industrial relation

1. Industrial Relations
Chapter: 3
Trade Unionism

2. Topic:
Concept, Nature of Trade Union, Objectives, Types,
Theories, Economic models, Functions Trade Union
structure in Bangladesh, Trade Union in Public Sector in
Bangladesh, Trade Union in RMG sector and EPZs in
Bangladesh, Registration of Trade Union, Trade Union
leadership, Trade Union movement in Bangladesh

3. The Concept of Union
• Union
– An organization of workers, acting collectively, seeking to
promote and protect its mutual interests through collective
bargaining.
– An organization that represents employees’ interests to
management on such issues as wages, work hours, and
working conditions
Why
Employees
Join Union
• Higher wages/salaries & better working condition
• Collective bargaining with employer
• Job security
• More secured with collective agreement
• Social need
• Meet co-workers from other departments or
companies
• Upgrading of skills
• Attend training courses organized by union
• Peer pressure
• Colleagues are members

4. Trade Union
• Trade Union
– A continuous association of wage earners for the purpose of
maintaining and improving their working lives
– A continuous long term association of workers, formed and
maintained for advancing and protecting interests of its
members in their working relationships.
– Major components of industrial relations systems.
– Is an instrument of defense against exploitation and provide
a forum for collecting the forces of working class.

5. Characteristics of Trade Union
• Characteristics of Trade Union
– A voluntary associations of workers
– Permanent combination of workers; are not temporary or
casual.
– Formed by collective actions of workers.
– Basic objective is to promote protect the economic, social,
and vocational interests of the workers/members
– Are adoptable to the changing socio-economic and legal-
political environment.
– Designed to eliminate the exploitation of workers thorough
workers’ participation in management.
– Emerged due to group psychology.

6. Objectives of Trade Union
Representation
Voice in decisions
affecting workers
Education and
training
Legal assistance
Income and job
security
Welfare benefits
Negotiation
Industrial
Democracy
Objectives
of Trade
Union

7. Approaches/Theories of Trade Union
1. Revolutionary Theory/Anti Capitalism Approach (Karl Marx)
– Trade union is an instrument for destroying capitalist class.
– Trade union is necessary to bring about revolutionary and
fundamental changes in social order.
– With the development of industry, the proletariat (workers)
are not only increase in number, it become concentrated in
greater mass, its strength grows.
– Trade Union have two goals;
• Short-term: day-to-day struggle for maintaining wages and
reducing working hours
• Long-term: try to abolish the capitalist system.
– The increasing improving in machinery and automation
create collision between proletariats (workers) and Bourgeois
(capitalists); therefore, the workers should come into a
platform in the form of Trade Union to fight against
capitalists for their interests.

8. Approaches/Theories of Trade Union
2. Evolutionary Theory/Industrial Democracy Approach
(Sidney Webb and Beatrice Webb)
– Trade unionism is an extension of the principle of
democracy in the industrial sphere.
– Trade unionism is not an instrument to overthrow the
capitalism, but a means of equalizing the bargaining power
of labor and capital.
– Trade unionism try to transform industrial autocracy to
democracy.
– Trade union is a means by which workers can cope up with
stronger economic and political power.

9. Approaches/Theories of Trade Union
3. Rebellion Theory/Capitalism Approach (Frank
Tannenbaum)
– Trade unionism is a spontaneous outcome in the growth of
mechanization.
– This theory indicates that the fundamental cause of
exploitation of workers is the increases use of machine
which threatens workers job security.
– Therefore, workers attempt to control the growth of
mechanization and start labor movement; as a result Trade
Union formed.
– In other words, Trade Union is the byproduct of industrial
society in which automation (machine) has destroyed the
old way of life and robbed the workers of their identity,
purpose, and creativity.

10. Approaches/Theories of Trade Union
4. Social-psychological Approach (Robert Hoxie)
– Trade union emerged due to group psychology, social
psychological environment rather than economic reasons.
– Unionism affects not only production but also the
established rights (employer’s right to run their businesses,
workers’ right to work), ethical standard, distribution of
wages, and law & order.

