Dynamics of industrial unrest in Bangladesh

Historical background of industrial unrest

Bangladesh has made significant strides in its economic sector performance since independence in 1971. Although the economy has improved vastly in the 1990s, Bangladesh still suffers in the area of foreign trade in South Asian region. Despite major impediments to growth like the inefficiency of stateowned enterprises, a rapidly growing labor force that cannot be absorbed by agriculture, inadequate power supplies, and slow implementation of economic reforms, Bangladesh has made some headway improving the climate for foreign investors and liberalizing the capital markets; for example, it has negotiated with foreign firms for oil and gas exploration, better countrywide distribution of cooking gas, and the construction of natural gas pipelines and power stations. Progress on other economic reforms has been halting because of opposition from the bureaucracy, public sector unions, and other vested interest groups. The especially severe floods of 1998 increased the flow of international aid. So far the global financial crisis has not had a major impact on the economy. The World Bank predicted economic growth of 6.5% for current year. Foreign aid has seen a decline of 10% over the last few months but economists see this as a good sign for self-reliance.There has been 18% growth in exports over the last 9 months and remittance inflow has increased at a remarkable 25% rate. remittance inflow has increased at a remarkable 25% rate. Fiscal Year 2007 2008 2008 2009 20092010 20101 |Page

Total Export $14.11b $15.56b $16.7b $22b b

Total Import $25.205 $22.00 b+ ~$24b N/A

Foreign Remittance Earnings $8.9b $9.68b $10.87b N/A

2011

Manufacturing & Industry Many new jobs - mostly for women - have been created by the country's dynamic private ready-made garment industry, which grew at double-digit rates through most of the 1990s. By the late 1990s, about 1.5 million people, mostly women, were employed in the garments sector as well as Leather products specially Footwear (Shoe manufacturing unit). During 2001-2002, export earnings from ready-made garments reached $3,125 million, representing 52% of Bangladesh's total exports. Bangladesh has overtaken India in apparel exports in 2009, its exports stood at 2.66 billion US dollar, ahead of India's 2.27 billion US dollar. Eastern Bengal was known for its fine muslin and silk fabric before the British period. The dyes, yarn, and cloth were the envy of much of the premodern world. Bengali muslin, silk, and brocade were worn by the aristocracy of Asia and Europe. The introduction of machine-made textiles from England in the late eighteenth century spelled doom for the costly and time-consuming hand loom process. Cotton growing died out in East Bengal, and the textile industry became dependent on imported yarn. Those who had earned their living in the textile industry were forced to rely more completely on farming. Only the smallest vestiges of a once-thriving cottage industry survived. Other industries which have shown very strong growth include the chemical industry, steel industry, mining industry and the paper and pulp industry.

Textile sector Bangladesh's textile industry, which includes knitwear and ready-made garments along with specialized textile products, is the nation's number one export earner, accounting for 80% of Bangladesh's exports of $15.56 billion in 2009. Bangladesh is 3rd in world textile exports behind Turkey, another low volume exporter, and China which exported $120.1 billion worth of
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textiles in 2009. The industry employs nearly 3.5 million workers. Current exports have doubled since 2004. Wages in Bangladesh's textile industry were the lowest in the world as of 2010. The country was considered the most formidable rival to China where wages were rapidly rising and currency was appreciating. After massive labor unrest in 2006 the government formed a Minimum Wage Board including business and worker representatives which in 2006 set a minimum wage equivalent to 1,662.50 taka, $24 a month, up from Tk950. In 2010, following widespread labor protests involving 100,000 workers in June, 2010, a controversial proposal was being considered by the Board which would raise the monthly minimum to the equivalent of $50 a month, still far below worker demands of 5,000 taka, $72, for entry level wages, but unacceptably high according to textile manufacturers who are asking for a wage below $30. On July 28, 2010 it was announced that the minimum entry level wage would be increased to 3,000 taka, about $43.

