Trade Union

Trade Union or labor union is an organization of workers who have banded together to
achieve common goals such as protecting the integrity of its trade, achieving higher pay,
increasing the number of employees an employer hires, and better working conditions.
According to The Bangladesh Labor Act, 2006, workers/employers, without distinction
whatsoever 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.
The trade union, through its leadership, bargains with the employer on behalf of union
members and negotiates with employers. This may include the negotiation of wages, work rules,
complaint procedures, rules governing hiring, firing and promotion of workers, benefits,
workplace safety and policies. The agreements negotiated by the union leaders are binding on the
rank and file members and the employer and in some cases on other non-member workers. These
organizations may comprise individual.

Causes of Organizing Trade Unions:
Provision of benefits to members: professional training, legal advice and representation
for members is still an important benefit of trade union membership.
Industrial action: Trade unions may enforce strikes or resistance to lockouts in
furtherance of particular goals.
Political activity: Trade unions may promote legislation favourable 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.
Conditions of employment and any grievances are settled through trade unions.
Bargaining rights: Trade unions bargain and ensure the status, rights, wages and
demands of workers of the modern world of industry.
Contribution in economical growth: Trade unions are growing rapidly in an economy
because of the expansion of business and economical growth.

Objectives:
Todays world is globalized. So businesses are also globalized. For this globalization
businesses are expanding rapidly for that reason the workforce in the industries is increasing
hugely. To maintain the whole work force alone by the management is a very tough job. Trade
unions are the only way to manage, compliant, and control the labor force. Lots of objectives are
there to organize trade unions. From the workers point of view three important objectives of
trade union today are as follows:
1. To defend or improve the wages and working conditions of workers and to bring about a
change in the economic order.
2. To strengthen their (labor) bargaining power collectively to establish and achieve all their
rights.
3. To dully protect all other interest of the workers.
And from the managements point of view the objectives as written:
a. To reduce the number of negotiation.
b. To specify work rules, disagreements and grievances to give the better solution to
workers claim.
c. To establish the efficient communication between the employers and management to
enforce the predictable standards.
d. To enhance the overall organizational effectiveness workers can also be sometimes
inspired to form and organize trade union. In fact, objectives of a trade union are not
defined; rather these are changing according to the need of the economy and overall
industry. When these objectives are not settled then the rivals are started.
In fact, objectives of a trade union are not defined; rather these are changing according to the
need of the economy and overall industry. When these objectives are not settled then the rivals
are started.

History of Trade Unions:
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.

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, and 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.
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.

Limitations:
Bangladesh is still known as a third world country. Though it is a poor developing country, in
this country Trade Unions have a lot of unavoidable problems. Some of those are discussed
below:
1. Lack of consciousness: Trade union are not actually completely aware about employees
legal rights and duties.
2. Lack of Unity: In Bangladesh trade unions are separated for political influence.
3. Lack of knowledge: The workers of Bangladesh dont have enough knowledge about
their rights and duties.
4. Political influence: In Bangladesh, trade unions work a part of political parties not as a
free right saving association.
5. Division of trade union: Bangladesh is a country where every organization has more
trade unions in name only. The overall productivity got down.

Impact of trade union on management:
Every association has impacts in management. Trade union has both positive and
negative impacts on management.

Positive impacts:
Trade union plays a major role in creating ideal working conditions.
Trade union always helps management to create better policies for workers.
Trade unions negotiate for the standard wage and benefits with the management.
Trade union helps the management to increases the productivity as well as the profit.
Political influences existence makes the trade union not to interfere in management
decisions.
Trade union is hugely helping the management to produce more and implementing
management tactics.

Negative impacts:
Trade Unions are creating a surplus of manpower but not of productivity.
Trade union of Bangladesh bargains more than they understand because of the limitations
of their knowledge. If dont consult then they strike.
Trade Unions have equal power of management then clashes are started.
In companies labors are awarded for good work and threatened for bad work. But if its
punished then trade union interfere and dont let to happen the punishment. So it
increases crime of the labors.
Trade union leaders always try to save their interest first then the labor.
For the power of politics trade union always dishonor the management.