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Industrial Relations

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.

Md. Ali Reza


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BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

Qus: Areas/Scopes of Industrial Relations (Areas of Industrial Conflict)


Ans: There may be many reasons that turn to conflicts and disputes between workers and management.
The areas or scope for such industrial conflicts can be classified in several categories; as follows:
1) Economical: Wages, increment, bonus, pension, gratuity, provident fund etc.
2) Organizational: Working terms & conditions, working period, leave,work system etc.
3) Personnel Management: Selection procedure, appointment, promotion, transfer, discipline,
compliance, motivation, punishment etc.
4) Welfare: Workers welfare, entertainment, sports, cultural program etc.
5) Behavioral: Behavior patterns between management and workers, or workers and workers.
6) Tactical & Legal: Lay-off, lockout, strike etc.
7) Institutional: Weakness of the trade unions and their behavior, violation of the law and contract by
any party, inefficient management.
8) Political: Influence of the government on the management, political influence and pressure on the
trade unions.
9) Social: Influences of formal and informal groups, influences of geographical areas on the
management and workers.
Qus: Nature of Industrial Relations
1. Conflictual Relation: this is always a conflictual relation. Because, here always exist conflict
between the employer- employee and management employee.
2. Employer- Employee Relation: Industrial relation should exist between employer and employee.
Because, normally employee to employee have no conflict. If have, this must not severe.
3. Running and Fictitious Relation: Industrial relations ongoing relation. Because this relationship
must never be broken and the relationship is always fictitious.
4. Relationship is stable and unchanged: Industrial relationship is occurring from the period of
industrial revolution to still now.
5. Two Way Relationships: Employees want more from doing less and the employers want to give
minimum as they can and they want more production. So, the relationship is not one way.
6. Dissimilar Power of Employer and Employee: Another characteristic of industrial relation is
dissimilarity of power of employer and employee. The employer has more power than the employees.
7. Stable Conflict in the Field Of Profit: Employees want share of profit and the employer dont want
to share the profit with the employee. So, they always stay in conflict.
Qus: Importance of Industrial Relations
1. Industrial Satisfaction and Development: industrial relation is essential for making industrial
satisfaction and development of each employee.
2. Establishing a Sound Industrial Environment: industrial relations are essential for establishing
peaceful environment by reduce the conflict between the partners.
3. Facilities of Profit and Wages: it is essential for increasing the profit for employer and increase the
wage for worker.
4. Bringing Social Piece: social piece is come from the industrial peace. Because, the worker feel peace
in home if we feel peace in work environment.
5. Develop Morale: by developing organization structure and industrial relation, it develops the morale
of the employees.
6. Maintaining Balance: there is a huge difference between employer and employee. These differences
can be minimizing by good industrial relations.

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BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

Qus: Actors/ Partys of Industrial Relations


Ans: Industrial relationship is the relation of owner/ management, workers and the government agency.
So, there are three parties involved with industrial relation-
A. Trade Union: trade union is the heart of industrial relation. The employee can present their
complaint through the trade union. They have taken different measures for getting the faire wages.
B. Owners/ Management: managers are the representative of owner. They negotiate with the trade
union for take a reasonable agreement.
C. Government: government forms different rules and impose these rules fro protect the employer and
employee. Government play important role as a medial for resolve the conflict between the two
groups.

Qus: Factors That Affect the Pattern of Industrial Relation [2013-1.a]


Ans: There are some aspects that influence the patterns of industrial relations. These influences act,
interact and reinforce one another in the course of developing industrial relations some of the aspects arc
mentioned below:
A. Social Aspects: There are certain social aspects which influence the pattern of industrial relations.
such as-
1. Social Status: Workers- have a different social identity and status. As a result, there is a distance
in relationship.
2. Social Groups: Different social groups such as master- servant, higher- caste lower-caste
influence the pattern of industrial relations.
3. Social Values: Different social values play their role in setting the pattern of industrial relations.
B. Psychological Aspects: Several psychological aspects such as motivation, alienation and morale are
significant determinants of industrial relations.(motivation- job satisfaction, job advantages, job
enrichment etc.
1. Alienation: It crates separation rather than integrity.
2. Motivation: Motivation of employees can play a vital role for good or bad industrial relations.
3. Morale: Management should not create such an environment so that employees have low morale
C. Political Aspects: The political framework in different countries such as democratic system,
autocratic system, and laissez-faire system is important determinants of industrial relations.
1. Democracy: It ensures participation of workers in making decisions and executing the same.
2. Dictatorship: The degree of dictatorship may influence industrial relation. But, benevolent
dictatorship may be acceptable for a limited period.
D. Economical Aspects: There are certain economic influences which provide the basic setting as well
as the broader framework for industrial relations. The economic status of the employer and the
workers in society differs widely which influences the pattern of industrial relations.
1. Unemployment: Increased rate of unemployment of employees children or dependents may
create dissatisfaction among them.

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BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

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: Causes of Poor Industrial Relations [2014-1.b; 2013-1.b]


1. Autocratic attitude 16. Loopholes in disciplinary action
2. Class difference 17. Flawed supervision
3. Personnel difference 18. Lack of honesty
4. Discrimination 19. Political instigation
5. Lack of job security 20. Lack of commitment
6. Anomalies in wage policy 21. Less sense of citizenship
7. Injustice in recruitment & promotion 22. Mental inertia between employers and
8. Lack of uniform outlook employees
9. Violate the discipline 23. Employer and employees are always treating
10. Inter union rivalries 24. enemies each other
11. Negative political and economic environment 25. Absence of proper wage structure
12. Irregular labor practice 26. Unhygienic work environment
13. Absence of motivation power of the mangers/ 27. Extra load imposed to the employees
supervisor 28. Absence of workers welfare
14. Absence of extra facilities for the employees 29. Absence of participation in productivity
15. Use machinery without making good 30. Irregular retirement, resignation, lockout, and
environment for that. strike

Qus: Means to Improve Industrial Relations [2014-1.b; 2013-1.b]


1. Uniform policy 13. Proper wage/benefit package
2. Cooperative attitude 14. Proper disciplinary action
3. Equity 15. Commitment to national development
4. Strict supervision 16. Management should give approval to the trade union of the
5. Welfare activities organization
6. Favorable work 17. To give the reasonable wages to the employees
7. Honesty 18. Introduce good working condition and provide facilities to the
8. Political stability employees
9. Training in IR 19. Make conscious for not influence the political leader to any
10. Proper communication employees
11. Active participation 20. To introduce the training and development program for the
12. Government action employees
21. To make and implement policies for proper distribution of dividend
on the basis of productivity
22. Give training for the management level, technical advisors and
employees

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BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

Qus: Principles of Sound Industrial Relations


Ans: Maintenance of sound industrial relations is as crucial and difficult as that of human relations. The
following principles should be followed to maintain sound industrial relations:
1) Recognition of the dignity of the individual and of his right to personal freedom and equality of
opportunity.
2) Mutual respect, confidence, understanding, goodwill and acceptance of responsibility on the part of
employer, management and workers and their representatives in the exercises of the rights and duties
in the operation of the industry.
3) Similarly, there has to be an understanding between the various organizations of employers and
employees who represent the management and workers.

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.

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BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

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.

Qus: Importance of good Industrial Relations in Bangladesh Perspective [2012-1.b]


Ans: Some people try to say that industrial relation limits itself to the labor management relationship
within a manufacturing industry. This is rather a sharp comment on a narrow perspective, if we explain
industrial relation in its real scope, objective and importance. Industrial relation is never limiter to mere
labor management relationship but in most cases it is as big as countries development, development of the
nation along with increase in income per capita of its citizen.

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.

