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Assignment in “Industrial Relationships in Bangladesh” Submitted To Professor Doctor Moniruzzaman Study course Teacher Dept: Business Operations Stamford University Bangladesh Posted by Posted Date Particular date: 10/04/2014 Notice of Transmittal April 15, 2014 Teacher Dr . Moniruzzaman Department of Business Government Stamford University Bangladesh. Subject: Submission of Internship Report. Dear Sir, It is a great enjoyment and advantage to present the report entitled “Industrial Relations in Bangladesh” which was designated to me like a part intended for the competition of MBA Plan.

Throughout the analyze I have tried with the most of my capacity to accommodate as much information and relevant concerns as possible and tried to stick to the instructions as you may have recommended.

I attempted my best to make this record as much helpful as possible. I actually sincerely believe that it will meet your requirements. My spouse and i however really believe that this kind of report will certainly serve the objective of my study course (Industrial Relation). I am grateful to you for your guidance and kind co-operation at every step of my endeavor on this report.

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Introduction One of the major capabilities of human resource management is to maintain smooth professional relations (IR). It is also remedied as one of the most well-known functions of HRM. It is basically allied with the contact between the company and the personnel in the industry (Singh & Kumar, 2011: 3). According to Weeratunga (2003: 5) “Industrial Relations or perhaps Labor Relations, the terms used interchangeably, can be viewed as the interaction between various interested parties involved with employment. The employer and the worker are evident parties.

The state, in ensuring a level playing field to get both sides, provides the legal platform within which such relations may take place”. In commercial relations, personnel are generally symbolized by their trade unions created under phase 13 of Bangladesh Labor Act–2006 although employers happen to be represented by way of a associations just like Bangladesh Organisations Federation. HUMAN RESOURCES managers mediate the interactions between workers and employers though they may be appointed by representatives of employers. Another related term is ‘Employee Relations’.

Though both the conditions industrial relations and employee relations are structurally similar (Decenzo& Robbins, 1999: 18), employee relationships includes, moreover to commercial relations, these kinds of aspects while participative managing, employee wellness, employee development, employee settlement, employee safety and well being, and the like (Aswathappa, 2008: 534). Generally professional relations cover the areas such as trade assemblage, collective negotiating, settlement of industrial disputes, complaint handling procedure, role of presidency, labor laws and regulations, courts and tribunals and role of employers.

In the context of developing countries, industrial relations has been inspired by features such as substantial exploitation of workers, low-level of employee participation in decision making, authorities and personal interferences, high rate of illiteracy of workers, low level of employment, low level of awareness among the laborers concerning rights, laws, and control unionism, and low labor productivity (Khan &Taher, 2008: 222-23). Commercial relations performs an important part in developing and retaining industrial democracy (Monappa, 2005: 9) and it is the key to further improve productivity in industrial companies (Aswathappa, 2004: 534).

Hrm can play vital functions in boosting cooperative and friendly commercial relations. In Bangladesh, collective bargaining upon pay among employer and workmen is prohibited inside the public sector enterprises since the government patterns uniform pay out and rewards for the employees of all open public sector businesses (Mahmood, 2008). The limited scope of collective bargaining in the open public sector of Bangladesh affects the operate unions to develop network with government, political parties and also other powerful systems in organising their actions.

It slows effective connections between the associates of organisations and workers at business level. Nevertheless performance primarily based pay is known as to have significant impact on staff performance (Dessler&Varkkey, 2010: 15), it is not at all practiced by public sector enterprises in Bangladesh. Consequently, public sector enterprises in Bangladesh have already been incurring big losses. On the other hand, all types of collective bargaining occurs at venture level in case there is private sector enterprises (Khan, 1996).

Mahmood (2008) stated that the professional relations process in the non-public sector was often annoyed by links between non-public and open public sector unions. Objectives: a) To explore the differences between community and private sector industrial businesses of Bangladesh with respect to overall status of IR. b) To put forwards policy ramifications of overall improvement in IR of Bangladesh. Professional Relations Studies in Bangladesh Khan (1986) studied industrial relations in Bangladesh with special emphasis on trade unionism. … Control Unions

Trade Union is usually an organization of workers who may have banded together to achieve prevalent goals just like protecting the integrity of its transact, achieving bigger pay, increasing the number of workers an employer employs, and better working circumstances. – An organized relationship of workers in a control, group of investments, or occupation, formed to safeguard and further their rights and interests. – A group of staff in a particular sector, in whose aim is to negotiate with employees above pay, work security, operating hours, and so forth using the ordinaire power of the members.

