Chapter Three

Main Actors in the Labor Management

Relations Systems in Bangladesh
Trade Unions
 "Trade Union" means any combination,
whether temporary or permanent, formed
primarily for the purpose of regulating the
relations between workmen and employers
or between workmen and workmen, or
between employers and employers, or for
imposing restrictive conditions on the
conduct of any trade or business.

 Trade unions are formed to protect and

promote the interests of their members.
Their primary function is to protect the
interests of workers against discrimination
and unfair labor practices.
Objectives
 Representation
 Negotiation
 Voice in decisions affecting
workers
 Member services
(a) Education and training
(b) Legal assistance
(c) Financial assistance
(d) Welfare benefits
Functions of Trade unions
(i) Militant functions
(a) To achieve higher wages and
better working conditions
(b) To raise the status of workers
as a part of industry
(c) To protect labors against
victimization and injustice
(ii) Fraternal functions
To take up welfare measures for
improving the morale of workers
To generate self confidence among
workers
To encourage sincerity and discipline
among workers
To provide opportunities for
promotion and growth
To protect women workers against
discrimination
 Legal framework of trade union
 The Constitution of Bangladesh provides the basic legal
foundation for formation of organizations by workers and
employers.
 Section 176 of the Bangladesh Labour Act 2006 provides that
every worker has the right to constitute a trade union and to
join an association of their choosing.
 However, the Act does not cover home workers, EPZs, and
agricultural workers.
 In order to be registered, a trade union must have a minimum
membership of 20% of the total number of workers
employed in any establishment in which it is formed
(previously it was 30%).
Legal framework of trade union

 As a requirement for the formation of a trade union, the Act

prescribes the election of officers by the general body of trade
union
 The act provides that the term of office shall not exceed two years
upon his election or re-election.
 A certificate of registration is issued by the Director of Labour.
 Section 176(c) of the Act provides that trade unions shall have the
right to establish and join federations
 Union or federation shall have the right to affiliate with
international organizations and confederations of workers’
organizations.
Union Registration
Process
 Minimum membership: At least 20% of the
total workers must be members of the
proposed union (previously it was 30%).
 Application Submission: The application is
submitted to the Registrar of Trade Unions
(usually the Labor Director) and must include:
- Name and address of the union.
- Names, occupations, and addresses of officers.
- Constitution or rules of the union.
- List of members with their signatures.
- Details of the establishment.
Union Registration Process
(cont’d)
 Examination by the Registrar: The Registrar
verifies the documents and membership
requirements. A union must not have any political,
communal, or discriminatory content in its
constitution.
 Decision: Within 60 days, the Registrar must
either:
- Approve and register the union, issuing a
certificate of registration.
- Reject the application with written reasons.
 Consequence of Rejection: Appeal to the Labor
Court within 30 days. If the union is dissatisfied
with the Labor Court's verdict, it can further
appeal to the Labor Appellate Tribunal.
Collective Bargaining Agent
(CBA)
Collective Bargaining Agent (CBA) is
the officially recognized trade union
that has the legal authority to
represent workers of an establishment
or enterprise in collective bargaining
with the employer.
 CBA Formation
 Application to the Registrar: A registered trade
union submits a written application to the Registrar
of Trade Unions requesting the determination of
CBA.
 Initiation of CBA Election: If multiple unions
claim CBA status, the Registrar organizes a secret
ballot election to determine which union has
majority support.
 Voter List Preparation: The Registrar prepares a
voter list of all eligible workers in the establishment.
 Secret Ballot Election and Declaration of CBA:
The Registrar officially certifies the union receiving
the majority vote as the Collective Bargaining Agent.
The CBA status is valid for two years, after which
a new election may be requested.
Trade Union Cancellation

 Section 194(1), a registered trade union is a statutory body with legal entity and
consequently it can own property, enter into contract, sue and be sued by the name in
which it is registered.
 Section 190 of the Act gives powers to the Director of Labour to cancel the
certificate of registration under well defined circumstances
 Where the Director of Labour is satisfied after investigation that the registration of
the trade union should be cancelled, he shall submit an application to the Labour
Court praying for permission to cancel such registration.
 The Director of Labour shall cancel the registration of a trade union within thirty
days from the date of receipt of permission from the Labour Court.
 Section 191 of the Act stipulates that any person aggrieved by the order of
cancellation of registration may within thirty days from the date of the order, appeal
to the Labour Appellate Tribunal.
 The decision of the Tribunal on this shall be final.
 Structure of trade unions

Trade unions in Bangladesh may be divided into three

categories:

• The most fundamental form of trade union within a

Basic trade union single establishment.
• The trade unions at the plant level are termed basic
unions.

• Multiple registered trade unions formed in an

establishment that are engaged in or carrying on the
Federation of trade same industry may constitute a federation by executing
unions an instrument of federation and applying for the
registration of the federation.

• A national-level trade union is formed by combining

multiple federations or trade unions in different sectors
across the country.
National level trade union • National-level trade union federations had formed a
grand alliance under the auspices of the SKOP (Sromik
Kormochari Oikka Parishad), which represents the total
workers of the country.
 Trade Unions in the public sector

 The Bangladesh Labour Act, 2006 is not applicable to offices of or under the
Government
 Therefore, the concept of collective bargaining shall not be applicable to officials of
public sector.
 trade unions are allowed under the framework of the Act for workers of publicly
owned corporations, railways, telephone and postal services, public works, public
health engineering and government printing press etc.
 the Committee of Experts expressed concerns that a vast number of workers in the
public sector and state enterprises with the exception of railway, postal and
telecommunication services cannot exercise the right to collective bargaining through
trade unions.
 The terms and conditions of employment of the public sector workers are
determined by the government on the recommendation of the National Wages
Commission established from time to time.
 In reality, no trade unionism is practiced in the public industrial enterprises in
Bangladesh
 Trade union membership and international affiliation

 From 1,160 trade unions with a membership of 450,606 in 1971 trade unions had
risen to 6,835 with a membership of 1,904,567 in 2004.
 The average membership of trade unions has declined significantly.
 Trade union density is 1.12 per cent of the total labour force.
 The presence of trade unions in the private export-oriented sectors such as RMG,
EPZs, shrimp exporting firms, finished leather and leather goods is very weak.
 Although there are more than 40 unions representing garments workers, but workers
are less unionized.
 Most trade unions in the RMG sector operate outside the factories and therefore lack
active participation of the general workers
 A combination of factors such as lack of enforcement of labour laws, inhibiting legal
provisions, and system of contract labour are responsible for reduced trade union
membership in these sectors.
 The workers belonging to government sectors, educational institutions, health sector,
private security services, confidential staffs, workers in security printing press,
ordinance factory,are still deprived from the right to organize and do not have the
freedom of collective bargaining.
INDUSTRY BACKGROUND
updated till 2011
The major industries of Bangladesh constitutes of 10 sectors. These
are-
 Agriculture, forestry and fisheries
 Mining and quarrying
 Manufacturing
 Electricity gas and water
 Construction
 Trade, hotel and restaurant
 Transport, storage and communication
 Finance and business services and real estate
 Health, education public administration and defense
 Community and personal services

Out of these industries Construction and Agriculture Industries

do NOT fall under the provisions of Bangladesh labor Law
2006 as the workers in those industries are considered as
INFORMAL WORKERS
INDUSTRY ANALYSIS
formal sector
Overall Industry Statistics
[Link] UNI...

