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Trade Unions and Industrial Relations

A trade union or labor union is an organization of workers who have banded together to achieve common goals in

key areas and working conditions. According to The Bangladesh Labor Act, 2006, workers/employers, withoutdistinction 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 [Sec: 176, The Bangladesh Labor Act, 2006 / Sec: 3,

 IRO, 1969]. The trade union, through its leadership, bargains with the employer on behalf of union members andnegotiates 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.

Objectives of Trade Unions

The most common, but by no means only purpose of trade unions are maintaining or improving the conditions of 

employment. Over the last three hundred years, many trade unions have developed into a number of forms,

influenced by differing political and economic regimes. The immediate objectives and activities of trade unions

include pprotection and promotion of the interests of their members. Regulating the relations between workers and

employers or workers and workers or employers and employers is another objective of trade unions. Besides thesethere are some more objectives of trade unions. They are -

 Provision of benefits to members: Early trade unions, like Friendly Societies, often provided a range of 

 benefits to insure members against  unemployment, ill health, old age and funeral expenses. In many developed

countries, these functions have been assumed by the state; however, the provision of professional training, legal

advice and representation for members is still an important benefit of trade union membership.

Collective bargaining : Where trade unions are able to operate openly and are recognized by employers,

they may negotiate with employers over  wages and working conditions.

 Industrial action: Trade unions may enforce strikes or resistance to  lockouts  in furtherance of particular 

goals.

 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 (such as the Labor Party in Britain) for public office.

Why workers join Trade Union?

Trade unions are like to play a vital role for its members in case of job losses, or unfair labor practice or 

inappropriate working conditions that help workers to think for joining a trade union. Few reasons that motivate

 people to join a trade union are - greater bargaining power  (on economic and non-economic issues), steady

employment (job security), rationalization of personnel policy (consistent treatment),  protection from economic

hazard, recognition and participation in organizational policy, compulsion (peer/social/political pressure), and

general mistrust of management.

Why workers do not join Trade Union?

Trade union is a continuous association of wage earners. It is formed for the purpose of maintaining and improving

the conditions of the working lives. But there may be some reasons that resist workers to join trade unions. They are

- lack of compelling reasons, mistrust of unions, corruption in unions, continuous political influence and pressure,and above all lack of unity of the workers.

Trade Unions in view of Bangladesh Labor Act, 2006

SEC. - 175. Special definition of worker – unless there is anything repugnant in the subject of context “worker”

in this chapter connotes a worker defined in section 2 (65), and for the purpose of any proceeding under this chapter 

in respect of an industrial dispute any worker laid off, retrenched, discharged or removed otherwise from

employment in connection with or in consequence of that dispute or whose lay off, retrenchment, discharge,

dismissal or removal has given rise to that dispute, but shall not include any member of the watch and ward or 

security staff or fire service staff and confidential assistant of any establishment.

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SEC. - 176. Trade Union of the Employers and Workers. Subject to the provisions of this chapter – 

a) Without any difference whatsoever, all workers shall have the right to form Trade Unions and to join their 

chosen trade union subject to the constitution of the concerned union; mainly for the purpose of regulating the

relations between workers and employers or workers and workers;

 b) Without any difference whatsoever, all employers shall have the right to form Trade unions and to jointheir chosen trade unions subject to the constitution of the concerned union, mainly for the purpose of regulating the

relations between employers and workers or employers and employers;c) Workers and employer trade unions shall have the right to form federation and to join it and the workers

or employers of such union or federation shall have the right to get affiliated with any international organization or 

confederation; and

d) Trade unions and employers associations shall have the right to draw up their constitutions and rules, to

elect their own representatives with full freedom, to organize the administration and activities and to formulate

 program for the organization.SEC. - 177. Application for Registration. Any trade union may, under signature of its president and the

secretary, apply for the registration of the trade union under this Chapter to the Registrar of Trade Unions of the

concerned area.

SEC. - 178. Requisites for Application. 1) Application for registration of any trade union shall have to be

submitted to the Director of Labor or to the Officer authorized in this respect.