The most frequent purpose of these kinds of associations or perhaps unions is usually “maintaining or improving the conditions of their employment”. Causes of arranging trade assemblage Provision of advantages to associates: professional training, legal advice and representation for members continues to be an important benefit for trade union membership. Commercial action: Transact unions may possibly enforce attacks or capacity lockouts in furtherance of particular desired goals. Political activity: Trade assemblage may enhance legislation good to the pursuits of their members or workers as a whole.

For this end they might pursue advertisments, undertake lobbying, or economically support specific candidates or perhaps parties. Circumstances of job and virtually any grievances — are satisfied through control unions. Bargaining rights: Control unions good deal and ensure the status, rights, wages and demands of workers in the modern associated with industry. Contribution in economical growth: Operate unions are growing rapidly in an economy because of the growth of organization and cost-effective growth. Aims Trade unions are the only way to deal with, compliant, and control the labour push. Lots of targets are there to arrange trade assemblage.

To defend or perhaps improve the wages and doing work conditions of workers also to bring about a change in the financial order. installment payments on your To strengthen their particular (labour) negotiating power jointly to establish and achieve all of their rights. a few. To dully protect all the other interest from the workers. And from the management’s point of view the objectives since written: a) To reduce the quantity of negotiation. b) To designate work guidelines, disagreements and grievances to have the better strategy to workers claim. c) To determine the effective communication between the employers and management to enforce the predictable requirements.

To enhance the complete organizational success workers can also be sometimes encouraged to form and organize control union. Actually objectives of your trade union are not defined; rather they are changing according to the need of the economy and overall sector. When these objectives are not settled then this rivals are started Great Trade Unions The Pakistan Period (1947-71) -The East Pakistan Control Unions Work, 1965 was enacted repealing the Trade Unions Act, 1926. -The Labor Arguments Act, 65 was passed. -Industrial Relations Ordinance, 69 was enacted integrating the above mentioned two Acts.

The Industrial Associations (Amendment) Ordinance, 1977 liberalized the Privileges of Liberty of Relationship -The Labor Policy of 1980 restored the right to independence of affiliation to a extensive extent -In 1982 the military program banned operate union actions, strikes, and right of freedom of association. Limitations In Bangladesh Trade Assemblage have a whole lot of unavoidable problems: 1 . Lack of consciousness: Trade union are not in fact completely aware of employees rights and duties. 2 . Insufficient Unity: In Bangladesh trade unions will be separated for political influence. 3.

Lack of knowledge: The employees of Bangladesh don’t have enough knowledge about their rights and duties. 5. Political affect: In Bangladesh, trade unions work part of political parties not as a free of charge right saving association. your five. Division of operate union: Bangladesh is a region where every single organization has more trade assemblage in term only. The general productivity received down. Recommendations Strengthening zwischenstaatlich collective bargaining for fixing problems quickly and effectively. Multiplicity of trade union creates the rivals in a union. So that it must be reduced. Political participation must be lowered.

Organization must support financially as trade unions support the member of staff. Training applications under operate union needs to be helpful to develop the skills with the workers. Control union’s function should be elevated and widened throughout the firm. Union leader must be given importance and encourage the members. If trust between personnel and managing increases, efficiency increases. Management must help and guide trade assemblage to settle commercial clashes and crisis. Trade unions should demand affordable thing towards the management.. What is a dispute?

Academically speaking, industrial dispute refers to any turmoil between personnel and companies, between companies and employers and between employers and employees. • But in actuality, dispute is usually understood as the issue between workers and organisations. • You will find three types of Conflicts: • Disciplinary disputes • Grievance conflicts • Commercial disputes • According to Industrial Dispute Act, 1947, Industrial dispute means virtually any dispute or perhaps difference among employers and employers, or perhaps between companies and workmen, or among workmen and workmen, which can be connected with the employment or nonemployment or terms of job or with the conditions of labour of any person.

Reasons for Industrial Disputes: Some of the visible causes of industrial disputes could possibly be listed as a result: Employment: Record here comes with disputes above wages, allowances, bonus, rewards, working, state, unjust dismissals, retrenchment of workers, strategies of job evaluation, changes in ways of production, non-implement of accolades of tribunals, etc .

The National Percentage on Labor remarked “though on majority of occasions commercial disputes were deduced on claims pertaining to the terms and condition of career, sometimes financial issues of any general figure dominated and, on occasion, strictly motives”. The causes of industrial differences can be extensively classified in to two categories: economic and non-economic causes. The monetary causes will include issues relating to compensation just like wages, reward, allowances, and conditions for work, operating hours, keep and holidays without pay, unjust layoffs and retrenchments.