1646
1399
1069
741
323
161 49 162
27 37
INDUSTRY ANALYSIS
Overall Industry Statistics
NO. MEMBERS
637887

440047
340015
255481
188441
104186
32311 52469 29668 12473
INDUSTRY ANALYSIS
informal sector

Chart Title
1300

1100

900

700

500

300

100
 Trade union effectiveness: RMG sector

 At present, this grand alliance claims membership of 21 trade unions out of the 27
unions of garment workers.
 Out of 4,500 garments factories only 120 are affiliated to the unions, less than 5 per
cent of the garments workers.
 Knitwear garment workers are outside of the operations of the trade unions.
 Two national garments federation are registered with the Department of Labour.
 From 1994 to 2006 RMG workers’ union signed seven agreement/MOUs with the
BGMEA on matters of declaring and implementing minimum wages for garments
workers, recognizing trade union activities, leave and holidays etc.
 The national tripartite agreement was concluded between the government, BGMEA
and the organizations representing garments workers in 2006.
 Most of the demands were subsequently incorporated in the Bangladesh Labour Act
2006
 Problems of trade unions in Bangladesh

 Currently trade unions are faced with problems. The following are some of the
reasons --
• Politicization: politicization or political affiliation of trade unions prevents them
from becoming strong partners in collective bargaining. Politicization of a trade
union also causes the loss of its distinct identity;
• Influence: the trade unions must be free from influences from political groups,
government influence and owners;
• Lack of knowledge of labor laws: Workers at the grass root level are not aware of
their rights.
 Different ideologies: At the national level, trade unions are divided into many
federations with diverse ideological and political philosophy.
 Accountability of the trade union leaders: accountability of the trade union
leaders, which requires a network of checks and balances between labour
institutions, and defined performance standards for both
common workers and trade union leaders.
 Problems of trade unions in Bangladesh

• Competence of the trade union leaders: this involves the capacity to formulate
appropriate charters of demand, take timely decisions, and implement them
effectively.

• Ethical Values: trade unions leaders should possess positive ethical values. They must
work for to protect the rights of the employees. They shouldn’t be more interested in
their personal goals.

• Inter-union rivalry: conflict within the trade union for the leadership position may
make the situation worse.

• Conflict of interest: trade union will fail if the members are more interested in the
individual goals rather than the group goals.
 Developing leadership skills in trade union leaders

 Leadership has been identified as one of the major reasons behind poor trade union
outcomes.
 It is imperative that trade union leaders possess effective leadership skills.
 They must know how to protect the rights of the employees.
 The must have skills in the area of negotiation, communication, handling grievance,
and management.
 Developing Emotional Intelligence in trade union leaders

 Emotional intelligence is the ability to understand the emotions of others.

 Truly effective leaders demonstrate a high level of emotional intelligence which is
consisted of the following components:
1. Self-awareness: the ability to recognize what you are feeling.
2. Managing emotion: the ability to manage your own emotions.
3. Motivating oneself : the ability to use your deepest emotion to guide and move you
towards your goals.
4. Empathy: the ability to put yourself in the shoes of others.
5. Social skills: the ability to manage, influence and inspire the emotions of others.
Assessing the personality of the trade union leaders: The big five personality
test

 Extroversion
◦ The tendency to be sociable, assertive, active, and to experience
positive effects, such as energy and zeal.
 Emotional stability/neuroticism
◦ The tendency to exhibit poor emotional adjustment and
experience negative effects, such as anxiety, insecurity, and
hostility.
 Openness to experience
◦ The disposition to be imaginative, nonconforming, unconventional,
and autonomous.
 Agreeableness
◦ The tendency to be trusting, compliant, caring, and gentle.
 Conscientiousness
◦ Is comprised of two related facets: achievement and
dependability.
◦ Punctual, organized and systematic
Assessing the personality of the trade union leaders: The brain
dominance test

Left-brained Right-brained
Logical Emotional
Analytical Thoughtful
Objective Subjective
Critical thinking Creative
Numbers Intuition
 Employer’s Association

 Section 176(b) of the Labour Act 2006 provides that employers shall have
the right to establish and subject only to the rules of the organization
concerned, to join associations of their own choosing primarily for the
purpose of regulating the relations between employers and workers or
employers and employers.
 The Labour Act 2006 makes no distinction between procedures of
registration of trade union of workers and trade union of employers.
 Therefore, the provisions on procedure for registration and cancellation of
trade unions are equally applicable to employers’ organizations.
 The primary interest of the employers and their associations is in the
promotion of their business and commercial interests.
 Employer’s Association

 Bangladesh Employers Federation (BEF) is the main federation of employers’

association
 The main members of BEF are:
- Bangladesh Garments Manufacturing and Exporters Association (BGMEA)
- Bangladesh Textile Mills Association (BTMA)
- Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA)
- Bangladesh Jute Mills Association (BJMA)
- Bangladesh Finished Leather, Leather goods and
- Footwear Exporters Association.
 After its founding in 1998, the BEF took over the activities of the Bangladesh
Employers' Association (BEA) which was registered earlier in1951.
 The BEF with a wider membership representation covers approximately 90 per cent
of industrial associations in the country as well as prominent individual enterprises.
 Role of employers’ organizations

 Protect the interest of the employers: The objectives of the Federation are to
promote, encourage and protect the interest of the employers in industrial relations,
and through such efforts, to establish good relations amongst employers and workers.
 Socio- economic policies: It now has a stake in socio-economic policies of the
Government, labour legislation and labour relations with kindred national and
international bodies. Broadly, its functions include:
• Interpretation and clarification of labour laws
• Services on wage negotiations by the Wages Consultative Sub-committees in
different regions
• Legal services to employers in labour courts
• Services for improvement in productivity
• Training programs (seminars and workshops)
• Assistance and advice on national policy issues.
 Data on membership of employers’ organization

 According to data available up to June 2007 from Directorate of Labour, there are 57
registered employers’ associations in various sectors with a total membership of
6,827.
 Employers organizations No. No. of members

 National Federation 31 1 254 500

 Industrial Federation 105 681 870

 Basic Union (all over Bangladesh) 210 522 281

 Total 1649 2
980 932
 Role of the State in maintaining industrial relations

Industrial relations system in Bangladesh is characterized by the predominant role

played in it by the government.
 Effective laws: It is the duty of the state to formulate labour laws and policies, to
administer them and also to uphold justice so that neither the workers nor the
employers suffer.
 Effective collective bargaining process: The state has to ensure that there is no
interference in the bargaining process from any political party, government or the
employer.
 No state intervention in resolving dispute: Any kind of state intervention in
industrial disputes may strain the relationship between the workers and employers.
 Inspection: industrial activities should be inspected properly.
 But the government intervention in trade union remains a persistent feature of
industrial relation system in Bangladesh.
 The success or failure of tripartite consultation or negotiations largely depends on the
responsiveness of Government to the demands and aspirations of both employers and
workers.
 Structure and system of labour administration in Bangladesh

• The Ministry of Labour and Manpower has under it the following implementing
agencies:
 Department of Labour
 DOL was established in 1983.
 The department has a Director as its head, an additional director, a joint director and
an assistant director of Labour.
 There are four Divisional offices under the Department of Labour under which there
are 16 regional offices in different industrial areas.
 Structure and system of labour administration in Bangladesh

 Department of Inspection for Factories and Establishments;

• Inspection of factories, shops, commercial establishments, tea plantations,
ports/docks, railways, inland water transport and road transports under labour laws
relating to safety, health, hygiene, labour welfare, payment of wages, regulation,
hours of work, conditions and terms of employment, social security etc. of workers
 The department of Inspection for Factories and Establishments works under three
wings-
1. engineering wing,
2. medical wing and
3. general wing.
 Chief Inspector is the head of the Department
 The Inspection Office has to look after and execute the provisions relating to 40,000
factories, 30,00000 shops, 170 tea gardens, 60 ship-breaking industries, two
dockyards etc.
 Structure and system of labour administration in Bangladesh

 Bureau of Manpower, Employment and Training (BMET);

 Minimum Wages Board;
 Labour Appellate Tribunal and seven labour courts;
“Good management consists in showing
average people how to do the work of
superior people” – John D. Rockefeller
 An Investment
Perspective of Human
Resources Management

1–
39
The Strategic View of Human
Resources
Employees are human assets that
increase in value to the organization
and the marketplace when investments
of appropriate policies and programs
are applied.
Effective organizations recognize that
their employees do have value, much
as same as the organization’s physical
and capital assets have value.
Employees are a valuable source of
sustainable competitive advantage.
1–
40
1–
41
Sources of Employee
Value
 Technical Knowledge
◦ Markets, Processes, Customers, Environment
 Ability to Learn and Grow
◦ Openness to new ideas
◦ Acquisition of knowledge and skills
 Decision Making Capabilities
 Motivation
 Commitment
 Teamwork
◦ Interpersonal skills, Leadership ability

1–
42
 Adopting an Investment
Perspective

Human assets are core competencies

and have become a source of
competitive advantage
HCL Technologies
MANTRA:
“EMPLOYEES FIRST
CUSTOMERS SECOND”.
-
Vineet Nayar, CEO 1–43
 Adopting an Investment
Perspective (Cont.)

