Industrial disputes and it’s resolution on the garments industry of Bangladesh

Borna Akter Department of Management Govt. BM College Barisal, Bangladesh BBA(Honours),2nd year Roll No.

Md. Mizan Rahaman Assistant Professor Department of Management Govt. BM College Barisal, Bangladesh.

Date of preparation:

ABSTRACT

Industrial dispute has been touted as a major constraint in the economy of Bangladesh. While poor management and inadequate institutional factors were widely blamed for the high propensity of industrial dispute, formation of workers’ behavioural intention of industrial dispute has hardly been studied in the context of Bangladesh. Based on three cases from Bangladesh Export Processing Zone (BEPZ), we apply theory of planned behaviour to identify what are the factors that influence the propensity of workers to engage in violent behaviour when an industrial dispute takes place. Our findings show that, behavioural beliefs and attitude towards formal industrial dispute resolution and perceived behavioural control strongly influence the behaviour of the workers, while subjective norms also have an influencing power, albeit is a lesser capacity. |

Table of Contents:
1.Introduction……………………………………….………………..1 2. Meaning and types of Industrial Dispute ……..…………………..1 3. Causes of Industrial Dispute..............................................................1 3.1. Economic causes:...................................................................... 3.2. Non-Economic causes.................................................................2-3 3.2.1. Causes Unconnected with the Industry…………………... 3.2.2. Administrative causes……………………………………. 3.2.3. Strike in other Industries………………………………… 3.2.4.Industrial Discipline………………………………………. 3.2.5. Recognition of workers organization……………………. 3.2.6. Psychological and social causes…………………………... 3.2.7. Institutional factors………………………………………... 3.2.8. Political causes…………………………………………….. 4. Prevention and Settlement of Industrial disputes................................4 4.1. Prevention of dispute.................................................................4-4 4.1.1. Establishment of works committees 4.1.2. Standing orders 4.1.3.Code of Industrial discipline 4.1.4.Joint management councils 4.1.5.Work directors: 4.1.6.Co-partnership: 4.1.7. Joint Councils:

4.2. Settlement of the industrial disputes..........................................4-6 4.2.1. Collective Bargaining…………………………………… 4.2.2.Labour welfare officer: 4.2.3.Tripartite bodies:
Machinery for settlement of Industrial Disputes: 4.2.4.Conciliation: 4.2.5. Adjudication: 4.2.6. Negotiation……………………………………………… 4.2.7. Conciliation & Mediation……………………………….. 4.2.8. Arbitration………………………………………………..
5.What is ADR?....................................................... 6.ADR system in Bangladesh………………………………… 7.Why ADR in Bangladesh?.............................................. 8.ADR under labor law ………………………… 9.Industrial relation at Bangladesh…………. 10.Attitudes towards formal dispute resolution …………… 11.Low Wage Rate…………… 12.Conclusion ……………………………
References:......................................................................................6

1.Introduction : “Dispute resolution outside of courts is not news; societies world-over have long used non-judicial, indigenous methods to resolve conflict (US Centre for

Democracy and Governance: 1998).”1

The practice of ADR system is not a new phenomenon in Bangladesh. It has a long and vast

history. Presently, ADR system is being practiced in the family courts, Artha Rin Adalat etc.

Besides, there is a great scope for applying ADR in settling labor disputes because

Bangladesh Labor Law-2006 advocates the application of ADR. It is the demand of the time

that ADR system should be practiced for managing labor disputes. If we look over the world,

we can see that ADR programs for commercial disputes are being tried Uruguay, Thailand,

Bolivia, and Ukraine. Private labor management ADR in South Africa has been so successful

that the government has adopted mediation and arbitration as the primary mechanisms for

resolving labor-management disputes.2 Throughout Southeast Asia disputants‟ general

cultural preference for informal dispute resolution because of its ability to help reconcile and

preserve private and commercial relationships.

