for smooth productivity. Very often we hear about G-8
Countries. They are G-8 because of high Industrialization; High Industrialization was possible only on
excellent industrial relation situation. If there is no industrial relation or say no relationship between
employers and worker, between workers and workers or between employers, we cannot think of
production, not to speak of productivity.
Bangladesh is not an industrialized country nor does it have huge natural resources as yet. In a land area
of only 148 thousand square kilometers about 140 million people live in extreme poverty.
Human resource could be the only resource if it could be turned to Man Power, Rapid and sustainable
industrial development is the only way of our national prosperity. Healthy industrial relation is the only
way for productivity, productivity can create surplus value, surplus value create capital for more and more
investment for industrialization.
Our industrial situation is not giving as enough hope towards the above Trade Unions are not well
organized, powerful, not backed by spontaneous workers support, highly politicalized, all leaders are not
equity efficient, a big part of them are corrupt to different self interest. Many of our entrepreneurs,
employers do not believe in industrial relation, believe in treating workers as the most neglected
component of production, uses the bad technique of managing the leaders rather than encouraging trade
union for industrial relation.
A fair number of those, who are using bank capitals, do not even believe in good production. Number of
loan default entrepreneurs and amount of bad loan for nationalized banks may bear the above comments.
So, in short, we can say, our industrial relation situation is not encouraging. But in some places, just
reverse situation in trade union and management practices gives hope that once we shall win.
9) Sufficient communication to keep the employees informed about decisions which affect their interests
10) Establishment of an atmosphere of participation whether through joint committees or other methods.
Interest of buyers and interest of sellers engages themselves in a perpetual conflict over the
distribution of revenue. Both have a common interest in increasing total revenue. But conflict is not
reduced because actual distribution of additional increments of revenue is determined by the power
situation. There is no automatic distribution based on a sense of equity.
The concept of alienation is important in this model. Alienation arises from the capitalist system. In
the capitalist system labor is sold and it is bought by the capitalist to satisfy his/her needs rather than
workers. Worker is estranged from the things he creates & becomes dissatisfied.
CAUSES OF DISSATISFACTION
Two aspects are important as they represented the most developed form of treating workers as a
commodity.
Division of labor as a means of promoting wealth for the capitalist but restricting the freedom of
the worker.
Factory system of promotion as the most complete method of domination of the worker by the
capitalist.
Alienation will not be overcome by increasing wages; it will simply make the worker a better paid
slave. Alienation will only be overcome with the overthrow of the capitalist system when labor not
treated as a commodity.
Conflict is endemic in the industrial situation for the Marxist- it is an inevitable part of the wage system.
Labor is alienated in the capitalist system because it is treated as a commodity. Abolition of private
property is crucial in order to overcome alienation from the Marxian viewpoint.
C. Social Action Model: The social action model of industrial relations implies the followings:
The social action model is one in which actors own definitions of the situations in which they are
engaged are taken as an initial basis for the explanation of their social behavior and relationships.
This theory points out the reciprocal nature of the relationship between social structure and behavior.
Social structure limits social action. "Thus a worker's ability to take strike action or an entrepreneurs
ability to invest may be limited by his personal and by more general economic conditions.
One of the most important features of the action model is the attitude it adopts towards social theory. It
can better be viewed as a method of analysis rather than a theory. It tells us, where and how to look to
explain social action; it does not tell us, what the answer will be.
The action approach suggests that general explanations of social action are not possible simply because
of the nature of the subject of the social sciences-men do not react to the stimuli in the same way as
matter in the natural sciences.
The action approaches to pay sufficient attention to behavioral influences.
D. Human Relations Model: Industrial conflicts are due to poor social relations such as inadequate
communications. One of the most important finding of the Hawthorne studies was the crucial role
played by informal social groups in the workplace. Although the informal social group can help to
create a climate which will frustrate the aims of management it can also provide workers with outlets
for their emotions and sentiments. Absence of informal groups may be a cause of frustration and
dissatisfaction, ultimately they maybe a cause of industrial conflict.
Md. Ali Reza
Page 10 of 52
BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)
Chapter-2.Name=Trade Union
Qus: Meaning and Concept Trade Union [2013-3.a]
Ans: Bangladesh Labor Act 2006 section 2 (xv) trade union means trade union of workers or employers
formed and registered under chapter XIII of this Act and shall include a federation of trade unions.
Trade Union means any combination of workmen or employers formed primarily for the purpose of
regulating the relations between workmen and employers or workmen and workmen or employers and
employers, or for imposing restrictive conditions on the conduct of any union or business and includes a
federation of two or more trade unions.
Qus: Why Some Workers Join Trade Union and Others Dont? [2014-3.b; 2013-3.b]
A. Reasons why Workers Join Union?
1) Bargaining Power: Trade Union is the legal organization of a company. Employees join trade
union and increase their power for bargaining with the employer. For this reason the employees
join themselves with a trade union.
2) Job Security: Trade Union ensures the job security of the member employee. If an employee
engages himself with trade union the employers cannot discharge those employees without any
reason.