11. Approaches/Theories of Trade Union
5. Gandhian Approach (Mahatma Gandhi)
– This approach focuses on truth, trusteeship and non-
violence.
– Trade Union is an institution in which capital and labor are
not antagonistic but are supplementary.
– Capitalists act as trustee of welfare of the working class.
– This approach is not merely related to material aspects but
to moral and intellectual aspect.
– Here, Trade Union strive for all round betterment of the
working class including training of its members in
supplementary occupations to avoid the risk of
uncertainty of jobs.
– Trade union is a moral institution which uphold the
dignity of labor by following the principle of equality and
trusteeship.

12. Economic Model of Trade Union
• Although the main tool used by labor unions to increase
wages and benefits is through collective bargaining, the result
of union activities can be understood best through simplified
economic models of the union's efforts to raise wages and
benefits.
• These methods have the result of either;
– Increasing the demand for labor
– Restricting the supply of labor
– Bilateral monopoly

13. Economic Model of Trade Union
1. Increasing the demand for labor
• Unions have used various methods to increase the demand for
labor as a way to increase wages.
– Recognizing that firms cannot pay union wages or benefits if
they have to compete with cheap foreign competition, Trade
Unions attempt to increase labor demand by advertising to buy
products or services that were made domestically, such as the
"Made in Bangladesh" campaigns.

14. Economic Model of Trade Union
1. Increasing the demand for labor (cont’d)
– Many Trade Unions also seek to have tariffs imposed on
foreign produced products or services that compete with
domestic output.
– Sometimes Trade Unions also try to reduce competition by
making labor generally more expensive, such as by raising the
minimum wage. If everyone is making more money, then
there is less incentive for the unionized firms to seek
nonunion labor if the differential between the two is less.

15. Economic Model of Trade Union
2. Restricting the supply of labor
• Many Trade Unions restricts their membership by requiring
long apprenticeship and high membership fees and compelled
firms to hire only unionized labor.
– As a result, restricting the supply of their own
membership, they increase the wages that they can earn.

16. Economic Model of Trade Union
2. Restricting the supply of labor (cont’d)
– Some Trade Unions try to eliminate the hiring of the non-
unionized labor by threatening to strike, where no member
of the union will be permitted to work until the firm settles
the strike by agreeing not to hire nonunion workers.
– Many Trade Unions use occupational licensing as a means to
limit membership,
•For example, in some countries Plumbers, electricians,
and carpenters, and other members of the construction
trade most often require licenses to work in their trade.

17. Economic Model of Trade Union
3. Bilateral Monopoly
• Sometimes a firm and a union form a bilateral monopoly,
where the firm is a monopolist as a buyer of labor and the
union is a monopoly as a seller of labor.

18. Economic Model of Trade Union
3. Bilateral Monopoly
– The monopolist will seek to pay the Wm wage rate while
the union will seek to get the Wu wage rate.
– Who prevails will depend on who has greater market
power or who is a better negotiator.
– It is possible, however, that the power of the monopolist
will be offset by the power of the union and will instead
agree on a wage that is closer to the competitive wage, Wc,
which is higher than Wm but lower than Wu.
– However, the quantity of laborers employed will probably
be less than it would be under pure competition (Qu < Qc).

19. Structure/Types of Trade Union
Trade
Union
On the basis of
Purpose
On the basis of
Membership
Reformist
Union
Revolutionary
Union
1. Business
Unionism
2. Uplift
Unionism
1. Anarchist
2. Predatory
3. Political
4. Guerrilla
1. Craft
2. Industrial
3. Staffs
4. General

20. Structure/Types of Trade Union: Reformist
• Reformist Union
– Aim is to retain the present structure of capitalist society
– Want to maintain the usual employee-employer relationship
by eliminating the competitive system of production.
– Never wish to destroy the current existing social, economic,
and political structure.
Business Unionism Uplift Unionism
• Cordial relationship exists
between workers and employers.
• Conflicts are resolved by
collective bargaining and in a
peaceful manner.
• Workers always seek to achieve
economic goals of the firm.
• Favors voluntary arbitration and
avoid strikes, lockout and
political actions.
• Friendly or ideal unionism aim
to promote worker’s social,
intellectual and moral values.
• Give more emphasis on
insurance benefit, health,
education and welfare benefits.