Bangladesh can be benefited if ADR system is practiced for the task of managing labor dispute. Before going to discuss about ADR under Bangladesh Labor Law, we should have some ideas about basic concepts.
2. Meaning and Types of Industrial Dispute: Section-2(Lxii) of the Bangladesh Labor Act defines an industrial dispute as follows; “An industrial dispute means any dispute or difference between employers and employers or between employers and workers or between workers and workers which is connected with the employment or non-employment or the terms of employment or the conditions of the work of any person.”10

In the modern factory system, there are two distinct classes, capitalists and labourers. These capitalists and labourers have conflicting and opposite interests which basis cause of the entire modern industrial dispute. So what is industrial dispute? An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment. It is a disagreement between an employer and employees' representative; usually a trade union, over pay and other working conditions and can result in industrial actions. When an industrial dispute occurs, both the parties, that is the management and the workmen, try to pressurize each other. The management may resort to lockouts while the workers may resort to strikes, picketing.

However, the industrial disputes may be categorized into types, interest disputes and rights disputes. Interest disputes relate to determination of new wage level and other condition of employment. On the other hand, rights disputes is related to interpretation and application of existing standards and usually involve and individual worker or group of workers. Under category of rights disputes, claim is made that the workmen have not been treated in accordance with the rules, individual contracts of employment, laws and regulations and as per collective agreements. Such disputes are also described as grievance disputes. Such grievances may be regarding retrenchment ,dismissal, payment of wages, working time, overtime, demotion , promotion, transfer, seniority, job classification, work rules and fulfilment of obligation relating to safety and health laid down in an agreement.

3. Causes of Industrial Dispute

The cause of industrial disputes can be broadly classified into two categories: economic and non-economic causes.

3.1. Economic cause:.

Economic needs are the basic for the human being, if these cannot be satisfied, there will be conflict taken place in the factory. Thus discontent arises when the economic needs of workers are not fulfilled. Hence, economics causes of industrial disputes may be summed up as those relating to: wage structure and demands for higher wages, payment of bonus, dearness allowance, conditions of work and employment, working hours, unjust dismissals, retrenchment of workers, leave and holidays with pay, delay the implementation awards of tribunals, methods of job-evaluation, changes in the methods of production, and Incentives and fringe benefits. So if the above factors cannot be fulfilled, the cause of industrial will taken place in the in the industrial sector in form of strike from the side of the workers. Thus, the representative of employers has to come to meet representative from the workers (Labour union) to negotiate with each other in order to find the point which both sides can understand each other.

It is believed that wages, hours of work and leave and holidays with pay are the major issues of dissatisfaction among the employees. The proper adjustment of wages to the cost of living is an important cause of employees’ dissatisfaction and this gives rise to industrial disputes.

According to the National Commission on Labour-2002, observed that the incidence of the
Industrial conflict seems to be on the declined. But the discontentment among the workers due to retrenchment and voluntary Retirement Schemes is increasing. The commission stated that this was because of global competition and most of the companies want to reduce costs and be competitive. The first casualty is the number of workers employed and since 1992 many Indian Companies have resorted to downsizing by introducing Voluntary Retirement
Scheme (VRAS). The Commission further observed that: a large number of workers have lost their jobs as a result of VRAS, retrenchment and closures both in the organised and the unorganised sector.

3.2. NON ECONOMIC CAUSES

Besides, the industrial dispute which is caused by economic factors, there is also non economic factors which cause the industrial dispute arise. Non-economic factor can be stated briefly as following:

3.2.1. Causes Unconnected with the Industry:
The Royal Commission on Labour pointed out that, there are some strikes which are not due to economic caused. Example of these are stoppages know as hartals, which are often meant as protests against acts in which the employer may have had no share, e.g.,, action by the government or by the police. However, the causes unconnected with industry play a much smaller part in strikes that is frequently supposed.

3.2.2. Administrative causes: they relate to the ill treatment by the supervisory staff, ill-behaviour of the jobbers, underserved punishment, assaults, abuses, and working conditions, and welfare facilities both inside as well as outside the establishment.

3.2.3. Strike in other Industries: sometimes the workers decide to go on strike in sympathy with their fellow workers, working in other establishments.