Required skills become less

manual, more knowledge-based
Appropriate, integrated, strategy-
consistent approach is needed

1–44
A Dilemma
Failure to invest in employees
causes
◦ Inefficiency
◦ Weakening of organization’s
competitive position
Human assets are risky
investment
Require extra effort to ensure that
they are not lost

1–45
Retention Strategies
Employee growth, and training &
development
Motivation and financial
incentive
Employee engagement

1–
46
Motivation Theories: The Hierarchy
Needs of Abraham Maslow

Self-actualization

Self-esteem

Social Needs

Security

Physiological Needs
Practical Implication of
Maslow’s Theory
People are motivated first to
satisfy the lower-order needs
Don’t try to motivate a person
with a higher position who
doesn’t have enough money to
pay the bill
 Motivation Theories: Motivators
and Fredrick Herzberg
Hygiene factors (extrinsic Motivators (intrinsic factors)
factors)
Better pay and working Recognition, appreciation and
condition providing challenging work
These factors just keep the The best way to motivate a
employees from becoming person is to provide with
dissatisfied motivator factors
Adding more of these factors Adding more of these factors
will not generate extra will enrich the job and get the
motivation for the employees employees further motivated
Practical Implication of
Herzberg’s Theory
Relying exclusively on extrinsic
factors is risky
 Incentive plan should include
the intrinsic factors along with
extrinsic factors
Motivation Theories: Expectancy
Theory and Victor Vroom
Vroom’s Expectancy Theory
◦ A person’s motivation to exert some level of
effort is a function of three things:
 Expectancy: that effort will lead to performance.
 Instrumentality: the connection between
performance and the appropriate reward.
 Valence: the value the person places on the
reward.
◦ Motivation = E x I x V
 If any factor (E, I, or V) is zero, then there is no
motivation to work toward the reward.
 Employee confidence building and training,
accurate appraisals, and knowledge of workers’
desired rewards can increase employee motivation.
McGregor’s Theory X and Theory Y

Theory X Theory Y
An average employee An average employee can
intrinsically does not like learn to admit and recognize
work and tries to escape it responsibility.
whenever possible.
Employees must be Employees are internally
persuaded, compelled, or motivated, enjoy their jobs,
warned with punishment so and work to better
as to achieve organizational themselves without a direct
goals. reward in return.
A close supervision is Employees additionally tend
required on the part of to take full responsibility for
managers. The managers their work and do not need
adopt a more autocratic close supervision to create a
style. quality product.[
1–
52
Valuation of Asset and Types of
Organizational Assets/Capital

1–53
Research Findings
HR practices directly related to
profitability & market value
Primary reason for profitability:
◦ Effective management of human capital
Integrated management of human
capital can result in 47% increase in
market value
Top 10% of organizations studied
experienced 391% return on
investment in management of human
capital
1–54
Exhibit 1-3

HR Value Chain

1–
55
Balance Scorecard
HR Metrics Are Complex
 90% of Fortune 500 organizations
evaluate HR operations on basis of
three metrics:
◦ Employee retention and turnover
◦ Corporate morale
◦ Employee satisfaction
 These metrics do not necessarily
illustrate how HR impacts
◦ Profits
◦ Shareholder value

1–57
Mercer Model of Measuring HR
Impact
 Identify a problem HR can impact
 Calculate actual cost of the problem
 Choose HR solution that addresses the problem
 Calculate the the cost of solution
 Calculate value of improvement 6 to 24 months after
implementation
 Calculate specific return on investment
 ROI in human assets often not realized until some
time in future

1–58
Exhibit 1-4

Factors Influencing Investment

Orientation

1–59
Investment Orientation Factors
 Senior Management Values & Actions
◦ Managers need “investment orientation”
toward people
 Attitude Toward Risk
◦ Investment in human resources inherently
riskier
◦ Human assets never absolutely “owned”
 Nature of Skills Needed by Employees
◦ The more marketable employee skills, the
riskier the firm’s investment in skill
development

1–60
Investment Orientation Factors
Utilitarian (“Bottom Line”)
Mentality
◦ Attempt made to quantify employee
worth through cost-benefit analysis
◦ “Soft” benefits of HR programs difficult
to objectively quantify
Availability of Outsourcing
◦ Given availability of cost-effective
outsourcing, investments in HR should
produce highest returns & sustainable
competitive advantages.

1–61
Investment Orientation Factors:
Models of Strategy
 Industrial Organization (O/I) Model
 External environment is primary
determinant of organizational strategy
rather than internal decisions of managers
 Environment presents threats &
opportunities
 All competing organizations control or
have equal access to resources
 Resources are highly mobile between firms
 Organizational success is achieved by
 Offering goods & services at lower costs than competitors
 Differentiating products to bring premium prices

1–62
Investment Orientation Factors:
Models of Strategy
Resource-Based View (RBV)
◦An organization’s resources & capabilities, not external
environmental conditions, should be basis for strategic
decisions
◦Competitive advantage is gained through acquisition &
value of organizational resources
◦Organizations can identify, locate & acquire key valuable
resources
◦Resources are not highly mobile across organizations &
once acquired are retained
◦Valuable resources are costly to imitate & non-
substitutable
1–63
 I am convinced that nothing we
do is more important than hiring
and developing people. At the
end of the day, we bet on people,
not on strategies.” – Lawrence
Bossidy

1–
64
 Chapter SIX

Dispute Settlement

65
 Individual and industrial disputes, definition
 The Labour Act 2006 foresees that a worker can raise a dispute before the Labour
Court on the ground of violation of any right conferred by the Bangladesh Labour
Act 2006
 There is no alternative mechanism for settlement of individual disputes other than by
the intervention of the Court.
 Individual disputes cannot be taken to court by the CBA as industrial disputes.
 Although this issue has been raised several times before the Supreme Court of
Bangladesh the Court has made it clear that individual disputes cannot be entertained
by the Labour Court as an industrial dispute.
 According to the Labour Act, no industrial dispute shall be deemed to exist unless it
has been raised by an employer or a collective bargaining agent in accordance with
the provisions of chapter 14 of the Act
 No differentiation is made between rights’ dispute and interest dispute; both are
considered as dispute under law.
 Both rights dispute and interest dispute can be taken to the Labour Court under this
legislation.

