Trade unions are organizations formed by workers to collectively bargain with management to improve working conditions and protect worker interests. This document discusses the history, objectives, functions, and current state of trade unions in Bangladesh. It notes that while trade union rights are constitutionally protected, implementation remains a challenge, with low unionization rates in the private sector. Overall, trade unions play an important role in Bangladesh but continue facing issues like weak financial positions, outside influence, and lack of recognition from some employers.

1. 1

2. 2
Submitted to:
Farhad Hossain
Senior Lecturer
Department of Business Administration
Leading University, Sylhet

3. Md. Alimuzzaman
1201010249
Mahmudul Hasan
1201010181
Anjomy Akter
1201010072
Masum Hussain
1201010202
Zakiatunnessa Uma
1201010007
Rabeya Rahman
1201010091

4. Trade Union
Trade union is an organization of workers which is formed
to improve the condition of workers in the organization
and also for collective bargaining with the management.
It talks about three relationships.
They are relationship between the:
• Workmen and workmen
• Workmen and employers
• Employers and employers.
4

5. History of trade union (Contd.)
 The predominance of employer-employee relation is associated with
rise of modern industry and large production units .The great
transformation which ushered in the industrial society began in Great
Britain in the latter half of the 18th century. During the 19th century,
the movement spread to a dozen of the other countries .
 The Pakistan Period (1947-71)
• The East Pakistan Trade Unions Act, 1965 was
enacted repealing the Trade Unions Act, 1926.
• The Labor Disputes Act, 1965 was enacted.
• Industrial Relations Ordinance, 1969 was enacted
integrating the above two Acts.
5

6. History of Trade Unions (Contd.)
 Bangladesh Period (1971-onwards)
1. Government of Bangladesh declared a labor policy in 1972. The right
to strike and collective bargaining in the nationalized industries was
prohibited for six months by Presidential order no. 55 in May 1972.
2. In 1973, the right to strike and lockout, as granted by ILO, 1969 was
withdrawn.
3. In 1974 Act completely suspended the democratic rights of workers
by prohibiting trade union activities such as strikes, lock-outs,
collective bargaining.
4. The military regime of 1975 imposed restrictions on the rights of
collective bargaining.
5. The Industrial Relations (Amendment) Ordinance, 1977 liberalized
the Rights of Freedom of Association
6

7. History of Trade Unions
6. The Labor Policy of 1980 restored the right to freedom of association to a
considerable extent
7. In 1982 the military regime banned trade union activities, strikes, and right of
freedom of association.
8. Full trade union activities were restored by the democratic government in 1991.
9. In 2006, an updated, consolidated and unified version of labor laws was enacted.
10. During the Emergency in 2007-2008 that lasted for 23 months, trade unions and
collective bargaining were prohibited and the determination of collective
bargaining agent could not be made.
11. However, full trade union activities were restored by the democratic government in
2009.
7

8. Scenario of Garment Industry (Contd.)
1. Bangladeshi Garment Industry is the largest industrial sector of the
country. Though the history of Readymade Garment Industry is not
older one but Bangladeshi clothing business has a golden history.
2. After industrial revolution in the west they were busy with
technological advancement & started outsourcing of readymade
garments to meet up their daily demands. Many LDC’s took that
chance & started readymade garment export at that markets.
8

9. Scenario of Garment Industry
3. The history of the garment industry dates back to 1977 when the first
consignment was exported to then West Germany by Jewel Garments.
4. Several factors account for the outstanding successes of the RMG
industry in Bangladesh. At the same time
5. The tremendous success of readymade garment exports from
Bangladesh over the last two decades has surpassed the most
optimistic expectations. Today the apparel export sector is a multi-
billion-dollar manufacturing and export industry in the country.
9

10. Some cases about accident of garment sectors in Bangladesh (Contd.)
Rana Plaza tragedy
The collapse of an eight-storey garment factory in Rana Plaza on the
outskirts of Dhaka on April 24th killed at least 1,135 people and
injured many more. It was probably the worst industrial accident in
South Asia since the Bhopal disaster in 1984, and the worst ever in
the garment industry.
10

11. Some cases about accident of garment sectors in Bangladesh
Tazrin Fashion
The 2012 Dhaka fire broke out on 24 November 2012, in the Tazreen
Fashion factory in the Ashulia on the outskirts of Dhaka, Bangladesh.
At least 117 people were confirmed dead in the fire, and over 200
were injured, making it the deadliest factory fire in the nation's
history.
11

12. Principles of Trade Unionism
Trade unions function on the basis of three fundamental
principles.
• Unity is strength.
• Equal pay for equal work or for the same job.
• Security of service.
12

13. Features of trade unions
1. It is an organisation formed by employees or workers.
2. It is formed on a continuous basis. It is a permanent body and not a
casual or temporary one.
3. It is formed to protect and promote all kinds of interests –economic,
political and social-of its members. The dominant interest with
which a union is concerned is, however, economic.
4. It includes federations of trade unions also.
5. It achieves its objectives through collective action and group effort
13