3.2.4.Industrial Discipline:
Industrial discipline is serious problem, for where “”the end is not accepted necessary or desirable, where there is no common aim between the discipliners and disciplined, discipline becomes a mere frustration of human purpose, stunts the development of human personality and embitters human relation.

3.2.5. Recognition of workers organization: the refusal of employers to recognise a workers organisation and its leadership result in discontentment of workers who express it by going on to strike.

3.2.6. Psychological and social causes.
The industrial disputes which caused by the psychological and social factor may be included as following:

a) It may result due to clash of personalities between the employers and workers.

b) It may result because of mal-adjustment in behaviour of workers and employers.

c) It may result because of the authoritarian attitude of employers.

d) It may result because of the lack of freedom for self-expression. Discipline may cause irritation in the minds of workers and result in a strong dislike for the management.

3.2.7. Institutional factors: industrial disputes may arise because institutional factors such as unionisation, issues relating to recognition of union, membership of unions, scope of collective bargaining, provision of union security of unfair practices, etc. these causes are due to the demands of institutional arrangements under which the workers are inclined to increase their bargaining strength to face the powerful employer. So such institutional arrangement may be disliked by the employer and hence an industrial conflict may arise.

3.2.8. Political causes: according to the National commission on Labour-2002 said that the dispute which disturb industrial peace in India during the last two decades would show that though on a majority of occasions industrial disputes were on claims related to the terms and conditions of employment, sometime economic issues of a general character dominated and on occasions purely political motives.

4. Prevention and Settlement of Industrial disputes

Industrial disputes manifest themselves in the shape of strike on the part of the workers and lock-outs on the part of employers. Industrial peace plays very important in economic development because economic progress is bound up with it. If industrial peace is disturbed, production falls, cost of production rises and the workers suffer hardships due to fall of real income. The consumers suffer hardship because they have to pay high prices due to interruption in the supply of goods. Thus the government or institutions which are related should make every effort to avoid the disputes.

4.1. Prevention of dispute

The consequences of an Industrial dispute will be harmful to the owners of industries, workers, economy and the nation as a whole, which results in loss of productivity, profits, market share and even closure of the plant. Hence, Industrialdisputes need to be averted by all means
Prevention of Industrial disputes is a pro-active approach inwhich an organisation undertakes

various actions through which the occurrence of Industrial disputes is prevented. Like the old

saying goes, “prevention is better thencure”

so we need to adopt some method in order to avoid the dispute take place in the industry. a) Establishment of works committees, (b) Wage Boards,
(c) process of collective bargaining, (d) Industrial truce resolution, (e) Standing orders, (f)
Joint management councils, (g) Grievances procedures, (h) Codes of discipline and of efficiency (i) Suggestion system, (j) Voluntary arbitration, and (k) Improvement in Economic conditions of workers.

4.1.1.Establishment of works committees :
The governing body must determine the membership and proceedings of any committee.
Each committee must have a chair who has been either appointed by the governing body or elected by the committee. The governing body may remove the chair of a committee from office at any time. The governing body must appoint a clerk to each committee. The clerk to a committee (but not the governing body) can be a governor, but not the headteacher.
4.1.2.Standing orders:
The Department recommends governing bodies record their non-statutory procedures and decisions, including recording delegation, in standing orders.
These all provisions are on voluntary basis and there is no compulsion on employing these measures. The main purpose of such measures is to prevent the disputes before they arise.

4.1.3.Code of Industrial discipline:

The code of Industrial discipline definesduties and responsibilities of employers and workers.

The objectives of thecode are:

To secure settlement of disputes by negotiation, conciliation andvoluntary arbitration.

To eliminate all forms of coercion, intimidation and violence.

 To maintain discipline in the industry.

To avoid work stoppage.

 To promote constructive co-operation between the parties concernedat all levels.