3) More Income: By Collective Bargaining with the employer, trade union make the
environment for getting the overtime payment, gratuity, provident fund, medical allowances,
bonus, festival bonus for the employees. Trade union ensures the environment where an
employee gets the overtime payment.
4) Implementation Of Labor Laws In Proper Way: Every Country has some labor law,
factory act, industrial law and industrial relation. Most of the times the employers dont
want to practice this rule in their organization. Because, they face some economical loss for
the practice of those rule. Trade union creates pressure to the employers for practice these rules.
5) Opportunity For Submission Of Workers Opinion To The Employers: If an employee
personally complaint to the employer, then the employer may not give emphasize to the
complaint. If the trade union member of such kinds of activity then the employers give
emphasis to the complaint.
6) Economic Development: Trade Union creates pressure to the employers for increase the wages
and other allowances by which the employee can develop them economically.
7) Participation For Recognition: Sometime the employee join themselves in trade union for
make him famous and he want to recognition by the employers.
8) Industrial Peace: Employee may joint trade union for reducing the conflict between
employer and employees or between management and employees. By which trade union can
maintain a peace full environment in the organization.
B. Reasons Why Workers do not join Trade Union? [2014-3.b]
1) Corruption of the trade union may restricted the employees to join this trade union
2) Employees do not join trade union for confusing behavior and activities of the union
leader
3) Most of the employee dont join trade union for the autocratic behavior of the leader
4) Some employees dont join trade union for misconception about trade union
5) If the trade union cannot solve the fundamental problem of the employee, then the employee do
not join trade union.
Qus: Types and Structure of Trade Union [2013-3.a; 2011-8.e]
Trade Unions Based On Their Purposes 2 Types: -
A. Reformist Unions: Aims to preserve the capitalist economy and maintenance of competitive
production based industrial relations, like to continue the existing social, economic and political
structure. Seek to improve the wages, working conditions, quality of work life by increasing
the productivity level and by bargaining for a share in the increased productivity. Reformist
further divided into
1) Business Union: They believe in congenial employee-employer relation, protect the workers
interest by participating in collective bargaining, prefer voluntary arbitration and conciliation
2) Uplift Union: they concentrate on education, health insurance and benefits, aspire to elevate the
moral, intellectual and social life of workers, these unions are interest-conscious of the workers.
B. Revolutionary Unions: They aim at replacing the present system with the new and different
situations that are preferable. Aims at destroying the capitalistic system abolish private property and
installing socialist or communistic systems. Revolutionary divided into 2 types
1) Political Unions: gain power through political actions. These resort to political action to protect
the workers interest.
2) Anarchist Unions: try to destroy the existing economic system by revolutionary means.
There are 5 Structures of Trade Unions:-
1) General Unions: These are for skilled and unskilled workers performing different jobs in different
industries (e.g. cleaners, clerical staff, and transport workers).
2) Industrial Unions: These are for different workers in the same industry (e.g. the National Union of
Miners (N.U.M), covering workers at all levels in the hierarchy).
3) Craft Unions: These are fairly small unions for skilled workers, performing the same or similar work
in different industries (e.g. musicians).
4) White-Collar Unions: These are for 'white-collar' (or professional) workers who perform the same or
similar tasks in different industries (e.g. teachers, scientists).
5) Federations: Industrial unions, either of same industry or of the different industry may form
into an association in order to improve Trade Union Unity. Such Unions of Unions are called
federations. During critical situations the unions in different industries may resort to concerted
action without losing their individuality. In such situation the federations form into an
Association and such and association is called Confederation. Eg; Federation of Bangladesh
Railways
in case of federation of trade unions, the names, addresses and registration numbers of
((vvii))
member unions.
b) three copies of the constitution of the trade union together with a copy of the resolution by the
members of the trade union adopting such constitution bearing the signature of the Chairman of
the meeting;
c) a copy of the resolution by the members of the trade union authorizing its President and the
Secretary to apply for its registration; and
d) In case of a federation of trade unions, a copy of the resolution from each of the constituent
unions agreeing to become a member of the federation.
3. The Director of Labor or the Officer authorized in this behalf shall, or receipt of an application under
sub-section (1), forthwith send a copy thereof along with the list of officers of the union to the
employer concerned for information.
Requirements of Registration (Section 179, BLA 2006.)
1. A trade union shall not be entitled to registration under this Chapter unless the constitution thereof
provides for the following matters, namely :
a) the name and address of the trade union;
b) the objects for which the trade union has been formed;
c) the manner in which a worker may become a member of the trade union specifying therein that
no worker shall be enrolled as its member unless he applies in the form set out in the constitution
declaring that he is not a member of any other trade union;
d) the sources of fund of the trade union and statement of the purposes for which such fund shall be
applicable;
e) the conditions under which a member shall be entitled to any benefit assured by the constitution
of the trade union and under which any fine or forfeiture may be imposed on him;
f) the maintenance of a list of the members of the trade union and of adequate facilities for the
inspection thereof by the officers and members of the trade union;
g) the manner in which the constitution shall be amended, varied or rescinded;
h) the safe custody of the funds of trade union, its annual audit, the manner of audit and adequate
facilities for inspection of the books of account by the officers and members of the trade union;
i) the manner in which the trade union may be dissolved;
j) the manner of election of officers by the general body of the trade union and the term, not less
than two years and not exceeding three years, for which an officer may hold office;
k) the number of members of the executive which shall not less than five and more than thirty-five
as may be prescribed by rules;
l) the procedure for expressing want of confidence in any officer of the trade union; and
m) the meeting of the executive and of the general body of the trade union, so that the executive
shall meet at least once in every three months and the general body at least once every year.
