By Pravat Ghose, Advocate, MA, LL.B., PGDHRM
Focusing on Positive:
Bangladesh became the
47th Economy in the world. Organized industrialization along with unorganized
sector was the main driving force of this achievement. Textile industry, which
includes knitwear and ready-made garments, specialized textile products, is the
nation's number one export earner, accounting for 80% of Bangladesh's
exports of $15.56 billion in 2009.
Bangladesh is grouped in Next Eleven (N-11)
of eleven countries by Goldman Sachs Investment Bank along with Egypt, Indonesia, Iran, Mexico, Nigeria,
Pakistan, Philippines, South Korea, Turkey and Vietnam. These counties will be
the largest economies in the 21st Century and very prospective for
investment and growth. It is also in the list of 3G Countries (Global Growth
Generator) countries of 2010 – 2050. All of these positive indicators are
reflection and forecast of economy with great future. Bangladesh is
continuing with GDP 6-6.5 for last 5 Years except in 2008.
Though there are lots of positive
speculations, still we are not competitive enough to beat China and other
growing economies. 60% of our people live with less than $1 a day. But our
labour and production cost is not well ahead to compete with China. Let’s
analyze the reason on IR context.
Learning
from Past:
Bangladesh was
basically an agricultural country. Industrialization is a new concept for Bangladesh and
started rapidly in 80s. Industrial environment has not achieved its right
shape. Most of the factories in Bangladesh
do not have necessary compliance as per the Labour Code 2006. It is hard to
admit but true that Bangladesh
is facing similar humanitarian crisis that England and other European
countries faced during the time of Industrial Revolution in 18 Century, such
as, poor wages, unhealthy environment, depriving from the right to bargain.
Big
Things Should Come First:
Thinking
of Fair Wages:
In last few years in labour unrest in garments
industry damaged the reputation and brought out exploitation that our workers
face everyday. In 2008 labour unrest cost was minimum USD 88.4 million. In Ready Made Garments Sector labour
unrest flares up 72 times in 6 months in 2008 resulted 988 injured. Present
quietness of labour unrest does not mean that it is over. In Bangladesh, 50%
of families of six live with less than $1 per day. Ignoring this issue or using
political support to suppress this issue is not a solution.
As expenses are going up with inflation
and rise of the price of commodity, wages issue will come up soon. It should be
addressed immediately as it is related to stability and sustainability to the
sector especially in Textile Industry. If we compare the labour unrest in
Textile Industry with Pharmaceutical Industry, we found the there is no
secondary data of labour unrest in Pharmaceuticals Industry. From primary
source there are 3 reported incidents in last two years. As a result, this
high-tech industry is steadily growing though we have severe shortage of
skilled workers. In pharmaceutical industry, average service length of worker
in the same factory is average 11.5 years (based primary data of 12
pharmaceuticals factories) which is really satisfactory.
We have to admit that even a day-long
unrest and anarchy in a massive industry causes a loss that cannot be recovered
throughout the year.
Rights
for Bargaining:
In Bangladesh, there is a fake fear
existing within the employers that if workers get the lawful right to bargain,
they cannot be controlled. This is not true. The private companies, which have
long CBA (Collective Bargaining Agent), have low record of anarchy, strike. In
public sector, record is different. And main cause for this is political
influence from outside of the factory and government’s (ruling party’s) direct
and indirect patronization in unfair labour practice. Private Companies, which
have independent CBA, enjoyed uninterrupted operational advantage for last ten
years.
In 2008, when protest of the workers
flamed up, the employers were unable to find out the leaders to negotiate. As
employer denied the right of structured legal leadership through CBA, they had
to pay the prize.
Immediate
Attention to the grievance:
From a Case study on two sweaters industry
I found an interesting fact that absence of grievance policy caused fatal
industrial dispute. These factories have wonderful environment and compliance
history. Moreover, average earning of the workers in these factories is 4 times
than minimum wages.
Right
to have proper employment:
In Bangladesh, lots of workers work as
casual daily workers in permanent positions year after year. In this way,
employers deny the right of worker to have Provident Fund, Gratuity, Sick,
Casual, Earn Leave and WPPF (Worker’s Profit Participation Fund). Nine out of ten
factories have this mal-practice. It caused fatal clash in one industry in
2010.
Industrial
Safety:
Ship breaking industry has the worst record in
industrial safety. Worker’s death
sparks riots in eight Factories in 2009. Average downtime was 2.6 days per
year in the factories I considered in my case study. If we consider the
industry as a whole, it is a massive loss.
Ignorance about
industrial safety, not providing PPE (Personal Protective Equipments), inadequate
ventilation, inadequate number of skilled operator, lack of training, casual
types of employment, inadequate fire-prevention and fire-fighting equipments,
absence of preventive maintenance are main causes of industrial accidents.
Limitation of the writing:
IR research in Bangladesh is
not comprehensive. There is no industry-wise calculation related to financial
loss caused by Industrial Accident. Analysis is based on small sample size.
Unorganized small industries like in “Dholai Khal” became huge. It is difficult
to find data due to non-cooperation from the employers.
Conclusion:
In spite of limitation
of study behind this writing, it is clear that real attention of Industrial
disputes and safety can add a fat margin to the bottom-line of industry and a
portion of it can be utilized to ensure fair wages to the workers. Moreover, it
will create a motivated workforce and sustainable work environment.
Reference:
- News Age, Dhaka,
August 6, 2008
- Competitiveness of the Bangladesh Ready-made Garment
Industry in Major International Markets by Mohammad Ziaul Haider
- http://en.wikipedia.org/wiki/Economy_of_Bangladesh
- Industrial Relation in Bangladesh
by Md. Maidul Islam, Chairman, Department
of Management, University of
Chittagong, Bangladesh.
- Current Status and Evolution of Industrial Relations
System in Bangladesh
by Dr Abdullah Al Faruque
- "Doing Business in
Bangladesh 2010". World Bank. Retrieved
2010-08-20.
- "Sovereigns
rating list". Standard & Poor's. Retrieved 26
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- Lawrence B. Lesser. "Economic Reconstruction after Independence". A Country Study: Bangladesh (James Heitzman and Robert
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from this source, which is in the public domain.About the Country Studies / Area
Handbooks Program: Country Studies - Federal Research Division, Library of
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