Lecture TRADE UNION Updated

TRADE UNION
CONCEPT of Trade Union

A trade union or labor union is an organization of workers who join together
to achieve common goals in key areas and working conditions.
• According to The Bangladesh Labor Act, 2006, “workers/employers, without

distinction of any kind shall have the right to form trade union for the
purpose of regulating the relations between workers and employers or
workers and workers or employers and employers and, subject to the
constitution of the union concerned, to join trade union of their own
choosing”. [Sec: 176, The Bangladesh Labor Act, 2006 / Sec: 3, IRO, 1969]
CONCEPT of Trade union
• A continuous association of wage earners for the purpose of
maintaining or improving the conditions of their working lives
- (Webbs 1920).
• A group of employees in a particular sector, whose aim is to negotiate

with employees over pay, job security, working hours, etc. using the
collective power of the members.
• The most common purpose of these associations or unions is

"maintaining or improving the conditions of their employment".
TRADE UNION SITUATION IN BANGLADESH
 Trade union movement started in Bangladesh early 19th century when

modern industrial concept entered into the sub-continent
 In general, only current employees can be union members, which mean
that the loss of a job also leads to the loss of union membership
 Bangladesh constitution provides freedom of association
 In order to register to a TU:
- Unions must at least 30% of the workers representation of
an enterprise
- Must obtain authorization from the government
- The Registrar may also cancel the registration with Labor
Court approval
TRADE UNION SITUATION IN BANGLADESH
 Only 3.5 percent of the workforce is unionized
 most of the unions are limited to the public sector or state-controlled enterprises.
 The private sector is less unionized
 Trade unions are practically banned from the Export Processing Zones (EPZ), as the
EPZ is exempted from certain labor laws
 About 1.8 million of the country's workers belong to unions, out of a total
workforce of approximately 58 million
 Most of the federations are financially weak and don't have in-house development
programme for the activists.
 Education level of the workers are not satisfactory. Offices are not equipped with
modern communication system
Establishment of trade union
Section 178 of the new labor code provides a list of documents, required, for
the registration of the trade unions:
• Name of the Establishment to which it is related and the total number of workers in that
establishment
• The date of formation of the trade union;
• Description of the executive committee members and all subscribed members
• Three copies of the constitution of the Union and the resolution of the meeting in which
the constitution is proposed and accepted
• In case of a federation of a trade Union the names of the member union, address and the
acceptance letter of the member union to become the member of the proposed
federation.
Structure of Trade Unions in Bangladesh
• Craft Unions: A craft union is thus an organization of wage –earners engaged in
a single occupation or craft. Such a craft union may cover all workers engaged
in that craft, irrespective of the industries in which they are employed.
• Industrial Unions: An Industrial union is organized on the basis of an industry
rather than a craft. The industrial union attempts to organize into one
homogenous organic group, all the workers-skilled, semi-skilled, unskilled –
engaged in a particular industry or industrial establishment.
Structure of Trade Unions in Bangladesh
• General Unions: A general union is one whose membership may cover workers
employed in many industries employments and crafts. It requires a very high
degree of consciousness among the workers merging their separate industrial
and occupational status to form such unions.
• National Federation of Trade Union: A National federation is as apex
organization of trade unions within the country. So far as all types of trade
union organizations, including national unions and industrial federations can
be affiliated with any such federation of their choice.
CAUSES of Organizing Trade union
• Provision of benefits to members: Professional training, legal advice and representation
• Industrial action: Trade unions may enforce strikes or resistance to lockout
• Political activity: Trade unions may promote legislation favorable to the interests of their
members or workers as a whole. To this end they may pursue campaigns, undertake
lobbying, or financially support individual candidates or parties.
• Bargaining rights: Bargain and ensure the status, rights, wages and demands of workers of
the modern world of industry. Employment conditions and grievances are settled through
TU as well.
• Contribution in economical growth: Stability in work environment is crucial for the
business and overall economical growth.
Why workers join TU
Greater Bargaining Power
The individual employee possesses very little bargaining power as compared to
that of his employer.
Minimize Discrimination
Decisions regarding pay, work, transfer, promotion, etc. are highly subjective in
nature. The personal relationships existing between the supervisor and each
of his subordinates may influence the management.
Sense of Security
It is an effective way to secure adequate protection from various types of
hazards and income insecurity such; accident, injury, illness, unemployment,
etc.
Why workers join TU
Sense of Participation
Employees can influence the management decisions through collective bargaining
between the union and the management.
Belongingness
Being part of a community workers feel empowered and protected.
Platform for self-expression
Self-expression is a fundamental human drive. Workers want the management to listen
to them. Trade union provides a platform where the ideas and opinions could be
discussed.
Betterment of relationships
Employees joining unions feel that unions can strengthen the of employer-employee
relations.
OBJECTIVES of Trade union
From the workers point of view: From the management’s point of view:
• Defend or improve the wages and • Reduce the number of negotiation
working conditions of workers • Specify work rules, disagreements and
• Strengthen bargaining power grievances procedure
collectively to establish and achieve • Establish efficient communication
rights. method
• Protect workers interest and rights. • Enhance overall organizational
effectiveness
Trade union function
• Power: to protect and support individual as countervailing force to employer
and as pressure group in society
• Economic regulation: to maximise wages of members within the framework of
the wage/work contract of employment
• Job regulation: to establish rule-making system to protect members from
arbitrary management actions and allow them to participate in decision
making (i.e. collective bargaining)
• Social change: to express the social or political aspirations of their membership
and seek to develop society accordingly
• Member services: to provide a range of benefits or services to the individual
member
• Self-fulfilment: to provide a mechanism whereby individuals may develop
outside the immediate confines of their jobs
HISTORY of trade union
The British rulers introduced Trade Union Act, 1926. The main purpose of the Act was to
provide registration for trade unions and in certain respects. But the Act did not contain
any provision regarding strikes.
In 1929, the Trade Disputes Act put restrictions on strikes in public utility services and laid
provision for the establishment of tribunals to adjudicate upon the labor disputes.
In 1947, the Industrial Disputes Act placed the conciliation and adjudication machinery
for the settlement of industrial disputes on a permanent footing.
• Full trade union activities were restored by the democratic government in 1991.
• In 2006, an updated, consolidated and unified version of labor laws was enacted.
• During the Emergency in 2007-2008 that lasted for 23 months, trade unions and
collective bargaining were prohibited and the determination of collective
bargaining agent could not be made.
• However, full trade union activities were restored by the democratic government
in 2009.
The Pakistan Period (1947-71)
• The East Pakistan Trade Unions Act, 1965 was enacted repealing the Trade Unions Act, 1926.
• The Labor Disputes Act, 1965 was enacted.
• Industrial Relations Ordinance, 1969 was enacted integrating the above two Acts.
Bangladesh Period (1971-onwards)