2) The following particulars are to be enclosed with the application, such as:-

a) a statement supplying the following information, such as -

(i) the name of the trade union and the address of its head office;(ii) date of formation of the trade union;

(iii) the name, age, address, occupation and the posts in the trade union of the officers of the trade union;(iv) statement of all subscribing members;

(v) the name of the establishment with which the trade union is concerned and the total number of workers

employed or working therein;

(vi) in case of nay federation of trade unions, the names, addresses and registration number of the member 

unions.

 b)Three copies of the constitution of the trade union together with a copy of the resolution adopting a proposal for 

accepting the resolution bearing the signature of the president of the meeting in which the resolution has been

adopted;c)A copy of the resolution adopted by the members empowering the President and the Secretary to apply for its

registration; and

d)In case of Trade Union Federation a copy of the resolution from each of the constituted unions consenting to become member of the Federation.

3) On receipt of an application under sub-section (1), the Director of Labor or the Officer authorized in this

 behalf shall send a copy thereof without delay (together with a list of the officers of the union) to the employer 

concerned for his information. Provided that, in case of a group of establishments, the Register of Trade Unions

shall cause public advertisement together with a list of the officers of the union at the cost of the applicant.SEC. - 194. Incorporation of Registered Trade Union.  (1) Every registered trade union shall be a body

corporate by the name under which it is registered, shall have perpetual succession and a common seal and the

 power to contract and to acquire, hold and dispose of property, both movable and immovable, and shall by the said

name, sue or be used.

2) The Societies Registration Act, 1960 (XXI of 1860) the Co-operative Societies Ordinance, 1985 (Ordinance 1

of 1985) and the Companies Act, (994 shall not apply to any registered trade union and the registration of a trade

union under any of these Acts shall be void.

SEC. - 195. Unfair Labor Practices on the Part of the Employers.  No employer or trade union of employer or no person acting on behalf of either shall -

a) Impose any condition in a contract of employment seeking to restrain the right of a person who is a party to such contract to join a trade union or continue his membership of a trade union;

b) Refuse to employ or refuse to keep employed any person on the ground that such

 person is, or is not member or officer of any trade union;

c) Discriminate against any person in regard to any employment, promotion, condition of 

employment or working condition on the ground that such person is, or not, a member or officer of any trade union;

or 

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d) Dismiss, discharge, remove from employment or threaten to dismiss, discharge or 

remove from employment a worker or injure or threaten to injure him in respect of his employment by reason that

the worker is or proposes to become, or seeks to persuade any other person to become, a member or officer of a

trade union or participates in the promotion, formation or activities of the trade union;

e) Induce any person to refrain from becoming, or to cease to be a member or officer of atrade union, by conferring or offering to confer any advantage on, or by procuring or offering to procure any

advantage for such person or any other person; f) Compel any officer of the collective bargaining agent to sign a memorandum of 

settlement by using intimidation, coercion, pressure, threat, confinement to a place, physical injury, disconnection of 

water, power and telephone facilities and such other methods;

 g) Interfere with, or in any way influence the balloting provided for in section 202.

h) Recruit any new worker during the period of strike under section 211 or during the

currency of a strike which is not illegal except where the conciliator has, being satisfied that complete cessation of work is likely to cause serious damage to the machinery or installation, permitted temporary employment of a

limited number of workers in the section the damage is likely to occur;

i) Fail intentionally to take measures as per the recommendation of the Participating

Committee;

 j) Fail to give answer to any letter sent by the collective bargaining agent regarding an

industrial dispute;

k) Transfer the President, the General Secretary, the Organizing Secretary, or the

Treasurer of any trade union in contravention of the provision of section 187;l) Commence or continue an illegal lock-out or persuade any other person to take part in

that.SEC. - 196. Unfair Labor Practices on the Part of Workers.  1) No worker shall remain engaged in any

trade union activities during his working hour without the permission of the employer. Provided that nothing

contained in this sub-section shall apply to the President or the General Secretary of the collective bargaining agent

of an establishment for their being engaged in trade union activities, if such activities relate to any committee,

dialogue, conciliation, arbitration or any other proceedings under this Act and the employer is informed thereof in

time.