2. A trade union of workers shall not been entitled to registration under this Chapter unless it has a
minimum membership of thirty percent of the total number of workers employed in the
establishment in which it is formed.
Provided that more than one establishments under the same employer, which are allied to and
connected with the another for the purpose of carrying out the same industry irrespective of their
place of situation, shall be deemed to be one establishment for the purpose of this sub-section.
3. Where any doubt or dispute arises as to whether any two or more establishments are under the same
employer or where they are allied to or connected with one another for the purpose of carrying on the
same industry the matter may be referred to the Director of Labor for decision.
4. Any person aggrieved by a decision of the Director of Labor under sub-section (3) may, within thirty
days of the decision, prefer an appeal to the Labor Court; and the decision of the Labor Court shall be
final.
5. Not more than three trade unions shall be registered in any establishment.
Disqualifications for Being An Officer Or A Member Of A Trade Union (Section 180, BLA 2006)
1. Notwithstanding anything contained in the constitution of a trade union, a person shall not be entitled
to be, or to be elected as a member or an officer of a trade union if:
a) he has been convicted of an offence involving moral turpitude or an offence under section
196(2) or section 298 and unless two years have elapsed from the date of his release;
b) he is not employed or engaged in that establishment in which the trade union is formed;
2. Nothing in sub-section (1) (b) shall apply to any federation of trade unions.
Registered Trade Union To Maintain Register, ete (Section 181, BLA 2006)
Every registered trade union shall maintain in such form as may be prescribed
a) a register of members showing particulars of subscriptions paid by each member;
b) an accounts book showing receipts and expenditure; and
c) a minute book for recording the proceedings of meetings.
Registration (Section 182, BLA 2006)
1. The Director of Labor, on being satisfied that the trade union has complied with all the requirements
of this Chapter, shall register the trade union in a prescribed register and issue a registration
certificate in the prescribed form within a period of sixty days from the date of receipt of the
application for registration.
2. If the Director of labor finds the application to be deficient in a material respect, he shall
communicate in writing his objection to the trade union within a period of fifteen days from the
receipt of the application and the trade union shall reply thereto within a period of fifteen days from
the receipt of the objection.
3. When the objection raised by the Director of Labor has been satisfactorily met, the Director of Labor
shall register the trade union as provided in sub-section (1) and if the objection is not met
satisfactorily, the he shall reject the application.
4. When the application has been rejected or the Director of Labor has, after settlement of the
objection, delayed disposal of the application beyond the period of sixty days provided in sub-
section (1), the trade union may, within a period of thirty days from the date of such rejection or the
date of expiry of such period, whichever is earlier, appeal to the Labor Court.
5. The Labor Court, after hearing the appeal, for reasons to be stated in its judgment, may pass as order
directing the Director of Labor to register the trade union and to issue a certificate of registration
within a period of seven days from the date of order or may dismiss the appeal.
6. Any party aggrieved by the judgment passed by the Labor Court under sub-section (5) may prefer
appeal to the Labor Appellate Tribunal within 30 (thirty) days from the date of receipt of the order
of the Labor Court.
Qus: Unfair Labor Practice On The Part Of Employers [2014-8.f; 2013-7.b; 2012-7.b]
Ans: Unfair Labor Practice On The part Of Employers (BLA -2006 SECTION 195): No employer or
trade union of employers and no person acting on their behalf shall
((aa)) The employer shall not impose any condition in the employment that the workers will restrain to join
with a trade union or oppose to continue his membership in the trade union; or.
((bb)) The employer shall not refuse or continue to employ any person on the ground that such person is, or
is not, a member or officer of trade union; or
((cc)) Discriminate against any person in regard to any employment, promotion, condition of employment
or working condition on the ground that such person is or is not, a member or officer of a trade union;
or
((dd)) Dismiss, discharge remove from employment or threaten to dismiss, discharge or remove from
employment a worker or injure or threaten to injure him in respect of his employment be reason that
the worker is or proposes o become, or seeks to persuade any other person to become a member or
officer of a trade union or participates in the promotion, formation or activities or activities of a trade
union.
((ee)) Induce any person to refrain from becoming or to cease to be a member or officer of a trade union, by
conferring or offering to confer any advantage on or by producing or offering to procure any
advantage for such person or any other person.
((ff)) Compel or attempt to compel any officer of the collective bargaining agent to sing a memorandum of
settlement or arrive at a settlement by using intimidation, coercion, pressure, threat, confinement to a
place, physical injury, disconnection of water, power and telephone facilities and such other methods;
((gg)) Interfere with or in any way influence the election provided for in section 202.