External trade The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) has predicted textile exports will rise from US$7.90 billion earned in 2005-06 to US$15 billion by 2011. In part this optimism stems from how well the sector has fared since the end of textile and clothing quotas, under the Multifibre Agreement, in early 2005. According to a United Nations Development Programme report "Sewing Thoughts: How to Realize Human Development Gains in the Post-Quota World" Bangladesh has been able to offset a decline in European sales by Bangladeshi exports in 2006 cultivating new markets in the United States. Knitwear posted the strongest growth of all textile products in 2005-06, surging 35.38 per cent to US$2.82 billion. On the downside however, the sector's strong growth came amid sharp falls in prices for textile products on the world market, with growth subsequently dependent upon large increases in volume. Bangladesh's quest to boost the quantity of textile trade was also helped by US and EU caps on Chinese textiles. The US cap restricts growth in imports of Chinese textiles to 12.5 per cent next year and between 15 and 16 per cent in 2008. The EU deal similarly manages import growth until 2008. Bangladesh may continue to benefit from these restrictions over the next two years, however a climate of falling global textile prices forces wage rates the centre of the nation's efforts to increase market share.
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Prior to the Wage Board's announcement of its recommended minimum wage of $24, Tk1,604, in 2006, the rate had remained unchanged at Tk950, about $15, for more than 12 years. Although the government may allow up to three years for the new wage to be implemented, and inevitably there will be compliance issues as manufacturers drag their feet, it seemed politically untenable for wages to remain at those levels given the unprecedented industrial unrest. They offer a range of incentives to potential investors including 10 year tax holidays, duty free import of capital goods, raw materials and building materials, exemptions on income tax on salaries paid to foreign nationals for three years and dividend tax exemptions for the period of the tax holiday. All goods produced in the zones are able to be exported duty free, in addition to which Bangladesh benefits from the Generalised System of Preferences in US, European and Japanese markets and is also endowed with Most Favoured Nation status from the United States. Furthermore, Bangladesh imposes no ceiling on investment in the EPZs and allows full repatriation of profits. The formation of labour unions within the EPZs is prohibited as are strikes. Bangladesh's exports to the U.S. surpassed $1.9 billion in 1999. Bangladesh also exports significant amounts of garments and knitwear to the EU market. Bangladesh also has significant jute, leather, shrimp, pharmaceutical, and ceramics industries. Bangladesh has been a world leader in its efforts to end the use of child labor in garment factories. On July 4, 1995, the Bangladesh Garment Manufacturers Export Association, International Labour Organization, and UNICEF signed a memorandum of understanding on the elimination of child labor in the garment sector. Implementation of this pioneering agreement began in fall 1995, and by the end of 1999, child labor in the garment trade virtually had been eliminated. The labor-intensive process of ship breaking for scrap has developed to the point where it now meets most of Bangladesh's domestic steel needs. Other industries include sugar, tea, leather goods, newsprint, pharmaceutical, and fertilizer production. The Bangladesh government continues to court foreign investment, something it has done fairly successfully in private power generation and gas exploration and production, as well as in other sectors such as cellular telephony, textiles, and pharmaceuticals. In 1989, the same year it signed a bilateral investment treaty with the United States, it established a Board of Investment to simplify approval and start-up procedures for foreign
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investors, although in practice the board has done little to increase investment. The government created the Bangladesh Export Processing Zone Authority to manage the various export processing zones. The agency currently manages EPZs in Adamjee, Chittagong, Comilla, Dhaka, Ishwardi, Karnaphuli, Mongla, and Uttara. An EPZ has also been proposed for Sylhet. The government has given the private sector permission to build and operate competing EPZs-initial construction on a Korean EPZ started in 1999. In June 1999, the AFL-CIO petitioned the U.S. Government to deny Bangladesh access to U.S. markets under the Generalized System of Preferences (GSP), citing the country's failure to meet promises made in 1992 to allow freedom of association in EPZs. Sylhet is fast becoming a major center of retailing in Bangladesh with many shopping centres being built by expatriates to serve fellow expatriates visiting Sylhet and the emerging middle class. Many of these developments hark back to Britain.

