Term labor unrest in rmg sector of bangladesh-converted

Daffodil International University
Daffodil International UniversityStudent at Daffodil International University à Daffodil International University

In recent year, labor unrest in RMG sector of Bangladesh has been a matter of serious concern. It is the highest foreign exchange earning sector. It has been able to create employment opportunities for about few millions of people, most of whom are poor, uneducated and unskilled women from the rule area. But this sector is infested with a number of problems. Labor unrest is one of them. For collecting data the study has used questionnaire and interview method. The major causes of labor unrest irregularities in payment, low wage, absence of trade unionism, non-execution of labor lows. In key issues regarding labor unrest sector, investigating the incidents of labor unrest, bridging, gap between the factory owners and workers and improving low and order situations.

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A Term Paper
On
Labor unrest in RMG sector of Bangladesh
Submitted to:
Dr.Muhammad Sayadur Rahman
Supervisor and Associate professor
Department of Public Administration
Jahangirnagar University
Submitted by:
Md.Rabiul Hossain
Id. 170205
3rd
Batch
Program: MHRDIR
Date of Submission: 25th
May, 2018
In Partial Fulfillment of the Requirement for the degree
Of
Masters in Human Resource Development and Industrial Relations
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Acknowledgement
At first I would like to give thanks to my superior Dr. Muhammod Sayadur Rahaman Who inspired
and directed me to prepare this paper and gave outline. It is my pleasant due to express gratitude
to him for his constant support and encouragement through the period of the study. He provides
access to different important information about labor unrest in RMG sector. This found quite
useful.
I wish to thank the managements, the stuffs and the workers of the Tarasima Apparel ltd & Remi
Holdings who gave generously of their time and who demonstrated a wholehearted interest in the
progress and findings of the paper. I have greatly benefited from the formal and informal
discussion with my class-mates. This paper depends on a large body of published and unpublished
documents. Relevant information and data are collected from concerned agencies conversation
was undertaken with knowledge people on specific topic.
Finally, I would like to thank once again to all those who helped me a lot to complete my term
paper.
……………………………………
Md. Rabiul Hossain
Id.170205
Program: MHRDIR
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Abstract
In recent year, labor unrest in RMG sector of Bangladesh has been a matter of serious concern. It
is the highest foreign exchange earning sector. It has been able to create employment opportunities
for about few millions of people, most of whom are poor, uneducated and unskilled women from
the rule area. But this sector is infested with a number of problems. Labor unrest is one of them.
For collecting data the study has used questionnaire and interview method. The major causes of
labor unrest irregularities in payment, low wage, absence of trade unionism, non-execution of labor
lows. In key issues regarding labor unrest sector, investigating the incidents of labor unrest,
bridging, gap between the factory owners and workers and improving low and order situations.
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Table of Contents
Sl. No. Title Page No.
1 Acknowledgement i
2 Abstract ii
3 Table of contents iii
4 List of tables iv
5 List of charts v
Chapter 01: Introduction
1.1 Statement of the problem 1
1.2 Objectives of the study 2
1.3 Importance of the study 2
1.4 Literature Review 2-3
Chapter 02: Theoretical Framework
2.1 Theoretical Framework 4-5
2.2 Analytical framework 5
2.3 Research Methodology 5-6
2.4 Data analysis plan 6
Chapter 03: Data Analysis and Findings
3.1 Area of the study 7
3.2 Methods of collecting data 7
3.3 Source of data 7
3.4 Data collection Instrument 8
3.5 Sample size and Structure 8
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3.6 Composition of respondents 8
3.7 Personal profile of the Respondents 9-12
3.8 Analysis of collected data 12-18
Chapter-04: Conclusion and Recommendations
4.1 Conclusion 19-21
4.2 Recommendations 21-22
References 23
List of tables:
3.1 Distribution of respondents for questionnaire 8
3.2 Distribution of respondents for interview 8
3.3 Distribution of garment workers by age 9
3.4 Distribution of interviewees by age 9
3.5 Distribution of garment workers by gender 10
3.6 Distribution of interviewees by gender 10
3.7 Distribution of garment workers by education 11
3.8 Distribution of interviewees by education 11
3.9 Distribution of garment workers by working experience 11
3.10 Distribution of interviewees by working experience 11
3.11 Responses about existence of conspiracy 13
3.12 Responses about recent occurrence of labor unrestResponses about recent occurrence of labor unrest 14
3.13 Responses about causes of recent labor unrest 15
3.14 Perception regarding owner-worker relations 15
3.15 Options for actors that can bridge the gap 16
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List of diagrams and charts:
Bar chart: 1 Various causes of labor unrest 13
Bar chart: 2 Suggestions by the respondents for solving the problem 16
Chapter One: Introduction
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1.1 Statement of the problem
Labor unrest is strike action undertaken by labor unions, especially where labor disputes become
violent. Arnesen, Eric (2007) told his book ‘Encyclopedia of U.S. Labor and Working-Class
History’ in the 19th
century labor unrest was common in the United States.
Labor unrest occurs when employees believe that they are treated unfairly by the management of
the company. Employees organize themselves under a certain labor union and strike upon the
company. Workers organize strikes to show their dissatisfy faction and represent their demands
towards the company. There are several causes of labor unrest such as; Health hazards contribute
to labor unrest, poor working conditions which are faced by the employees. Employees want a fair
compensation package. If the provided compensation is unsatisfactory employees may organize
strikes to demand increase in salary. Workers may strike in order to purses the company for leave
payment. No employer is required to discriminate employee due to color, tribe, sex, disability.
Discrimination is also responsible for labor unrest. Inadequate working tools or also responsible.
If the production tools are not safe, poor or fewer than the actual work to be done daily employee
does not put consideration such matter, but only forcing the workers may organize a strike to
demand sufficient tools needed for the production. Aggressive behavior of managers towards
employees is also responsible for labor unrest. Managers may use abusive languages to their
employees and sometimes even hit workers which create the desire for revenge on workers towards
management.
There are several effects of labor unrest such as; Loss production, loss profit, damage machine &
equipment, loss of revenue, loss economic condition & rise in price.
1.2 Objective of the study
To find out the causes of labor unrest in RMG sector of Bangladesh.
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To suggest some policy measures for planners and decision makers.
1.3 Importance of the study
Bangladesh is well known across the global for its stunning success in the arena of readymade
Garment industry. It constitutes about 80% of total export of Bangladesh. It has been able to create
employment opportunity for millions, alleviate poverty, accelerate industrialization, attract foreign
direct investment, mobilize business and create a positive image of Bangladesh abroad. But these
achievements are going to be shattered due to labor unrest in this sector. If labor unrest is not
addressed, Bangladesh will have to count a heavy loses. The affected garment factories will be
declared closed. Production will be hampered. The foreign investor will close their business here.
The foreign buyers will cancel their order and divert to other countries. Government will lose huge
revenue. Thousands of garments workers will lose their job. After all, it will create an adverse
impact on the socio-economic condition of the country.