• Government of Bangladesh declared a labor policy in 1972. The right to strike and collective
bargaining in the nationalized industries was prohibited for six months by Presidential order no. 55 in
May 1972.
• In 1973, the right to strike and lockout, as granted by IRO, 1969 was withdrawn.
• In 1974 Act completely suspended the democratic rights of workers by prohibiting trade union
activities such as strikes, lock-outs, collective bargaining.
• The military regime of 1975 imposed restrictions on the rights of collective bargaining.
• The Industrial Relations (Amendment) Ordinance, 1977 liberalized the Rights of Freedom of
Association
• The Labor Policy of 1980 restored the right to freedom of association to a considerable extent
• In 1982 the military regime banned trade union activities, strikes, and right of freedom of association.
PRESENT SCENARIO
Total number of Number of unions
Categories Number of members
unions/federations included
National federation 32 1264 1,263,66
Industrial federation 108 721 640,221
Garments federation 15 80 50,14
Basic union 5,242 - 2,069,61

Challenges
1. Trade Union leadership
2. Multiple unions
3. Union Rivalry
4. Weak financial position
5. Low membership
6. Heterogeneous(diverse) nature of labour
7. Lack of Interest
8. Absence of paid office bearers
9. Other problems:
 Illiteracy
 Uneven growth
Negative impacts
• Heavily influenced by politics.
• Trade Unions creating a surplus of manpower but not of productivity.
• Unfair demands by trade unions.
• Trade Unions become more powerful during unrests.
• Interference of trade union in disciplinary actions against worker, specially
trade union member.
• Trade union leaders attempts of protecting their personal interests and not
worker’s.
Additional reading material
• Report of ILO on worker’s rights in Bangladesh (26 September 2015)
• http://www.ilo.org/newyork/news/WCMS_408360/lang--
en/index.htm

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TRADE UNION

CONCEPT of Trade Union

• According to The Bangladesh Labor Act, 2006, “workers/employers, without

• A group of employees in a particular sector, whose aim is to negotiate

• The most common purpose of these associations or unions is

 Trade union movement started in Bangladesh early 19th century when

Bangladesh Period (1971-onwards)

National federation 32 1264 1,263,66

Industrial federation 108 721 640,221

Garments federation 15 80 50,14

Basic union 5,242 - 2,069,61

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