14. Objectives of Trade Union
 To improve the economic lot of employees by securing for them better wages.
 To secure better working conditions for the workers.
 To secure bonus for the employees from the profit of the concern,
 To resist schemes of the management which reduce employment, e.g.,
rationalization and automation.
 To secure welfare of employees through group schemes which give benefit to every
employee.
 To protect the interests of employees by taking active participation in the
management.
 To secure social welfare of the employees.
 To secure organizational stability, growth, and leadership.
14

15. Functions of Trade Unions (Contd.)
 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.
 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 relations and diffuse education and culture among their members.
15

16. Functions of Trade Unions
Another broad classification of the functions of unions may be as follows
 Intra-mural activities. These consist of those functions of the unions that lead to
the betterment of employment conditions such as ensuring adequate wages and
salaries, etc. for which the methods adopted may be collective bargaining,
negotiations, strikes, etc.
 Extra-mural activities. These activities help the employees to maintain and
improve their efficiency or productivity, e.g., measures intended to foster a spirit
of cooperation, promote friendly relations, and diffuse education among members
and various other types of welfare measures.
 Political activities. Modern trade unions also take up political activities to achieve
their objectives. Such activities may be related to the formation of a political party.
16

17. Motivation to Join Unions (Contd.)
• Greater Bargaining Power. The individual employee possesses very little bargaining
power as compared to that of his employer. If he is not satisfied he can leave the
job.
• Make their Voices Heard. The desire for self-expression is a fundamental human
drive for most people. All the workers wishes to share their feelings, ideas and
opinions with the management to listen to them.
• Minimize Discrimination. The personal relationships existing between the
supervisor and each of his subordinates may influence the management. Thus,
there are chances of favoritisms and discriminations.
17

18.  Sense of Security: The employees may join the unions because of their belief
that it is an effective way to secure adequate protection from various types of
hazards.
 Sense of Participation: The employees can participate in management of
matters affecting their interests only if they join trade unions.
 Sense of Belongingness: Those who are members of a union feel that they gain
respect in the eyes of their fellow workers. They can also discuss their problem
with’ the trade union leaders.
Motivation to Join Unions
18

19. Structure of Trade Unions
Plant level Unions: This comprises the unions in one organization or
factory where only seven members are required to form a union.
Local Level federations. The local trade union federation holds
together the plant level unions at the local level in a particular craft and
industry.
Regional level federations. These are the organizations of all the
constituent unions in a particular state or region.
National federations. These are national level bodies to which plant
level unions, local unions or regional level unions may get affiliated.
These are the apex bodies at the top of the structure.
19

20. Demography
Bangladesh with 160 million people is listed as the 7th largest country
population. 25% of the population is considered urban. 4% of its
population is over 65 years of age.
Economy
Bangladesh is ranked 47th by GDP and its GDP per Capita is $1300
and is ranked 196th. External debt is $316.7 per $ 1000 GDP.
Poverty and inequality
Bangladesh has the 2nd highest % population below $1 a day income
in the region after Afghanistan.
Human Development
Human Development Report (2014) ranked Bangladesh 142 among
177 countries which is consistent with medium human development.
Bangladesh at a glance
20

21. 1. Active Labor force is estimated at 58 million (aged 15 and over) with
38% women of total workforce.
2. Youth (aged 15–29) account for 41 per cent of the working-age
population.
3. The unemployment rates are higher among females (7 per cent) and
youth (8.1 per cent).
4. By sector, agriculture accounts for 48.1 per cent of employment,
services account for 37.4 per cent and manufacturing and other
industries account for 14.5 per cent.
5. The population growth rate 1.48% and estimated literacy rate is 56%
6. GDP growth rate 6.2% and rate inflation 1.6%
7. Only 28 per cent of workers had a written contract or appointment
card.
Labour force of Bangladesh
21

22.  Trade union movement started in Bangladesh early 19th century when
modern industrial concept entered into the sub-continent
 Trade union plays a significant role to protect workers rights in Bangladesh
 Trade union rights are not adequately protected in Law/Employers are not
respected Labour Law or Trade Union Rights
The Bangladesh constitution provides for freedom of association; in order to
register
- Unions must at least 30% of the workers representation of an
enterprise
- Must obtain authorization from the government
- The Registrar may also cancel the registration with Labour
Court approval
Trade union situation in Bangladesh (Contd.)
22

23. Trade union situation in Bangladesh (Contd.)
 In general, only current employees can be union members, which mean that
the loss of a job also leads to the loss of union membership
 The trade unions are very strong in Bangladesh, although only 3.5 percent of
the workforce is unionized, but most of the unions are limited to the public
sector or state-controlled enterprises.
 The private sector is less unionized and trade unions are practically banned
from the Export Processing Zones (EPZ), as the EPZ is exempted from
certain labor laws.
 About 1.8 million of the country's workers belong to unions, out of a total
workforce of approximately 58 million.
 Most of the federations are financially weak and don't have in-house
development programmes for the activists. Education level of the workers
are not in a satisfactory level. Offices are not equipped with modern
communication system.
23