1.4 Literature Review
This topic is not directly related to any book or article. But there are some book, journals, articles
and web pages which could partially relate with these topics. Siddiqi (2004) in his book “The
Readymade Garment Industry of Bangladesh” discusses the importance of RMG industry in the
national economy and notes, the RMG industry has become so important that the future of the
economy of Bangladesh is greatly dependent on this single sector. He analyses the strength and
weakness of RMG industry of Bangladesh and suggests how to ensure its better future in the
context of changing global apparel market. Fahmida and Moazzem (2007) suggest a number of
factors need to be considered while fixing the minimum wage of industrial workers. These are :
i) workers minimum requirement for decent living; ii) enterprises capacity to adjust with the
additional cost originating from the rise in wage; iii) consideration of the wage structure of
similar types of industrial sectors; and iv) adjustment of the wage with countries economic
development. Enterprises, in a position to do so, should appoint a “grievance officer” to deal with
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factory level misconducts. Labor relations is likely to become crucially important in near future
and RMG enterprises must accord due attention to this. Most garment factories do not follow the
labor law and ILO convention. The labor act, 2006 clearly stipulates that the wages of a worker
must be paid within seven workings days of the completion of the stipulated wages period. This
is not followed in practice. In addition, some of the factories do not provide appointment letters,
identity cards and service books. Labor unrest in the readymade garment industry of Bangladesh
which is workers lack of feeling of ownership. How can they feel an organization where they are
valued only for their work, where their job is not secure, where they have no right to say anything
in any matter? Gender discrimination, working environment, conspiracy, wage, owner-worker
relations, life-standard and socio-economic condition of the garment workers especially of
women workers are the major issue of study in the field of RMG industry of Bangladesh.
However, causes of labor unrest and its impact on national economy have been focused in many
studies.
Chapter Two: Theoretical Framework
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2.1 Theoretical Framework:
In this study, following theories and models are divided into three parts. The first part deals with
concept of public-private cooperation, its experience in Bangladesh and its scope to address
the problem of labor unrest in the RMG sector of Bangladesh. The second part deals with
analytical framework. The analytical framework comprises of a dependent variable and four
independent variables. Public-Private Cooperation has been taken here as dependent variable
while four areas such as investigating the incidents of labor unrest, maintaining law and order
situation, bridging the gap between the factory owners and workers and involving the
representatives of work-force in the decision-making process have been taken as independent
variables. The third section deals with methodology and data analysis plan.
Concept of Public-Private Cooperation is as old as history of human civilization on earth.
Nothing is self-sufficient on earth and every object of universe is independent on each other.
Public-Private Cooperation combines the resources of government with those of private agents
in order to deliver societal goals. These concern the relationship between the states and private
actors, the extent to which business and not-for profits should substitute for government and the
costs and benefits to different public-private solutions (Linder and Rosenau, 2000). The private
sector is the part of the economy which is both run for private profit and is not controlled by the
state. The private economy is a concept based on economic components. The RMG industry
involves various stakeholders covering from public, private and international organizations. In
respect of production, export, earning foreign exchange, contribution to GDP, employment,
investment and business mobilization, RMG sector of Bangladesh has been a flourishing
industry. Its importance has cross the geographical boundary of the country. Garment business
of many international markets in Europe and North America depends on production of garment
factories of Bangladesh. RMG sector of Bangladesh emerged as a result of private
entrepreneurship. The factory owners, the international buyers, the managers and the workers of
the factories, BGMEA, workers association-all fall in the group of the private sector. In respect
of labor unrest in the RMG sector, public bodies include ministry of Labor and Employment, its
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sub-ordinate offices such as directorate of labor, Office of the Chief Inspector of Factories and
Establishment, minimum wage board; ministry of home affairs and various law enforcing
agencies. Initially the government was not much attentive to this sector though it provided
necessary support for the business. Governments attention was due to some positive
achievements of this sector such as its being highest exporting items and earning highest foreign
exchange, rendering handsome revenue to government exchequer, creating employment
opportunity for millions etc. Four areas such as investigating the incidents of labor unrest,
maintaining law and order in the factory area, bridging the gap between the factory owners and
workers and involving the workface of the RMG industry in the decision where public-private
cooperation can work together to solve the problem. In all the four areas, the private organizations
have resources and knowledge the public agencies hove power and authority. Addressing labor
unrest in the RMG sector will be easier and effective if the capacities of two are combined.
2.2 Analytical Framework
Public-Private Cooperation in addressing labor unrest has been set as the dependent variable
which depends on four independent variables such as investigating the incidents of labor
unrest, maintaining law and order situation, bridging gap between owners and workers and
involving the representatives of work-force in the decision-making process. Each
independent variable carries some indicative questions or queries. Questionnaire and
interview- the two methods used for collecting data have been set as sources of data.
2.3 Research Methodology
A research needs methodology which reveals how the researcher is going to achieve hisher
objectives of the stipulated study. Aminuzzaman in ‘Introduction to Social Research’ states, as a
systematic study, research methodology deals primarily with the approaches and techniques as
how to undertake a research without being biased and prejudiced. It offers a bunch of tactical
approaches and logical skills to observes, record, interpret and infer on matters under study.
2.4 Data analysis plan
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Collected data have been validated through cross-checking with the responses of the various
respondents. Primary data collected through questionnaire and interview have been
compared with secondary data. Simple arithmetic calculation has been used to analyze data. Data
have been presented through computer generated graphs, charts and tables using Microsoft
Office tools.
Chapter Three: Data Analysis and Findings
3.1 Area of the study
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Most of the garment factories of Bangladesh are located in Dhaka and adjacent towns of
Dhaka like Savar, Ashulia, Tongi, Gazipur and Narayangang. Some are located in
Chittagong. As regard labor unrest or owners-workers relations, all garment factories share
some common problems. For the convenience of primary data collection, factories of Manikganj
and Narayangang have been visited. Garment workers, factory owners, managers and officers
are covered from garment factories of these areas.
3.2 Methods of collecting data
✓ Face to face conversation with the management of the garments, workers, labor union
leaders, and staff
✓ Content analysis
✓ Facts and literature review
✓ Collection of relevant information
✓ Newspaper review
3.3 Source of Data
The primary sources:
Primary data have been collected through interview of the management of garments factories,
workers, Labor union leaders and staff.
The secondary sources:
▪ Different books and articles
▪ Evidence from newspapers
3.4 Data collection Instrument
Data has been collected through questionnaire owners, workers, labor union leaders and staff.
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3.5 Sample size and Structure
Due to time constraints only two RMG industries were covered under this survey. Though these
industries were chosen arbitrarily but there was an intension that equal number of Industries should
be surveyed which faced opposite reality and experience during the labor unrest. Two respondents
from each of these industries were interviewed, among the respondents of each industry there were
respondents from Owners, labor leaders, labor and staff. As labor are the most important
stakeholder related with labor unrest and as labor is major portion of the total number of people
engaged in RMG sector so half of the respondents are labor. Rest three groups labor leaders, staff
and owners are equal in number among the respondents.
3.6 Composition of respondents
For questionnaire:
Factory Name Location Respondents
(Garment workers)
Female Male
Tarasima Apparels Ltd Manikganj 15 10 05
Remi Holding Ltd Narayanganj
nj
10 07 03
Table 3.1 Distribution of respondents for questionnaire
For interview:
Respondents No.
Representative of BGMEA. 01
Factory owner 02
Manager/ officer 07
Total 10
Table 3.2 Distribution of respondents for interview
3.7 Personal profile of the Respondents
Distribution of respondents by age, gender, education and working experience
Distribution of garment workers by age:
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Age group frequency percentage
18-25 10 40%
26-35 08 32%
36-45 05 20%
46-55 02 08%
55+ 00 00%
Table 3.3 Distribution of garment workers by age
Table 3.3 shows the age distribution of the garment workers. It reveals that 72% of them are aged
between 18-35 and 28% of them are aged between 36-55. The young age of majority of the workers
demonstrates their physical strength and workability as well as inclination towards resistance
which sometimes leads to labor unrest.
Distribution of interviewees by age:
Age group Frequency Percentage
18-25 00 00%
26-35 02 20%
36-45 03 30%
46-55 03 20%
55+ 02 20%
Table 3.4 Distribution of interviewees by age
Table 3.4 shows the age distribution of the interviewees. Only 20% of them are aged between 26-
35 and 80% of them are above 36.