Means of industrial unrest

Industrial Unrest
The term industrial unrest is used to describe activities undertaken by the labor and other working people when they feel grievances and protest against pay or conditions of their employment. Industrial unrest can also be defined as the total range of behaviours and attitudes that express opposition and divergent orientations between industrial owners and managers, on the one hand, and working people and their organisations on the other. The unrest actions may include strikes, sit-ins, slowdowns or work-to-rule. Historically, riots also took place, such as the action taken by the Luddites during the Industrial Revolution, and other machine-wrecking outbreaks. Industrial unrest is caused by a clash between employers and employees. Generally, the causes of industrial conflict fall into categories such as working conditions, wage demands, work practices, political disputes and social concerns.

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Different forms of unrest Organised unrest: - Collective in nature, involves groups of employees or trade unions - Open (or overt), obvious to all

After the passing of the Corn Laws in 1815, and the poor harvest in 1816, the price of bread increased dramatically. At the same time many industrial workers experienced a drop in wages. Spinners in Manchester argued that their average wage had gone from 24s in 1815 to 18s in 1818. The employers claimed that the average wage was nearly 30s a week. When the employers refused to increase their wages, the spinners threaten to withdraw their labour. The cotton manufacturers were unwilling to change their mind and so in July 1818 the spinners went on strike. For the next few weeks spinners survived on their savings and from donations from sympathisers. The strikers received considerable support from the Manchester Observer the newspaper established that year by John Knight, James Wroe and John Saxton. The spinners picketed factories and paraded through the streets of Manchester with placards that described their problems. The magistrates became concerned when groups of spinners began to threaten men they described as blacklegs. As well as being stopped from entering the cotton factories, these spinners were sometimes confronted by angry strikers who would not let them leave their homes. Groups of spinners began to attack some of the cotton factories in Manchester. One target was the factory in Oxford Road owned by Hugh Birley, the much hated captain of the Manchester & Salford Yeomanry. After throwing some stones at the factory the spinners went home. The British government became concerned when they heard about these disturbances. Their spies also reported that the cotton spinners were in the process of trying to form a General Union of Trades. Lord Sidmouth, the Home Secretary, urged the local magistrates to take action. The magistrates responded by arresting John Johnson, John Bagguley and Samuel Drummond,
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the three leaders of the Blanketeers March that had taken place in 1817. The magistrates also arrested John Doherty, the man they believed was behind the plans to form a General Union of Trades. Doherty was charged with assaulting a woman while picketing. Doherty denied the charge but was sentenced to two years' hard labour. Without their leaders and without the means to feed their families, the spinners called off their strike in September. After two and a half months on strike, the spinners went back to work on the same wages as they had been receiving in July. Soon after the spinners went back to work the weavers in Manchester called a strike. The weavers claimed that their wages had sunk from 11s to 6s a week. Their demand was for a 13s minimum wage. The strike quickly spread to Bolton, Bury and Burnley. Some employers agreed to pay this minimum wage, but most refused, and after a few weeks the weavers gradually drifted back to work.

Core problem behind the industrial unrest

1. Absence of effective wage burganing 2. poor policy structure 3. Environmental dissatisfaction 4. Gender discriminated 5. Absence of mechanism solving 6. Unfair labour practice 7. Bios labour union 8. The change of economic policy by government 7 |Page