66
 Dispute Settlement Machinery of the State

 The idea underlying the provisions of the Bangladesh Labour Act, 2006 is to settle industrial dispute
and to promote industrial peace and establish a harmonious and cordial relationship between labour
and capital by means of conciliation, mediation and adjudication.
 With this end in view different authorities under this Act have been set up to resolve an industrial
dispute
 The Act has been streamlined for some non-adjudicatory as well as adjudicatory authorities.
 Non-adjudicatory includes participation committee, conciliator and arbitrator, while adjudicatory
(judicial) authorities include Labour Court, Labour Appellate Tribunal etc.
 The state provides machinery for the settlement of disputes which starts with conciliation and ends
up with provision for the adjudication by court.
 Bipartite negotiation and conciliation are two important methods of settlement of industrial disputes
because they provide grounds for amicable settlement in a free and unfettered environment
 As a third party the conciliators try to help the conflicting parties resolve their disputes amicably and
restore good relationship between the disputants.
 In essence, bipartite negotiation and conciliation are complementary to each other and can, if
successfully used, provide a solid foundation to industrial relations
 In Bangladesh the relevant law provides dispute settlement machinery which is discussed below at
length.
67
 Bipartite Negotiation

 Bipartite negotiation as a means to prevent and solve disputes helps develop harmonious
relationship between the management and workers.
 The scope of bipartite negotiation has been expanding with the growth of industrialization in
general and trade unionism in particular.
 Bipartite negotiation takes place between the employers and their employees over job–
related affairs.
 The employees are usually represented by their elected representatives who form the CBAs,
while the employers are allowed to participate in collective bargaining themselves or through
their representative.
 The legal provisions relating to the process of bipartite negotiation need a brief discussion
here
 A trade union, which is elected as CBA, can raise a dispute in writing and place it before the
management for settlement through negotiation.
 Similarly the employers can also raise a dispute and place it before the CBA for negotiation
 Bipartite negotiation starts within 15 days of submitting a written demand from either
party
 It has to be completed within 30 days after first meeting
68
 If bargaining is successful, a memorandum of settlement is recorded in writing and
signed by both the parties and a copy thereof is forwarded to the Government,
Director of Labour and conciliator
 It has been reported that though the law provides a favourable environment for
bipartite negotiation, the scenario is different in practice.
 Bipartite negotiation is not so successful as is desired by the legislature in
incorporating such mechanism for settlement of dispute.
 Unfavorable and authoritarian attitude of management towards trade unionism,
bribing trade union leaders, lack of experience and leadership skill in trade union
officers, interference of the government and the ruling party in the settlement of
industrial dispute, multiplicity of trade unions having political rivalries, low level of
class consciousness among workers as well as trade union leaders, inefficiency in
applying bargaining techniques etc. are the main reason for making bipartite
negotiation as useless tools in the settlement of industrial dispute in Bangladesh.

69
 Conciliation-Tripartite Negotiation

 Conciliation in industrial dispute becomes necessary mainly when the settlement of

disputes fail at the bipartite negotiation level.
 In fact conciliation can be taken as an extension of the function of collective
bargaining or simply as “assisted collective bargaining” in which the conflicting
parties can have a fair chance of settlement of industrial disputes through the services
of expert negotiators.
 If bipartite negotiation fails, any of the parties concerned may request the conciliator
in writing, to conciliate the dispute within 15 days from the date of the failure of
collective bargaining
 The practice of conciliation is compulsory in Bangladesh before resorting to
industrial action.
 The role of the conciliator is to suggest solutions that can help find a compromise
between workers and the management, but can not impose a solution.
 The success of conciliation depends on the willingness of the two sides to resolve
their differences.

70
 Conciliation-Tripartite Negotiation

 If a settlement of the dispute is arrived at in the course of conciliation, the conciliator

shall send a report thereof to the Government together with a memorandum of
settlement signed by the parties to the dispute
 If the conciliation fails, the conciliator shall try to persuade the parties to agree to
refer the dispute to an Arbitrator for settlement
 If the parties do not agree to refer the dispute to an Arbitrator for settlement, the
Conciliator shall, within three days of the failure of the conciliation proceedings,
gives a certificate thereof to the parties
 The conciliation proceedings may continue for more than 30 days if the parties agree
 The Director of Labour may, at any time, carry on with conciliation proceedings,
withdraw the same from a conciliator or transfer the same to any other conciliator,
and the other provisions of this section shall apply thereto
 Statistics show that in the period from 1990 to 2004 an average of 310 disputes was
taken up for conciliation annually, of which 22.48 per cent were successful and 48.06
per cent failed
 In fact, conciliation has become a weak machinery in settlement of disputes

71
 Conciliation-Tripartite Negotiation

 Trade union leaders and officials in the Department of Labour indicated the following
shortcomings in the process which prevent the parties from reaching at an agreement:
i. Employers do not honour the compromise formula suggested by the conciliator because the law does
not compel them to do so.
ii. Direct linkage of the employers with the vested quarters as well as the government and the ruling
party.
iii. Partiality of the conciliator either in favour of the employers or influenced by the labour front backed
by the ruling party.
iv. Incompetence of the conciliator to persuade the disputants to reach an agreement.
v. Tendency to bribe trade union leaders during conciliation.
vi. Absence of mutual respect and patience between the parties involved.
vii. Tendency among employers to take chance in the Labour Court.
viii. Poor accountability of conciliation officers.
ix. Financial inability of employer to meet workers’ demands.
x. Showing of muscle power by trade union leaders during conciliation.
xi. Irrational charter of demands by CBA.

72
 Arbitration

 Arbitration is a voluntary process for the settlement of industrial dispute

 When conciliation fails, arbitration may prove to be a satisfactory and most enlightened method
of resolving industrial dispute
 The legal provisions relating to the process of collective beginning need a brief discussion here
 If the conciliation fails, the conciliator tries to persuade the parties to refer their dispute to an
arbitrator
 If the parties agree to refer the dispute to an arbitrator for settlement, they make a joint request in
writing to the arbitrator agreed upon by them.
 The arbitrator shall give his 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 by the parties to the
dispute.
 After he has made an award, the arbitrator shall forward a copy thereof to the parties and to the
Government.
 The award of the arbitrator is final and no appeal shall lie against it. An award shall be valid for
a period not exceeding two years, as may be fixed by the arbitrator.
 In practice no dispute is referred to the Arbitrator due to the fact that either the dispute is settled
at the time of conciliation or in failure the parties feel interested to go to the Labour Court rather
going for arbitration
73
 Right to strike or lock-out

 In case of failure of conciliation, the party which has raised an industrial dispute may, within
fifteen days from the date of the receipt of a certificate of failure under section 210(11), serve
on a notice of strike or lock-out to the other party.
 However, the CBA, before serving any such notice, has to obtain the consent of three-fourths
( 75 per cent) of its members through a secret ballot specifically held for the purpose of
obtaining their consent over the strike action.
 The secret ballot has to be conducted by ballot committee formed by the CBA.
 Examination/verification of the records relating to secret ballot is done by the conciliator.
 The Bangladesh Labour Act 2006 not only recognized the right to strike and lock but also
put some limitations, namely,
a) No party can serve a notice of strike or lockout while conciliation is taking place or during the
proceeding before the Labour Court or Labour Appellate Tribunal.
b) The Labour Court and the Labour Appellate Tribunal has the right to prohibit any strike or lockout
during pendency of any proceeding before it.
c) If a strike or lock-out lasts for more than 30 days, the Government may, by order in writing,
prohibit the strike or lock-out. But the Government may prohibit a strike or lock-out at any time
before the expiry of thirty days if it causing serious hardship to the community or is prejudicial to the
national interest.
d) 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 either before or after the commencement of a strike or lock-out. 74
 Right to strike or lock-out

 If the strike does not follow the above procedures, it can be considered an illegal
strike or lock-out and in that case the liable worker or employer shall be punished
with imprisonment for a term which may be extended to one year or with fine which
may extend to five thousand taka
 Data reveals that an annual average of four strikes or lock-outs were declared during
the period of 1990-2004 due to failure of conciliation, involving on average 14,048
workers and production loss of Tk 30,173,300/-.