Distribution of garment workers by gender:
Gender Frequency Percentage
Male 10 40%
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Female 15 60%
Total 25 100%
Table 3.5 Distribution of garment workers by gender
Table 3.5 shows gender percentage of the garment workers. The no of female is double of that of
male. It is taken purposively as more than 80% of the workers of RMG industry of Bangladesh are
women.
Distribution of interviewees by gender:
Gender Frequency Percentage
Male 10 100%
Female 00 00%
Total 15 100%
Table 3.6 Distribution of interviewees by gender
Table 3.6 shows the gender percentage of the interviewees.
Distribution of garment workers by education:
Education Level Frequency Percentage
Illiterate 00 00%
Primary level 02 08%
Below SSC 15 60%
SSC 06 24%
HSC 02 08%
Graduate 00 00%
Others 00 00%
Table 3.7 Distribution of garment workers by education
Table 3.7 shows the education level of the garment workers. It reveals that 68% of them are below
SSC and only 24% have completed SSC and 08% have completed HSC. It proves that most of the
garment workers are low educated and unskilled. Their physical ability is their main capital.
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Distribution of interviewees by education:
Education Frequency Percentage
Masters 08 80%
Graduate 02 20%
Table 3.8 Distribution of interviewees by education
Table 4.8 shows the education status of the interviewees. 80%of them have master’s degree and
20% of them are graduates. It reveals that most of them are educated.
Distribution of garment workers by working-experience:
Experience (years) Frequency Percentage
1-5 15 60%
6-10 08 32%
11-15 02 08%
Table 3.9 Distribution of garment workers by working experience
Table 3.9 demonstrates the working experience of the garment workers. It reveals that 92% of
them have experience less than 15 year.
Distribution of interviewees by working-experience:
Experience (years) Frequency Percentage
5-10 02 20%
11-15 03 30%
16-20 02 20%
21-25 02 20%
25 + 01 10%
Table 3.10 Distribution of interviewees by working experience
Table 4.10 demonstrates 20% of the interviewees have 5-15 years of experience, 40% of them
have 16-25 years of experience and 10% have experience of more than 25 years.
3.8 Analysis of collected data
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A semi-structured questionnaire carrying 20 question has been developed for the garment workers. The
questions are grouped in some clusters such as cause of labor unrest, conspiracy, importance of
investigation, law and order situation, involving the work-face in decision-making process etc. Besides, 20
respondents comprising of representatives from civil society organizations, factory owners,
managersofficers, political leaders, government officials, representatives of BGMEA, member of law
enforcing agency are interviewed on the same issues. Data collected from both questionnaire and interview
are combined for analysis. A mixed (qualitative + quantitative) method is followed to analyze the data.
However, no. of respondents varies from question to question.
Causes of labor unrest
To find out the causes of labor unrest is one of the two objectives of the study. Accordingly, the
first question to the respondents was about causes of labor unrest in RMG sector of Bangladesh.
In response to this question, the respondents express different views. The following bar chart ranks
various causes of labor unrest as perceived by the respondents.
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Bar
chart 1
ranks
various
causes
of
labor
unrest
A-I: Various causes of labor unrest
0-45: Frequency
A-Irregularities in payment
B- Low wage
C- Mistreatment of the workers by managers officers
D-Rumor
E- Absence of trade unionism
F- Conspiracy
G- Non-execution of labor laws
H- Unruly nature of the workers
I- Political intervention
Conspiracy as a cause of labor unrest
Do you think there is any
conspiracy behind labor unrest
in the RMG sector of
Bangladesh?
Response Respondents Percentage
Yes 28 56%
No 10 20%
No answer 12 24%
Table 3.11 Responses about existence of conspiracy
Out of 50% respondents, 56% believe that there is conspiracy behind unrest labor unrest, 20% rule
out the theory of conspiracy while 24% don’t know anything about the matter and all of them in
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workers group. It reveals that most of the garment workers don’t think deeply other than their
salary and work.
Half of the respondents consider labor unrest in RMG sector of Bangladesh as creation of those
countries. If the RMG sector of Bangladesh can be trouble-torn by labor unrest, foreign buyers
will lose their interest here and divert to other exporting countries. 25% respondents are allege that
some NGOs funded by the foreign donors and working for human rights, labor rights, gender issues
and health facilities are responsible for instigating the labor force. They don’t know about the
owners and profit of the factory. They only excite the workers to exert pressure on the owners and
management of the factory. 25% respondents consider the labor unrest as a product of evil design
of the mid-level officers of the factories. For their personal interest they make a gap between the
owners and workers and present fabricated report to the two parties and thus worsen the situation.
Has there been any incident
of labor unrest in your
factory recently(2014-2018)?
Response Respondents Percentage
Yes 20 53%
No 18 47%
Table 3.12 Responses about recent occurrence of labor unrest
Out of 38 respondents, 53% admitted that there had been incidents of labor unrest recently in their
factory while 47% answered that there had been no incidents of labor in their factories. It means
that more than half of the garment factories which are visited for data collection are affected by
labor unrest recently.
Response Respondents Percentage
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What were the
reasons of the labor
unrest in your
factory?
For fixation of minimum
wage for the garment
workers
14 70%
For implementation of
newly declared wage
scale
06 30%
Table 3.13 Responses about causes of recent labor unrest
Out of 20 respondents, 70% termed fixation of minimum wage for the garments workers as ground
for labor unrest while 30% answered that the reason behind the labor unrest had been worker’s
agitation for implementation of new wage structure which was declared on July 2010.
Relationship between owners and workers
Do you think that there exists a
communication gap between the
owners and workers in RMG
sector?
Response Respondents Percentage
Yes 25 50%
No 15 30%
No answer 10 20%
Table 3.14 Perception regarding owner-worker relations
Half of the respondents admit that there is a communication gap between the owners and workers.
However 30% respondents rule out the issue while 20% have left the question unanswered.
In response to a link question, which is to negotiate between the workers and owners, out of 25
respondents, 48% assigned the task with tripartite committee, 40% chose for government while
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12% assigned the task with BGMEA. Again, scope of PPP approach in addressing labor unrest in
emphasized.
Who is to negotiate between the
owners and workers?
Response Respondents Percentage
Tripartite Committee 12 48%
Government 10 40%
BGMEA 03 12%
Table 3.15 Options for actors that can bridge the gap
Finally, the respondents were asked to suggest how to address labor unrest in the RMG sector of
Bangladesh. The following bar chart ranks the observations of the respondents for the issue.
Bar chart: 2. Suggestions by the respondents for solving the problem
A-G: suggestions to address labor unrest
0-45: intensity
A- Regularize the wage structure and implement it properly
B- Exemplary punishment for the defaulters
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C- Investigating the incidents of labor unrest and following up the report
D- Enhancing trust, communication and co-operation between public and
private sector
E- Monitoring the working environment of RMG factories
F- Ensuring the appointment of “Grievance Officer” in the factories
G- Inclusion of representatives of labor-force in the decision-making process
84% of the respondents suggest that the wage structure for the garment workers should be
regularized and implemented properly, 74% respondents are of the view that the defaulters
should be awarded exemplary punishment, 70% emphasize investigating the incidents of
labor unrest and following up the report, 66% suggest for enhancing trust, communication and
co-operation between public and private sector, 60% prioritize monitoring the working
environment of the RMG factory regularly, 54% feel the importance of appointing
“Grievance Officer” in the factories and 50% says that representatives of the work-force
should be included in the decision-making process.
Findings:
The causes of labor unrest in the RMG sector of Bangladesh have been explored. Irregularities in
payment, low wage, mistreatment of the workers by manager’s officers, rumor, absence of trade
unionism, conspiracy, non-execution of labor laws, unruly nature of the workers and political
intervention have been found to the major causes of labor unrest.
