TOPIC A comparison of industrial employment relations between the countries of Indian sub-continent (India, Pakistan & Bangladesh)

Submitted by Ahmed J. Nayel

Introduction
Indian sub-continent or The sub-continent in popular terms consists of India, Pakistan and Bangladesh. They are situated in South Asia and were the main hub for doing spice and poppy business in last few centuries. The three countries used to be a single country prior to 1947 when the occupying British rule ended after 190 years when they were divided into two countries: India and Pakistan. Then again in 1971 after the Liberation War, Bangladesh became a sovereign nation divided from Pakistan. So, the labour laws and regulations in the industries were the same in the entire region and moreover many things have remained same until till date. Though the countries emerged from the same situation, at present India has a greater and strong industrial based economy. In this report a comparison is done between the three countries to get a concept on their industrial employment relations system.

India
India with a population of over a billion is the second most populous state in the world after China. It has a population growth rate of 1.4% and literacy rate of 60%. On religious lines the population is dominated by Hindus who are 81.3%. The Indian labour force is 406 million, with 60% in agriculture, 17% industry and 23% services. The industrial relations system in India has been under pressure for decades and new problems are emerging as the country becomes more integrated into the global economy. The main architecture of the system was established prior to Independence and remains mostly unchanged. The system is highly centralized and the state is the main mediator between capital and labour. Unions have historically enjoyed a close relationship with the state through party-based federations, but this has undermined their success developing a robust grassroots constituency and experience in collective bargaining. This essay provides a broad overview of the evolution of the Indian system of industrial relations and the labour market reform debate that has arisen in the context of economic change. The structure of the Indian labour market, the overwhelming size of the informal or `unorganized' workforce, and its location outside the industrial system is the fundamental challenge facing Indian

industrial relations. There is an urgent need to develop a system that embraces all workers especially given India's demographic profile and the expected increase in the number of working age people over the next decade. The experience of women workers and the failure of both the industrial system and the union movement to understand and accommodate their needs is also an important challenge for industrial relations in India. There are twelve central trade union bodies in India at present, which are: 1. Bharatiya Mazdoor Sangh (BMS) 2. All India Trade union Congress (AITUC) 3. Centre of Trade Unions (CTU) 4. Hind Mazdoor Kisan Panchayat (HMKP) 5. Hind Mazdoor Sabha (HMS) 6. Indian Federation of Trade Union (IFTU) 7. Indian National Trade Union Congress (INTUC) 8. National Front of Indian Trade Union (NFITU) 9. National Labour Organization (NLO) 10. Trade Union CO-ordination Centre (TUCC) 11. United Trade Union Congress (UTUC) 12. United Trade Union Congress Lenin Sarani (UTUC-LS)

It is quite evident that the industrial system right now is trying to shift from the old system to the new. In the process, it is experiencing tension between the workers who are trying to keep jobs and the employers who are trying to achieve flexibility so as to cope with the domestic and international market competition. In essence, these practices have accentuated the diversity existing in the Indian industrial system considerably. Some analysts suggest that there is so much variation in the Indian industrial relations that it is no longer appropriate to think of one national Indian industrial relations system. However, the shift is now away from maintaining labour peace and towards the increase in firm level competitiveness through basically numerical flexibility as India becomes more integrated into the world economy. The discussion on the changes in the industrial relations in India and bring out the following dimensions:

 Collective bargaining in India has mostly been decentralized, but now in sectors where it was not so, are also facing pressures to follow decentralization. Some industries are cutting employment to a significant extent to cope with the domestic and foreign competition e.g. pharmaceuticals. On the other hand, in other industries where the demand for employment is increasing are experiencing employment growths. In the expansionary economy there is a clear shortage of managers and skilled labour. The number of local and enterprise level unions has increased and there is a significant reduction in the influence of the unions. Under pressure some unions and federations are putting up a united front e.g. banking. Another trend is that the employers have started to push for internal unions i.e. no outside affiliation. HR policies and forms of work are emerging that include, especially in multinational companies, multi-skills, variable compensation, job rotation etc. These new policies are difficult to implement in place of old practices as the institutional set up still needs to be changed. HRM is seen as a key component of business strategy. Training and skill development is also receiving attention in a number of industries, especially banking and information technology.