75
 The Adjudication system

 After the stages of bipartite negotiation and conciliation are exhausted, the disputant parties may
resort to settling their dispute by referring it to the arbitrator or by a strike action or lock-out as
discussed above or through the Labour Court.
 An industrial dispute may be referred to the labour court in any of the following ways:
i. If no settlement is arrived by way of conciliation and the parties agree not to refer the dispute to an arbitrator, the work man
may go on strike or the employer may declare lock-out. However, the parties at dispute may, either before or after the
commencement of a strike or lock-out, may give an application to the Labour Court for the adjudication of the matter.
ii. If a strike or lock-out lasts more than 30 days the Government may prohibit such strike or lock-out and in that case the
government must refer the dispute to the Labour Court. Any collective bargaining agent or any employer or workman may apply
to the Labour Court for the enforcement of any right guaranteed or secured to it or him by or under any law or any award or
settlement.
iii. Any individual worker including a person who has been dismissed, retrenched, laid-off or otherwise removed from employment
can make a complaint to the Labour Court on failure of the employer to perform his obligation in that behalf
iv. The worker himself or his legal heir in case he dies or any legal representative may apply to the Labour Court for a payment on
the ground that an amount from such payment has been deducted from the wages in contravention of the provision of the law or
that any payment of wages has not been made or delayed or that under any rule the payment of any gratuity or provident fund is
delayed.
v. On rejection of the application for registration of Trade Union by the Director of Labour or after settlement of objection disposal
such application is delayed by the Labour Director beyond the period of sixty days, the applicant Trade Union within thirty days
from the date of such rejection or from the date of the expiry of the said time limit may appeal to the Labor Court.
vi. If the Director of Labour is satisfied after investigation that the registration of a trade union should be cancelled, he shall submit
an application to the Labour Court praying for permission to cancel such registration.

76
 The Adjudication system

 The Labour Court is constituted with a Chairman and two Members to advise him, however, in the
case of trial of an offence or adjudication of any matter under Chapters Ten and Twelve it shall
consist of the Chairman alone
 The Members of the Labour Court are appointed by the Government in prescribed manner and to be
the Chairman of the Labour Court a person is to be the sitting District Judge or Additional District
Judge.
 While trying an offence the Labour Court shall administer its proceedings without its members.
 The Labour Court has the power to dismiss the case or to decide the same ex-parte.
 The award, decision or judgment of the Labour Court shall be delivered, unless the parties to the
dispute give their consent in writing to extend the time-limit, within sixty days following the date of
filing of the case, provided that the delay of its delivery shall not invalidate the award, decision or
judgment
 An award, decision or judgment of Labour Court shall be given in writing and delivered in open
Court and a copy thereof shall be forwarded to each of the parties.
 Any party aggrieved by an award, decision or judgment of the Labour Court may prefer an appeal to
the Labour Appellate Tribunal within sixty days of the delivery thereof and the decision of the
Tribunal in such appeal shall be final.
 Data reveals that an annual average of 5,668 cases were filed during the period of 1990-2006 of
which 35.37 per cent cases were disposed of during the year and 64.63 per cent cases remained
pending at the end of the year. 77
 The Adjudication system
 About 50per cent of the cases took a time period ranging between 12 months and 36
months.
 The time required for 25per cent of the cases ranged between three years and five years
 About 8 per cent of the cases took more than five years.
 The average time taken to decide the cases by the First Labour Court and the Second
Labour Court of Dhaka was more than 17.5 months and 31 months respectively.
 The reasons behind the backlog of cases in the Labour Courts are as follows:
• Inadequacy of Courts for dealing with labour disputes
• There are huge cases under different laws specially under section 114 of the Code
Criminal Procedure and Immigration Ordinance which create unnecessary backlog of
cases
• The Judges of the Labour Court usually do not have any prior experience in dealing
with labour issues
• The absence of members cause unnecessary delay in disposing of the case
• The practicing lawyers of the Labour Court are habituated in filing frequent time
petitions which create unreasonable delay in disposing of the case
• Lack of logistic support of the Labour Court.

78
 The Adjudication system

 The Labour Court is the pioneer adjudication body in settling labour disputes
 But Chairman of the Labour Court is appointed from the District Judge or Additional
District Judge, and does not have specific training on labour laws.
 Similarly, Judges of the Labour Courts do not have any experience in dealing with
labour issues but are often appointed under political pressure of the ruling party and
not based on qualifications or standardized recruitment procedures.
 Remuneration of the members is very poor leading to disinterest in attending the
Court.
 The practicing lawyers of the Labour Court submit frequent time petitions which
create unreasonable delay in disposing of the case.

79
 Adjudication by Labour Appellate Tribunal

 The Labour Appellate Tribunal has the power to hear or dispose appeals from the Labour Court
 It consists of a Chairman or if the Government deems fit, of Chairman and such number of
Members as determined by the Government.
 The Chairman shall be a former Judge or Additional Judge of the Supreme Court and any
Member thereof shall have been a Judge or an Additional Judge of the Supreme Court or is or
has been a District Judge for at least three years.
 The Labour Appellate Tribunal on appeal may set aside, vary or modify any award decision in
judgment or sentence given by the Labour Court or send the case back to the Court for
rehearing; and shall exercise all the powers conferred by the Code on the Labour Court.
 The judgment of the Tribunal shall be delivered within a period of not more than 60 days
following the filing of the appeal
 From the data it is revealed that an annual average of 278 appeals were filed for disposal
during the period 1990-2006 of which 33.45per cent appeals were disposed of during the year
and 66.55per cent appeals were pending at the end of the year.

80
 Adjudication by Labour Appellate Tribunal

 The mains reasons behind the backlog of cases in the Labour Appellate are that there
is insufficiency of Benches of Appellate Tribunal
 At present only two Benches exist which are not sufficient to deal with the huge
volume of appeals from around the country
 But according to law the Government is empowered to appoint as many as members
as required for the Labour Appellate Tribunal with whom several Benches can be
created for smooth functioning of the activities of the Labour Appellate Tribunal.
 Apart from this limitation the Labour Appellate Tribunal also suffers from lack of
sufficient logistics support i.e. building, court room, manpower etc.

81
 High Court Division of the Supreme Court of
Bangladesh

 Even though the Labour Court has been entrusted with the exclusive jurisdiction in
respect of deciding labour issues, the aggrieved person can invoke the jurisdiction of
the High Court Division on the ground that the matter in question leads to the
violation of fundamental rights and that there is no other efficacious remedy in the
matter
 Before enactment of the Bangladesh Labour Act, 2006, there was no scope of appeal
against the decision of the Labour Court to Labour Appellate Tribunal and the right
to appeal could be exercised only in the case of award of a Labour Court.
 It was only way to invoke the writ jurisdiction of the High Court Division of the
Supreme Court for challenging a decision passed by the Labour Court.
 But now by the Bangladesh Labour Act, 2006 every decision passed by the Labour
Court is appealable before the Labour Appellate Tribunal.
 In spite of this the jurisdiction of the High Court Division can only be invoked on the
grounds of violation of fundamental rights or any procedural error committed by the
Labour Court.

82
 Role of labour administration in dispute settlement

 Under the Bangladesh Labour Act, 2006 the Labour Administration has been entrusted to play
a key role in industrial dispute in the manner specified below:
i. The Director of Labour or any person under his authority may play the role of conciliator
ii. The Director of Labour shall have the power to file complaint before the Labour Court for any unfair
offence or unfair labour practice or for contravention of any provisions of Chapter Thirteen in respect of
Trade Union and Industrial Relations
iii. The Director of Labour in the interest of the settlement of dispute may himself proceed with
conciliation proceedings withdrawing the same from a Conciliator or transfer the same to any other
Conciliation
iv. The Bangladesh Labour Act, 2006 empowered the Government to appoint as many persons as it
considers necessary to be conciliation for the purpose of settlement of industrial dispute and may classify
them in reference to type of establishment, territorial area etc.
v. The Labour Court and the Labour Appellate Tribunal being adjudicatory bodies of the Labour
Administration play a key role in dispute settlement. In this regard the Labour Court has been
entrusted with the exclusive jurisdiction on the following matters
a) To adjudicate and determine an industrial dispute which has been referred to or brought before it under
this Code;
b) To enquire into and adjudicate any matter relating to the implementation or violation of a settlement
which is referred to it by the Government;
c) To try offences under the Bangladesh Labour Act, 2006;
83
 Role of labour administration in dispute settlement

vi. A Labour Court is vested with the powers the Court of a Magistrate of the First Class under the Code of
Criminal Procedure. But for the purpose of inflicting punishment, it shall have the same powers as are
vested in Court of Sessions
vii. For the purpose of adjudicating and determining any matter, question or dispute except any offence the
Labour Court shall be deemed to be a Civil Court and shall have the same powers as are vested in such
Court under the Code of Civil Procedure including the powers of:
a) enforcing the attendance of any person and examining him on oath;
b) compelling the production of documents and material objects;
c) issuing commissions for the examination of witnesses or documents;
d) delivering ex parte decision in the event of failure of any party to appear before the court;
e) setting aside ex parte decision;
f) setting aside the order of dismissal of a suit given in the event of failure of any party to appear before
the Court;
g) so that the purpose of the case is not frustrated, the court may issue injunction against any party in the
case