The prospect of public-private cooperation in addressing in labor unrest in RMG sector is
validated. Majority of the respondents emphasized cooperation of public and private sectors in
four areas such as maintaining law and order situation, investigating the incidents of labor unrest,
bridging gap between the workers and owners and involving the work-force in the decision making
process in attempt to solve the problem.
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100% respondents emphasize the importance of investigation of the incidents of labor unrest
occurred in the RMG sector. Majority of the respondents (44%) like to assign tripartite committee
(a committee formed by the representatives of Government, owners and workers) the task of
investigating the incidents of labor unrest which indicates a bright prospect of PPP approach in
this issue.
To improve the performance of industrial police, 62% respondents suggest for improving
manpower and logistic support of the force while 38% respondents opine for inclusion of
intelligence unit in it.
Half of the respondents admit that there is a communication gap between the owners and workers
which further unfolds the scope of PPP in this issue.
Most of the respondents (70%) think that the work-face has no access to the decision making
process. 92% of the respondents are of the view that if the representatives of the work-face are
involved in the decision-making process both at inside the factory and at national level, the chance
of labor unrest will be diminished.
Chapter Four: Conclusion and Recommendations
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4.1 Conclusion
In respect of production, export, earning foreign exchange, contribution to GDP,
employment, investment and business mobilization, RMG sector of Bangladesh has been a
flourishing industry. Its importance has crossed geographical boundary of the country.
Garment business of many international markets in Europe and North America depends on
production of garment factories of Bangladesh. It involves stakeholders from various corners
covering public, private and international organizations. Given the fabulous volume of trade of
the industry, the increasing trends of labor unrest in the RMG sector has been a matter of serious
concern. Solving labor unrest in this sector is nearly impossible by a single agency like
government or BGMEA or a civil society organization. Findings from data analysis show
that public-private cooperation is the most chosen way of addressing labor unrest in the RMG
sector of Bangladesh.
The objectives of this present study are to find out the causes of labor unrest and identify
areas where public and private agencies can work to address the issue. The responses of the
respondents unfold that irregularities in payment, low wage, mistreatment of the workers by
managers/ officers, rumor, absence of trade unionism, conspiracy, non-execution of labor
laws, unruly nature of the workers and political intervention are the major causes of labor
unrest in the RMG sector of Bangladesh. The causes are to be diagnosed through
investigation. Findings of the study suggest that investigating the incidents of labor unrest and
following up the recommendations is an important attempt to solve the problem. For
investigation, most of the respondents like to assign the task with tripartite committee
(committee formed by taking representatives of factory owners, government and garment
workers) which emphasizes the need of cooperation between public and private organizations in
this issue. For a flourishing industry like RMG, maintaining law and order situation in the
industrial area is very important. During labor uprising, it was found that unidentified outsiders
entered the factory area and participated in violence in the name of workers. To control the
situation sometimes law enforcers use to rely on coercive measures and disperse the agitating
workers. However, it often deteriorates the situation. There is another allegation maintained
by the garment workers against the law enforcers that latter work in favor of the garment
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owners and against the workers. To ensure sound law and order situation, co-operation between
the conflicting parties is a crying need. The law enforcers, with all impartially can help trace the
culprits into book and award exemplary punishment. On the hand, the factory owners,
managers and garment workers have to have full support to them, provide genuine
Information to them and help in time of investigation. To avert further unrest, intelligence
agency can work in the garment industry area. Factory owners and garment workers are two
most vital actors in RMG sector. They are complementary to each other. The strength of
the factory owners is that they are rich, organized and influential in the society. On the other
hand, the huge number and unity of the garment workers are their power. Good relationship
between the workers and owners is essential for the production as well as boost of the
industry. Majority of the respondents (70%) perceive that there exists a communication gap
between the owners and workers of garment factories. ‘Tripartite committee’ is preferred by
48% respondents to bridge the gap between the owners and workers.
Involving labor-force in decision-making process is important in addressing labor unrest in the
readymade garment industry. It is perceived by 92% of the respondents. While exploring the
causes of labor unrest, it is found that irregularities in payment and low wage rank top among
the causes of labor unrest. When this thesis is taken in hand, it was time for declaring new wage
scale for the garment workers. There was tough bargaining between the factory owners and
labor-leaders for the fixation of minimum wage. The labor-leaders demanded the minimum wage
to be fixed at Tk. 5000 while the factory owners started it with TK. 2000.
After a series of meetings with factory owners, Minimum Wage Board and labor-leaders
finally it was settled at TK. 3000. Participation of all stakeholders in the decision-making
process really helped settle the dispute. Respondents are of the view that representatives of
labor-force should be included in regular meetings inside the factory as well as decision-
making process at national level. They are also to be included in various committees with the
factory owners and managers. Finally, it can be concluded that public-private cooperation in
addressing labor unrest in the RMG sector of Bangladesh can be a viable and effective
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measure. However, level of mutual trust, communication and co-operation between workers and
management of a garment factory as well as public and private sector should be uplifted.
4.2 Recommendations
Minimum wage for the garment workers should be regularized and implemented properly. The
labor-force needs to shun the path of violence and vandalism. Rather, they can place their
rightful demands to the respective authority. The factory owners can hear and address the
problems of the labor-force. A ‘Grievance Officer’ in all garment factories can be appointed.
Incidents of labor unrest need to be investigated taking stakeholders from all concerned
sector. Recommendations of investigation report need to be implemented properly. The
real defaulters irrespective of their identity and status can be brought under legal provisions.
Intelligence agency may work in garment industry area to avert further unrest and take
preventive measure. Both public and private sector should work together to solve the problem
of labor unrest. Level of mutual trust, communication and cooperation between the two sectors
need to be uplifted. The implementation of above-mentioned recommendations is supposed to
help address labor unrest in the readymade garment industry of Bangladesh. However, a
number of issues relating to labor unrest in the garment industry of Bangladesh like industrial
policy, labor relations, owner-worker relations, trust between public and private sector and
conspiracy deserve further attention.
Minimum wage for the garment workers should be regularized and implemented properly. The
labor-force needs to shun the path of violence and vandalism. Rather, they can place their
rightful demands to the respective authority. The factory owners can hear and address the
problems of the labor-force. A ‘Grievance Officer’ in all garment factories can be appointed.
Incidents of labor unrest need to be investigated taking stakeholders from all concerned
sector. Recommendations of investigation report need to be implemented properly. The
real defaulters irrespective of their identity and status can be brought under legal provisions.
Intelligence agency may work in garment industry area to avert further unrest and take
Page | 28
preventive measure. Both public and private sector should work together to solve the problem
of labor unrest. Level of mutual trust, communication and cooperation between the two sectors
need to be uplifted. The implementation of above-mentioned recommendations is supposed to
help address labor unrest in the readymade garment industry of Bangladesh. However, a
number of issues relating to labor unrest in the garment industry of Bangladesh like industrial
policy, labor relations, owner-worker relations, trust between public and private sector and
conspiracy deserve further attention.
References
Absar , Syeda Sharmin, Problems Surrounding wages : The Ready-made Garment Sector in
Page | 29
Bangladesh, Labour and Management in Development Journal, Vol. 2, No. 7.
Haider, Mohammed Ziaul, Competitiveness of the Bangladesh RMG Industries in major
International Markets. Asia Pacific Trade and Investment Review, Vol. 3, No. 1, June 2007.
Uddin, Md. Salim and Jahed, Mohammad Abu, Garments Industry: a prime mover of socio-
economic development of Bangladesh.
Mainuddin, Khandaker (2000), Case of the Garment Industry of Dhaka, Bangladesh, Urban
and Local Government Background Series, No. 6, Washington, D.C., World Bank.
Quddus, Munir and Salim Rashid (2000). Entrepreneurs and Economic Development: The
Remarkable Story of Garment Exports from Bangladesh (Dhaka University Press Limited).