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BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

For a hopeful Industrial Revolution we need to fulfill some prerequisites:


1) Establishing excellent relationship, mutual trust and honor between employers and workers at highest
level.
2) Avoidance of industrial unrest, establishment & maintaining harmonious labor management
relationship.
3) Increasing workers efficiency.
4) Ensuring highest productivity through concerted efforts of employers and employees.
5) Providing possible better wages, safe work place, good work environment, and sufficient welfare for
workers, which in term will surely increase productivity.
6) Meeting the other party occasionally very often is most important.
7) Establishing social security system, safety net for those who work.
8) Establishing social dialogue at all level.
9) Bearing in mind that consumers right is gaining importance. Mohatmagandhi said, We produce
continuously because consumers are there.
We can observe that outlook of the involved groups, the employers, the workers and the government is
changing day by day towards industrial development through high quality industrial relation.
Qus: Measures to be taken to establish good Industrial Relations in Bangladesh [2012-1.c]
Ans: The government should take following measures for maintain good industrial relation-
1) Formation and implementation of minimum wage rate
2) Dispute handling machineries
3) Labor welfare division or labor officer
4) Labor policy
5) Freedom to form organization
6) Workers participation in management
7) Removed the unfair labor practice
8) Grievance handling process
9) Enactment of labor laws
10) Special proclamation made by government and if any
Qus: Conditions of Industrial Relations
1) Recognition by the employer that the workers are a part of a team working towards common
objectives
2) An attitude on the part of the employee of delivering the goods that is, giving their moneys worth;
3) Fair redressal of the employees grievances such as regarding working conditions, facilities, attitude
of superiors and other rights
4) Avoidance by workers of being unduly influenced by political leaders staging strikes as a protest or a
publicity for their own political gains
5) Payment of fair wages and adequate wage structure as well as establishment of satisfactory working
conditions
6) Adoption of a policy which ensures to the workers an equitable share of gains of increased
productivity
7) Introduction of a suitable system of employees education at all levels as well as providing them
with appropriate equipment, where necessary
8) Training in industrial relations and human relations to workers, technical staff and at all managerial
levels

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BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

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.

Qus: Models of Industrial Relations [2014-8.d; 2013-8.d; 2012-8.f]


Ans: Four major models of industrial relations, namely; Dunlopian models, Marxist model, Social Action
Model, And Human Relations Model, are described here.
A. Dunlopian Model: According to the Dunlopian Model, the industrial relations system is a sub-system
of the wider society or the total social system. An industrial relations system at any particular time is
regarded as comprised of certain actors. Certain context and ideology which binds the industrial
relations system together and a body of rules created to govern the actors at the place of work and
work community. Dunlop identifies three groups of actors: workers, management and the
Government.
Where R = Industrial relations system,
Thus, R = (a, i, b) = Function,
a= actors,
i = ideology,
b = body of rules
1) ACTORS: In every country, workers, management and the Government all interact to build up the
country's industrial relations system.
2) IDEOLOGY: In any economy there is an ideology which is shared in common by the government,
businessmen and workers; such as democratic capitalism, democratic socialism, free economy, mixed
economy.
3) RULES: Rules and regulation making by the Government which influence the pattern of industrial
relations.
MANAGEMENT ROLES:
1) Exploitative Authoritarian system
a) Labor was exploited ruthlessly
b) Wages paid was barely subsistence
c) No, job security
d) No welfare system
2) Benevolent Authoritarian System: It believes in labor welfare.
3) Consultative Style: Under this style, the management consults with the labors in different issues, even
in making different decisions.
4) Participative Style: Under this style labor is not a commodity but is a friend. Here, the opinions of the
labors have a great impact on decision making.
All the important variables of the industrial scene are integrated into the system. So the Dunlopian
approach can explain the dynamics of industrial relations. It is also helpful in analyzing industrial
conflict.
B. Marxist Model: Marxist model gives structural explanation of industrial relations:
Industrial relations occur within a dynamic conflict situation which is permanent and unalterable so
long as the structure of society remains unchanged.
Conflict arises because of labor market.

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BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

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.
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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: Functions of Trade Unions in Bangladesh


1) Organizing The Workers: The objective of an industrial relations system is to provide a
framework within which the conflicts inherent in a worker-employer relation may be peacefully
resolved.
2) Collective Bargaining: Collective bargaining is the process whereby workers organize together to
meet, converse, and compromise upon the work environment with their employers.
3) Democratizing: The Trade Unions rank and file are provided with the opportunity of electing
their stewards, committees of management, and through the delegate system, their executives
and other leaders.
4) Industrial Action: Trade unions may organize strikes or resistance to lockouts in furtherance of
particular goals.
5) Provision Of Benefits To Members: Trade unions often provide a range of benefits to insure
members against unemployment, ill health, old age and funeral expenses etc.
6) Fostering Education For Workers: Educational schemes are meant to enhance the workers
knowledge of his work environment and to inform him fully about the issues that concern him.
7) Communicating With Others About The Activities Of The Union: Many large unions
publish a newsletter or a magazine. Their main aim is to clarify the unions policy or stand
on certain principal issues and also to pass on information about the union and its activities.
8) Welfare Activities: Many unions provide a number of welfare activities to improve the quality of
the workers lives.
9) Political Activities: Trade unions may promote legislation favorable to the interests of their
members or workers as a whole.
10) Enhancement Of Human Potential: Trade unions also play a role in helping to develop the
human potential of the members.

Qus: Disadvantages of Trade Union


1) Sometime trade union influences the union member to participate in illogical strike and same types of
activities.
2) The trade union which influence by the political party, always save the interest of those
political party. So, they cannot protect the employees interest.
3) Sometime it creates unrest in the organization. For this reason the industry loses their
productivity and increase production cost.
4) Trade union creates the conflict between the employee and employee or between the union and union.
5) Sometime trade union creates pressure for increase profit which becomes the economic loss of the
organization.

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BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

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

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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

Qus: Factors Ensure the Security of Trade Unions [2014-3.b; 2010]


Ans: For functioning perfectly, a trade union must be secured at its position. Some measures as follows,
can be taken to secure a trade union.
1) Membership: The main strength of a union is the number of its members. a trade union must
maintain at least 30% of the total workers in an establishment to ensure its security.
2) Subscription: The major source of fund of a trade union is the subscriptions paid by its members. So,
to secure a trade union this source must be maintained.
3) Empowered by the Employer: The employer can also empower a trade union to ensure its security.
For example, if an employer allows the voice of trade unions in hiring or firing and transferring the
employees/workers, the union becomes more secured.
4) Compelling Factors: If there are some compelling factors, such that workers have to join trade
unions, then the unions also are secure.
5) Safeguarding the Members Interests: If the trade unions fail to safeguard the interests of the
workers, then general worker shall loss their confidence on the unions. Therefore, to secure a trade
union, the union should be able to safeguard such interests.

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

Md. Ali Reza


Page 13 of 52
BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

Qus: Impact of Trade Union upon Management


Ans: The effects of the union upon the management are as under:
Restriction upon Managements Freedom of Action: Unilateral action and individual dealings with
workers over wage adjustments, hours and the conditions of work are no longer possible. The first-
line supervisor must be sure he does not violate the labor agreement in handling his employees.
Management is closely bound by the conditions set forth in the Collective Agreement.
Union Pressure for Uniformity Of Treatment: Another effect of the union upon management is its
insistence upon uniformity of treatment of all employees. For example, unions usually advocate that
all employees who are assigned to the same job should receive exactly the same rate of pay.
Improved Personnel Policies and Practices: On the other hand, it is fair to state that the presence of
the union encourages management to become fully conscious of employee wants and needs. Any
omission or fault in a companys policy and its manner of carrying out the policy will tend to be
quickly noted by the union officials. Thus we find that many organizations have found it
advantageous to institute supervisory and executive training program that contain a strong emphasis
upon sound personnel policies, labor relations and human relations. In fact, some companies have
deliberately done all out to provide for their employees needs and want to foster social groupings
around company-sponsored recreational activities and to maintain high morale.
One Spokesman for the Employees: In a sense, the presence of the union simplified managements
problems in dealing with employees because it can look to the elected union leaders as spokesman for
the employees.
Centralization of Labor Relations Decision Making: Because of the critical importance of many
labor relations decisions, top executives have a tendency to take authority in labor matters away from
lower ranks of supervision and centralize this in the industrial relations department. The power to
discipline is sometimes taken away from the supervisor when there is a union.

Qus: Registration of a Trade Union


Ans: The registration procedure of a trade union has been specified under The Bangladesh Labor Act
2006. The provisions relating to the registration of trade union are stated here:
Application for Registration (Section 177, BLA 2006)
Any trade union may, under the signature of its President and the Secretary, apply for registration of the
trade union to the Trade Unions of the concerned area under This Chapter.
Requirements for Application (Section 178, BLA 2006)
1. An application for registration of trade union shall be made to the Director of Labor or to the Officer
authorized in this behalf.
2. The application shall be accompanied by-
a) a statement showing
((ii)) the name of the trade union and the address of its head office;
((iii)) date of formation of the union;
((iiiii)) the names, ages, addresses, occupations and the posts in the union of the officers of the
trade union;
((iivv)) statement of total paid membership;
((vv)) the name of the establishment to which the trade union relates and the total number of
workers employed or engaged there in;

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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.