((hh)) Recruit any new worker during the period of strike under section 211 or during the currency or a
strike which is not illegal, expect where the conciliator has, being satisfied that complete cessation of
work is likely to cause serious damage to the machinery or installation, permitted temporary
employment or a limited number of workers, in the section where the damage is likely to occur.
((ii)) Deliberately fails to take measures recommended by the participation committee.
((jj)) Fails to give reply to any communications made by the collective bargaining agent in respect of any
industrial dispute.
((kk)) Transfer the president, general secretary, organizing secretary or treasurer of any registered trade
union in contravention of section 187.
((ll)) Commence, continue, instigate or incite others to take part in an all illegal lock-out.
Qus: Trade Union movement in Bangladesh very weak-----Discuss [2014-3.a; 2010]
Ans: The main cause behind weak trade union action in Bangladesh is bad labor and management relation
system. Management and labors stands against each other, if the labor management relation goes wrong.
In Bangladesh each and every trade union is established with the help of political parties. Internal conflict
is another problem of trade union. They have contradiction among them. The trade union is divided into
many groups. So, the trade union commotion is failed. In Bangladesh one trade union stands against
another one. This clash does a great obstacle to the labor commotion. The labors who are engaged in trade
union are not well educated. The labors who are engaged in trade union are not efficient and effective.
The trade union of Bangladesh is financially very weak.
Workers join in a TRADE UNION to protect their ECONOMIC HAZARDS and other problems, but
todays trade union is deviated from their principles and involved into destructive activities.
5) To maintain a stable, regal, and harmonious relationship between the workers and the
management.
B. Objectives of Collective Bargaining from The Unions or workers Viewpoint:-
1) To ensure the existence of the trade union and to increase the strength of it.
2) To maintain control over the activities of the industry.
3) To participate in the managements decision-making process.
4) To cooperate in implementing different principles of the industry.
5) To preserve the economic welfare, financial benefits, promotions, appointments, security etc. of
the members.
((11)) Where there is only one registered trade union in an establishment, that trade union shall, be
deemed to be collective bargaining agent for such establishment or group.
((22)) Where there are more trade unions than one in an establishment, the Director of Labor shall,
upon an application made in his behalf by any such trade union or by the employer, hold a secret
ballot, within a period of not more than one hundred and twenty days from the date of receipt of
such application, to determine as to which one of such trade unions shall be the collective
bargaining agent for the establishment.
((33)) Upon receipt of an application under sub-section (2), the Director of Labor shall, by notice in
writing call upon every trade union in the establishment to which the application relates to
indicate, within such time, not exceeding fifteen days, as may be specified in the notice, whether
it desires to be a contestant in the secret ballot to be held for determining the collective bargaining
agent in relation to the establishment.
((44)) If a trade union fails to indicate, within the time specified in the notice, its desire to be a contestant
in the secret ballot, it shall be presumed that it shall not be a contestant in such ballot.
((55)) If no trade union indicates, within the time specified in the notice, its desire to be a contestant in
the secret ballot, the trade union which has made the application shall be declared to be the
collective bargaining agent in relation to the establishment concerned, provided it has as its
members not less than one-third of the total number of workers employed in the establishment.
((66)) Every employer shall on being so required by the Director of Labor, submit to him a list of all
workers employed in the establishment for not less than a period of three months in the
establishment excluding those who are casual or badli workers, and the list shall contain the
following particulars; namely:
((77)) On being so required the Director of Labor, every employer shall submit to the Director of Labor
requisite number of additional copies of the list of workers mentioned in sub-section (6) and shall
provide such facilities for verification of the list submitted by him.
((88)) On receipt of the list of workers from the employer, the Director of Labor shall send a copy of the
list to each of contesting trade unions and shall also affix a copy thereof in a conspicuous part of
his office and another copy of the list in a conspicuous part of the establishment concerned,
together with a notice inviting objections, if any, to be submitted to him within such time as may
be specified by him.
((99)) The objections, if any, received by the Director of Labor within the specified time shall be
disposed of by him after necessary enquiry.
((1100)) The Director of Labor shall make such amendments, alterations or modifications in the list of
workers submitted by the employer as may be required by any decision given by him on
objections under sub-section (9).
((1111)) After amendments, alterations or modifications, if any, made under sub-section (10), or where no
objections are received by the Director of Labor within the specified time, the Director of Labor
shall prepare a list of workers employed in the establishment concerned duly certified and send
copies thereof to the employer and such of the contesting trade unions at least seven days prior to
the date fixed for the poll.
((1122)) The list of workers prepared and certified under sub-section (11) shall be deemed to be the list of
voters, and every worker whose name appears in that list shall be entitled to vote in the poll to
determine the collective bargaining agent.
((1133)) Every employer shall provide all such facilities in his establishment as may be required by the
Director of Labor for the conduct of the poll but shall not interfere with, or in any way, influence
the voting.
((1144)) No person shall canvas for vote within a radius of forty-five meters of the polling stations.