Mohmood, S.A. (2002), “How the Bangladesh Garment Industry Took Off in The Early
Eighties: The Role of Policy Reforms and Diffusion of Good Practices,” Alochona Magazine.
Rahman, S. (2004), “Global Shift: Bangladesh Garment Industry in Perspective,” Asian
Affairs, 26(1): 75-91.
Rock, M. (2001), “Globalisation and Bangladesh: The Case of Export Oriented Garment
Manufacture,” South Asia, 24(1): 201-225.

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Term labor unrest in rmg sector of bangladesh-converted

  • 1. Page | 1 A Term Paper On Labor unrest in RMG sector of Bangladesh Submitted to: Dr.Muhammad Sayadur Rahman Supervisor and Associate professor Department of Public Administration Jahangirnagar University Submitted by: Md.Rabiul Hossain Id. 170205 3rd Batch Program: MHRDIR Date of Submission: 25th May, 2018 In Partial Fulfillment of the Requirement for the degree Of Masters in Human Resource Development and Industrial Relations
  • 2. Page | 2 Acknowledgement At first I would like to give thanks to my superior Dr. Muhammod Sayadur Rahaman Who inspired and directed me to prepare this paper and gave outline. It is my pleasant due to express gratitude to him for his constant support and encouragement through the period of the study. He provides access to different important information about labor unrest in RMG sector. This found quite useful. I wish to thank the managements, the stuffs and the workers of the Tarasima Apparel ltd & Remi Holdings who gave generously of their time and who demonstrated a wholehearted interest in the progress and findings of the paper. I have greatly benefited from the formal and informal discussion with my class-mates. This paper depends on a large body of published and unpublished documents. Relevant information and data are collected from concerned agencies conversation was undertaken with knowledge people on specific topic. Finally, I would like to thank once again to all those who helped me a lot to complete my term paper. …………………………………… Md. Rabiul Hossain Id.170205 Program: MHRDIR
  • 3. Page | 3 Abstract In recent year, labor unrest in RMG sector of Bangladesh has been a matter of serious concern. It is the highest foreign exchange earning sector. It has been able to create employment opportunities for about few millions of people, most of whom are poor, uneducated and unskilled women from the rule area. But this sector is infested with a number of problems. Labor unrest is one of them. For collecting data the study has used questionnaire and interview method. The major causes of labor unrest irregularities in payment, low wage, absence of trade unionism, non-execution of labor lows. In key issues regarding labor unrest sector, investigating the incidents of labor unrest, bridging, gap between the factory owners and workers and improving low and order situations.
  • 4. Page | 4 Table of Contents Sl. No. Title Page No. 1 Acknowledgement i 2 Abstract ii 3 Table of contents iii 4 List of tables iv 5 List of charts v Chapter 01: Introduction 1.1 Statement of the problem 1 1.2 Objectives of the study 2 1.3 Importance of the study 2 1.4 Literature Review 2-3 Chapter 02: Theoretical Framework 2.1 Theoretical Framework 4-5 2.2 Analytical framework 5 2.3 Research Methodology 5-6 2.4 Data analysis plan 6 Chapter 03: Data Analysis and Findings 3.1 Area of the study 7 3.2 Methods of collecting data 7 3.3 Source of data 7 3.4 Data collection Instrument 8 3.5 Sample size and Structure 8
  • 5. Page | 5 3.6 Composition of respondents 8 3.7 Personal profile of the Respondents 9-12 3.8 Analysis of collected data 12-18 Chapter-04: Conclusion and Recommendations 4.1 Conclusion 19-21 4.2 Recommendations 21-22 References 23 List of tables: 3.1 Distribution of respondents for questionnaire 8 3.2 Distribution of respondents for interview 8 3.3 Distribution of garment workers by age 9 3.4 Distribution of interviewees by age 9 3.5 Distribution of garment workers by gender 10 3.6 Distribution of interviewees by gender 10 3.7 Distribution of garment workers by education 11 3.8 Distribution of interviewees by education 11 3.9 Distribution of garment workers by working experience 11 3.10 Distribution of interviewees by working experience 11 3.11 Responses about existence of conspiracy 13 3.12 Responses about recent occurrence of labor unrestResponses about recent occurrence of labor unrest 14 3.13 Responses about causes of recent labor unrest 15 3.14 Perception regarding owner-worker relations 15 3.15 Options for actors that can bridge the gap 16
  • 6. Page | 6 List of diagrams and charts: Bar chart: 1 Various causes of labor unrest 13 Bar chart: 2 Suggestions by the respondents for solving the problem 16 Chapter One: Introduction
  • 7. Page | 7 1.1 Statement of the problem Labor unrest is strike action undertaken by labor unions, especially where labor disputes become violent. Arnesen, Eric (2007) told his book ‘Encyclopedia of U.S. Labor and Working-Class History’ in the 19th century labor unrest was common in the United States. Labor unrest occurs when employees believe that they are treated unfairly by the management of the company. Employees organize themselves under a certain labor union and strike upon the company. Workers organize strikes to show their dissatisfy faction and represent their demands towards the company. There are several causes of labor unrest such as; Health hazards contribute to labor unrest, poor working conditions which are faced by the employees. Employees want a fair compensation package. If the provided compensation is unsatisfactory employees may organize strikes to demand increase in salary. Workers may strike in order to purses the company for leave payment. No employer is required to discriminate employee due to color, tribe, sex, disability. Discrimination is also responsible for labor unrest. Inadequate working tools or also responsible. If the production tools are not safe, poor or fewer than the actual work to be done daily employee does not put consideration such matter, but only forcing the workers may organize a strike to demand sufficient tools needed for the production. Aggressive behavior of managers towards employees is also responsible for labor unrest. Managers may use abusive languages to their employees and sometimes even hit workers which create the desire for revenge on workers towards management. There are several effects of labor unrest such as; Loss production, loss profit, damage machine & equipment, loss of revenue, loss economic condition & rise in price. 1.2 Objective of the study To find out the causes of labor unrest in RMG sector of Bangladesh.