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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.

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Certificate Of Registration (Section 189, BLA 2006)


The Director of Labor, on registering a trade union under section 182, shall issue a certificate of
registration in the prescribed form, which shall be conclusive evidence that the trade union has been duly
registered under this Chapter.
Thus, a trade union is registered under the Bangladesh Labor Act 2006.
Qus: Cancelation of Registration of a Trade Union [2012-8.d]
Ans: The registration of a trade union may be cancelled by The Director of Labor under this Chapter
according to section 190.
1. Subject to the other provisions of this section, the registration of a trade union may be cancelled by
the Director of Labor if the trade union has:
a) applied for cancellation of registration;
b) ceased to exist;
c) obtained registration by fraud or misrepresentation of facts;
d) contravened any of the provision of its constitution;
e) committed any unfair labor practice;
f) a membership which has fallen short of the number of membership required under this chapter;
and
g) contravened any of the provisions of this Chapter or the Rules.
2. Where The Director of Labor is satisfied on enquiry that the registration of a trade union should be
cancelled, he shall submit an application to the Labor Court praying for permission to cancel such
registration.
3. The Director of Labor shall cancel the registration of a trade union within thirty days from the date
of receipt of permission from the Labor Court.
4. The registration of a trade union shall not be cancelled on the ground mentioned in sub-section (1)(e)
if the unfair labor practice is committed within three months prior to the date of submission of the
application to the Labor Court.
Qus: Appeal against the Cancelation of Registration of Trade Union
Ans: A trade union, which registration has been cancelled, can appeal against the cancellation of the
registration according to the Section 191 under this Chapter of the Bangladesh Labor Act 2006.
1. Any person aggrieved by an order of the Labor Court granting the prayer for permission to cancel
registration of a trade union or rejecting such prayer under section 190 or by an order of cancellation
of the registration of a trade union made by The Director of Labor under that section may, within
thirty days from the date of the order, appeal to the Tribunal and the decision of the Tribunal thereon
shall be final.
2. Where an appeal is filed under sub-section (1), the trade union shall be permitted to function as such
till the disposal of the appeal.
No Trade Union to Function Without Registration (Section 192, BLA 2006.)
1. No trade union, which is unregistered or whose registration has been cancelled shall, subject to
section 191(2), function as a trade union.
2. No person shall collect any subscription, other than enrollment fee, for any fund of trade union
mentioned in sub-section (1).
Restriction on Dual Membership (Section 193, BLA 2006.)
No worker or employer shall be entitled to enroll himself as, or to continue to be, a member of more than
one trade union at the same time.

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BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

Qus: Rights and Privileges of Registered Trade Union


Ans: A registered trade union of the workers enjoys different rights and privileges. The Bangladesh Labor
Act 2006 defines some rights and privileges of registered trade unions. The laws and provisions relating
this issue are stated bellow:
Incorporation of Registered Trade Union (Section 194, BLA 2006.)
(1) Every registered trade union shall be a body corporate by the name under which it is registered, shall
have perpetual succession and a common seal and the power to contract and to acquire, hold and
dispose of property, both movable and immovable and shall, by the said name, sue or be sued.
Law Of Conspiracy Limited In Application (Section 197, BLA 2006.)
No officer or member of a registered trade union or collective bargaining agent as determined by the
Director of Labor shall be liable to punishment under section 120-B(2) of the Penal Code (act XLV of
1860), in respect of any agreement made between the members thereof for the purpose of furthering any
such object of the trade union as is specified in its constitution referred to in section 179, unless the
agreement is an agreement to commit an offence, or otherwise violate any law other than this Chapter.
Immunity From Civil Suit In Certain Cases (Section 198, BLA 2006.)
1. No suit or other legal proceedings shall be maintainable in any Civil Court against any registered
trade union or collective bargaining agent or any officer or member thereof in respect of any action
done in contemplation or furtherance of an industrial dispute to which the trade union is a party on
the ground that
a) such act induces some other person to break a contract of employment, or
b) such act or deed is an interference with the trade, business or employment of some other person,
or
c) such act interferes with the right of some other person to dispose of his capital or of his labor as
he wills.
2. A trade union shall not be liable in any suit or other legal proceedings in any civil court in respect of
any tortuous act done in contemplation or furtherance of an industrial dispute by an agent of the trade
union if it is proved that such person acted without the knowledge of, or contrary to express
instructions given by the executive of the trade union.
Enforceability of Agreement (Section 199, BLA 2006.)
Notwithstanding anything contained in any other law for the time being in force, an agreement between
the members of a trade union shall not be void or voidable by reason only that any of the objects of the
agreement are in restraint of trade.
Provided that nothing in this section shall enable any Civil Court to entertain any legal
proceedings instituted for the express purpose of enforcing, or recovering damages for the breach
of any agreement concerning the conditions on which any member of a trade union shall or shall
not sell their goods, transact business, or work, employ or be employed.
These are the provisions, specifying the rights and privileges that the registered trade unions enjoy under
The Bangladesh Labor Act 2006.

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BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

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.

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Qus: Group of Establishment/Prothistan Punja [2012-8.e; 2011-5.a]


Ans: Registration of trade unions in a group of establishment: (BLA 2006 Section-183)
(1) Notwithstanding anything contained in this chapter, for the purpose of formation of a trade union any
group of establishments shall be treated as an establishment, and no separate trade union shall be formed
in any establishment included in the group of establishments.
(2) A group of establishment shall, for the purposes of this section, mean all the establishment, none of
which employs more than twenty workers, in a specified area carrying on the same or similar specified
industry.
(3) Notwithstanding anything contained in sub-section (2), all the establishments, irrespective of the
number of workers employed therein, in a specified area carrying on any of the following industries shall
be deemed to be a group of establishments for that area, namely:
((aa)) private road transport, including rickshaw;
((bb)) private inland river transport;
((cc)) tailoring and garments manufacturing industry wherein less than 100 workers are employed;
((dd)) tea industry;
((ee)) jute bailing;
((ff)) tannery;
((gg)) bidi;
((hh)) handloom;
((ii)) hosiery;
((jj)) printing process;
((kk)) hotels or motels where number of guest rooms does not exceed twenty-five;
((ll)) restaurant not forming part of a hotel;
((mm)) small-scale metal industry;
((nn)) book-binding;
((oo)) cinema and theatre:
Provided that the government may, if it deems fit so to do in the national interest, by notification in
the official gazette, add any industry to this list of industries.
(4) Specified area as mentioned in sub-section (2) or (3) shall mean such area specified for specific
industries published by notification in the official gazette, by the government; and such area may be at
national, regional or local level, as may be expedient; and such area may be at national, regional or local
level, as may be expedient; and different areas may be specified for different industries.
(5) Specified industries as mentioned in sub-section (2), shall mean such industries which, the
Government, may by notification in the official gazette, specify for the purpose.
(6) A trade union for a group of establishments shall be registered, if it has as its members not less than
thirty percent of the total number of workers employed in the entire group of establishments taken
together;
(7) Notwithstanding anything contained in this chapter a person who is not employed or engaged in an
establishment may be entitled to be, or to be elected as, an officer of any trade union, formed in any group
of establishments, if the constitution of such trade union provides for election of such person:
Provided that, the number of such persons shall not in any case be more than one fourth of the total
number of its of officers.
(8) Subject to this section other provisions of this chapter shall apply to a trade union formed in a group
of establishments as they apply to a trade union formed in an individual establishment.