9. The negotiation is not held on properly 10.Not strong the government policy.

Garments industry in Bangladesh

Although Bangladesh is not developed in industry, it has been enriched in Garment industries in the recent past years. In the field of Industrialization garment industry is a promising step. It has given the opportunity of employment to millions of unemployed, specially innumerable uneducated women of the country. It is making significant contribution in the field of our export income. History of our cloth Industry: Once the cloth of Bangladesh achieved worldwide fame. Muslim and Jamdani cloth or our country were used as the luxurious garments of the royal figures in Europe and other countries. The British rulers in India didnt develop our cloth industries at all. Rather they destroyed them and imported cloths from England. Garment industries at present Bangladesh: After the emergence of Bangladesh radical change has come to our garment sector. Garment industries started working from the 10's of the late century. At present there are about 3000 garment industries in the country and 75 percent of them are in Dhaka. The rest are in Chittagong and Khulna. These Industries have employed fifty lacks of people and 85 percent of them are illiterate rural women. About 76 percent of our export earning comes from this sector. Reason of Development: The prime reason why garment industries have come out to be the champion in the field of export is obviously the cheap labor. Labor is not as cheap anywhere in the world as it is in Bangladesh. Women contribute to the working force in these garment factories, as they are relatively cheaper than men. A worker works here long hours free or cheap meals. But this has not prevented thousands of women from work. It has given them a steady income, economic independence, self-reliance and dignity, because they are earning their own living and managing their family expenses. Garments of Bangladesh in the world-market: Over the last twelve years or so the garments industries have emerged as the largest source of earning foreign currency. About half of the foreign currency from the ready-made garments is earned from European Union and the U.S.A. Besides, Canada, Japan, Australia, New Zealand; Russia etc. also are other garments importing
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countries. At present about 20 countries of the world are importers of our garments. Its market is being expanded in the Middle East, Russia, Japan, Australia and many other countries. Export income of different fiscal years: In 1977-78 fiscal year Bangladesh exported forty thousand shirts in Germany and earned one million U.S. dollar. At the beginning of the 80's this industry flourished rapidly. In 198384 fiscal year the income from garments rose to 6 crores 50 lacs US dollar. In 1998-99 it became 420 crores U.S. dollar. By 2003-2004 the factories multiplied three times. Simultaneously the export has also increased. The amount of export income in 2003-2004 increased to 568 crores US dollar.Items of exportable garments: Among the garments of Bangladesh are shirt, pajama, jeans-pant, jacket, trouser, hats, laboratory coat, sweater, pullover, jumper, jacket, trousers, gloves, sports dress, nightdress etc. Garments industries often pay dearly for political unrest, hartal and terrorism etc. The international market has withdrawn quota advantage over garments export form Bangladesh since December 2005. Bangladesh has to advance cautiously for getting better position of her garments in the world market. Finally destruction of twin tower in 11 September 2001. invasion on Afghanistan and Iraq and depression in world Economy have seriously affected the export trade of Bangladesh.