84
 Role of labour administration in dispute settlement

viii. The Labour Court is empowered to prohibit the continuance of any strike or lock-out in
pursuance of any industrial dispute in respect of which such dispute is pending before the
Labour Court for adjudication
ix. The Labour Appellate Tribunal may, on appeal, confirm, set aside, vary or modify any award,
decision, judgment or sentence given by the Labour Court or send the case back to the Court for
rehearing; and shall exercise all the powers conferred by this Code on the Labour Court
x. The Tribunal shall have authority to punish for contempt of its authority, or that of any Labour
Court, as if it were a High Court Division of the Supreme Court
xi. The Tribunal has the power to transfer a case from one Labour Court to another either on its
own motion or on the application of any party
xii. The Tribunal shall have the power of control and supervision over all Labour Courts
xiii. The Tribunal has the power to pass an order prohibiting the continuance of any strike or
lockout in pursuance of any industrial dispute in respect of which any appeal is preferred to the
Tribunal

85
 Preventive measure for avoiding industrial dispute

 The Bangladesh Labour Act, 2006 provides an important tool for minimizing industrial disputes at the very
initial stage by the intervention of the Participation Committee.
 The Participation Committee is a bipartite mechanism comprising of equal number of representation of
workers and employers
 In an establishment where fifty or more workers are employed the employer is bound to constitute a
Participation Committee to his establishment
 The representatives of the workers in the Committee shall not be less than the number of the representatives of
the employer
 The representative of the workers in the Participation Committed shall be appointed on the basis of nomination
by trade union or from the workers engaged in the establishment in the absence of trade union
 The principle function of the Participation Committee is to inculcate and develop a sense of belonging and
workers’ commitment and in particular
a) To endeavour to promote mutual trust, understanding and cooperation between the employer and the
workers;
b) To ensure application of labour laws;
c) To foster a sense of discipline and to impose 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, reduce production cost and wastes and raise quality of products 86
 Preventive measure for avoiding industrial dispute

 The employer and the trade union of the establishment shall take necessary measures
to implement the specific recommendations made by the Participation Committee
within the time prescribed by it
 If by any reason the employer or trade union faces any problem in implementing the
recommendations of the committee within prescribed time, the Participation
Committee shall be informed of it and all possible endeavours shall have to be taken
to implement the recommendations
 the role of Participation Committee is very limited as such committee exists only in a
very few industries and establishments.
 Only five per cent of the existing establishments have Participation Committees.
Some of them do not even operate regularly.
 There is hardly any participation committee in RMG, EPZs and shrimps
sectors.

87
 Dispute settlement in export processing zone

 The BEPZA set up an Industrial Relations Department to take over the powers of the Ministry
of Labour’s Directorate of Labour in the EPZs.
 A manager entrusted with the task of grievance handling, dispute settlement, and labour
inspection heads the Industrial Relation Department in each zone
 The Industrial Relations Department uses a checklist to monitor compliance with the
provisions provided in BEPZA’s guidelines for benefits and privileges to be accorded to the
workers.
 BEPZA management believes that 100 per cent of the large firms comply with the law, but
many smaller enterprises have been cited for late or non-payment of wages
 According to the EPZ Workers’ Association and Industrial Relations Act 2004, when a
difference between an employer and worker is found they will sit for negotiation to settle the
issue
 When negotiation fails any of the parties can request to the conciliator to conciliate them in
the dispute
 If the conciliation fails though the parties to the dispute are entitled to go for strike or lock-out
but this right has been suspended till October 31, 2010.

88
 Dispute settlement in export processing

 There is another provision to go to the EPZ Tribunal for settlement of dispute, but it
is still in the process and till now no EPZ Tribunal has been setup
 Arbitration is also available.
 In practice it is revealed that there are two conciliators, sixty counselors and one
arbitrator in the EPZs in Bangladesh.
 The workers submit grievances to the counsellors in written form. They are then
inquired and the matter is decided upon by the counsellors accordingly
 The matters which are not settled by the counsellors are referred to the conciliator
and then conciliator initiates his proceedings.
 In 2007 the Office of Conciliator of Chittagong Export Processing Zone settled a
number of 40 disputes in which Tk 10,03,066 were awarded to the workers as
compensation
 It seems that the BEPZA authority is giving one stop service to the workers in
settling their disputes

89
by
Md. Al-Amin (Mli)
What is Employee Engagement?
• Employee engagement is the emotional commitment that the
employees have to the organisation and the organisational goals
(Kruse, 2012)
• Employee engagement occurs when employees are harnessed to
the organizational goals (Kahn, 1990)
• “This is about how we create the conditions in which employees
offer more of their capability and potential” (Macleod, 2009, p. 10).
• Employee engagement is a workplace approach designed to ensure
that employees are committed to their work roles and willing to go
for an extra mile for the organisations
Why is Employee Engagement Important? (Cont.)
• The single most important driver for performance is employee engagement
(MacLeod and Clark, 2009)
• Employee engagement directly affects both financial and non-financial
performance.
• Revenue, Profit and Shareholder returns
• Organisations with engaged employees achieved 12% higher profitability and
2.3 times higher earning per share compared to disengaged organisations
(Gallup, 2006)
• Companies with high levels of employee engagement improved 19.2 % in
operating income while companies with low levels of employee
engagement declined 32.7 percent over the study period (Towers
Perrin-ISR, 2006)

• .
Why is Employee Engagement Important? (Cont.)
Employee Absenteeism
• Engaged employees take 2.7 days sick leave, while disengaged
employees are found to take 6.2 days per year (Gallup, 2003)
Employee Retention
• Engaged employees are 87% less likely to leave the organization
compared to disengaged employees (CLC, 2004)
Safety and accidents
• Study of 23,910 business units compared top quartile and bottom
quartile engagement scores and found that those in the bottom
quartile averaged 62% more accidents (Gallup, 2006)
• Staff Advocacy
Engaged employees tend to achieve higher staff advocacy whilst
compared with their disengaged counterparts (Gallup, 2006)
 Levels of Engagement

0.35

0.3

0.25

0.2

Series1
0.15 Series2

0.1

0.05

0
Worldwide UK USA and Australia Newzealand Middleeast South Asia
Canada
Why are the Engagement
Levels Low?
Organizations struggle to
identify and implement
appropriate engagement drivers

Organizations struggle to
identify and manage the barriers
associated with engagement
 Drivers for Employee Engagement

 Leadership
 “Leadership provides a strategic narrative which has
wide spread ownership and commitment from managers
and employees at all levels”
 It is a strategic imperative for the leaders to explain the
journey of the organisation to engage employees
 Employees must have a clear understanding about the
organisation’s current events and leaders should
communicate the events to the employees
 Drivers for Employee Engagement (Cont.)

 Engaging Managers
 Organisations badly require those managers who are themselves harnessed
and committed to the organisational goals It is a strategic imperative for the
leaders to explain the journey of the organisation to engage employees
 The MacLeod and Clarke (2009) study also argues that engaged managers
always tend to provide constructive feedback to the individual members of
staff, appreciate their job and offer a transparency for what is anticipated
from them
 “The line manager is the lens through which I see the company and the
company sees me” Chris Bones
Drivers for Employee Engagement (Cont.)