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BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

Chapter-3.Name=Collective Bargaining Agent/ Collective Bargaining


Qus: Meaning of Collective Bargaining
Ans: Collective bargaining is the process of negotiation between representatives of workers and
management to determine the conditions of employment.
Edwin B. Flippo: Collective bargaining is a process in which the representatives of a labor
organization and representatives of the business organization meet and attempt to negotiate a contract
or an arrangement, which specifies the nature of the employee-employer-union relationship
Dale Yoder: Collective bargaining describes the process in which conditions of employment are
determined by agreement between representatives of an organized group of employees and one or
more employers.
Sydney Webb & Beatrice: Collective bargaining refers to negotiations concerning pay and
conditions of employment between the trade unions on the one hand and either an employer or an
employers association on the other.
The ILO defines CB as:Negotiation about working conditions and terms of employment between
an employer, a group of employers or one or more employers organizations, on the one hand, and
one or more representative workers organizations on the other with a view to reaching agreement.

Qus: Major Bargaining Issues [2013-8.f; 2011-8.a]


A. Purely Economical Issues:
1) Wage Rate For Different Job Categories
2) Overtime Rates
3) Rules For Tea Break
4) Fringe Benefit
B. Work Rules Related Issues:
1) Assignment & Task
2) Job Security
3) Work Load (Staffing Requirement)
C. Procedural Features Related Issues:
1) Rules Of Seniority
2) Grievance Handling For Dispute And Discharge
3) Laid Off

Qus: The Chief Weapons Used by the Employers to Fight Unions


1) The labor spy
2) The black list
3) Court Injunction
4) The yellow dog contract
5) The Strike breaker of armed guard
6) Discriminatory discharge of union members
7) Conspiracy of town merchants, police and judge against worker organizers
8) Company union, in which the company would control the decision of the worker association

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Page 21 of 52
BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

Qus: Features of Collective Bargaining


Ans: Collective bargaining is one kind of industrial democracy and industrial government. In this
process, the management and the union representatives discuss on different issues regarding employment,
job conditions etc. this process has some features as stated below:-
1) Collective bargaining is a group process, wherein one group represents the employers and other
representing the employees.
2) Collective bargaining is an organizational or team process or effort, where the representatives of
both parties are engaged in collective discussion on the terms of employment.
3) It is a process in sense that it consists of a number of steps. The starting point is the presentation of
the charter of demands and the last stage is the reaching of an agreement.
4) It is a continuous process, because it starts before signing the contract and ends at the perfect
implementation of the contract.
5) It is a decision-making process, because through collective bargaining, the management takes
decisions regarding labor and workers.
6) Negotiations form an important aspect of the process of collective bargaining, i.e. there is
considerable scope for discussion, compromise, or mutual give and take in the collective bargaining
deliberations rather than confrontation.
7) Collective bargaining is a bipartite process. The employers and the employees are the only parties
involved in the bargaining process.
8) It is flexible and dynamic. It adjusts with the changing conditions through mutual give and take.
9) Collective bargaining is the best way to resolve industrial disputes.
10) Collective bargaining is the implication of industrial democracy. It focuses not only on issues
regarding employment, wages etc. but also on the practice of democracy.

Qus: Types of Collective Bargaining


Ans: Collective bargaining can be categorized into
1) Traditional Collective Bargaining: Collective bargaining, which is followed in resolving industrial
disputes, is known as traditional collective bargaining. In this case, the representatives of the both
parties sign contracts regarding wages; terms of employment & appointment; dismiss, suspension, &
promotion of workers etc. through discussion.
2) Integrative Collective Bargaining: In this collective bargaining, one party helps the other, and
mutual belief and understanding are it prerequisites. The participation of the both parties in the
decision-making process is ensured.

Qus: Objectives of Collective Bargaining


Ans: The basic objective of collective bargaining is to preserve the interest of the employers or
management and the unions or workers & employees. Without this, we find several more objectives of
collective bargaining as those are grouped from two different viewpoints.
A. Objectives of Collective Bargaining from The Management Viewpoint:-
1) To ensure the existence of the industry.
2) To fulfill personal goals and objectives.
3) To maintain continuous development of the industry.
4) To maintain strong and effective control over the industry.

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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.

Qus: Prerequisites of Collective Bargaining [2011-2.a]


Ans: There are some prerequisites, which must be satisfied due to fruitful collective bargaining. These
prerequisites can be viewed from two different viewpoints.
A. Workers Viewpoints
1) There should be only one and strong trade union in the industry.
2) Trade unions should be free from external political influences.
3) Destructive small unions should be run away from the industry.
4) Should realize the responsibilities of the workers in personal and national development.
5) The industrial union members should take the positions of external political leaders.
B. Management Viewpoints
1) The managers should be humanistic and sympathetic to solve the labor problems.
2) Management has to develop one trade union that really works for the workers.
3) Workers participation in the management should be encouraged.
4) Political leaders are to be discouraged in trade unions.
5) Managers should respect the union leaders.
6) Industrial disputes should be resolved as soon as possible.
7) The government should implement acceptable rules and regulation to develop the employers and
workers relationship.
C. Others
1) There should be a balance of power of the both parties.
2) The workers must have right to form or join trade unions in a perfect democratic environment.
3) Both parties should respect the contracts.
Qus: Process of Contract Negotiation [2011-2.b]
Ans: Collective bargaining is a very important tool in resolving industrial disputes and for establishing
harmonious industrial relations. There is no scientific guideline for collective bargaining process. But the
following steps are generally followed for an effective collective bargaining:-
A. The Pre-Negotiation Phase
1) Identifying Possible Disputes.
2) Ensuring the Bargaining Environment.
3) Constructive Attitude.

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BIM_PGD-HRM-2015. Subject: Industrial Relations (IR)

B. The Selection Of Negotiator


1) Positive Mentality.
2) Respect Others Opinions.
3) Well-defined Objectives.
C. The Strategy For Negotiation
1) Analyze or Prepare Claims.
2) Assess Bargaining Power.
D. The Tactics Of Negotiation
1) Total Rejection.
2) Rejection of Some and Offer to Consider Some Others.
3) While Agreeing To Consider Union Demand, Management Puts Forth Counter Demands of Its
Own.
E. The Contract
1) Agreed Settlement.
2) Settlement Published, implemented, and monitored.
Qus: Importance of Collective Bargaining
Ans: Collective bargaining is an important tactic in industrial democracy. In this era, collective
bargaining is very popular in resolving industrial disputes in industrial environment. In capitalism society,
collective bargaining plays a very crucial role to balance industrial relations and its development through
preserving the interests of the employers and the workers. So, there is no doubt about the importance of
collective bargaining. Some important contributions of this well famous tactic are stated bellow:-
1) M Maaiinnttaaiinn EEm
mppllooyyeerr--W
Woorrkkeerr RReellaattiioonnsshhiippss: Harmonious relationship is essential for the establishment
of permanent industrial peace.
2
2)))
2 M
Miinniim miizzee IInndduussttrriiaall D
Diissppuutteess:: It minimizes industrial disputes through discussion.
3
3)))
3 A
Assssiisstt IInn IInnccrreeaassiinngg PPrroodduuccttiioonn:: When disputes are resolved through discussion, workers become
closer to management. They become more responsible.
4
4)))
4 FFaavvoorraabbllee WWoorrkkiinngg CCoonnddiittiioonn:: Working condition improves through collective bargaining.
5
5)))
5 BBeetttteerr TThhaann CCoonncciilliiaattiioonn IInn CCoouurrtt:: When disputes are resolved through discussion, workers become
closer to management. For this reason, workers become more obedient.
6
6)))
6 RReedduucciinngg M
Maannaaggeem
meenntt A
Auuttooccrraaccyy:: As the management has to satisfy and answer the union, so
management cannot do what it wants.
7
7)))
7 EEssttaabblliisshh IInndduussttrriiaall D
Deem
mooccrraaccyy:: Through collective bargaining, management is bound to discuss with
the union, and so, workers can express their opinions.
8
8)))
8 SSoocciioo--EEccoonnoom
miicc D
Deevveellooppm
meenntt:: Collective bargaining reduces damages due to industrial disputes, and
so, it contributes in socio-economic development.
9
9)))
9 IIm
mpprroovviinngg SSoocciiaall SSttaattuuss:: When representatives of the workers discuss about the labor problem with
management, their social status improves.
1
10
1 0)))A
0 Assssiisstt TToo BBee RReessppoonnssiibbllee:: Collective bargaining forces both parties to take responsibilities.
1
11
1 1)))A
1 Arrrraannggiinngg
WWeellffaarree SSyysstteem
mss:: Workers can arrange more welfare systems through discussion with
management.