((1155)) For the purpose of holding secret ballot to determine the collective bargaining agent, the Director
of Labor shall
((aa)) fix the date for the poll and intimate the same to each of the contesting trade unions and also
to every employer;
((bb)) on the date fixed for the poll to place in the polling station set up for the purpose the ballot
boxes which shall be sealed in the presence of the representatives of the contesting trade
unions as to receive the ballot papers;
((cc)) conduct the poll at the polling station at which the representatives of the contesting trade
unions shall have the right to be present;
((dd)) after the conclusion of the poll and in the presence of such of the representatives of the
contesting trade unions as may be present, open the ballot boxes and count the votes; and
((ee)) after the conclusion of the count, declare the trade union which has received the highest
number of votes to be the collective bargaining agent.
Provided that no trade union shall be declared to be the collective bargaining agent for an
establishment unless the number of votes received by it is not less than one-third of the total
number of workers employed in such establishment.
((1166)) Where a registered trade union has been declared under sub-section (14)(e) to be the collective
bargaining agent for an establishment, it shall be such collective bargaining agent for a period of
two years and no application for the determination of the collective bargaining agent for such
establishment shall be entertained within a period of two years from the date of such declaration.
Qus: What are the rights and Privileges of CBA under BLA-2006? [2012-5.c]
Ans: An elected collective bargaining agent of an establishment performs following functions & activities
according to section 202 (24) of The Bangladesh Labor Act 2006:
The collective bargaining agent in relation to an establishment shall be entitled to
((aa)) undertake collective bargaining with the employer on matters connected with employment, non-
employment, the terms of employment or the conditions of work;
((cc)) give notice of, and declare, a strike in accordance with the provisions of this Chapter;
((dd)) nominate representatives of workers on the Board of Trustees of any welfare institutions or Provident
Funds, and of the Workers Participation Fund established under Chapter XV; and
Chapter-4.Name=Industrial Disputes
Qus: Meaning of Industrial Disputes [2012-6]
Ans: Dispute is a natural matter in human life. Rationally, no industry is exception from it. It is natural
that there would some disputes between workers and management. Industrial disputes are observed
through there is a very strong management. Total absence of industrial dispute is unbelievable.
The Bangladesh Labor Laws (2006) define Industrial Disputes as any dispute or difference between
employers and employers or between employers and workmen or between workmen and workmen, which
is connected with the employment or non-employment or the terms of employment or the conditions of
work of any person.
Qus: Industrial Dispute Settlement Procedures According To The Bangladesh Labor Act 2006
Under The Chapter XIV [2014-4.b; 2013-5.b; 2012-6; 2011-7; 2010; 2009; 2007; 2008; 2006]
Settlement of Industrial Disputes: (Section 210, BLA 2006.)
(1) If, at any time an employer or a collective bargaining agent finds that an industrial dispute is likely to
arise between the employer and workers or any of the workers, the employer, or, as the case may be, the
collective bargaining agent shall communicate his or its views in writing to the other party.
(2) Within fifteen days of the receipt of a communication under sub-section (1), the party receiving it
shall, in consultation with the representatives of the other party, arrange a meeting for collective
bargaining on the issue raised in the communication with a view to reaching an agreement thereon, and
such meeting may be held with the representatives of the parties authorized in this behalf.
(3) If the parties reach a settlement on the issues discussed, a memorandum of settlement shall be
recorded in writing and signed by both the parties and a copy thereof shall be forwarded by the employer
to the Government, the Director of Labor and the Conciliator.
(4) If-
(a) the party receiving a communication under sub-section (1) fails to arrange a meeting with the
representatives of the other party for collective bargaining within the time specified in sub-
section (2), the other party, or
(b) no settlement is reached through dialogue within a period of one month from the date of the
first meeting for negotiation, or, such further period as may be agreed upon in writing by the
parties, any of the parties, may, within fifteen days from the expiry of the period mentioned in
sub-section (2) or clause (b) of this sub-section, as the case may be, report the matter to the
conciliator and request him in writing to conciliate in the dispute and the conciliator shall, within
ten days of receipt of such request, proceed to conciliate in the dispute.
(5) The Government shall, for the purposes of this chapter, by notification in the official Gazette, appoint
such number of persons as it considers necessary, as conciliator for such specific area or any industrial
establishment or industry, and the conciliator shall take up the conciliation to whom the request shall be
made for conciliation under sub-section (4),
(6) The conciliator, upon receipt of the request as aforesaid, shall star conciliation and shall call a meeting
of the parties to the dispute for the purpose of bringing about a settlement.
(7) The parties to the dispute shall appear before the conciliator in person or shall be represented before
him by person nominated by them and authorized to negotiate and enter into an agreement binding on the
parties.
(8) If any settlement of the dispute is arrived at in the course of the proceedings before him, the
conciliator shall send a report thereof to the Government together with a memorandum of settlement
signed by the parties to the dispute.
(9) If no settlement is arrived at within the period of thirty days of receipt of request under sub- section
(4) by the conciliator, the conciliation proceedings shall fail or the conciliation may be continued for such
further period as may be agreed upon in writing by the parties.
(10) If the conciliation proceeding fails, the conciliator shall try to persuade the parties to agree to refer
the dispute to an Arbitrator.