4.1.4.Joint management councils :
Under this system Joint ManagementCouncils are constituted at the plant level. These

councils were setup asearly as 1958. These councils consist of equal number of

representativesof the employers and employees, not exceeding 12 at the plant level. Theplant

should employ at least 500 workers. The council discusses variousmatters relating to the

working of the industry. This council is entrustedwith the responsibility of administering

welfare measures, supervision of safety and health schemes, scheduling of working hours,

rewards forsuggestions etc.Wages, bonus, personal problems of the workers areoutside the

scope of Joint management councils. The council is to take upissues related to accident

prevention, management of canteens, water,meals, revision of work rules, absenteeism,

indiscipline etc. theperformance of Joint Management Councils have not been satisfactory

dueto the following reasons:

> Workers’ representatives feel dissatisfied as the council’s functionsare concerned with only

the welfare activitie

> Trade unions fear that these councils will weaken their strength asworkers come under the direct influence of these councils.
4.1.5.Work directors:

Under this method, one or two representatives of workers are nominated or elected to the

Board of Directors. This is thefull-fledged and highest form of workers’ participation in

management. The basic idea behind this method is that the representation of workers atthe

top-level would usher Industrial Democracy, congenial employee-employer relations and

safeguard the workers’ interests. The Governmentof India introduced this scheme in several

public sector enterprises suchas Hindustan Antibiotics, Hindustan Organic Chemicals Ltd etc.

Howeverthe scheme of appointment of such a director from among the employeesfailed

miserably and the scheme was subsequently dropped.5.

4.1.6.Co-partnership:

Co-partnership involves employees’ participation in theshare capital of a company in which

they are employed. By virtue of theirbeing shareholders, they have the right to participate in

the managementof the company. Shares of the company can be acquired by workersmaking

cash payment or by way of stock options scheme. The basicobjective of stock options is not

to pass on control in the hands of employees but providing better financial incentives for

industrialproductivity. But in developed countries, WPM through co-partnership islimited

4.1.7. Joint Councils:

The joint councils are constituted for the whole unit, inevery Industrial Unit employing 500

or more workers, there should be a Joint Council for the whole unit. Only such persons who

are actuallyengaged in the unit shall be the members of Joint Council. A joint councilshall

meet at least once in a quarter. The chief executive of the unit shallbe the chairperson of the

joint council. The vice-chairman of the jointcouncil will be nominated by the worker

members of the council. Thedecisions of the Joint Council shall be based on the consensus

and not onthe basis of voting.In 1977 the above scheme was extended to the PSUs

likecommercial and service sector organizations employing 100 or morepersons. The

organizations include hotels, hospitals, railway and roadtransport, post and telegraph offices,

state electricity boards.7.

Shop councils:

Government of India on the 30 th of October 1975announced a new scheme in WPM. In every Industrial

establishmentemploying 500 or more workmen, the employer shall constitute a shopcouncil.

Shop council represents each department or a shop in a unit.Each shop council consists of an equal

number of representatives from both employer and employees. The employers’ representatives will benominated by the management and must consist of persons within theestablishment. The workers’ representatives will be from among theworkers of the department or shop concerned. The total number of employees may not exceed 12.

4.2. Settlement of the industrial disputes
Settlement means a agreement which is arrived at in the course of conciliation proceeding and included a written agreement between employer and workmen where such agreement has been signed by the parties in such manner as may be prescribed and a copy thereof has been sent to the officer authorized in this behalf by the appropriate government and the conciliation officer.

The procedures for settling labour dispute may be by mean of collective bargaining, negotiation, conciliation and mediation, arbitration and adjudication and these methods are well known as methods for settlement of industrial disputes.

4.2.1. Collective Bargaining: Collective Bargaining is a technique by which dispute as to conditions of employment, are resolved amicably by agreement rather than by coercion. The dispute is settled peacefully and voluntarily, although reluctantly, between labour and management.
Broadly Speaking Collective bargaining is a process of bargaining between employers and workers, by which they settle their disputes relating to employment or non-employment , terms of employment or conditions of the labour of the workman, among themselves, on the strength of the sanctions available to each side . Occasionally, such bargaining results in an amicable settlement arrived at voluntarily and peacefully, between the parties. But quite often, the workers and employers have to apply sanctions by resorting to weapons of strike and lockouts, to pressurize one another, which makes both the sides aware of the strength of one another and that finally forces each of them to arrive at a settlement in mutual interest.