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Qus: Theories of Collective Bargaining


Ans: There are several theories of collective bargaining. Some important theories are discussed bellow :-
MARKETING THEORY
According to this theory, collective bargaining is the contract of selling labor. In this process, it is
determined that under what conditions, the workers will work and the employers will appoint them.
Here, the workers are very much weak, n comparing with their employers. So, in this case, collective
bargaining helps the workers to increase their bargaining power.
GOVERNMENTAL THEORY
According to this theory, collective bargaining is considered as constitutional procedure in case of
industrial matters. In this case, collective bargaining is a political relation that assists in producing
laws regarding daily activities of the industries.
MANAGERIAL THEORY
According to this theory, collective bargaining is procedure of business administration. It depends on
the relationships of the schedules. Both parties participate in management due to their mutual
interests.
In preliminary, collective bargaining was the contract of selling of labor. Then it became governmental
theory due to industrial development. Finally, it turns to the managerial theory, because of trade unions
participation in management.

Qus: Levels of Collective Bargaining


Ans: There are three levels of collective bargaining:-
Plant Level
Industry Level
National Level

Qus: Problems of Collective Bargaining in Bangladesh [2014-2.a; 2013-4.a]


Ans: The central point of conflict between management and workers is the collective bargaining process.
In Bangladesh, there are so many problems that are creating continuous obstacles to the collective
bargaining process. Some problems of collective bargaining in Bangladesh are stated bellow:-
1) Weak Financial Base of Industries.
2) Less Productivity.
3) Undemocratic Environment.
4) International Pressure.
5) Weakness in Union Leadership.
6) Wrong Conception.
7) Difference in Personality.
8) Lack of Clear Knowledge of Laws.
9) Political Influence.
10) Influence of Locality.
11) Reluctance of the State in Ensuring Proper Environment.
12) Absence of Harmonious Relationship between Management and Unions.

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Qus: Collective Bargaining Agent [2014-2.b; 2013-4.b; 2012-4.a; 2011-6.a]


Ans: Collective bargaining agent, in relation to an establishment or group of establishments, means the
trade union of workers or federation of trade unions which, under Chapter XIII, is the agent of the
workers in the establishment, or group of establishments in the matter of collective bargaining.
Section 2(Lii); The Bangladesh Labor Act 2006.

Election Of Collective Bargaining Agent section 202


In Bangladesh, the collective bargaining agent is elected according to the section 202 of The Bangladesh
Labor Act 2006. The laws of such election are stated bellow:

((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:

((ii)) Name of each worker


((iiii)) Name of his parents
(in appropriate case name of husband/wife shall be written)

((iiiiii)) Name of his section or department


((iivv)) Place of his section or department
((vv)) His ticket number and the date of his employment

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((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.

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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;

((bb)) represent all or any of the workers in any proceedings;

((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

((ee)) to conduct cases on behalf of any individual worker or group of workers.

Qus: Check-Off [2014-8.a; 2013-8.a; 2012-8.c]


Ans: (BLA 2006. Section 204)
(1) if a collective bargaining agent so requests, the employer of the workmen who are member of
collective bargaining agent- trade union shall deduct from the wages of the workmen such amounts
towards their subscription to the funds of the collective bargaining agent- union as may be specified, with
the approval of each individual workman named in the demand statement furnished by the trade union.
(2) An employer making any deduction from the wages under sub-section 91) shall, within 15 days,
deposit the entire amount so deducted by him in the account of the collective bargaining agent-union.
(3) The employer shall provide facilities to the collective bargaining agent for ascertaining whether
deductions from the wages of its members are being made under sub-section (1).

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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: Types of Industrial Disputes


Ans: Industrial disputes may be of two types:
1) Collective Disputes: Disputes where the interests of many workers are related; like disputes in the
terms of employment, or wages, or bonus, or gratuity, or medical allowances, compensation, lock-out
etc.
2) Personal Disputes: Disputes, raised with the employers, due to dismiss or discharge or suspension of
any worker.

Qus: The Pre-Conditions of Industrial Disputes


Ans: There are some pre-conditions or requisites of industrial disputes. Some important pre-conditions
are stated here:
Industrial disputes must be created between two employers, or between workers and employers, or
between workers and workers.
Industrial disputes must be related with terms of employment, working conditions, wages etc.
There must be true employment contract between employers and workers.
Demands, which is raised by trade union or workers, is to be denied by the employers.
Industrial disputes must be take place in a running industry.

Qus: Causes of Industrial Disputes [2014-4.a; 2013-5.a]


Ans: Industrial relations may be harmonious or in conflictions. Conflicts or disputes begin due to terms of
employment, working conditions, financial interests etc. specially, due to unfair compensation or wage
structure, and conflicts arise. These issues introduce Industrial disputes in the industries. Some general
causes of Industrial disputes are discussed here:
A. Labor Exploitation: In capitalistic society, employer is the owner of factors of production, not the
workers. Most of the laws are engaged in preserving the interests of the employers. As a result,
disputes arise.
B. Economic Causes
1) Better Wages & Benefits.
2) Claim for Share in Profit.
3) Overtime.
4) Other economical or financial benefits.
C. Social Causes
1) Working Environment.
2) Working Hour.
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3) Travel and Medical Benefits.


4) Welfare.
5) Job Security.
6) Leaves.
7) Locality Ism.
D. Managerial Causes
1) Recognition of Trade Union.
2) Claim for Workers Participation in Management.
3) Discrepancy in Personnel Policy.
4) Protest against Dismiss or Discharge.
5) Cancellation or Voiding Contract.
6) Inefficient Leadership.
7) Differing in Different Issues with CBA.
E. Political Causes
1) Influences of Different Political Parties.
2) Movement against the Government.
3) Influence of the Government Party.
F. Psychological Causes
1) Frustration and Unrest.
2) Behavioral Causes.
3) Capitalist Concept.
G. External Causes
1) International Pressure.

Qus: Causes of Labor Unrest in Bangladesh


Ans: In Bangladesh, labor management relationship is not sound for proper industrial development. The
workers are not satisfied with the management or employers of the industries. There are lots of causes of
labor unrest in Bangladesh. Some crucial causes are stated here:
1) Instable political situation.
2) Intervention of political leaders in labor movement with ill motive.
3) Lack of strong trade union.
4) Illiteracy of workers.
5) Inadequate knowledge of workers and their leaders about labor laws.
6) Defective labor laws.
7) Lack of balanced wage structure.
8) Wages differentials in private and public sectors.
9) Transfer of industries from public sectors to private sectors.
10) Favoritism.
11) Create conflicts between workers and labor leaders.
12) Lack of proper incentive scheme.
13) Favoritism in employment.
14) Working environment and condition.
15) Lack of responsibility among the workers.
16) Promotion policy.

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17) Misbehavior of management.


18) Lack of job satisfaction.
19) Introduction of time scale.
20) Lack of job security.

Qus: Remedies from Labor Unrest in Bangladesh


Ans: It is impossible to eliminate labor unrest from the industries in Bangladesh. It is better to try to
minimize or reduce labor unrest. There some remedies which can be focused to reduce labor unrest in
Bangladesh. Some crucial remedies are stated here:
1. Introduction of balanced wages and pay scale.
2. Presence of trade unions.
3. Stoppage of political intervention in labor movement.
4. Training of workers on labor laws.
5. Change and amendment of existing labor laws.
6. Removal of wage differentials in public and private sectors.
7. Stop the sale of nationalized enterprises.
8. Removal of favoritism.
9. Stop the creation of division among workers.
10. Introduction of balanced incentive scheme.
11. Recognition of trade unions as friends.
12. Develop working environment.
13. Follow promotional policy properly.
14. Good behavior of the officers with workers.
15. Neutrality during employment.
16. Job satisfaction.
17. Implementation of labor laws in proper way.
18. Introduction of proper retirement policy.
19. Maintaining good industrial relations.
20. Training of supervisors.
21. Motivating workers.
22. High morale.
23. Reducing police action.
Qus: Methods of Setting Industrial Dispute
Ans: Industrial dispute is a must in any production systems, specially, in capitalist production systems.
During the British period, disputes were dissolved through the court rather than through negotiation,
conciliation, or arbitration.
In 1969, when the Industrial Relations Ordinance was introduced, collective bargaining or negotiation got
emphasis on disputes settlements. The ordinance has been changed, and now known as The Bangladesh
Labor Law 2006. According to the law, disputes in industries, in private or public sectors, can be
dissolved by:
Bipartite Negotiation or Collective Bargaining;
Tripartite Discussion or Conciliation;
Arbitration;
Adjudication and Labor Court.
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Qus: Settlement of Industrial Disputes [2014-8.e; 2013-8.e; 2012-8.a]