The garment industry of Bangladesh has been the key export division and a main source of foreign exchange for the last 25 years. At present, the country generates about $5 billion worth of products each year by exporting garment. The industry provides employment to about 3 million workers of whom 90% are women. Two non-market elements have performed a vital function in confirming the garment industry's continual success; these elements are (a) quotas under Multi- Fibre Arrangement1 (MFA) in the North American market and (b) special market entry to European markets. The whole procedure is strongly related with the trend of relocation of production. The cause of this transfer can be clarified by the salary structure in the garment industry, all over the world. Apparel labour charge per hour (wages and fringe benefits, US$) in USA is 10.12 but it is only 0.30 in Bangladesh. This difference accelerated the world apparel exports from $3 billion in 1965, with developing nations making up just 14 percent of the total, to $119 billion in 1991, with developing nations contributing 59 percent. In 1991 the number of workers in the ready-made garment industry of Bangladesh was
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582,000 and it grew up to 1,404,000 in 1998. In USA, however, 1991-figure showed 1,106.0 thousand workers in the apparel sector and in 1998 it turned down to 765. 8 thousand. The presented information reveals that the tendency of low labour charges is the key reason for the transfer of garment manufacturing in Bangladesh. The practice initiated in late 1970s when the Asian Tiger nations were in quest of tactics to avoid the export quotas of Western countries. The garment units of Bangladesh are mainly relying on the 'tiger' nations for raw materials. Mediators in Asian Tiger nations build an intermediary between the textile units in their home countries, where the spinning and weaving go on, and the Bangladeshi units where the cloth is cut, sewn, ironed and packed into cartons for export. The same representatives of tiger nations discover the market for Bangladesh in several nations of the North. Large retail trading companies placed in the United States and Western Europe give most orders for Bangladeshi garment products. Companies like Marks and Spencers (UK) and C&A (the Netherlands) control capital funds, in proportion to which the capital of Bangladeshi owners is patience. Shirts manufactured in Bangladesh are sold in developed nations for five to ten times their imported price. Collaboration of a native private garment industry, Desh Company, with a Korean company, Daewoo is an important instance of international garment chain that works as one of the grounds of the expansion of garment industry in Bangladesh. Daewoo Corporation of South Korea, as part of its global policies, took interest in Bangladesh when the Chairman, Kim Woo-Choong, offered an aspiring joint venture to the Government of Bangladesh, which included the growth and process of tyre, leather goods, and cement and garment factories. The Desh-Daewoo alliance was decisive in terms of getting into the global apparel markets at significant juncture, when import reforming was going on in this market following the signing of MFA in 1974. Daewoo, a South Korean leading exporter of garments, was in search of opportunities in nations, which had hardly used their quotas. Due to the quota restriction for Korea after MFA, the export of Daewoo became limited. Bangladesh as an LDC got the chance to export without any constraint and for this cause Daewoo was concerned with the use of Bangladesh for their market. The purpose behind this need was that Bangladesh would rely on Daewoo for importing raw materials and at the same time Daewoo would get the market in Bangladesh. When the Chairman of Daewoo displayed interest in Bangladesh, the country's President put him in touch with chairman of Desh Company, an ex-civil servant who was seeking more entrepreneurial pursuits. To fulfil this wish, Daewoo signed a collaboration contract with Desh Garment for five years. The contract also incorporated the fields of technical training, purchase of machinery and fabric, plant establishment and
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marketing in return for a specific marketing commission on all exports by Desh during the contract phase. Daewoo also imparted an exhaustive practical training of Desh employees in the working atmosphere of a multinational company. Daewoo keenly helped Desh in buying machinery and fabrics. Some technicians of Daewoo arrived Bangladesh to establish the plant for Desh. The end result of the association of Desh-Daewoo was important. In the first six years of its business, i.e. 1980/81-86/87, Desh export value increased at an annual average rate of 90%, reaching more than $5 million in 1986/87. It is claimed that the Desh-Daewoo alliance is a significant element for the growth and achievement of Bangladesh's entire garment export industry. After getting linked with Daewoo's brand names and marketing network, overseas buyers went on with buying garments from the corporation heedless of their origin. Out of the opening trainees most left Desh Company at several times to erect their own competing garment companies, worked as a way of moving knowledge all through the whole garment sector. Strength . Considerable Qualified/keen to learn workforce available at low labour charges. The recommended minimum average wages (which include Travelling Allowance, House Rent, Medical Allowance, Maternity Benefit, Festival Bonus and Overtime Benefit) in the units within the Bangladesh Export Processing Zones (BEPZ) are given as below; on the other hand, outside the BEPZ the wages are about 40% lower: . Energy at low price . Easily accessible infrastructure like sea road, railroad, river and air communication . Accessibility of fundamental infrastructure, which is about 3 decade old, mainly established by the Korean, Taiwanese and Hong Kong Chinese industrialists. . FDI is legally permitted . Moderately open Economy, particularly in the Export Promotion Zones . GSP under EBA (Everything But Arms) for Least Developed Country applicable (Duty free to EU) . Improved GSP advantages under Regional Cumulative