(11) If the parties do not agree to refer the dispute to an Arbitrator, the conciliator shall, within three days
of failure of the conciliation proceedings, issue a certificate to the parties to the dispute to the effect that
such proceedings have failed.
(12) If the parties agree to refer the dispute to an arbitrator, they shall make a joint request in writing for
reference of the dispute to an arbitrator agreed upon by them.
(13) The arbitrator, to whom a dispute is referred under sub-section (12), may be a person borne on a
panel to be maintained by the Government or any other person agreed upon by the parties.
(14) The Arbitrator shall give award within a period of thirty days from the date on which the dispute is
referred to him or such further period as may be agreed upon in writing by the parties to the dispute.
(15) After he has made an award, the arbitrator shall forward a copy thereof to the parties and to the
Government.
(16) The award of the arbitrator shall be final and no appeal shall lie against it.
(17) An award shall be valid for a period not exceeding two years as may be fixed by the arbitrator.
(18) The Director of Labor may, if he deems fit in the interest of settlement of a dispute, at any time, take
over any conciliation proceedings pending before any conciliator and proceed to conciliate in the dispute
himself or transfer such proceedings to any other conciliator, and the provisions of the preceding
subsections shall apply to such proceedings.
(19) Notwithstanding anything contained in this section, collective bargaining agent in the establishments
in respect of which trade union of employers or federation of trade unions of employers have been
registered shall communicate with such trade union or federation regarding any industrial dispute and a
settlement between them shall be binding upon all the employers and workers of those establishments.
Chapter-5.Name=Worker Participation
Qus: Worker Participation [2014-6.a; 2013-2.a; 2011-3.a]
Ans: Participative management is a tool that is used to motivate the employees. When subordinates are
involved in decision-making at all levels it is known as participation. There are three important ideas in
this definition involvement, contribution, and responsibility.
According to New-storm and Davis, Participation is the mental and emotional involvement of
people in group situations that encourages them to contribute to group goals and share responsibility
for them.
According to Dale S. Beach, Participation is used to designate the process by which people
contribute ideas towards the solution of problems affecting organization and their jobs.
Importance of Worker Participation
1. More Productivity 2. Minimum Absenteeism
3. Development of Motivation 4. Cordial Relationship
5. Increased job satisfaction 6. Increased Creativity
7. Quality of Work 8. Sense of Responsibility
9. Changed Decision 10. Easy Decision Making
11. Commitment to Goal Achievement 12. Development of Morale
13. Less Cost and Time 14. Increased Capacity & Influence
15. Low Turnover 16. Positive Work Environment.
Qus: Explain Different Types of Participative Management Programme [2013-7.a; 2012-7.a]
Ans: Organizations use a variety of programs aimed at increasing employee participation. All the
different programs have one major objective and that is to increase employee participation.
1. Consultative Management: A consultative committee may be constituted with union leaders and
managers. This committee will suggest the top management regarding the issues.
2. Democratic Management: A very useful system/program is the formation of democratic
management. This system will discuss the issues time to time and place its report before the top
management.
3. Production Committee: Production committee can contribute to report about the existing production
level and future trend. Because, management is eager to know the latest position.
4. Suggestions Program: Suggestions programs are formal plans invite individual employees to
recommend work improvements.
5. Self-managing Team: It is termed as semi- autonomous work groups or socio-technical teams. These
teams are given a high degree of decision making autonomy; they are expected to control their own
behavior and results.
6. Employee Ownership Plans: employee ownership of an industry emerges when employees provide
the capital to purchase control of an existing operation.
7. Quality Circles: These are voluntary groups that receive training in statistical techniques and
problem-solving skill and then meet to produce ideas for improving productivity and working
conditions.
8. Total Quality Management (TQM): TQM approach ensures the involvement of every employee in
the process of searching for continuous improvements in their operations.
1. Cultural Environment: The opportunities and threats of the environment, interconnected with the
strengths and weaknesses of the organization, establish the limits to participation.
2. Management Style: An open management style, that trusts in peoples skills, the coherence of
management, its ability to generate trust and its commitment determine the adherence of employees.
3. Existence of A Shared Project: A project is shared if everyone in the organization knows what the
management intends to do and why, how it plans to implement it, where, with whom, and what they
are going to gain and lose as employees.
4. Information And Communication: Full, fluent, truthful and objective, real-time information and
communications, enabling the necessary trust to be created to share knowledge and the security and
recognition that make empowerment possible, as well as effectiveness and efficiency in management.
5. Team Work: Enables power relations in groups and the organization to be changed, new values
learnt and production processes transformed. It is important that multiple power distribution and
decision-making systems emerge. In this regard, the creation of organizational structures that foster
coordination and self-organization is emphasized.
6. Skills, Attitudes and Mental Models: Identifying leadership potential among people in the
organization and supporting their growth through comprehensive training and development
programmes is essential. On the other hand, the attitude and mental models of people in the
organization might help or hinder participatory processes.
7. Individual Autonomy: Empowerment and autonomy in the workplace affect the success of
participatory processes. Therefore, job enrichment plays an important role as a promoter of
participatory processes.