The final outcome of bargaining may also depend upon the art, skill and dexterity of displaying the strength by the representatives of one party to the other.

4.2.2.Labour welfare officer:

The factories Act, 1948 provides for the appointment of a labour welfare officer in every factory employing 500 ormore workers. The officer looks after all facilities in the factory provided for the health, safety and welfare of workers. He maintains liaison with both theemployer and the workers, thereby serving as a communication link andcontributing towards healthy industrial relations through properadministration of standing orders, grievance procedure etc.
4.2.3.Tripartite bodies:

Several tripartite bodies have been constituted atcentral, national and state levels. The India

labour conference, standinglabour committees, Wage Boards and Industries Committees

operate at thecentral level. At the state level, State Labour Advisory Boards have been setup.
All these bodies play an important role in reaching agreements on variouslabour-related issues. The recommendations given by these bodies arehowever advisory in nature and not

statutory.

Machinery for settlement of Industrial Disputes:

4.2.4.Conciliation:

Conciliation refers to the process by which representatives of employees and employers are brought together before a third party with aview to discuss, reconcile their differences and arrive at an agreementthrough mutual consent. The third party acts as a facilitator in this process.Conciliation is a type of state intervention in settling the Industrial Disputes. The
Industrial Disputes Act empowers the Central & State governments toappoint conciliation officers and a Board of Conciliation as and when thesituation demands.Conciliation Officer:
The appropriate government may, by notification in theofficial gazette, appoint such number of persons as it thinks fit to be theconciliation officer. The duties of a conciliation officer are: a)To hold conciliation proceedings with a view to arrive at amicablesettlement between the parties concerned.
b)To investigate the dispute in order to bring about the settlement betweenthe parties concerned.
c)To send a report and memorandum of settlement to the appropriategovernment.
d)To send a report to the government stating forth the steps taken by him incase no settlement has been reached at. The conciliation officer however has no power to force asettlement. He can only persuade and assist the parties to reach an

agreement. The Industrial Disputes Act prohibits strikes and lockoutsduring that time when

the conciliation proceedings are in progress.

4.2.5. Adjudication:

If despite efforts of the conciliation officer, no settlement is arrived at between employer and the workman. The both parties have to go to Labour Courts in order to deal with the disagreement which they cannot solve by themselves. The Court has power to decide disputes relating to matters specified. These matters are concerned with the rights of workers, such as propriety of legality of an order passed by an employer under the standing orders, application and interpretation of standing orders, discharge or dismissal of workman including reinstatement of grant of relief to workman wrongfully discharged or dismissed, withdrawal of any customary concession or privilege and illegality or otherwise of a strike or lockout.

In short, the settlement of disputes through collective bargaining, debate and negotiation, conciliation & mediation, arbitration, adjudication should leaves no rancour behind and helps to create an atmosphere of harmony and co-operation.
Adjudication is the ultimate legal remedy for settlement of Industrial Dispute. Adjudication means intervention of a legal authorityappointed by the government to make a settlement which is binding on boththe parties. In other words adjudication means a mandatory settlement of an Industrial dispute by a labour court or a tribunal. For the purpose of adjudication, the
Industrial Disputes Act provides a 3-tier machinery:
a)Labour courtb)Industrial Tribunalc)National Tribunal

4.2.6. Negotiation:
Negotiation is one of the principal means of settling labour disputes. However, due to lack of trust between the employers and workmen or their trade unions or inter-rivalry of the trade unions and the employers being in a commanding position, many a time negotiations fail.

4.2.7. Conciliation & Mediation:
Through conciliation and mediation a third party provides assistance with a view to help the parties to reach an agreement. The conciliator brings the rival parties together discuss with them their differences and assist them in finding out solution to their problems. Mediator on the other hand is more actively involved while assisting the parties to find an amicable settlement. Sometimes he submits his own proposals for settlement of their disputes.