21. Structure/Types of Trade Union: Revolutionary
• Revolutionary Union
– Aim is to overthrow capitalist structure and ensure
socialist or communist structure.
– Try to destroy existing capitalist economic system through
some revolutionary measures.
1. Anarchist: aim to destroy capitalist economic system
2. Political: seek to redistribute wealth of the society by
giving a share to workers; they get power through
political actions
3. Predatory: seek their objective without sticking to
any approach.
4. Guerrilla: do not believe in cooperation with the
employers; believe in violence, exploitation to
achieve their objectives.

22. Structure/Types of Trade Union: Based on Membership
1. Craft Union
– Covers all workers engaged in a single occupation or craft
irrespective of industries.
– All craft union link together those workers who possess
similar skills, craft training, apprenticeship, and
specialization
– Example: electricians from all industry.
2. Industrial Union
– Organized on the basis of industry rather than craft.
– All skilled, unskilled, semi-skilled workers from a industry
regardless of the differences in crafts, skill position, gender
formed an industrial union.
– Example: Textile Labor Association.

23. Structure/Types of Trade Union: Based on Membership
3. Staff Union
– Combination of craft and industrial union but for non-
manual workers.
– Is mostly formed by the workers of tertiary sector like
health, tourism etc. industry.
4. General Union
– Represents workers from all industries
– Organized by the workers of different industries and with
various skills.
– Membership is open for every workers
– Differ from Federation in that its members are individual,
not he unions.

24. Functions of Trade Union
1. Militant Functions
– Activity for betterment of the position of the workers.
• Ensure adequate wages
• Secure better conditions of work and employment
• To protect workers from injustice
• Ensure better treatments from the employers etc.
– Unions aims to ensure these through collective bargaining
and negotiation with the employers; if this fails, Trade
Union adopt fighting/militant approach like go-slow
tactics, strikes, gherao, boycott, etc.

25. Other Functions of Trade Union
2. Fraternal Functions
– Rendering help to their members in times of need and
improving their efficiency
• Provide education and culture training to workers
• Undertake various welfare activities for workers such as
school for workers’ children, library facilities, in-door
and out-door games, and other recreational facilities.
• Arrange legal assistance to its members, if necessary.
– These activities (fraternal functions) depend on availability
of funds which the Trade Union raises from the
subscription of its members and donations from outside.
3. Political Functions
– Some Trade Union participate in national election and send
their representatives to legislature to safe guard the
interest of their members.

26. Trade Union Structure In Bangladesh
National Federation of Trade Union
(Controlling and coordinating authority of all industrial federations at national level;
Example - SKOP)
National
Unions
Industrial Federation
(Formed through the
combination of basic unions
of the same industry;
Example – Bangladesh Textile
Mills Labor Federation)
Regional or
Zonal Committee
Branch
Committee
Basic Unions
Industrial
Federation
Basic Unions
Regional or
Zonal Committee
Branch
Committee
Basic Unions
(union of general workers at factory level)

27. Trade Union Structure in Bangladesh
Total Number of Trade Unions Registered by the Department of
Labor (Till January, 2013)
Name of Office No. of Trade
Unions
No. of
Members
Department of Labour, Head Office, Dhaka 279 406479
Divisional Labour Office, Dhaka 2924 695158
Divisional Labour Office, Chittagong 1370 552469
Divisional Labour Office, Rajshahi 1682 364437
Divisional Labour Office, Khulna 1005 300712
Total 7260 2319255