A. NON ADJUDICATORY METHODS


1) Negotiation: If a dispute is likely between an employer and an employee, the CBA shall
communicate the same in writing to the other party. The parties will try to resolve the matter by
way of negotiation; if a settlement reached, a memorandum shall be recorded accordingly.
2) Conciliation: If negotiation fails, any party may report to the conciliator that the negotiation have
failed and request the conciliator in writing to conciliate the dispute and conciliator shall, on
receipt of such request, proceed to conciliate in the dispute. If he fails to settle the dispute, the
CBA or the employer may go for strike or lock-out by serving notice.
3) Arbitration: If conciliation fails the conciliator shall try to persuade the parties for arbitration. If
the parties agree, they shall make a joint request in writing for reference of the dispute to an
arbitrator agreed upon by them. The arbitrator shall give his award within thirty days from the
date on which the dispute is referred to him or within such period as may be agreed upon by the
parties. The award of the arbitrator shall be final and no appeal shall lie against it.
B. ADJUDICATORY METHODS
1) Labor Court: The government may establish one or more labor courts consisting of a chairman
and two members. One of the members is to represent the workmen and the other to represent the
employers. They try to solve the disputed problems.
2) Labor Appellate Tribunal: The labor appellate tribunal shall consist of one member who shall
be appointed by the government, by notification in the official gazette, from amongst the person
who is or has been a judge or an additional judge of the high court division. Any party aggrieved
by an award given by the labor court, may prefer an appeal to the labor appellate tribunal.

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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.

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(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.

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Strike and Lock-Out: (Section 211, BLA 2006.)


(1) The party which raised the dispute may, within fifteen days of the issue to it a certificate of failure
under section 210 (11), either give to the other party a notice of strike or lockout, a the case may be, to
commence on a day, not earlier than seven days and not later than fourteen days of the date of such
notice, to be specified therein, or make an application to the labor court for adjudication of the dispute:
Provided that no collective bargaining agent shall serve any notice of strike unless three-fourths of its
members have given their consent to it through a secret ballot specially held for the purpose, under the
supervision of the conciliator, in such manner as may be prescribed.
(2) If a strike or lock-out is commenced, either of the parties to the dispute may make an application to
the labor court for adjudication of the dispute.
(3) If a strike or lock-out lasts for more than thirty days, the government may, by order in writing, prohibit
the strike or lock-out:
Provided that the Government may, by order in writing, prohibit a strike or look-out at any time
before the expiry of thirty days if it is satisfied that the continuance of such strike or lock-out is
causing serious hardship to the community or is prejudicial to the national interest.
(4) In the case of any of the public utility services, the Government may, by order in writing, prohibit a
strike or lock-out at any time before or after the commencement of the strike or lock-out.
(5) In any case in which the Government prohibits a strike or lock-out, it shall forthwith refer the dispute
to the Labor court.
(6) The Labor court shall, after giving both the parties to the dispute an opportunity of being heard, make
such award as it deems fit as expeditiously as possible but not exceeding sixty days from the date on
which the dispute was referred to it :
Provided that the labor court may also make an interim award on any matter or dispute:
Provided further that any delay by the labor court in making an award shall not affect the validity
any award made by it.
(7) An award of the labor court shall be for such period as may be specified in the award which shall not
be more than two years.
(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. But other provisions of this chapter relating to resolving
industrial dispute shall apply to such establishments.

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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.

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The Participative Process [2011-3.b] Prerequisites For Participation[2013-2.b]


1. Adequate time to participate
2. Potential benefits greater than the costs
3. Relevance to employee interest
4. Adequate employee abilities to deal
with the subject
5. Mutual ability to communicate
6. No feeling of threat to either party
7. Restriction to the area of job
freedom
Qus: Role of Unions in Participation
1) Placing Demands: The first role of unions in regard to participation is to place demands before the
management. But before placing the demands the union leaders should consider only the reasonable
ones.
2) Emphasizing Welfare: Employees want to get more reasonable welfare facilities. For the
consideration of management, union leaders should facilitate the management.
3) Selected/Elected Representative: At the third stage union leaders should elect representative for
participation. For the purpose, existing rules may be followed.
4) Collective Bargaining: Union leaders, after placing the charter of demands, will bargain with
management. If necessary they will forgo some demands.
5) Unity may be strengthened: Strength lies with unity. Union leaders should show strong unity.
Otherwise management may not consider their cases.
6) Mitigating Misunderstanding: Misunderstanding may be reduced by mutual discussion and faith on
all parties. In this regard trade unions play important roles.

Qus: Important Consideration in Participation


1) Union Attitudes Toward Participation: There are two vies on this issue. Some leaders think that
participation may weaken their strength to challenge managements decision. Opposite view is that,
they can work better after getting all possible pros & cons.
2) Limitations of Participation: Some factors may come less use of participation. Lack of higher level
support, higher cost, less training, problems at all stages and lack of substantial efforts to employment
the decision are major limitations.
3) Management Involvement: All out supports from management is a must for every successful
participation. For the purpose, management must take initiative, train people, create favorable
environment, allocate money etc.

Qus: Determinant Factors for Worker Participation in Management [2014-6.b]


Ans: There are several factors that determine worker participation in the management of the companies,
such as, for example, the lack of skills, information, communication or autonomy As a result, companies
should develop solutions adapted to their circumstances (development of skills, training, improved
communication, changes in forms of address and relationships, etc.) to progress towards a new
participatory culture.

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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

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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

Md. Ali Reza


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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

Quasi-Judicial Action Judicial 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.

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12) Other Reasons:


a) Promotions f) Nature of job k) Recovery of dues
b) Amenities g) Payment l) Condition of work
c) Compensation h) Transfer m) Continuity of service
d) Fines i) Victimization n) Disciplinary action
e) Increments j) Leave o) Safety appliances & Medical benefits

Qus: Steps in Handling Grievance [2012-2.a]


1) Defining The Nature Of Grievance: Management must know the nature of grievance problem, the
sources of grievance problem the ways to be adopted to solve the problem and so on for the sake of
handling grievances.
2) Gathering Facts: Management should collect original causes of grievance, who are related to the
grievance.
3) Establishing Tentative Solution: Management should establish a tentative solution that can create
peace solution to the grievance.
4) Checking Tentative Solutions: At this stage management comes to know both positive and negative
impact of solution.
5) Applying Solution: After checking tentative solutions management can apply final solutions to the
problem.
6) Follow Up Of The Grievance: At the last stage, management can monitor and follow up of the
result. For getting fruitful result, following ways can be of increase help for management to handle
the grievance:
Observation
To know whether the employees are satisfied with the management decision
To arrange general discussion with the management
To ask other employees with a view to know about the reaction to the employees
Qus: Types of Grievance Handling Procedure
Ans: There are two types of grievance handling procedure. They are:
A. The Step-Ladder Procedure: A grievance procedure is graduated series of steps arranged in a
hierarchy of increasing complexity and involvement. The number of steps may vary with the size of
the organization. A small organization may have only two steps- supervisor and the manager, but a
big organization may have as many steps as they require.
B. The Open-Door Policy: Some company adopts an informal policy for grievance handling and
employees are free to go directly to the top level executives with their grievances for redressal. Such a
policy is known as open-door policy.
Qus: Role of Line Manager in Handling Grievance? [2014-7.c; 2011-4.c]
Ans: Line Managers need a number of qualities and skills to handle grievances effectively. These include:
1) An ability to listen well;
2) Patience;
3) An ability to remain objective when hearing points of view that may not accord with their own;
4) Empathy;
5) The ability to understand the employees grievance within the larger context of the organizations
needs; and
6) Good verbal communication skills, in particular the ability to be direct and honest without alienating
the employee.

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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.