Conciliation may be voluntary or compulsory. It is voluntary if the parties are free to make use of the same, while it is compulsory when the parties have to participate irrespective of whether they desire to do so or not.

Success of conciliation depends upon the appearances and their sincere participation in conciliation proceedings of the parties before the conciliation officers.

4.2.8. Arbitration:
The resort to arbitration procedure may be compulsory or arbitrary. Compulsory arbitration is the submission of disputes to arbitration without consent or agreement of the parties involved in the dispute and the award given by the arbitrator being binding on the parties to the dispute. On the other hand in case of voluntary arbitration, the dispute can be referred for arbitration only if the parties agree to the same.
Inter Union rivalry also sometimes makes it difficult in arriving at an agreement on settlement of an arbitrator who is acceptable to all the trade unions in the industry.

A process in which a neutral third party listens to the disputingparties, gathers information about the dispute, and then takes a decisionwhich is binding on both the parties. The conciliator simply assists the partiesto come to a settlement, whereas the arbitrator listens to both the partiesand then gives his judgement. There are two types of arbitration: a)Voluntary Arbitration, b) Compulsory Arbitration:

5.What is ADR?

Alternative dispute resolution is a concept that is, in general, used to refer to informal dispute

resolution process in which the parties involved in disputes resolve their disputes with the assistance of a third party. The resolution process is less formal and often more consensual

that is done in the court processes. For the convenience of the study, I provided two

definitions to clarify the term.

According to World Bank Group, “ADR is a wide range of means to resolve conflicts that are

short of formal litigations.” It is a consensual dispute resolution process which produces a

win-win solution.3

Centre for Democracy and Governance (US) in the book named „Alternative Dispute

Resolution Practitioners‟ Guide‟ defines ADR as Follows;

“The term ADR is often used to describe a wide variety of dispute resolution that are short of,

or alternative to, full-scale court processes.”4

By ADR we can now understand the following processes by which disputes are resolved;

 Arbitration

 Negotiation

 Mediation etc.

6.ADR system in Bangladesh:

Bangladesh has a long and vast history of practicing ADR. At present, there are three streams

of ADR in Bangladesh: extra-judicial or community-based initiatives, ADR in quasi-formal

legal system, and ADR in the formal legal system.6 The following figure indicates the ADR

system in Bangladesh. 7.Why ADR in Bangladesh?
The constitution of Bangladesh, the supreme law of the land, has guaranteed for every citizen

the right to access to justice in Articles 27 and 31. The constitution states that “All citizens

are equal before law and are entitled to protection before law.” But in practice, it is a far cry

for the large section of its population. People who are weak, poor, and disadvantaged face

innumerable obstacles in accessing justice because the formal court systems are plagued by

corruption, delay, complicated procedures, exorbitant cots, class and gender biasness, and

huge backlog of cases. This pathetic reality demands for Alternative Dispute Resolution

(ADR). Briefly speaking, the reasons behind the demands of ADR are as follows;

 The legal procedures are very much complex which are beyond the comprehension of poor people who have little knowledge and who do not understand their legal rights and privileges.

 Money and power control the justice system in Bangladesh. As a result, economically weak, socially backward, and politically disadvantaged persons or groups remain out of service of justice system.

 Poverty is considered as one of the fundamental obstacles in accessing justice for the large sections of the total population of the country.

 Corruption in justice delivery impedes economically disadvantaged groups access to

justice. Payment of bribes often becomes a deciding factor in the settlement of cases.

 Delays in disposal of cases and dispensing justice, procedural wrangles, multiplicity of

appeals, revisions, and reviews are some factors that make litigants frustrated.

 Enforcement mechanisms are sometimes biased. They do not accomplish their duties and responsibilities.  Patriarchal social structure and system are thought to be mostly responsible factor for

women not to have the access to justice from legal system. In patriarchal society, women can

not access to decision-making in the family. They have no also access to economic property

which results reducing their potentiality for taking legal actions.