The not economic factors will include victimization of staff, ill treatment by staff members, sympathetic happens, political factors, indiscipline etc . Wages and allowances:  Since the cost of living index can be increasing, employees generally good deal for bigger wages to fulfill the increasing cost of living index and to enhance their standards of living. In 2002, 21 years old. 4% of disputes had been caused by require of higher pay and allowances. This percentage was 20. 4% during 2003 and during 2004 improved up to 21. 2%. In 2005, wages and allowances accounted for twenty one. 8% of disputes.

Workers and retrenchment:  The workers and retrenchment have also been a key point which made up disputes. In the past year 2002, disputes caused by workers were 16. 1% while those brought on by retrenchment and layoffs were 2 . 2% and zero. 4% correspondingly. In the year 2003, a similar craze could be noticed, wherein 11. 2% in the disputes had been caused by staff, while installment payments on your 4% and 0. 6% of disputes were brought on by retrenchment and layoffs. In year june 2006, only on the lookout for. 6% with the disputes were caused by staff, and only 0. 4% had been caused by retrenchment.

Indiscipline and violence:  From the given table, it is evident that the number of disputes caused by indiscipline has shown an increasing trend. In 2002, twenty nine. 9% of disputes had been caused due to indiscipline, which in turn rose about 36. 9% in the year 2003. Similarly in 2004 and 2005, forty five. 4% and 41. 6% of conflicts were induced due to indiscipline respectively. In the past year 2003, indiscipline accounted for the very best percentage (36. 9%) of the total time-loss of all conflicts, followed by cause-groups wage and allowance and personnel with 20. 4% and11.

A similar trend was observed in 2004 where indiscipline accounted for 45. 4% of disputes. Added bonus:  Bonus is definitely an important factor in industrial differences. 6. seven percent of the arguments were because of bonus in 2002 and 2003 as compared with 3. 5% and three or more. 6% in 2004 and 2005 respectively. Leave and working hours: Leaves and working several hours have not been so important factors behind industrial arguments. During 2002, 0. 5% of the disputes were as a result of leave and hours of while this percentage increased to 1% in 2003. During 2004, only zero. 4% with the disputes had been because of leaves and operating hours.

The miscellaneous factors include – � Inter/Intra Union Rivalry – � Charter of Demands – � Work Load – � Standing orders/rules/service conditions/safety measures   – � Non-implementation of deals and prizes etc . Collective Bargaining Communautaire bargaining contains not only discussions between the organisations and assemblage but also includes the process of solving labor-management disputes. Thus, group bargaining can be, essentially, a recognized way of building a system of commercial jurisprudence.

It acts as a approach to introducing city rights in the marketplace, that is, the management must be conducted simply by rules rather than arbitrary making decisions. It creates rules which usually define and restrict the regular authority practiced by the administration. Importance to employees? Communautaire bar aining develops a sense of self respect and responsibility among the employees. It enhances the strength in the workforce, therefore, increasing their very own bargaining potential as a group. Collective bargaining enhances the morale and productivity of employees.

This restricts management’s freedom intended for arbitrary actions against the staff. Moreover, partidista actions by the employer are usually discouraged. Successful collective bargaining machinery tones up the operate unions movements. The workers truly feel motivated because they can strategy the supervision on various matters and bargain to get higher benefits. It helps in securing a prompt and fair arrangement of issues. It provides a flexible means for the adjustment of wages and employment conditions to economic and scientific changes in the sector, as a result of which the chances to get conflicts are reduced.

It is easier pertaining to the administration to resolve problems at the negotiating level instead of taking up problems of individual workers. 2 . Collective bargaining tends to encourage a sense of job security amongst employees and thereby will reduce the cost of labor proceeds to supervision. 3. Collective bargaining takes the channel of interaction between the workers and the administration and boosts worker contribution in making decisions. 4. Collective bargaining performs a vital role in settling and preventing commercial disputes.

Group bargaining brings about industrial peace in the country 2 . It brings about establishment of the harmonious commercial climate which in turn supports which will helps the pace of your nation’s initiatives towards economical and cultural development since the obstacles to such a development can be reduced noticeably. 3. The discrimination and exploitation of workers is consistently being checked out. 4. It possesses a method or perhaps the regulation of situations of career of those who have are straight concerned about them.

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