2) No worker or trade union of workers or no person acting on behalf of such trade union shall-

a) Intimidate any worker to become, or refrain from becoming, or to continue to be, or to cease to bea member or officer of a trade union;

 b) Induce any person to refrain from becoming, or cease to be a member or officer of a trade union,

 by conferring or offering to confer any advantage on, or by procuring or offering to procure any advantage for, such person or any other person;

c) Compel or attempt to compel any worker to pay, or refrain from paying, any subscription towards

the fund of any trade union by using intimidation, coercion, pressure, threat, confinement to any place, physical

injury and by disconnecting water, power or telephone facilities or adopting any other method.

d) Compel or attempt to compel the employer to sign a memorandum of settlement by usingintimidation, coercion, pressure, threat, confinement to a place, physical injury, disconnection of telephone, water 

and power facilities or by any other method.

e) Commence or continue any illegal strike or go slow work; or persuade any other person to take

 part in that; or 

f) Create blockade, obstacle in transport or communication system or cause damage to any property

for the purpose of satisfying any demand or object of a trade union.

3) It shall be an unfair practice for a trade union if it interferes in any election held under section 202

 by the exercise of undue influence, intimidation, impersonation or bribery through its executive or through any person acting on its behalf.

SEC. - 197. Limited Application of the Law of Conspiracy.  No member or office of a registered trade unionor a collective bargaining agent shall be liable to punishment under sub-section (2) of section 120B of the Penal

Code (Act XLV of 1960) in respect of any agreement made amongst the members thereof for the purpose of 

furthering any such object of the trade union as is specified in its constitution referred to in section 179, unless the

agreement is an agreement to commit an offence, or otherwise violate any laws other than the provisions of this

Chapter.

SEC. - 198. Immunity from Civil suit in certain Civil Cases. 1) No suit or other legal proceedings shall be

maintainable in any Civil Court against any trade union or collective bargaining agent or an officer or member 

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thereof in respect of any action done in contemplation or furtherance of an industrial dispute to which the trade

union is a party on any of the following grounds only, namely:

a) That such act induces some other person to break a contract of employment;

 b) That it is an interference with the trade, business or employment of some other person; or 

c) That it restricts the right of some other person to dispose of his capital or of his Labor as he wills.2) A trade union shall not be liable in any suit or other legal proceedings in any Civil Court in respect

of any tortuous act done in contemplation or furtherance of an industrial dispute by an agent of the trade union if it is proved that such person acted without the knowledge of, or contrary to express instructions of the executive

committee of the trade union.

SEC. - 199. Enforceability of Agreement.  Notwithstanding anything contained in any other law, an

agreement amongst the members of a trade union shall not be void, or voidable by reason only that any of the

objects of the agreement are in restraint of any trade.

Provided that nothing in this section shall enable any Civil Court to entertain any legal proceedinginstituted for the express purpose of enforcing, or recovering damages for the breach of any agreement concerning

the conditions on which any member of a trade union shall or shall not sell their goods, transact business or work,

employ or be employed.

SEC. - 200. Registration of Federation of Trade Unions.  1) Any two or more trade unions formed in

establishments which are engaged in or carrying on the same industry may, if their respective general bodies so

resolved, constitute federation by executing an instrument of federation and apply for the registration of the

federation.

Provided that a trade union of workers shall not join a federation which comprises a trade union of employers, nor shall a trade union of employers, nor shall a trade union of employers join a federation which

comprises a trade union of workers.2) An instrument of federation referred to in sub-section (1) shall, among other things, provide for 

the procedures to be followed by the federated trade unions and the rights and responsibilities of the federation and

the federated trade unions.

3) An application for the registration of a federation of trade unions shall be signed by the Presidents

and General Secretaries of all the trade unions constituting the federation and shall be accompanied by three copies

of the instrument of federation referred to in sub-section (1).