28. Trade Union Structure in Bangladesh
Total Number of Trade Union Federations Registered by the
Department of Labor (Till January, 2013)
Type of Federations No. of
Federations
No. of Affiliated
Unions
No. of
Members
National Federation 32 1352 1076367
Industrial federation
(Different Type)
82 337 276021
Road Transport Federation
(Mechanical)
10 63 56893
Road Transport Federation
(Rickshaws)
05 27 52747
Garments 34 123 62982
Total 163 1902 1525010

29. Trade Unions In Public Sectors In Bangladesh
• Trade Unions in Public Sector
– According to Labor Act 2006, trade unions are allowed for
workers in publicly owned corporations, railways, telephone
and postal services, public works, public health engineering
and government printing press etc.
– Workers in the public sector with the exception of oil and gas,
railway, postal and telecommunication services cannot exercise
the right to collective bargaining through trade unions as they
are not reasonably organized.
– In public sector enterprises the prospect of trade union
activism in realizing just and reasonable wages and
improvement of service conditions is statutorily restricted; the
terms and conditions of employment are determined by the
government (National Wages Commission).
– In reality, no trade unionism is practiced in the public
industrial enterprises in Bangladesh.

30. Trade Unions In RMG Sector In Bangladesh
• Trade Unions in RMG Sector
– Until 1997 there were only 3 Trade Unions in the RMG sector.
– In 1997, seven Trade Unions came together to form a grand
alliance under the auspices of Bangladesh Garments Workers
Unity Council.
– From 1997 to 2006, this RMG workers’ union signed seven
agreement/MOUs with the BGMEA on matters of;
• Declaring and implementing minimum wages for garments
workers,
• Recognizing trade union activities,
• Providing appointment letters and identity cards to the
workers,
• Fixing working hours and ensuring maternity leave and
other holidays.

31. Trade Unions In RMG Sector In Bangladesh
• Trade Unions in RMG Sector (cont’d)
– In 2006, there was a national tripartite agreement
(Popularly known as the national tripartite memorandum
of understanding) was concluded between the
government, BGMEA and the organizations representing
garments workers; which is seen as a landmark
achievement towards resolving the abovementioned issues.
– Most of the demands were subsequently incorporated in
the Bangladesh Labor Act 2006.
– At present, 34 federations with 123 affiliated unions and
61982 workers and 2 national garment federations are
registered by Department of Labor, Bangladesh.
– Knitwear garment workers are outside of the operations of
the trade unions.

32. Trade Unions In EPZ In Bangladesh
• Trade Unions in EPZ
– Trade Unions were not allowed in EPZs until 2004 on the
ground that introducing trade unions in such areas would
undermine the working environment there.
– However, a limited right of trade unionism was allowed
through the enactment of the EPZ Workers Association &
Industrial Relations Act, 2004, which provided that the
workers in industrial units within the territorial limits of a
Zone shall have the right to form association to engage in
industrial relations from Nov 1, 2006.
• Only one trade union is allowed in a Zone
• 30% of the workers had to express a desire to form a
workers’ association.
• A person or a panel will work as executive committee of
association for one year who/which must be elected by at
least 50% of voters.

33. Trade Unions In EPZ In Bangladesh
• Trade Unions in EPZ: What is the difference?
– All Trade Unions are to be registered with Department of
Labor under Ministry of Labor and Employment,
Bangladesh whereas EPZ Workers’ Associations can be
registered with BEPZA only.
– Remained as a association, not Trade Union.
– Do not have any legal collective bargaining power;
however could negotiate with the employer on working
conditions, remuneration or payment for productivity
enhancements and worker education programs, according
to the laws of Bangladesh.
– All associations governed by The Bangladesh Export
Processing Zone (EPZ) Labor Act 2014 was prepared by a
special committee formed by the Prime Minister’s Office of
Bangladesh.

34. Trade Unions Registration In Bangladesh
• Step 1: Application for Registration
– Every Trade Union under the signature to its president and
the secretary, should apply to Director of Labor in a
prescribed application form for registration.
• Step 2: Requirements for Application
– Every application for registration shall be accompanied by a
statement showing;
•The name and address of the trade union
•Date of formation of the union
•The titles, names, ages, addressees, and occupation of the
office bearers of the union
•Statement of total paid membership.