24. There are three tier structure of trade union in Bangladesh
 Basic Union: This is the main union formed by the direct participation of the
workers Grass root level.
 Industrial Federation: It is the body of unions from the same industrial sector. It
deals with common problems and demands of the sector. Basic unions within the
sector are its members.
 National Federation: National Trade Union federation consists of basic unions
irrespective
of job categories.
Total number of registered trade unions in Bangladesh
Trade union structure
Categories Total number of
unions/federations
Number of unions
included
Number of members
Basic union 5,242 - 2,069,614
Industrial federation 108 721 640,221
Garments federation 26 80 50,149
National federation 32 1,264 1,263,665
24

25. Membership
Potential membership : 57,100
Actual membership : 52,800
Thereof women : 17,277
Baseline information on membership
Textile: Male : 29,120 Female : 1,605
Garments: Male : 6,403 Female : 14,147
Home workers: Male : - Female : 1,525
Gender distribution in decision-making structure (female Percentage)
Federal level 16%
Union level 10%
Branch level 3% – 5%
Bangladesh textile & garment workers
25

26.  Bangladesh has ratified almost all ILO conventions related to human
fundamental needs except conventions 138.
 Although Bangladesh has not yet ratified conventions 138, but government
has already formed a committee to make a door to ratify the convention
 The convention 187 has yet to ratify by the Government of Bangladesh
 Bangladesh Textile & Garment Workers League having a long journey to
push government for ratification of convention 29, 182
 The trade union is continuing its pressure to ratify 138 & 187 to uphold the
labour standard in the country
ILO conventions
26

27. Eight Core Rights (ILO)
1. Forced on Compulsory Labour.
2. Freedom of Association.
3. Right for Collective Bargaining.
4. Equal Remuneration.
5. Abolition of Forced Labour.
6. Discrimination in Employment.
7. Minimum Age for Employment.
8. Worst forms of Child Labour Convention.
27

28. Problems & weaknesses of Trade Unions (Contd.)
 Uneven Growth. The trade unionism in Bangladesh is characterized by uneven
growth, both industry-wise and area-wise.
 Limited Membership. The number of trade unions in Bangladesh has increased
considerably. But this has been followed by the declining membership per union.
 Indifferent Attitude of Workers. The attendance at the general meetings of the
unions is very low. Under such circumstance, trade unionism cannot be expected to
make much progress.
28

29. Problems & weaknesses of Trade Unions
29
 Outside Leadership: Outsiders (politicians, intellectuals and professionals ) who
have no experience of work in industry continue to dominate the trade unions to
advance their personal interests.
 Financial Problems. The financial position of the trade unions is weak because
their average yearly income is very low and inadequate.
 Multiplicity of Unions. There exist several trade unions in the same establishment.
The multiplicity of unions is the result of outside leadership and labour laws.

30. Criticism of Trade Unions
 Lack of education makes the workers narrow-minded, and prevents them from
taking long-term views.
 Trade unions may not welcome rationalization and improved methods of
production for the fear of losing job.
 When labor unions strike because of illogical grounds, incalculable losses occur
to producers, community and the nation.
 They create artificial scarcity of labor by demanding that only union personnel
should be employed.
 By undue insistence on the payment of standard rates of wages, they have only
leveled down the earnings of the efficient workers.
30

31. Suggestions for the development Unions (Contd.)
• One Union in One Industry: There should be only one union in
one industry otherwise multiplicity of unions may weakens the
power for collective bargaining.
• Paid Union Officials: Paid union officials should be employed
who are persons of proven integrity.
• Development of Leadership from Within: Leadership should be
developed from within the rank and file of the workers.
• Recognition of Trade Unions. Till now, the employers refused
recognition of the trade unions.
31

32. Suggestions for the development Unions
1. Strengthening bilateral collective bargaining for solving problems.
2. Multiplicity of trade union creates the rivals in a union.
3. Political involvement must be reduced.
4. Organization must support financially as trade unions support the
worker.
5. Training programs under trade union can be helpful to develop the
skills.
6. Trade union’s function should be increased and widened.
7. Union leader must be given importance and encourage the members.
8. If trust between workers and management increases, productivity
increases.
9. Management must help and guide trade unions to settle industrial
clashes.
10. Trade unions always should demand reasonable thing to the
management. 32

33. Conclusion
Although in recent times the rate of unionization has increased in the RMG
sector, trade union affiliation is low in Bangladesh compared to many other
developing countries.
-Trade unions have an important role to play in settling disputes between
workers and management over wages by way of collective bargaining.
-Bangladesh should also start practicing like Japanese trade union which
has a single union for single enterprise. There is no conflict, no unfair means
and no strikes in productivity and the growth of the overall economy.
33

34. Thanks for
Patient Hearing