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Chapter-7.Name=Strike and Lock out


Qus: Meaning of Strike as per Bangladesh Labor Act, 2006
Ans: Industrial disputes exist all over the world. Strikes are the expressions of the Industrial disputes
from the workers side. Strike is a legal weapon for preserving the rights of the workers.
When the workers, collectively, do not join their work on the basis of their demands, it is called
strike. In other words, when major portion of the workers refuse to join work until fulfillment of their
demands, it is called strike.
According to the section 2(xxii) of the Bangladesh Labor Act 2006, Strike means cessation
of work by a body of persons employed in an establishment acting in combination or a
concerted refusal, or refusal under a common understanding of any number of persons who are
or have been so employed to continue to work or to accept employment.
Qus: Impact/Effects of Strike on the Employer, Workers and Others. [2013-6.b; 2012-5.b]
A. Effect on Employers: The employers are also affected due to strikes in their industries or
establishments. It is also harmful for them. The impacts of strikes can be pointed as:
1) Management Efficiency: If the management fails to negotiate with the workers, it is sometimes
considered as the inefficiency of the management.
2) Financial Effect: Due to strike, the workers cease work, as a result of it, there is no production.
Such situation affects the industries financially.
3) Relationship with Workers: When the workers go on strike, it represents that they are not
satisfied with the management. Such condition brings a cold war between the workers and the
management.
4) Infrastructure: Strikes obstacle the smooth production and operations of the industries. Due to
strikes, the infrastructure of the industries is highly affected; such as loss of command, direction,
control etc.
B. Effect on Workers: Though the workers go on strikes to recognize their demands, but they are the
main victims of strikes. The impacts of strikes on the workers are stated bellow:
1) Financial Effect: Due to strikes, the workers get no wages. Their economic condition is often
very poor, and under such situation, strikes affect them financially.
2) Psychological Effect: Because of long-term strikes, the workers become frustrated. Such
condition introduces huge mental pressure.
3) Behavioral Change: Due to financial crisis and frustration, caused by strikes, some changes in
the behavior of the workers are observed. They become very aggressive and destructive.
4) Relationship with Management: Due to strikes, a hostile relationship is developed with the
management.
5) Relationship with Union Leaders: Due to frequent strikes, the workers are subjected to
financial and psychological crisis. In such situation, the workers may become very much
dissatisfied with their union leaders.
C. Effect on Others: The employers and the workers are not only affected by strikes, some other
parties, like the government, the society and the nation are also affected.
1) Affect on the Government: Because of strikes, production is stopped; as a result, the
government is derived from the revenue.
2) Affect on the Society: The workers are highly financially affected by strikes. They cannot
provide financial arrangement to their families. Their daily activities are hampered; such as

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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.

Qus: Different Types of Strikes


Ans: In Bangladesh, strike is the main form of Industrial disputes. Strikes have different forms or types.
Some common forms of strikes that are observed in different industries are stated here:
1) Token Strikes: Strike for few hours or one day. It is the symptom of total strike.
2) Sit-down Strikes: In such strike, the workers cease themselves from the work, though they are
present in the establishment.
3) Go Slow: Go slow is another form of strike, in which, the workers slow the pace of work due to
express their unrest.
4) Picketing: In the strike period, the workers in strike try to restrict other workers from joining or
performing their works. In this form, some workers give slogans and show placards on behalf of their
demands.
5) Hunger Strike: In hunger strike, the workers restrict themselves from taking foods. This is an
effective way to put the employers in troubles.
6) Gherao Movement: In Grerao Movement, the workers barricaded the employers. In this form,
workers restrict the management from their fooding or movement.
7) Sympathetic Strike: Sometimes workers strike to express their sympathy and uniformity to the
workers in strike in another industry.

Qus: Causes of Strikes


Ans: Some general causes of strike are discussed here:
A. Labor Exploitation: In capitalistic society, employer is the owner of factors of production, not the
workers. Most of the laws are engaged in preserving the interests of the employers. As a result,
disputes arise.
B. Economic Causes
1) Better Wages & Benefits.
2) Claim for Share in Profit.
3) Overtime.
4) Other economical or financial benefits.
C. Social Causes
1) Working Environment.
2) Working Hour.
3) Travel and Medical Benefits.
4) Welfare.
5) Job Security.
6) Leaves.
7) Locality Ism.
D. Managerial Causes
1) Recognition of Trade Union.
2) Claim for Workers Participation in Management.

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3) Discrepancy in Personnel Policy.


4) Protest against Dismiss or Discharge.
5) Cancellation or Voiding Contract.
6) Inefficient Leadership.
7) Differing in Different Issues with CBA.
E. Political Causes
1) Influences of Different Political Parties.
2) Movement against the Government.
3) Influence of the Government Party.
F. Psychological Causes
1) Frustration and Unrest.
2) Behavioral Causes.
3) Capitalist Concept.
G. External Causes
1) International Pressure.

Qus: Define Lock out as per Bangladesh Labor Act, 2006


Ans: The employers go for lock-out due to Industrial disputes. It is a very strong weapon of the employers
against the workers. Under this arrangement, the employers do not allow the workers to enter into the
industries, or to work. Through lock-out, the employers force the workers to accept their conditions.
A lockout is basically the other way around. The employers refuse the workers the opportunity to
work in an effort to force financial redirection and compliance.
The New Encyclopedia of Britannica defines lock-out as tactic used by the employers in labor
disputes in which the employers withholds employment, usually by locking employees out of work
facilities.
According to the section 2(Lvii)of the Bangladesh Labor Act 2006, Lock-out means the closing of
a place of employment or part of such place or the suspension, wholly or partly, of work by an
employer, or refusal, absolute or conditional, by an employer to continue to employ any number of
workmen employed by him where such closing, suspension or refusal occurs in connection with an
Industrial dispute or is intended for the purpose of compelling workmen employed to accept certain
terms and conditions of or affecting employment.

Qus: Distinguish Between Strike and Lock-Out [2013-6.a; 2012-5.a]


ISSUES STRIKE LOCK-OUT
Definition Close of work by the employers. Close of work by the employees.
Party Employer or management. Employees or workers.
Objective To force the employees to accept terms To force the employer to accept the
and conditions of the employer. demands of the workers.
Number An owner or an employer can call a lock- Workers have to call a strike collectively.
out.
Punishment Up to one-year jail or fine of five Up to six months jail or fine of two
thousand Taka or the both for illegal lock- hundred Taka or the both for illegal strike.
out.

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Qus: Meaning of LAY OFF and CLOSURE [2013-8.b; 2012-8.b; 2011-8.b]


LAY OFF: Lay-Off means the failure, refusal or inability of an employer on account of shortage of coal,
power or raw material or the accumulation of stock or the break-down of machinery to give employment
to a worker whose name is borne on the muster-rolls of his shop, commercial establishment or industrial
establishment.
CLOSURE: Closure means the closing or stoppage of business activities. The owner goes to closure due
to financial crisis or some other changing situations. It is not done due to Industrial disputes. The Labor
Court cannot give any order to start an industry or business or establishment, which is under the
closure.
Qus: Distinguish between Lock-out and Lay off
Lock-Out Lay Off
Lock-Out means the closing of a place of Lay-Off Means the failure, refusal or inability of
employment or part of such place or the an employer on account of shortage of coal,
suspension, wholly or partly, of work by an power or raw material or the accumulation of
employer, or refusal, absolute or conditional, by stock or the break-down of machinery to give
an employer to continue to employ any number of employment to a worker whose name is borne on
workmen employed by him where such closing, the muster-rolls of his shop, commercial
suspension or refusal occurs in connection with an establishment or industrial establishment.
Industrial dispute or is intended for the purpose of
compelling workmen employed to accept certain
terms and conditions of or affecting employment.
Lock-out is defined in the Industrial Relations Lay-off is defined in the Employment of
Ordinance 1969. Labor (Standing Order) Act 1965.
The owner or the employer declares lock-out due Lay-off is declared due to shortage of coal,
to Industrial disputes. power or raw material or break-down of
machinery etc.
The objective of lock-out is to force the The objective of lay-off is to minimize the amount
workers to accept any condition of the of loss due to problem raised or the changing
employer or management. situation and to solve it.
It is a weapon of the employer to pressure the It is a weakness of the employer to provide
workers. employment to his workers.
In case of illegal lock-out, the employer shall be Whenever a worker is laid-off, he shall be paid by
punishable with imprisonment for a term, which the employer, for all days during which he is so
may extend to one year or with fine, which may laid-off, except for such weekly holidays as may
extend to five thousand Taka or with both, and in intervene, compensation, which shall be equal to
the case of a continuing offence, with a further half of the total basic wages and dearness
fine, which may be extend to two hundred Taka allowance, and the full amount of housing
for every day after the first, during which the allowance, if any.
offence continues.
In case of illegal lock-out, the Labor Court cannot In case of lay-off, the Labor Court has no right to
give Order to end it. Order to end it.
The employer does not arrange any alternative The employer may arrange any alternative
employment for the workers. employment, if there is any scope.