Pakistan
The role of industrial relations is changing in Pakistan because of the changing structure of the economy and the growth of the industrial sector. It is always very important to emphasize that though it is one of the main stakeholders, Pakistans labour movement, despite the merger of the three affiliates of the International Confederation of Trade Unions (ICFTU) into the Pakistan Workers Federation (PWF) in September 2005, remains splintered along ethnic, sectarian, linguistic, and regional lines. Trade union federations are often centred on personalities. Very few of them attempt to organize at the grass-roots level, but prefer to compete for the loyalty of the various enterprises based unions, thus promoting instability. Over the past ten-15 years, average membership has stabilized at about 135 members per union, down from nearly 2,000 per union immediately after independence. Union dues are not paid in many instances, so the trade unions incomes are low. This seriously affects their activities and services to members and creates dependence on external funding for their trade union work. Industrial relations in the workplace are governed by the provisions stipulated in the industrial ordinances or acts as enacted, repealed, and modified by the government from time to time. Trade unions in Pakistan generally function on a plant-wide basis, with their membership contingent on the size of the industry or trade to which they belong. Once established, the trade unions and employers' associations have the right to draw up their constitutions and rules, elect their representatives in full freedom, organize their administration and activities, and formulate their programmes. The drawing up of a detailed constitution is a primary requirement before any application for the registration of a trade union can be filed. Before issuing the certificate of registration, the constitution of the union is examined thoroughly by the relevant authorities. Democracy is ensured in the internal working of trade unions. Office bearers of the trade unions have to get elected by their own members through secret ballot every two years. If there is more than one union in an establishment, these unions are required to participate in a referendum to determine the CBA union. Thus, the office bearers of a trade union are answerable to their own members during the secret ballot as well as during the referendum to other unions. The trade union that secures more than one-third of the total number of eligible

voters in an establishment gets the status of CBA (collective bargaining agent). Trade union leadership consists of a number of office bearers. The apex body of the union is the executive council or governing body, headed by the president of the trade union. The other important office bearers include vice-president, secretary, joint secretary, and treasurer. A council of representatives directly elected through votes also takes part in the crucial consultative decision making process of the union. Major decisions are shared with the members in general meetings. There is a strong mechanism of transparency and accountability in the working of trade unions. They have to seek the support of their members through a secret ballot every third year to get the status of CBA. Their work and performance undergoes scrutiny not only by workers, but also other contesting unions. Trade unions have to be registered under the relevant section of the industrial relations law. The unions are registered with the registrar of trade unions of the relevant province, or with the NIRC if the industry or establishment is nationwide, after fulfilling a number of requirements. Through registration, the trade union obtains certain benefits because the registration confers on it a legal existence as an entity separate from its members. The requisite legal support is provided by the industrial relations laws. The country has witnessed two Industrial Relations Ordinances, of 1969 and 2002, and the Industrial Relations Act, 2008 (IRA-08). The IRA-08, however, is an interim arrangement and its validity is only up to April 2010; it will stand repealed if a revised version is not tabled in Parliament before then. The IRA-08 and its predecessors set out the rules and procedures for the internal working of the trade unions and employers' organizations on democratic lines so that they represented their members in a proper manner. The IRO-69 defined the primary objective of formation of trade unions as improving relations between employers and workers and negotiating better terms of employment for their members. The laws governing industrial relations make it mandatory for every union or federation of trade unions to register with the registrar of the provincial labour departments or with the NIRC. The list of national labour unions in Pakistan is as follows: 1. All Pakistan Federation of Labour 2. All Pakistan Federation of Trade Unions 3. All Pakistan Federation of United Trade Unions 4. All Pakistan Trade Union Congress

5. All Pakistan Trade Union Federation 6. Pakistan National Federation of Trade Unions 7. Pakistan Workers' Federation 8. Muttahida Labour Federation Pakistan 9. Pakistan Brick Kiln Labour Union

Limitations
The labour movement attributes this to the historical factors impeding the effectiveness of trade unions. There are some impeding factors which are addressed below The feudal system prevalent in the country. The hostile and feudal attitude of employers, who do not accept the collective voice of the workers through their representative trade unions. The role of the state instead of becoming a model employer, is restricting the fundamental rights of workers, including freedom of association through formation of independent trade unions and the right of collective bargaining. Pakistan remaining mostly under military rule after independence. The general anti-trade union attitude prevailing in the country.

Bangladesh
The history of trade unions in Bangladesh dates back to early 19th century when modern industrial concept entered into the Indian sub-continent. Like many other movement, the trade union movement also was similar in India and Bangladesh. The number of trade unions which was 411, increased into 1174 in 1971 after the liberation war and the independence of Bangladesh. Bangladesh Trade Union Kendra (BTUC) which was backed by the socialist party, it was nationalized after the war of liberation. The government took the governing power and changed the constitutions of trade union. From that day political influence was imposed on the trade unions of Bangladesh. Democratic functions which were backed in the 60s were changing by the aggression of ruling party men. Unions were forcibly captured. Political, administrative and managerial influences make it difficult to work independently for trade unions. From1975-1983, 217 factories were privatized. For that reason there was no influence of trade union on those. But after all systems, outsiders influence has made alive the trade unions. The jute and cotton sectors, which were nationalized in 1971, in the wake of the struggle for independence, and then privatized to some extent in the 1980s, are the most unionized sectors. Unions are also important in the transport sector and in various services. As unions in most developing countries get their power from their privileged relationship with political parties and in many cases with the government, the Bangladeshi trade unions are no exception, and are well known for their lobbying the government rather than acting in relation to the private sector. The influence of unions goes beyond the standard reach of industrial relations, and extends to the political arena. All the political parties, even the smallest ones, exert some control over a trade union. The three main political parties have their own trade union federation, which accounts for 64 % of the unionized workers. The unions have played an active role in most major political events of this country, like the massive demonstrations (strike) that brought General Ershad down in 1990. According to the World Bank (2001), an average of 21 full working days was lost annually due to strikes in the 1980s, and an average of 47 full working days per year in the 1990s. There is an estimation that about 5 % of GDP is lost on average in the 1990s. Since independence of Bangladesh, no major development took place in the history of labor legislation till the enactment of the