SEC. - 201. 1) After the end of an English calendar year there shall be sent to the Director of Labor by 30 th

April of the next year, a general statement prepared and audited in the prescribed manner, of all receipts andexpenditure and of the assets and liabilities of a trade union during that year.

2) Together with the general statement, there shall be sent to the director of Labor a statement

showing all changes of officer made by the trade union during the year to which the general statement refers,together also with a copy of the latest amended constitution of the trade union.

3) If a registered trade union fails to send such general statement by the time limit specified in sub-

section (1), the Director of Labor shall inform the trade union by a notice thereof and if the trade union fails again to

send the general statement within thirty days of the receipt of the receipt of such notice its registration shall be liable

to be cancelled.4) In case the trade union is the member of a federation, the name of the federation shall be given in

the general statement.

SEC. - 202. Collective Bargaining Agent. 1) Where there is only one trade union in an establishment, that

trade union shall be deemed to be the collective bargaining agent for such establishment.

2) Where there are mort ha one trade union in an establishment, the Director Labor shall, upon an application

made in this behalf by any such trade union or by the employer, hold a secret ballot within one hundred twenty days

to determine as to which one of such trade unions shall be the collective bargaining agent for the establishment.

3) Upon receipt of an application under sub-section (2), the Director of Labor shall be notice in writing directall trade unions of the concerned establishment to inform, within the period specified in the notice, which shall not

 be more than fifteen days, whether it shall contest the secret ballot.4) If a trade union fails to inform the Director of Labor, within the time specified in the notice given under 

sub-section (3), of the matter relating to its contest in the secret ballot, it shall be presumed that it shall not contest

such ballot.

5) If no trade union informs the Director of Labor anything, within the time specified in the notice, as to its

desire to be contestant in the secret ballot, the trade union applying under sub-section (2) shall be declared to be the

collective bargaining agent for the establishment, provided it has as its members not less than one third of the total

number of workers employed in the establishment.

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6) Every employer, if requested by the Director of Labor, shall send to the Director of Labor a list

of those worker who are in the service of his establishment at least for a period of three months excluding the casual

and badli workers, and the list shall contain the following particulars, such as - the name of every worker, the name

and age of his parent, (where applicable the name of husband/wife shall also be given), the name of his section or 

department, name of the place in which he is employed, his ticket number and the date of his employment.

7) Every employer, if requested by the Director of Labor, shall supply required number of additional copies of the list referred to in sub-section (b) and shall provide necessary facilities for verification of the list submitted.

8) On receipt of the list of workers from the employer the Director of Labor shall send a copy of the list to

each of the contesting trade unions and shall also affix a copy thereof in a conspicuous part of his office and another 

copy of the list in a conspicuous part of the establishment concerned, together with a notice inviting objections, if 

any, to be submitted to him within such time as may be specified in it.

9) The director of Labor shall dispose of the objection, if any received by him, after necessary enquiry.10) The Director of Labor shall make such amendments or alterations in the list of workers submitted by the

employer as may be required by any decision given by him under sub-section (9).

11) After amendments or alterations, if any made under sub-section (10), or where not objections are

received by the Director of Labor within the specified time, he shall prepare a list of workers empowered in the

establishment concerned and send copied thereof, after certifying properly, to the employer and each of the

contesting trade unions at least seven days prior to the date fixed for the poll.

12) The list of worker prepared and certified under sub-section (11) shall be deemed to the list of voters, and

every worker whose name appears in that list shall be entitled to vote in the poll to determine the collective bargaining agent.

13) Every employer, if requested by the Director of Labor, shall provide all necessary facilities for theconduct of the poll but shall not interfere with or in any way, influence the voting.

14) No person shall canvas for vote within a radius of forty-five yards of the polling stations.