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Qus: Illegal Strikes and Lock-Outs [2014-5.a]


Illegal Strikes: (Section 2(xliii), BLA 2006)
Illegal strike means a strike declared, commenced or continued otherwise than in accordance with the
provisions of chapter XIV;
Illegal Lock-Outs: (Section 2(xliv), BLA 2006)
Illegal lock-out means a lock-out means a lock-out declared, commenced or continued otherwise than
in accordance with the provisions of chapter XIV;
BLA 2006 has clearly specified illegal strikes and lock-outs. According to the Chapter XIV:
Section 227. Illegal strikes and lock-outs:
(1) A strike or lock-out shall be illegal, if-
(a) it is declared, commenced or continued without giving to the other party of the dispute in the
prescribed manner a notice of strike or lock-out or before or after the date of strike or lock-out specified
in such notice, or in contravention of section 225, or,
Section 225.Prohibition on Serving Notice of Strike or Lock-out while Proceedings Pending
No notice of strike or lock-out shall be serviced by any party to an Industrial dispute while any
conciliation proceedings or proceedings before an arbitrator or a Labor Court or an appeal to Tribunal
are or is pending in respect of any matter constituting such Industrial dispute.

(b) it is declared, commenced or continued in consequence of an industrial dispute raised in a manner


other than that provided in section 209, or
Section 209. Raising of Industrial Disputes
No Industrial dispute shall be deemed to exist, unless it has been raised in accordance of this Chapter
(Chapter XIV) by a collective bargaining agent or an employer.

(c) it is continued in contravention of an order made under section 211 or 226; or


Section 211(4). Strike or Lock-out in Public Utility Services
In the case of any of the public utility services, the Government may, by order in writing, prohibit a strike
or lock-out at any time before or after the commencement of the strike or lock-out.

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.

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Qus: Penalty for Illegal Strike or Lock-Out [2014-5.b]


Ans: (Section 294, BLA 2066)
(1) Any worker who commences continues or otherwise acts in furtherance of an illegal strike shall be
punishable with imprisonment for a term which may extend to one year or with fine which may extend to
five thousand taka, or with both.
(2) Any employer who commences continues or otherwise acts in furtherance of an illegal lock-out shall
be punishable with imprisonment for a term which may extend to one year, or with fine which may
extend to five thousand taka, or with both.

Qus: Pay for the Strike Period [2014-8.c; 2013-8.c]


Ans: As a general rule, employees choosing to strike work must bear the evident consequences of their
act, namely, loss of wages. The principles of all employment is that an employee has only the right to
receive payment for work done and that voluntary unemployment ordinarily carries no right to
receive pay. However, if the conduct of the employer or the condition imposed by him upon the
employees have been such as to render it impossible for the employees to resume work or the demands
made by the employees have been so obviously fair and reasonable that the employers attitude in
rejecting them can be characterized as capricious or vindictive, the Court may grant wages for the strike
period or a part of it upon the appropriate facts of proceedings before it.
If a strike is justified but it is illegal by law, the workers will not be entitled to wages for such strike
period. To allow this wage be to set the, the Criminal law and the Civil law shall be in conflict; as the
worker who would be liable to punishment for the same conduct in Criminal law, would be
required to be compensated under the Civil law, which would be anomalous.

Qus: How can we prevent strike? [2012-5.c; 2010]


1) Implement a Labor-Management Relations Program: A labor-management relations program is a
good starting point for an effective strike prevention program. For all businesses, an open door policy,
written complaint procedures and timely investigations of any complaints are essential components.
For a business with union employees, this also includes contract negotiation, collective bargaining,
mediation and arbitration procedures.
2) Remove Communications Barriers: Although a more hierarchical organizational structure often
becomes necessary as a business grows larger, a formal structure and one-way communications can
increase employee discontent. For many businesses, an organizational structure characterized by
shared responsibilities, two-way communications between employees and managers and an
environment that encourages employees to make some of their own decisions is effective in
preventing a strike.
3) Design an Employee-Oriented Company Culture: A strong company culture increases
cooperation, collaboration and motivation, which in turn improve communications and decision-
making and facilitate more effective problem solving. For many employers, a company culture that
focuses on health and safety recognizes the contributions employees make to the businesss overall
success and provides for transparency in all aspects of management can significantly reduce the
chance that employees will decide to strike.
4) Encourage Initiative: In general, employees who feel they have both a say and a stake in creating a
successful business will be less likely to strike. In many businesses, micromanagement increases the
level of worker discontent, while autonomy most often increases job satisfaction. Although some
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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.

Qus: Right Of Laid-Off Workers For Compensation [2014-8.b]


Ans: (BLA 2006, Section-16)
(1) Whenever a worker, other than a badli or casual worker, whose name is borne on the muster-rolls of an
establishment and who has completed not less than one year of continuous service under the employer is laid-
off, he shall be paid compensation by the employer for all days during which he is so laid-off, except for such
weekly holidays as may intervene.
(2) The amount of compensation as mentioned in sub-section (1) shall be equal to half of the total of
the basic wages and dearness allowance, and ad-hocor interim pay, if any, and the full amount of housing
allowance, if any, that would have been payable to him had he not been so laid-off.
(3) A badli worker whose name is borne on the muster-rolls of an establishment shall cease to be
regarded as badli for the purposeof this section, if he has completed one year of continuous service in the
establishment.
(4) No worker shall, unless there is an agreement to the contrary between the worker and the employer, be
entitled to the payment of compensation under this section for more than forty-five days during any calendar
year.
(5) Notwithstanding anything contained in sub-section (4),if during a calendar year a worker is laid-off for
more than forty-five days, whether continuously or intermittently, and the lay off after the expiry of the first
forty-five days comprises period or periods of fifteen days or more, the worker shall, unless there is an
agreement to the contrary between the worker and the employer, be paid compensation for all the days
comprised in every subsequent period of lay-off for fifteen days or more.
(6) The amount of compensation as mentioned in sub-section (5) shall be equal to one-fourth of the total of the
basic wages and dearness allowance, and ad-hoc or interim pay, if any, and the full amount of housing
allowance, if any.
(7) In any case where, during a calendar year, a worker is to be laid off after the first forty-five days as
aforesaid, for any continuous period of fifteen days or more, the employer may, instead o laying-off such a
worker, retrench him under section 20.

Qus: Stoppage of work [2013-8.b]


Ans: (BLA 2006 Section-12)
(1) The employer may, at any time, in the event of fire, catastrophe, breakdown of machinery, or stoppage
of power supply, epidemics, civil commotion or any other cause beyond his control, stop any section or
sections of the establishment, wholly or partly for such period as the cause for such stoppage continues to
exist.
(2) In the event of such stoppage occurring at any time beyond working hours, the employer shall notify
the workers affected, by notice posted on the notice board in the section or department concerned or at a
conspicuous place in such establishment before the work is due to begin next.
(3) In the notice mentioned in sub-section (2) direction shall be given indication as to when the work will
be resumed and whether such workers are to remain at their place of work at any time before the actual
resumption.

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(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.

Qus: Closure of Establishment


Ans: (BLA 2006 Section-12)
(1) The employer may, in the event of an illegal strike by any section or department of any establishment,
close down either wholly or partly such section or department and the workers participated in the
illegal strike hall not be paid any wages for such closure.
(2) Where by reason of closing down of any section or department of any establishment under sub-
section (1) any other section or department is so affected that it is not possible to keep that section or
department open, that section or department may also be closed down and the workers affected
thereby shall be paid wages as in the case of lay-off for a period of three days and thereafter they may
not be paid any wages for such closure.
(3) The fact of such closure shall be notified by the employer, as soon as practicable, by notice posted on
the notice board in the section or department concerned or at a conspicuous place in the establishment
and the fact of resumption of work, following such closure, shall likewise be notified.

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