Bangladesh Labor Act, 2006. The Bangladesh Labor Act, 2006 is a major and comprehensive enactment regarding industrial relation system partly as a response to demand of stakeholders for improving regulatory framework on trade union and partly by demand for codification of existing labor laws in order to avoid overlapping and inconsistencies. It brought some significant changes in industrial relation system. However, the Act has not been able to bring the desired changed due to its in-built weaknesses; suspension of many labor rights under state of emergency and lack of institutional capacity to implement the laws. Still in todays era the trade union of Bangladesh is captured by the power parties of different interested arena. These results in a small country like Bangladesh having 14 national labor unions registered till date and seven of them are directly a part of the political parties:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Bangladesh Free Trade Union Congress (BFTUC) Bangladesh Ganotantrik Sramik Federation Bangladesh Jatio Sramik League Bangladesh Jatiyo Sramik Jote Bangladesh Jatyatabadi Sramik Dal Bangladesh Labour Federation Bangladesh Mukto Sramik Federation (BMSF) Bangladesh Sanjukta Sramik Federation Bangladesh Trade Union Kendra Jatio Sramik Federations Jatyo Sramik League Samajtantrik Sramik Front Bangladesh Independent Garment Workers Union Federation (BIGUF) Bangladesh Garment & Industrial Workers Federation (BGIWF)

Limitations
Bangladesh is still known as a third world country and as third world developing country; the trade unions have a lot of unavoidable circumstances. Some of those are discussed below:

The major numbers of members of trade union are not actually completely aware about their legal rights and duties. That is the reason they dont know the favourable characteristics of trade unions. That is why in Bangladesh trade unions are not strong enough to complete the need of the economy.

Trade union is actually a unity of the labour force for assuring their need. But in Bangladesh trade unions are separated for political influence. It is a shock that only for difference in political view, every industry has at least three major parts of a single union.

In our country the level of workers is not properly educated. They dont have enough knowledge about their rights and duties. In this case trade union could be helpful very much to develop workers conditions but the whole levels of workers are lacking the knowledge. That is why they dont feel the need or contribution of trade unions.

The most powerful and deep affecting barrier for the growth of trade union of Bangladesh is its political environment. Most of the trade unions of Bangladesh are not free from the political influence. Political leaders use the trade unions for illegal purposes. For this the actual environment of trade union is not seen in Bangladesh. In Bangladesh, trade unions work a part of political parties not as a free right saving association.

Bangladesh is a country where every organization has more trade unions by name only. Those unions are driven by the political leaders of various political parties. So a huge number of problems arise in the organizations. The overall productivity goes down. Moreover trade union cannot play its role perfectly which is why disputes are created and more divisions are created under different political wings.

Conclusion
In conclusion it could be said that all of the countries still have to deal with a fair amount of problems and lacking behind in the context of standards of the developed countries. Indian situations are better in some areas, as it is more industrially developed than both Bangladesh and Pakistan and has a huge labour force to tackle with. The main problems with Bangladesh are an unstable caretaker government running the country for two years recently (Jan2007-Dec2008) hampered the progress where a law was just passed a year before. And Pakistan having political turmoil for decades have to first stabilize the situations to be in more progressively economical condition. Although they still have to go a long way to fulfil the necessities of both the employee and the employer.

References
Taher, M. A. (1994). Industrial Relations (Chittagong Dhaka Milk House). Taher, M. A. (1997). Legal Environment for Industrial Relations in Bangladesh: A Critical Evaluations, in the Chittagong University Journal of Law, Vol. 2 Khan A. Badiudd, (1980), Trade Unionizm and Industrial Relations in Pakistan, Qureshi Art Press, Karachi EFP (1999), Research report, Employers Federation in Pakistan EFP (2000), Industrial Relations and Enterprise Development in Pakistan. Industrial Relations Journal. Jan-Feb 2000. Karachi, Pakistan Ghayur, Sabur (2009), Evolution of the industrial relations system in Pakistan. June 2009, Islamabad, Pakistan. Kuruvilla, S., Das, S., Kwon, H. and Kwon, S. (2002), Trade Union Growth and Decline in Asia. British Journal of Industrial Relations. Datta, R.C. (2001), "Economic Reforms, Redundancy and National Renewal Fund: Human Face or Human Mask?", The Indian Journal of Labour Economics.