8. Organization of Productive and Operational Activities: Tasks and challenges entailed in job
activity give social recognition that favors greater or lesser participation according to this level of
recognition. The skills richness of the job and the type of relationships it enables also facilitates or
restrains participation
Limitations of Participation Levels of Participation
1. Lower level workers cannot participate 1. Participation at the Board level
2. Lack of confidence 2. Participation through ownership
3. Employee manipulation 3. Participation through complete control
4. Costly & time consuming 4. Participation through staff or works council
5. Feudalistic mentality 5. Participation through collective bargaining
6. Unwillingness of employees 6. Participation through job enlargement and job
7. More political involvement enrichment
8. Recklessness 7. Participation through Suggestions Schemes
9. Lack of top level support 8. Participation through quality circles
10. Less training 9. Empowered teams
11. Lack of efforts 10. Total Quality Management
Qus: Provisions Available In BLL 2006, Relating To Participation Committee [2014-6.c; 2011-3.c]
Ans: (Section 205, BLA 2006)
(1) The employer in an establishment in which fifty or more workers are normally employed
shall constitute in the prescribed manner participation
(2) Such committee shall be formed with representatives of the employer and the workers.
(3) The number of representatives of worker in such committee shall not be less than the number
of representatives of the employer,
(4) The representative of the workers shall be appointed on the basis of nomination given by the
trade unions in the establishment.
(5) Each of the trade unions, other than the collective bargaining agent, nominating equal number
of representatives and the collective bargaining agent nominating representatives, the number of
which shall be one more than the total number of representatives nominated by the other trade
unions.
(6) In the case of an establishment where there is no trade union, representatives of the workers
on a participation committee shall be chosen in the prescribed manner from amongst the workers
engaged in the establishment for which the participation committee is constituted.
(7) Where an establishment has any unit in which at least fifty workers are normally employed, a
unit participation committee, may, on the recommendation of the participation committee, be
constituted in the manner prescribed by Rules.
(8) Such unit committee shall consist of the representatives of the employer sand the workers
employed in or under that unit.
(9) The provisions of this section applicable in case of participation committee shall mutatis-
mutandis apply to the unit participation committee.
Qus: Functions of Participation Committee
Ans: (Section 206, BLA 2006)
(1) The functions of the participation committee shall be of inculcate and develop sense of belonging and
workers commitment and, in particular-
(a) to Endeavour to promote mutual trust, understanding and co-operation between the employer
and the workers;
(b) to ensure application of labor laws;
(c) to foster a sense of discipline and to improve and maintain safety, occupational health and
working condition;
(d) to encourage vocational training, workers education and family welfare training;
(e) to adopt measures for improvement of welfare services for the workers and their families;
(f) to fulfill production target, improve productivity, reduce production cost and wastes and raise
quality of products.
(2) A unit participation committee shall, subject to the supervision of the participation committee,
discharge, as far as practicable, those functions as the specified in sub-section (1).
Common Sense Is Not So Common
Md. Ali Reza
BBA, MBA, MDS, PGD-HRM
Email: reza_bba08@yahoo.com
Cell: 01916-104295 & 01788-275795
The Roots of Education Are Bitter, but the Fruit Is Sweet
Chapter-6.Name=Grievance Handling
Qus: Meaning of Grievance
Ans: Grievance is any discontent or dissatisfaction, whether expressed or not and whether valid or not,
arising out of anything connected with the company, that an employee thinks, believes or even feels, is
unfair, unjust or inequitable.
According to International Labor Organization (ILO) Grievance is a complaint of one or more
workers in respect of wages, allowances, conditions of work and interpretation of service stipulations,
covering such area as overtime, leave, transfer, promotion, seniority, job assignment and termination of
service. Steps of Grievance Procedure
Grievance
Procedure
Departmental
Action
Judicial
Action
Qus: Reasons / Causes of Grievance [2012-2.b]
1) Unfair Management Practices: If management does not deal with the employees fairly regarding
posting, promotion, transfer, training and so on, grievance among human resources may take place.
2) Low Morale & Frustration: Low morale and frustration of employees may create grievance among
themselves.
3) Unclear Contractual Language: There must be clear and final contract between management and
employees.
4) A Violation of Law: There are some provisions of laws for maintaining good labor management
relations. Sometimes these provisions may not be followed which can create grievance among the
employees.
5) A Violation of the Intent of the Parties: Employees want to get many benefits from the
organization. Since they are serving for a long time in the organization they deserve this facilities and
benefits. If management deprives the employees from these facilities they may show grievances.
6) A Violation of Normal Work Procedures: Normal work procedure can ensure discipline in the
organization. If the normal work procedure is not followed, the employees may feel them aggrieved.
7) Unfair Treatment by the Supervisors: Supervisors fair treatment may ensure fulfillment of
organization objectives.
8) Dissatisfaction about the Job: Satisfaction in the job is essential both for management and
employees. The outcome of dissatisfaction is shown in the name of grievance.
9) Inconsistence in the Disciplinary Action: Proper and indiscriminate disciplinary action can help
maintain discipline in the organization where as inconsistence can create grievance among the peace
loving employees.