  • 8. Page | 8 To suggest some policy measures for planners and decision makers. 1.3 Importance of the study Bangladesh is well known across the global for its stunning success in the arena of readymade Garment industry. It constitutes about 80% of total export of Bangladesh. It has been able to create employment opportunity for millions, alleviate poverty, accelerate industrialization, attract foreign direct investment, mobilize business and create a positive image of Bangladesh abroad. But these achievements are going to be shattered due to labor unrest in this sector. If labor unrest is not addressed, Bangladesh will have to count a heavy loses. The affected garment factories will be declared closed. Production will be hampered. The foreign investor will close their business here. The foreign buyers will cancel their order and divert to other countries. Government will lose huge revenue. Thousands of garments workers will lose their job. After all, it will create an adverse impact on the socio-economic condition of the country. 1.4 Literature Review This topic is not directly related to any book or article. But there are some book, journals, articles and web pages which could partially relate with these topics. Siddiqi (2004) in his book “The Readymade Garment Industry of Bangladesh” discusses the importance of RMG industry in the national economy and notes, the RMG industry has become so important that the future of the economy of Bangladesh is greatly dependent on this single sector. He analyses the strength and weakness of RMG industry of Bangladesh and suggests how to ensure its better future in the context of changing global apparel market. Fahmida and Moazzem (2007) suggest a number of factors need to be considered while fixing the minimum wage of industrial workers. These are : i) workers minimum requirement for decent living; ii) enterprises capacity to adjust with the additional cost originating from the rise in wage; iii) consideration of the wage structure of similar types of industrial sectors; and iv) adjustment of the wage with countries economic development. Enterprises, in a position to do so, should appoint a “grievance officer” to deal with
  • 9. Page | 9 factory level misconducts. Labor relations is likely to become crucially important in near future and RMG enterprises must accord due attention to this. Most garment factories do not follow the labor law and ILO convention. The labor act, 2006 clearly stipulates that the wages of a worker must be paid within seven workings days of the completion of the stipulated wages period. This is not followed in practice. In addition, some of the factories do not provide appointment letters, identity cards and service books. Labor unrest in the readymade garment industry of Bangladesh which is workers lack of feeling of ownership. How can they feel an organization where they are valued only for their work, where their job is not secure, where they have no right to say anything in any matter? Gender discrimination, working environment, conspiracy, wage, owner-worker relations, life-standard and socio-economic condition of the garment workers especially of women workers are the major issue of study in the field of RMG industry of Bangladesh. However, causes of labor unrest and its impact on national economy have been focused in many studies. Chapter Two: Theoretical Framework
  • 10. Page | 10 2.1 Theoretical Framework: In this study, following theories and models are divided into three parts. The first part deals with concept of public-private cooperation, its experience in Bangladesh and its scope to address the problem of labor unrest in the RMG sector of Bangladesh. The second part deals with analytical framework. The analytical framework comprises of a dependent variable and four independent variables. Public-Private Cooperation has been taken here as dependent variable while four areas such as investigating the incidents of labor unrest, maintaining law and order situation, bridging the gap between the factory owners and workers and involving the representatives of work-force in the decision-making process have been taken as independent variables. The third section deals with methodology and data analysis plan. Concept of Public-Private Cooperation is as old as history of human civilization on earth. Nothing is self-sufficient on earth and every object of universe is independent on each other. Public-Private Cooperation combines the resources of government with those of private agents in order to deliver societal goals. These concern the relationship between the states and private actors, the extent to which business and not-for profits should substitute for government and the costs and benefits to different public-private solutions (Linder and Rosenau, 2000). The private sector is the part of the economy which is both run for private profit and is not controlled by the state. The private economy is a concept based on economic components. The RMG industry involves various stakeholders covering from public, private and international organizations. In respect of production, export, earning foreign exchange, contribution to GDP, employment, investment and business mobilization, RMG sector of Bangladesh has been a flourishing industry. Its importance has cross the geographical boundary of the country. Garment business of many international markets in Europe and North America depends on production of garment factories of Bangladesh. RMG sector of Bangladesh emerged as a result of private entrepreneurship. The factory owners, the international buyers, the managers and the workers of the factories, BGMEA, workers association-all fall in the group of the private sector. In respect of labor unrest in the RMG sector, public bodies include ministry of Labor and Employment, its
  • 11. Page | 11 sub-ordinate offices such as directorate of labor, Office of the Chief Inspector of Factories and Establishment, minimum wage board; ministry of home affairs and various law enforcing agencies. Initially the government was not much attentive to this sector though it provided necessary support for the business. Governments attention was due to some positive achievements of this sector such as its being highest exporting items and earning highest foreign exchange, rendering handsome revenue to government exchequer, creating employment opportunity for millions etc. Four areas such as investigating the incidents of labor unrest, maintaining law and order in the factory area, bridging the gap between the factory owners and workers and involving the workface of the RMG industry in the decision where public-private cooperation can work together to solve the problem. In all the four areas, the private organizations have resources and knowledge the public agencies hove power and authority. Addressing labor unrest in the RMG sector will be easier and effective if the capacities of two are combined. 2.2 Analytical Framework Public-Private Cooperation in addressing labor unrest has been set as the dependent variable which depends on four independent variables such as investigating the incidents of labor unrest, maintaining law and order situation, bridging gap between owners and workers and involving the representatives of work-force in the decision-making process. Each independent variable carries some indicative questions or queries. Questionnaire and interview- the two methods used for collecting data have been set as sources of data. 2.3 Research Methodology A research needs methodology which reveals how the researcher is going to achieve hisher objectives of the stipulated study. Aminuzzaman in ‘Introduction to Social Research’ states, as a systematic study, research methodology deals primarily with the approaches and techniques as how to undertake a research without being biased and prejudiced. It offers a bunch of tactical approaches and logical skills to observes, record, interpret and infer on matters under study. 2.4 Data analysis plan
  • 12. Page | 12 Collected data have been validated through cross-checking with the responses of the various respondents. Primary data collected through questionnaire and interview have been compared with secondary data. Simple arithmetic calculation has been used to analyze data. Data have been presented through computer generated graphs, charts and tables using Microsoft Office tools. Chapter Three: Data Analysis and Findings 3.1 Area of the study
  • 13. Page | 13 Most of the garment factories of Bangladesh are located in Dhaka and adjacent towns of Dhaka like Savar, Ashulia, Tongi, Gazipur and Narayangang. Some are located in Chittagong. As regard labor unrest or owners-workers relations, all garment factories share some common problems. For the convenience of primary data collection, factories of Manikganj and Narayangang have been visited. Garment workers, factory owners, managers and officers are covered from garment factories of these areas. 3.2 Methods of collecting data ✓ Face to face conversation with the management of the garments, workers, labor union leaders, and staff ✓ Content analysis ✓ Facts and literature review ✓ Collection of relevant information ✓ Newspaper review 3.3 Source of Data The primary sources: Primary data have been collected through interview of the management of garments factories, workers, Labor union leaders and staff. The secondary sources: ▪ Different books and articles ▪ Evidence from newspapers 3.4 Data collection Instrument Data has been collected through questionnaire owners, workers, labor union leaders and staff.
  • 14. Page | 14 3.5 Sample size and Structure Due to time constraints only two RMG industries were covered under this survey. Though these industries were chosen arbitrarily but there was an intension that equal number of Industries should be surveyed which faced opposite reality and experience during the labor unrest. Two respondents from each of these industries were interviewed, among the respondents of each industry there were respondents from Owners, labor leaders, labor and staff. As labor are the most important stakeholder related with labor unrest and as labor is major portion of the total number of people engaged in RMG sector so half of the respondents are labor. Rest three groups labor leaders, staff and owners are equal in number among the respondents. 3.6 Composition of respondents For questionnaire: Factory Name Location Respondents (Garment workers) Female Male Tarasima Apparels Ltd Manikganj 15 10 05 Remi Holding Ltd Narayanganj nj 10 07 03 Table 3.1 Distribution of respondents for questionnaire For interview: Respondents No. Representative of BGMEA. 01 Factory owner 02 Manager/ officer 07 Total 10 Table 3.2 Distribution of respondents for interview 3.7 Personal profile of the Respondents Distribution of respondents by age, gender, education and working experience Distribution of garment workers by age:
  • 15. Page | 15 Age group frequency percentage 18-25 10 40% 26-35 08 32% 36-45 05 20% 46-55 02 08% 55+ 00 00% Table 3.3 Distribution of garment workers by age Table 3.3 shows the age distribution of the garment workers. It reveals that 72% of them are aged between 18-35 and 28% of them are aged between 36-55. The young age of majority of the workers demonstrates their physical strength and workability as well as inclination towards resistance which sometimes leads to labor unrest. Distribution of interviewees by age: Age group Frequency Percentage 18-25 00 00% 26-35 02 20% 36-45 03 30% 46-55 03 20% 55+ 02 20% Table 3.4 Distribution of interviewees by age Table 3.4 shows the age distribution of the interviewees. Only 20% of them are aged between 26- 35 and 80% of them are above 36. Distribution of garment workers by gender: Gender Frequency Percentage Male 10 40%
  • 16. Page | 16 Female 15 60% Total 25 100% Table 3.5 Distribution of garment workers by gender Table 3.5 shows gender percentage of the garment workers. The no of female is double of that of male. It is taken purposively as more than 80% of the workers of RMG industry of Bangladesh are women. Distribution of interviewees by gender: Gender Frequency Percentage Male 10 100% Female 00 00% Total 15 100% Table 3.6 Distribution of interviewees by gender Table 3.6 shows the gender percentage of the interviewees. Distribution of garment workers by education: Education Level Frequency Percentage Illiterate 00 00% Primary level 02 08% Below SSC 15 60% SSC 06 24% HSC 02 08% Graduate 00 00% Others 00 00% Table 3.7 Distribution of garment workers by education Table 3.7 shows the education level of the garment workers. It reveals that 68% of them are below SSC and only 24% have completed SSC and 08% have completed HSC. It proves that most of the garment workers are low educated and unskilled. Their physical ability is their main capital.