15) For the purpose of holding secret ballot to determine the collective bargaining agent, the Director of 

Labor shall – 

a) Fix the date for the poll and intimate the same to each of the contesting trade unions and also to

every employer;

 b) On the date fixed for the poll place in the polling station ballot boxes which shall be sealed in the

 presence of the representative of the contesting trade unions, if any;c) Conduct the poll at the polling stations at which the representatives of the contesting trade unions

shall be allowed to be present;

d) After the conclusion of the poll and in the presence of such of the representatives of the contestingtrade unions as may be present, open the ballot boxes and Count the votes; and

e) After the conclusion of the count, declare the trade union which has received the highest number 

of votes to be the collective bargaining agent:

24) The collective bargaining agent in relation to an establishment shall be entitled to – 

a) Undertake collective bargaining with the employer on matters connected with non-employment,the terms of employment or the conditions of work;

 b) Represent all or any of the workers in any proceedings;

c) Give notice of, and declare, a strike in accordance with the provisions of this Chapter;

d) Nominate representatives of workers on any welfare establishment or provident fund and on the

Board of Trustees of Participation Fund established under Chapter Fifteen.

e) Conduct cases on behalf of any individual or group workers.

25) The provisions of this section shall also apply in determining or electing the collective bargaining agent

for a group of establishments declared under this Code.SEC. - 204. Check-Off.  1) If a collective bargaining agent so requests, the employer of an establishment

shall deduct from the wages of those workers working in his establishment, who are members of such CBA union,such amounts payable towards their such CBA union, such amounts payable towards their subscription to the funds

of the CBA union with the approval of each individual worker named in the demand statement furnished by the

CBA union.

a) An employer making any deduction from the wage under sub-section (1) shall, within the next 15

days, deposit the entire amount so deducted by him in the account of the concerned CBA union.

 b) The employer shall provide facilitates to the CBA for ascertaining whether deductions from the

wages of its members are being made under sub-section (1).

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SEC. - 205. Participation Committee.  1) The employer of every establishment in which at best fifty

workers are employed shall, in the manner prescribed by rules, constitute a Participation Committee in his

establishment.

a) Such Committee shall consist of representative of the employer and the workers.

 b) The representatives of the workers in the Committee shall not be less than the number of therepresentatives of the employer.

c) The representative of the workers shall be appointed on the basis of the nomination made by thetrade unions of the establishment.

SEC. - 206. Functions of the Participation Committee.  1) The functions of the participation committee

shall be mainly to plant and develop a sense of being embodied in every worker and employer and in between the

workers commitment and the sense of responsibility towards the establishment and specially -

a) To endeavor to promote mutual trust, understanding and co-operation between the employer and

the workers; b) To ensure application of Labor laws;

c) To encourage the sense of discipline, and to improve 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; and

f) To fulfill production target, to increase productivity reduce production cost and impede wastes

and rise the quality of products.

2) Any participating unit of a committee shall, under the supervision of the main participationcommittee, execute its functions mentioned in sub-section (1).

SEC. - 210. Settlement of Industrial Disputes. 1) If at any time, an employer or a collective bargaining agentfinds that an industrial dispute is likely to arise between the employer and the workers, the employer or the

collective bargaining agent shall communicate his or its views in writing to the other party.

2) Within fifteen days of the receipt of a communication under sub-section (1), the party

receiving it shall, in consultation with the other party, arrange a meeting with the other party for collective

 bargaining on the issue raised in the communication with a view to reaching an agreement thereon through the

 procedure of a dialogue, and such meeting may also be held between representative of both the parties authorized in

this behalf.

3) If the parties reach a settlement on the issues discussed, a memorandum of settlement shall be recorded in writing and signed by both the patties and copy thereof shall be forwarded to the Government,

Director of Labor and the Conciliator.

4) If –  a. The receiver of a letter sent under sub-section (1) fails to arrange the meeting, within the time

stipulated in sub-section (s), that other party, or 

 b. No settlement can be reached within one month from the date of the first meeting held for 

settlement of the dispute through the process of reciprocal dialogue of both the parties or within the time extended

through the written consent of both the parties, and of the parties may, within fifteen days of the expiry of the timelimit stipulated in sub-section (2) or clause (b) of this sub-section as the case may be, report thereof to the

Conciliator referred to in sub-section (5) and request him in writing to settlement the dispute through conciliation.i 

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i  The Bangladesh Labour Act, 2006. Govt. of Bangladesh