 The Line managers involve bridging the gap

between top management and first/second level
employees.
Top Level
Management

First level/
Second Level
Employees
 Drivers for Employee Engagement (Cont.)

 Employee Voice
 Enabling the members of staff to feed their views upward has been found to
be the most important driver to engage employees
 Employees can feel heard and respected when they are given the opportunity
to have a say over the organisational decision
 A strong sense of listening and of responsiveness permeate the organisation,
enabled by effective communication
 Drivers for Employee Engagement (Cont.)

 Integrity
 Behavior throughout the organization is consistent with stated values,
leading to trust and a sense of integrity
 Do they keep the promises?
 Most organization have adopted values and all have behavioral norms. Where
there is a gap between the two, the size of the gap is reflected in the degree of
distrust within the organization.
 Drivers for Employee Engagement
(Cont.)

 Where there is a gap between the two, the size of

the gap is reflected in the degree of distrust
within the organization.

Stated Behaviour
Values al Norms
 Barriers to Employee Engagement

 Lack of Awareness
 Some leaders are not aware of employee engagement. Others do not believe
that it is worth considering, or do not fully understand the concept and the
benefits it could have for their organisation
 Accor reports that 75 per cent of leaders have no engagement plan or strategy
even though 90 per cent say engagement impacts on business success (Accor,
2009)
 A study conducted by Accenture’s found that over half of Chief Financial
Offers surveyed had nothing more than a minimal understanding of the return
on their investments in human capital. A further 30 per cent understood it to a
modest level and only 16 per cent demonstrated a considerable understanding
(Accenture, 2008)
 Barriers to Employee Engagement (Cont.)

 Uncertainty about Starting

 Others, while they were interested in what engagement could offer, did not
know how to address the topic within their organisation
 This lack of certainty about how and where to start can be compounded by
the feeling that employee engagement is something that is ‘out there’ – a
product one buys, often at great expense. It is not always helpful to focus on
employee engagement as a product; this in itself can be a barrier to action
 Barriers to Employee Engagement (Cont.)

 Managers and Organisational Culture

 There remain a large number of disengaging practices in workplaces which act as
barriers and which if not addressed can stymie attempts to introduce engagement.
As Ruth Spellman of the CMI told, “for a high quality of working life it doesn’t
matter so much what the business is but how the people in that business behave.”
 A report from Kingston goes on to say that “Attitudes to senior managers are often
quite negative. The evidence is that only a third of employees have confidence in or
trust their senior management team, while only two in five say that directors and
senior managers treat employees with respect.”
 Kingston’s report found that only 40 per cent of employees are satisfied with
relations between managers and employees in their organisation; 27 per cent are
satisfied with the way their organisation is managed; 32 per cent say that their
manager rarely or never discusses their training and development needs with them,
30 per cent rarely or never got feedback on their performance and 25 per cent are
rarely or never made to feel their work counts (Truss et al., 2006)
 Barriers to Employee Engagement (Cont.)

 Underestimating Engagement
 Research shows that leaders regarded employee engagement as another job
on the to-do list that could be ticked off once an annual staff survey had been
carried out, and the results, perhaps, delegated to HR and line managers to
fix. This is to miss the point that keeping employees engaged is an on-going
process that needs to be hard wired into an organisation’s DNA (Macleod and
Clarke, 2009)

 Nor is engagement something that can be achieved overnight. Professor John

Purcell in a note to the review pointed out that the need for quick results did
not sit easily with the extent of culture change that might be needed
1. “To win in the marketplace you must first win in the workplace.” – Doug Conant, CEO of
Campbell’s Soup
2. “When people are financially invested, they want a return. When people are emotionally
invested, they want to contribute.” – Simon Sinek
3. “Your number one customers are your people. Look after employees first and then
customers last.” – Ian Hutchinson, author of People Glue
 Ethics, Justice, and Fair Treatment
in Labor Relations Management
Ethics and Fair Treatment at
Work
Ethics
◦ The principles of conduct governing
an individual or a group; specifically,
the standards you use to decide
what your conduct should be.
◦ Ethical behavior depends on the
person’s frame of reference.
Factors affecting ethical
decisions
Normative judgments
◦ Judging something as good or bad, right
or wrong, better or worse.
Moral standards (Morality)
◦ Society’s accepted standards for
behaviors that have serious
consequences to its well-being.
 Behaviors that cannot be established or
changed by decisions of authoritative bodies.
 Behaviors that override self-interest.
Ethics and Fair Treatment at Work (cont’d)

Ethics and the law

◦ Some behaviors may be legal but
unethical.
◦ Some behaviors may be illegal but
ethical.
◦ Some behaviors may be both legal
and ethical.
◦ Some behaviors may be both illegal
and unethical.
Ethics, Fair Treatment, and
Justice
Distributive justice
◦ The fairness and justice of a decision’s
result.
Procedural justice
◦ The fairness of the process by which the
decision was reached.
Interactional (interpersonal) justice
◦ The manner in which managers conduct
their interpersonal dealings with
employees.
What Shapes Ethical Behavior
at Work?
Individualfactors
Organizational factors
The boss’s influence
The organization’s culture
 Principal Causes of Ethical Compromises

Note: 1 is high, 9 is low.

Sources: O.C. Ferrell and John Fraedrich, Business Ethics, 3rd ed. (New York: Houghton Mifflin, 1997), p. 28;
adapted from Rebecca Goodell, Ethics in American Business: Policies, Programs, and Perceptions (1994), p. 54.
Permission provided courtesy of the Ethics Resource Center, 1120 6th Street NW, Washington, DC: 20005.
HR Ethics Activities
Staffing and selection
◦ Fostering the perception of fairness
in the processes of recruitment and
hiring of people.
 Formal procedures
 Interpersonal treatment
 Providing explanation
 The Wall Street Journal Workplace-Ethics Quiz

Source: Wall Street Journal, October 21, 1999, pp. B1–B4; Ethics Officer Association, Belmont, MA; Ethics Leadership
Group, Wilmette, IL; surveys sampled a cross-section of workers at large companies and nationwide.
Ethical Quiz
Questions employees should ask
when faced with ethical
dilemmas:
◦ Is the action legal?
◦ Is it right?
◦ Who will be affected?
◦ Does it fit the company’s values?
◦ How will it “feel” afterwards?
◦ How will it look in the newspaper?
◦ Will it reflect poorly on the
company?
HR Ethics Activities
(Cont’d)
Training
◦ How to recognize ethical dilemmas.
◦ How to use ethical frameworks
(such as codes of conduct) to resolve
problems.
◦ How to use HR functions (such as
interviews and disciplinary
practices) in ethical ways.
 The Role of
Training in Ethics
The Role of Training in
Ethics (cont’d)
HR Ethics Activities
(cont’d)
Performance appraisal
◦ Appraisals that make it clear the
company adheres to high ethical
standards by measuring and
rewarding employees who follow
those standards.
Reward and disciplinary systems
◦ The organization swiftly and harshly
punishes unethical conduct.
Employee Privacy
 Employee privacy violations upheld by
courts:
◦ Intrusion (locker room and bathroom
surveillance)
◦ Publication of private matters
◦ Disclosure of medical records
◦ Appropriation of an employee’s name or likeness
 Actions triggering privacy violations:
◦ Monitoring off-duty conduct and lifestyle
◦ Drug testing
◦ Workplace searches
◦ Monitoring of workplace
Employee Privacy (cont’d)
What do employers monitor
about employees:
◦ E-mail activity
◦ Internet use
◦ Telephone calls
Restrictions on Workplace
Monitoring
 The Electronic Communications Privacy Act (ECPA)
◦ The “business purpose exception” permits
employers to monitor communications if they can
show a legitimate business reason for doing so.
 Employers monitor employees to:
◦ Improve productivity.
◦ Protect from computer viruses
◦ Detect leaks of confidential information
◦ Guard against liability for illegal acts and
harassment suits caused by employee misuse
 The “consent exception” allows employers to
monitor communications if they have their
employees’ consent to do so.
 Sample Telephone Monitoring Acknowledgement
Statement