  • 17. Page | 17 Distribution of interviewees by education: Education Frequency Percentage Masters 08 80% Graduate 02 20% Table 3.8 Distribution of interviewees by education Table 4.8 shows the education status of the interviewees. 80%of them have master’s degree and 20% of them are graduates. It reveals that most of them are educated. Distribution of garment workers by working-experience: Experience (years) Frequency Percentage 1-5 15 60% 6-10 08 32% 11-15 02 08% Table 3.9 Distribution of garment workers by working experience Table 3.9 demonstrates the working experience of the garment workers. It reveals that 92% of them have experience less than 15 year. Distribution of interviewees by working-experience: Experience (years) Frequency Percentage 5-10 02 20% 11-15 03 30% 16-20 02 20% 21-25 02 20% 25 + 01 10% Table 3.10 Distribution of interviewees by working experience Table 4.10 demonstrates 20% of the interviewees have 5-15 years of experience, 40% of them have 16-25 years of experience and 10% have experience of more than 25 years. 3.8 Analysis of collected data
  • 18. Page | 18 A semi-structured questionnaire carrying 20 question has been developed for the garment workers. The questions are grouped in some clusters such as cause of labor unrest, conspiracy, importance of investigation, law and order situation, involving the work-face in decision-making process etc. Besides, 20 respondents comprising of representatives from civil society organizations, factory owners, managersofficers, political leaders, government officials, representatives of BGMEA, member of law enforcing agency are interviewed on the same issues. Data collected from both questionnaire and interview are combined for analysis. A mixed (qualitative + quantitative) method is followed to analyze the data. However, no. of respondents varies from question to question. Causes of labor unrest To find out the causes of labor unrest is one of the two objectives of the study. Accordingly, the first question to the respondents was about causes of labor unrest in RMG sector of Bangladesh. In response to this question, the respondents express different views. The following bar chart ranks various causes of labor unrest as perceived by the respondents.
  • 19. Page | 19 Bar chart 1 ranks various causes of labor unrest A-I: Various causes of labor unrest 0-45: Frequency A-Irregularities in payment B- Low wage C- Mistreatment of the workers by managers officers D-Rumor E- Absence of trade unionism F- Conspiracy G- Non-execution of labor laws H- Unruly nature of the workers I- Political intervention Conspiracy as a cause of labor unrest Do you think there is any conspiracy behind labor unrest in the RMG sector of Bangladesh? Response Respondents Percentage Yes 28 56% No 10 20% No answer 12 24% Table 3.11 Responses about existence of conspiracy Out of 50% respondents, 56% believe that there is conspiracy behind unrest labor unrest, 20% rule out the theory of conspiracy while 24% don’t know anything about the matter and all of them in
  • 20. Page | 20 workers group. It reveals that most of the garment workers don’t think deeply other than their salary and work. Half of the respondents consider labor unrest in RMG sector of Bangladesh as creation of those countries. If the RMG sector of Bangladesh can be trouble-torn by labor unrest, foreign buyers will lose their interest here and divert to other exporting countries. 25% respondents are allege that some NGOs funded by the foreign donors and working for human rights, labor rights, gender issues and health facilities are responsible for instigating the labor force. They don’t know about the owners and profit of the factory. They only excite the workers to exert pressure on the owners and management of the factory. 25% respondents consider the labor unrest as a product of evil design of the mid-level officers of the factories. For their personal interest they make a gap between the owners and workers and present fabricated report to the two parties and thus worsen the situation. Has there been any incident of labor unrest in your factory recently(2014-2018)? Response Respondents Percentage Yes 20 53% No 18 47% Table 3.12 Responses about recent occurrence of labor unrest Out of 38 respondents, 53% admitted that there had been incidents of labor unrest recently in their factory while 47% answered that there had been no incidents of labor in their factories. It means that more than half of the garment factories which are visited for data collection are affected by labor unrest recently. Response Respondents Percentage
  • 21. Page | 21 What were the reasons of the labor unrest in your factory? For fixation of minimum wage for the garment workers 14 70% For implementation of newly declared wage scale 06 30% Table 3.13 Responses about causes of recent labor unrest Out of 20 respondents, 70% termed fixation of minimum wage for the garments workers as ground for labor unrest while 30% answered that the reason behind the labor unrest had been worker’s agitation for implementation of new wage structure which was declared on July 2010. Relationship between owners and workers Do you think that there exists a communication gap between the owners and workers in RMG sector? Response Respondents Percentage Yes 25 50% No 15 30% No answer 10 20% Table 3.14 Perception regarding owner-worker relations Half of the respondents admit that there is a communication gap between the owners and workers. However 30% respondents rule out the issue while 20% have left the question unanswered. In response to a link question, which is to negotiate between the workers and owners, out of 25 respondents, 48% assigned the task with tripartite committee, 40% chose for government while
  • 22. Page | 22 12% assigned the task with BGMEA. Again, scope of PPP approach in addressing labor unrest in emphasized. Who is to negotiate between the owners and workers? Response Respondents Percentage Tripartite Committee 12 48% Government 10 40% BGMEA 03 12% Table 3.15 Options for actors that can bridge the gap Finally, the respondents were asked to suggest how to address labor unrest in the RMG sector of Bangladesh. The following bar chart ranks the observations of the respondents for the issue. Bar chart: 2. Suggestions by the respondents for solving the problem A-G: suggestions to address labor unrest 0-45: intensity A- Regularize the wage structure and implement it properly B- Exemplary punishment for the defaulters
  • 23. Page | 23 C- Investigating the incidents of labor unrest and following up the report D- Enhancing trust, communication and co-operation between public and private sector E- Monitoring the working environment of RMG factories F- Ensuring the appointment of “Grievance Officer” in the factories G- Inclusion of representatives of labor-force in the decision-making process 84% of the respondents suggest that the wage structure for the garment workers should be regularized and implemented properly, 74% respondents are of the view that the defaulters should be awarded exemplary punishment, 70% emphasize investigating the incidents of labor unrest and following up the report, 66% suggest for enhancing trust, communication and co-operation between public and private sector, 60% prioritize monitoring the working environment of the RMG factory regularly, 54% feel the importance of appointing “Grievance Officer” in the factories and 50% says that representatives of the work-force should be included in the decision-making process. Findings: The causes of labor unrest in the RMG sector of Bangladesh have been explored. Irregularities in payment, low wage, mistreatment of the workers by manager’s officers, rumor, absence of trade unionism, conspiracy, non-execution of labor laws, unruly nature of the workers and political intervention have been found to the major causes of labor unrest. The prospect of public-private cooperation in addressing in labor unrest in RMG sector is validated. Majority of the respondents emphasized cooperation of public and private sectors in four areas such as maintaining law and order situation, investigating the incidents of labor unrest, bridging gap between the workers and owners and involving the work-force in the decision making process in attempt to solve the problem.