35. Trade Unions Registration In Bangladesh
• Step 2: Requirements for Application (cont’d)
– Three copies of constitution of Trade Union together with a
copy of resolution by the members of Trade Union adopting
such constitution bearing the signature of the chairman of
the meeting
– A copy of resolution by the members of Trade Union
authorizing its president and the secretary to apply for its
registration.
– In case of federation of Trade Union – the names, addresses,
and registration number of member unions.
– In case of federation of Trade Union – a copy of resolution
from each of the constituent unions agreeing to become a
member of federation

36. Trade Unions Registration In Bangladesh
• Step 3: Requirements for Registration
1. A trade union shall not be entitled to registration unless the
constitution thereof provides for the following matters;
– The name and address of the trade union
– The objects for which the trade union has been formed
– The manner in which a worker may become a member of
the trade union
– The sources of the fund of the trade union and the purposes
for which such fund shall be applicable
– The conditions under which a member shall be entitled to
any benefit or any fine or forfeiture imposed on him
– The maintenance of a list of the members of the trade union
– The manner in which the constitution shall be amended
– The safe custody of the funds of trade union, its annual
audit, the manner of audit

37. Trade Unions Registration In Bangladesh
• Step 3: Requirements for Registration (cont’d)
– The manner in which the trade union may be dissolved
– The manner of election of officers by the general body of the
trade union and the term (not exceeding two years)
– The meetings of the executive and of the general body of the
trade union
2. A Trade Union of workers shall not be entitled to registration
unless it has a minimum membership of thirty percent (30%) of
the total number of workers employed in the establishment or
group of establishments in which it is formed.
Disqualifications for being an officer or a member of a Trade Union
• A member can not be elected as a officer if he has been convicted of an
offence involving moral turpitude or an offence under law.
• A person can not be a member or officer of a trade union formed in any
establishment if he was previously dismissed from that establishment.

38. Trade Unions Registration In Bangladesh
• Step 4: Registration
Application for Registration
to Director of Labor with all
Necessary Documents
Trade
Union
Issue Certificate of
Registration
If no objection
regarding
application
If any objection, sent
to TU within 15
days
Reply about
objection
within 15
days
If objections
satisfactory meet
If objections
satisfactory not meet
Reject
Application
Within 60 days
from the receipt of
Application
TU may
appeal to
labor Court
with in 60
days and
The Court
may order
the Director
to issue the
certificate
or dismiss
the appeal

39. Trade Union Leadership
Trade Union Leadership by Outsiders
Advantages Disadvantages
• Outside leaders may contribute
more as the workers are illiterate
and unorganized.
• More skilled, experienced in
collective bargaining.
• Are not afraid of loosing their jobs.
• May leads to political unionism
which in turns create multiplicity
of and intra-union rivalry
• May not directly committed to
labor issues; my have interest to
fulfill their interests
• Workers may not have trust on
them
• Trade Union Leadership by Insiders
Advantages Disadvantages
• More realization of actual
problems of workers
• Workers have trust as they are
inside people and elected by their
votes
• May not be experienced, and
skilled to deal with labor issues
• Nepotism and regionalism
• May not contribute as they have
fear of loosing jobs.

40. Trade Unions Movement In Bangladesh
• Trade Union Movement in Bangladesh
– Unorganized
– Dominated by the leaders having political interests.
– Distrust of general workers toward TU leaders.
Major Weakness of Trade Union Movement in Bangladesh
• TU unable to enforce their rights due to absence of democratic
environment; Powerful TUs are controlled by Government
• Uncompromising attitude of employers is a major barrier in TU
movement
• Political divisions, nepotism, regionalism among workers give
opportunity to employers to exploit the working class.
• Autocratic attitude of the managers (act for the interests of
employers) is also a big problem in TU movement.
• Political affiliation of TUs force them to work for political parties’
interests’ not for ensuring the rights for workers.
• Inexperienced, unskilled TU leaders often failed in bargaining
with employers