Besides, the formal legal system is not consensual. Hence, it can not produce win-win solution. Under such a critical situation, the necessity of practicing ADR can not be expressed in words.7

8.ADR under labor law

Bangladesh Labor Act-2006 is concerned about the employment of labor, relations between workers and employers, determination of wages, payment of wages, and compensation for injuries to workers, formation of trade unions, raising and settlement of industrial disputes, health, safety, welfare and working conditions of workers. Labor laws, no doubt, play a crucial role in the industrial relations system. There was conflict between the capital and labor in past, there is still conflict between them. The law has been made in order to resolve or at least minimize the dispute between the two classes.8

9.Industrial relation at Bangladesh :
As a former colony, after the independence Bangladesh adopted labour laws and policies that prevailed during colonial British era and the Pakistani period. However, the new government of Bangladesh declared a labour policy in 1972, which recommended reduction of trade union activities in welfare organizations. The right to strike and collective bargaining in the nationalized industries was prohibited for six months by a Presidential order in 1972. In 1973, the right to strike and lockout was also withdrawn by the Government. While these activities sowed the seed of distrust between workers and managers, considerable progresses have been made in the 21st century with the introduction of new Labour Law in 2006. Before the adoption of Labour Act of 2006, there were about 46 laws in force in Bangladesh encompassing labour and industrial sectors. However, Committee of Experts have pointed out that, there are still several restrictions on the right to strike. According to the Labour Act
2006, it requires three-quarters of the members of a workers’ organization to consent to a strike (sec. 211(1) and 227(c) of the Act). The Act also prohibits strikes for a period of three years from the date of commencement of production in a new establishment, or an establishment owned by foreigners (sec. 211(8) and 227 (c) of the Act). While it is quite understandable that, Government wanted to attract foreign investors by putting a protective clause, it certainly did not do enough to make sure that the foreigners are not exploiting this facility. The barriers that the Government had set up to in the frame of the Labour Act, 2006 might have also curtailed the option for workers of going for a strike as a reaction to industrial dispute.

10.Attitudes towards formal dispute resolution :
Attitudes towards formal industrial dispute resolution would refer to what extent an

individual has a favourable or unfavourable evaluation of the perceived outcome of formal

industrial dispute resolution. According to TPB propensity of behaviour causing dispute is

likely to be higher where the attitude is favourably related to the evaluated outcome of

industrial relation.

However, attitudes can be shaped up by various other organizational and personal variables.
The most significant influence factor in the realm of industrial relations probably comes in the form of anticipated reciprocal relationship, which in turn may depend on prior experience of dispute resolution. So if the previous dispute was tried to be solved through a coercive power by the management, it is likely that workers would not try to follow the same path

11.Low Wage Rate :
As the industry is highly labor-intensive in nature, the historical evolution of world apparel business reveals reveals that comparatively lower wage rate country were always the major apparel supply in the world. Female workers in Bangladesh were traditionally linked to global markets in through export of tea and raw jute.

12.Conclusion

In the conclusion I would like to say that it is now clear that the Article 209 and 210 have

been enunciated in the Labor Act-2006 with an eye to resolve or settle the industrial disputes

in alternative way outside the court processes. The importance of settlement of labor disputes

can be expressed by the words of Bangabundhu Sheikh Mujibur Rahaman;

“No nation can be self sufficient; no nation can be called worthy of its name, which depends on borrowed wealth. The workers are my brothers, nobody will be allowed to exploit them.”12 Therefore, it is important to note that ADR should be practiced in the field of industry and commerce without delay. Otherwise, the labor disputes will hamper the development process of Bangladesh.

IV. References: Labour Economics and Social Welfare, by B.P. TYAGI www.google.com 1US Centre for Democracy and Governance (1998), “Alternative Dispute Resolution Practitioners’ Guide”, Washington D.C., 20523-3100.
4 US Centre for Democracy and Governance (1998), cited opt.
10 Ibid.
11 Ibid.
12 Cited from “Bangladesh Labour Cases”, vol.1, no.2, 1975, Dhaka.