  • 24. Page | 24 100% respondents emphasize the importance of investigation of the incidents of labor unrest occurred in the RMG sector. Majority of the respondents (44%) like to assign tripartite committee (a committee formed by the representatives of Government, owners and workers) the task of investigating the incidents of labor unrest which indicates a bright prospect of PPP approach in this issue. To improve the performance of industrial police, 62% respondents suggest for improving manpower and logistic support of the force while 38% respondents opine for inclusion of intelligence unit in it. Half of the respondents admit that there is a communication gap between the owners and workers which further unfolds the scope of PPP in this issue. Most of the respondents (70%) think that the work-face has no access to the decision making process. 92% of the respondents are of the view that if the representatives of the work-face are involved in the decision-making process both at inside the factory and at national level, the chance of labor unrest will be diminished. Chapter Four: Conclusion and Recommendations
  • 25. Page | 25 4.1 Conclusion In respect of production, export, earning foreign exchange, contribution to GDP, employment, investment and business mobilization, RMG sector of Bangladesh has been a flourishing industry. Its importance has crossed geographical boundary of the country. Garment business of many international markets in Europe and North America depends on production of garment factories of Bangladesh. It involves stakeholders from various corners covering public, private and international organizations. Given the fabulous volume of trade of the industry, the increasing trends of labor unrest in the RMG sector has been a matter of serious concern. Solving labor unrest in this sector is nearly impossible by a single agency like government or BGMEA or a civil society organization. Findings from data analysis show that public-private cooperation is the most chosen way of addressing labor unrest in the RMG sector of Bangladesh. The objectives of this present study are to find out the causes of labor unrest and identify areas where public and private agencies can work to address the issue. The responses of the respondents unfold that irregularities in payment, low wage, mistreatment of the workers by managers/ officers, rumor, absence of trade unionism, conspiracy, non-execution of labor laws, unruly nature of the workers and political intervention are the major causes of labor unrest in the RMG sector of Bangladesh. The causes are to be diagnosed through investigation. Findings of the study suggest that investigating the incidents of labor unrest and following up the recommendations is an important attempt to solve the problem. For investigation, most of the respondents like to assign the task with tripartite committee (committee formed by taking representatives of factory owners, government and garment workers) which emphasizes the need of cooperation between public and private organizations in this issue. For a flourishing industry like RMG, maintaining law and order situation in the industrial area is very important. During labor uprising, it was found that unidentified outsiders entered the factory area and participated in violence in the name of workers. To control the situation sometimes law enforcers use to rely on coercive measures and disperse the agitating workers. However, it often deteriorates the situation. There is another allegation maintained by the garment workers against the law enforcers that latter work in favor of the garment
  • 26. Page | 26 owners and against the workers. To ensure sound law and order situation, co-operation between the conflicting parties is a crying need. The law enforcers, with all impartially can help trace the culprits into book and award exemplary punishment. On the hand, the factory owners, managers and garment workers have to have full support to them, provide genuine Information to them and help in time of investigation. To avert further unrest, intelligence agency can work in the garment industry area. Factory owners and garment workers are two most vital actors in RMG sector. They are complementary to each other. The strength of the factory owners is that they are rich, organized and influential in the society. On the other hand, the huge number and unity of the garment workers are their power. Good relationship between the workers and owners is essential for the production as well as boost of the industry. Majority of the respondents (70%) perceive that there exists a communication gap between the owners and workers of garment factories. ‘Tripartite committee’ is preferred by 48% respondents to bridge the gap between the owners and workers. Involving labor-force in decision-making process is important in addressing labor unrest in the readymade garment industry. It is perceived by 92% of the respondents. While exploring the causes of labor unrest, it is found that irregularities in payment and low wage rank top among the causes of labor unrest. When this thesis is taken in hand, it was time for declaring new wage scale for the garment workers. There was tough bargaining between the factory owners and labor-leaders for the fixation of minimum wage. The labor-leaders demanded the minimum wage to be fixed at Tk. 5000 while the factory owners started it with TK. 2000. After a series of meetings with factory owners, Minimum Wage Board and labor-leaders finally it was settled at TK. 3000. Participation of all stakeholders in the decision-making process really helped settle the dispute. Respondents are of the view that representatives of labor-force should be included in regular meetings inside the factory as well as decision- making process at national level. They are also to be included in various committees with the factory owners and managers. Finally, it can be concluded that public-private cooperation in addressing labor unrest in the RMG sector of Bangladesh can be a viable and effective
  • 27. Page | 27 measure. However, level of mutual trust, communication and co-operation between workers and management of a garment factory as well as public and private sector should be uplifted. 4.2 Recommendations Minimum wage for the garment workers should be regularized and implemented properly. The labor-force needs to shun the path of violence and vandalism. Rather, they can place their rightful demands to the respective authority. The factory owners can hear and address the problems of the labor-force. A ‘Grievance Officer’ in all garment factories can be appointed. Incidents of labor unrest need to be investigated taking stakeholders from all concerned sector. Recommendations of investigation report need to be implemented properly. The real defaulters irrespective of their identity and status can be brought under legal provisions. Intelligence agency may work in garment industry area to avert further unrest and take preventive measure. Both public and private sector should work together to solve the problem of labor unrest. Level of mutual trust, communication and cooperation between the two sectors need to be uplifted. The implementation of above-mentioned recommendations is supposed to help address labor unrest in the readymade garment industry of Bangladesh. However, a number of issues relating to labor unrest in the garment industry of Bangladesh like industrial policy, labor relations, owner-worker relations, trust between public and private sector and conspiracy deserve further attention. Minimum wage for the garment workers should be regularized and implemented properly. The labor-force needs to shun the path of violence and vandalism. Rather, they can place their rightful demands to the respective authority. The factory owners can hear and address the problems of the labor-force. A ‘Grievance Officer’ in all garment factories can be appointed. Incidents of labor unrest need to be investigated taking stakeholders from all concerned sector. Recommendations of investigation report need to be implemented properly. The real defaulters irrespective of their identity and status can be brought under legal provisions. Intelligence agency may work in garment industry area to avert further unrest and take
  • 28. Page | 28 preventive measure. Both public and private sector should work together to solve the problem of labor unrest. Level of mutual trust, communication and cooperation between the two sectors need to be uplifted. The implementation of above-mentioned recommendations is supposed to help address labor unrest in the readymade garment industry of Bangladesh. However, a number of issues relating to labor unrest in the garment industry of Bangladesh like industrial policy, labor relations, owner-worker relations, trust between public and private sector and conspiracy deserve further attention. References Absar , Syeda Sharmin, Problems Surrounding wages : The Ready-made Garment Sector in
  • 29. Page | 29 Bangladesh, Labour and Management in Development Journal, Vol. 2, No. 7. Haider, Mohammed Ziaul, Competitiveness of the Bangladesh RMG Industries in major International Markets. Asia Pacific Trade and Investment Review, Vol. 3, No. 1, June 2007. Uddin, Md. Salim and Jahed, Mohammad Abu, Garments Industry: a prime mover of socio- economic development of Bangladesh. Mainuddin, Khandaker (2000), Case of the Garment Industry of Dhaka, Bangladesh, Urban and Local Government Background Series, No. 6, Washington, D.C., World Bank. Quddus, Munir and Salim Rashid (2000). Entrepreneurs and Economic Development: The Remarkable Story of Garment Exports from Bangladesh (Dhaka University Press Limited). Mohmood, S.A. (2002), “How the Bangladesh Garment Industry Took Off in The Early Eighties: The Role of Policy Reforms and Diffusion of Good Practices,” Alochona Magazine. Rahman, S. (2004), “Global Shift: Bangladesh Garment Industry in Perspective,” Asian Affairs, 26(1): 75-91. Rock, M. (2001), “Globalisation and Bangladesh: The Case of Export Oriented Garment Manufacture,” South Asia, 24(1): 201-225.