10) Misconception: Clear understanding about the policy and work procedure can make the employees
goal-oriented. But misconception about the goal policy and work procedure can make them in a
vulnerable position and grievance may develop.
11) A Violation of Health & Safety Standards: Health and safety should be maintained properly in the
organization. Otherwise, grievance is shown against management.
Qus: How can management know & understand employee grievances? [2014-7.b]
Ans: Management knows & understands employee grievances by following symptoms:
A. On The Production:
1. Low productivity
2. Low quality of production
3. Increase in the cost of production per unit
4. Increase in the wastage of material, spoilage/leakage of machinery
B. On The Employees:
1. Increase in the incidence of accidents
2. Reduction in the level of employee morale.
3. Increase in the rate of absenteeism and turnover
4. Reduction in the level of commitment, sincerity and punctuality
C. On The Managers:
1. Increase in indiscipline cases
2. Strained superior-subordinate relations.
3. Increase in the degree of supervision and control.
4. Increase in unrest and thereby machinery to maintain industrial peace
Qus: Grievance Procedure [2014-7.a; 2012-2.c; 2011-4.a]
Ans: (SECTION 33, BLA 2006)
(1) Any worker, including a worker who has been laid-off, retrenched, discharged, dismissed, removed,
or otherwise removed from employment, who has grievance in respect of any matter covered under
this chapter, and intends to seek redress thereof under this section, shall submit his grievance to his
employer, in writing, by registered post within thirty days of being informed of the cause of such
grievance.
Provided that if the employer acknowledges receipt of the grievance, in that case the service by
registered post shall not be essential.
(2) The employer shall within fifteen days of receipt of such grievance, enquire into the matter, give the
worker an opportunity of being heard and communicate his decision, in writing to him.
(3) If the employer fails to give a decision under sub-section (2) or if the worker is dissatisfied with such
decision, he may make a complain in writing to the Labor court within thirty days from the last date
under sub-section (2) or within thirty days from the date of the decision, as the case may be.
(4) The Labor court shall, on receipt of the complaint hear the parties after giving notice to them and
make such orders as it may deem just and proper.
(5) The Labor court, may amongst other relief, direct reinstatement of the complainant in service, either
with or without back wages and convert the order of dismissal, removal or discharge to any other
Lesser punishment specified in section 23(2).
(6) Any person aggrieved by an order of the Labor court, may, within thirty days of the order, prefer an
appeal to the tribunal, and the decision of the Tribunal on such appeal shall be final.
(7) No court-fees shall be payable for lodging complaint or appeal under this section.
(8) No complaint under this section shall amount to prosecution under this Act.
(9) Notwithstanding anything contained in this section, no complaint shall lie against an order of
termination of employment of a worker under section 26, unless such order is alleged to have been
made for his trade union activities or passed motivated or unless the worker concerned has been
deprived of the benefits specified in that section.
their basic needs cannot be met. Such conditions arises social crisis, which may result in theft,
robbery, burglary etc.
3) Affect on the Country: Due to stoppage of production in strikes, the GDP of the country
decreases. Prosperity of the country is hampered.
Section 211(8).No strike shall be permissible in an establishment for a period of three years from the
date of commencement of production, if such establishment is a new one or is owned by foreigners or is
established in collaboration with foreigners.
Section 213.Application to the Labor Court
Any collective bargaining agent or any employer or workman may apply to the Labor Court for the
enforcement of any right guaranteed or secured to it or him by or under any law or any award or
settlement.
(d) it is declared, commenced or continued during the period in which a settlement or award is in
operation in respect of the matter covered by a settlement or award.
(2) A lock-out declared in consequence of an illegal strike and a strike declared in consequence of an
illegal lock-out shall not be deemed to be illegal.
employees work only for a paycheck, many work for more than money. Giving workers the freedom
to make day-to-day decisions will help them feel more in control. This can go a long way toward
increasing employee satisfaction and decreasing the likelihood of a strike.
(4) In the event of such stoppage occurring at any time during working hours, the workers affected shall
be notified, as soon as practicable, in the manner specified in sub-section (2) indicating as to when the
work will be resumed and whether such workers are to leave or remain at their place of work.
(5) In the case where workers have been directedto stay at their place of work following such stoppage,
the workers so detained may not be paidfor the period of such detention if it does not exceed one hour,
and the workers so detained shall be paid wages for the whole period of such detention if it exceeds one
hour.
(6) If the period of stoppage of work does not exceed one working day, a worker, unless entitled to wages
under sub-section (5), may not be paid any wages.
(7) If the period of stoppage of work continues for more than a working day, a worker affected, other than
a casual or badli worker, shall be paid wages for day or day by which it will exceed one working day.
(8) If the period of stoppage of work extends beyond three working days, the workers may be laid-off in
accordance with the provisions of section 16.
(9) A lay-off mentioned in sub-section (8) shall be effective from the day of stoppage of work and any
wage paid to a worker for the first three days may be adjusted against the compensation payable for such
subsequent layoff.
(10) For the piece-rate workers affected, their average daily earning in the previous month shall be taken
to be the daily wage for the purpose of the sub-section.