Source: Reprinted with permission from Bulletin to Management (BNA Policy and Practice Series)
48, no. 14, Part II, (April 3, 1997), p. 7. Copyright 1997 by The Bureau of National Affairs, Inc.
Managing Dismissals
Dismissal
◦ Involuntary termination of an employee’s
employment with the firm.
Terminate-at-will rule
◦ Without a contract, the employee can resign
for any reason, at will, and the employer
can similarly dismiss the employee for any
reason (or no reason), at will.
◦ Limitations on “terminate-at-will”
 Violation of public
 Implied contract
 Good faith
Grounds for Dismissal
 Unsatisfactory performance
◦ Persistent failure to perform assigned duties or to
meet prescribed standards on the job.
 Misconduct in the workplace
◦ Deliberate and willful violation of the employer’s rules:
stealing, rowdy behavior, and insubordination.
 Lack of qualifications for the job
◦ An employee’s inability to do the assigned work
although he or she is diligent.
 Changed requirements or elimination of the
job.
◦ An employee’s inability to do the work assigned, after
the nature of the job has changed.
◦ Elimination of the employee’s job.
 Insubordination
1. Direct disregard of the boss’s authority.
2. Flat-out disobedience of, or refusal to obey, the boss’s orders
—particularly in front of others.
3. Deliberate defiance of clearly stated company policies, rules,
regulations, and procedures.
4. Public criticism of the boss. Contradicting or arguing with
him or her is also negative and inappropriate.
5. Blatant disregard of reasonable instructions.
6. Contemptuous display of disrespect and, portraying these
feelings while on the job.
7. Disregard for the chain of command, shown by going around
the immediate supervisor or manager with a complaint,
suggestion, or political maneuver.
8. Participation in (or leadership of ) an effort to undermine
and remove the boss from power.
Managing Dismissals
(cont’d)
Foster a perception of fairness in
the dismissal situation by:
◦ Instituting a formal multi-step
procedure (including warning).
◦ Having a supervising manager give
full explanations of why and how
termination decisions were made.
◦ Establishing a neutral appeal
process also fosters fairness.
Managing Dismissals (cont’d)
1. Issue an oral reminder.
2. Should another incident arise within six
weeks, issue a formal written reminder, a
copy of which is placed in the employee’s
personnel file.
3. Give a paid, one-day “decision-making
leave.”
4. If no further incidents occur in the next year,
remove the one-day paid suspension from
the person’s file.
If the behavior is repeated, the next step is
dismissal.
Avoiding Wrongful Discharge
Suits
Bases for wrongful discharge suits:
◦ Discharge does not comply with the law.
◦ Discharge does not comply with the
contractual arrangement stated or implied
by the firm via its employment application
forms, employee manuals, or other promises.
Avoiding wrongful discharge suits
◦ Set up employment policies and dispute
resolution procedures that make employees
feel treated fairly.
◦ Do the preparatory work that helps to avoid
such suits.
The Termination
Interview
Plan the interview carefully.
◦ Make sure the employee keeps the appointment time.
◦ Never inform an employee over the phone.
◦ Allow 10 minutes as sufficient time for the interview.
◦ Use a neutral site, never your own office.
◦ Have employee agreements, the human resource file, and
a release announcement (internal and external) prepared
in advance.
◦ Be available at a time after the interview in case questions
or problems arise.
◦ Have phone numbers ready for medical or security
emergencies.
The Termination Interview
(cont’d)
Get to the point.
◦ Do not beat around the bush by talking about
the weather or making other small talk.
◦ As soon as the employee enters, give the
person a moment to get comfortable and then
inform him or her of your decision.
Describe the situation.
◦ Briefly explain why the person is being let go.
◦ Remember to describe the situation rather
than attack the employee personally
◦ Emphasize that the decision is final and
irrevocable.
The Termination Interview
(cont’d)
 Listen.
◦ Continue the interview until the person appears
to be talking freely and reasonably calmly about
the reasons for his or her termination and the
support package (including severance pay).
 Reviewall elements of the severance
package.
◦ Describe severance payments, benefits, access
to office support people, and the way
references will be handled. However, under no
conditions should any promises or benefits
beyond those already in the support package be
implied.
Severance Pay Act
Severance package in the context of
Bangladesh Labor Act, 2006
 Employees may be terminated for reasons of physical or
mental incapacity or continued ill-health as certified by a
medical practitioner. If the employee has served at least
one year, s/he is entitled to 30 days of wages for each year
of service.
 Employees who have been convicted of a criminal offense
or found guilty of misconduct are not owed notice or
severance.
 Termination of employment in Bangladesh for other
reasons generally requires the employer to provide written
notice of 120 days for monthly rated workers or 60 days for
other workers, or equivalent pay in lieu. The worker is also
entitled to 30 days of pay for every year worked.
Payment Period and Complaint
procedure
 Under sections 30 and 123(2) all amounts including wages due to
the worker shall be paid by the appointing authority within a
maximum period of 30 working days following the date of
cessation of employment.
 Any worker, terminated from employment, and aggrieved by the
termination, under section 33(1), should send their complaint in
writing to their employer within 30 days of being informed of the
cause of such complaint. The employer under section 33(2) of the
Act shall communicate their decision to the worker within 30 days
of receipt of the complaint, and the worker, if aggrieved with the
decision; under section 33(3) within 30 days, may submit a
complaint to the Labour Court.
 If the wages of a worker is not paid or payment of their wages or
gratuity payable or dues from the provident fund is delayed, the
worker of in case of death any of their heirs or any legal
representative may apply to the Labour Court under section 132(1)
of the Act for recovery of wages or other dues.
 In the case of deductions from wages or delay in payment of wages
by the employer, the Labour Court under section 132(5) of the Act
may also direct the employer or the person responsible for
payment of wages to pay 25% of the wages as compensation to the
The Termination Interview
(cont’d)
Identify the next step.
◦ The terminated employee may be
disoriented and unsure what to do
next.
◦ Explain where the employee should
go next, upon leaving the interview.
Termination Assistance
Outplacement Counseling
◦ A systematic process by which a terminated
employee is trained and counseled in the
techniques of conducting a self-appraisal
and securing a new job appropriate to his
or her needs and talents.
 Outplacement does not imply that the employer
takes responsibility for placing the person in a
new job.
 Outplacement counseling is part of the
terminated employee’s support or severance
package and is often done by specialized outside
firms.
Termination Assistance (cont’d)
Outplacement firms
◦ Can help the employer devise its
dismissal plan regarding:
 How to break the news to dismissed
employees.
 Deal with dismissed employees’
emotional reactions.
 Institute the appropriate severance pay
and equal opportunity employment
plans.
Interviewing Departing
Employees
Exit Interview
◦ Its aim is to elicit information about
the job or related matters that might
give the employer a better insight
into what is right—or wrong—about
the company.
 The assumption is that because the
employee is leaving, he or she will be
candid.
 The quality of information gained from
exit interviews is questionable.
Exit Interview Questions
 How were you recruited?
 Why did you join the company?
 Was the job presented correctly and honestly?
 Were your expectations met?
 What was the workplace environment like?
 What was your supervisor’s management style
like?
 What did you like most/least about the company?
 Were there any special problem areas?
 Whydid you decide to leave, and how was the
departure handled?
 Key Terms
ethics unsatisfactory performance
distributive justice misconduct
procedural justice insubordination
interactional (interpersonal) justice wrongful discharge
organizational culture termination interview
nonpunitive discipline outplacement counseling
Discipline without punishment exit interviews
Electronic Communications Privacy
Act (ECPA)
dismissal