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. Looking forward to Duty Free Excess to US, talks are on, and appear to be on hopeful track . Investment assured under Foreign Private Investment (Promotion and Protection) Act, 1980 which secures all foreign investments in Bangladesh . OPIC's (Overseas Private Investment Corporation, USA) insurance and finance agendas operable . Bangladesh is a member of Multilateral Investment Guarantee Agency (MIGA) under which protection and safety measures are available . Adjudication service of the International Centre for the Settlement of Investment Dispute (ICSID) offered . Excellent Tele-communications network of E-mail, Internet, Fax, ISD, NWD & Cellular services . Weakness of currency against dollar and the condition will persist to help exporters . Bank interest@ 7% for financing exports . Convenience of duty free custom bonded w/house . Readiness of new units to enhance systems and create infrastructure accordant with product growth and fast reactions to circumstances Weakness . Lack of marketing tactics . The country is deficient in creativity . Absence of easily on-hand middle management . A small number of manufacturing methods . Low acquiescence: there is an international pressure group to compel the local producers and the government to implement social acquiescence. The US GSP may be cancelled and purchasing from US & EU may decrease significantly . M/c advancement is necessary. The machinery required to assess add on a garment or increase competence are missing in most industries.

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. Lack of training organizations for industrial workers, supervisors and managers. . Autocratic approach of nearly all the investors . Fewer process units for textiles and garments . Sluggish backward or forward blending procedure . Incompetent ports, entry/exit complicated and loading/unloading takes much time . Speed money culture . Time-consuming custom clearance . Unreliable dependability regarding Delivery/QA/Product knowledge . Communication gap created by incomplete knowledge of English . Subject to natural calamities Opportunity . EU is willing to establish industry in a big way as an option to china particularly for knits, including sweaters . Bangladesh is included in the Least Developed Countries with which US is committed to enhance export trade . Sweaters are very economical even with china and is the prospect for Bangladesh . If skilled technicians are available to instruct, prearranged garment is an option because labour and energy cost are inexpensive. . Foundation garments for Ladies for the FDI promise is significant because both, the technicians and highly developed machinery are essential for better competence and output . Japan to be observed, as conventionally they purchase handloom textiles, home furniture and garments. This section can be encouraged and expanded with continued progress in quality Threat
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. The exporters have to prepare themselves to harvest the advantages offered by the opportunities.

Contribution of garments industry in Bangladesh

The garment industry of Bangladesh has been the key export division and a main source of foreign exchange for the last 25 years. At present, the country generates about $5 billion worth of products each year by exporting garment. The industry provides employment to about 3 million workers of whom 90% are women. Two non-market elements have performed a vital function in confirming the garment industry's continual success; these elements are (a) quotas under Multi- Fibre Arrangement1 (MFA) in the North American market and (b) special market entry to European markets. The whole procedure is strongly related with the trend of relocation of production. Comparative Statement o export of RMG and total export of Bangladesh
Year 1983 - 84 1984 - 85 2000 - 01 2001 - 02 2002 03 2003 04 2004 05 2005 06 2006 07 2007 08 2008 09 2009 10 14 | P a g e Export of RMG 31.57 116.2 4859.83 4583.75 4912.09 5686.09 6417.67 7900.80 9211.23 10699.80 12347.77 14657.45 Total Export of Bangladesh 311.00 934.43 6467.30 5986.09 6548.44 7602.99 8654.52 10526.16 12177.86 14110.80 15565.19 16454.56 % of RMGs to total Export 3.89 12.44 75.14 76.57 75.01 74.79 74.15 75.06 75.64 75.83 79.33 79.89

FANCY FASHION SWEATERS LIMITED.

CompanyProfile
Hannan Group : Consists of four sweater manufacturing units with Packaging & Accessories Industries namely Fancy Fashion Sweaters Ltd, Hannan Fashion's Ltd, Hannan Knitwear's Ltd, Hannan Knit & Textiles Ltd & A.H. Packaging & Accessories Ltd. FANCY FASHION SWEATERS LTD. (sister concern) is a highly promising 100% export oriented sweater manufacturer established in December 1996. The company has started its journey with a group of most experienced management staff and by-this time it established a very good business reputation (as a quality producer) in the world market mainly in Europe . HANNAN FASHION'S LTD. (sister concern) started its production from February'2003. The respective unit is based in Gazipur, very near to Dhaka City . HANNAN KNITWEAR'S LTD. (sister concern) started its production from Oct'2008. The respective new unit is based in Gazipur, very near to Dhaka City . HANNAN KNIT & TEXTILES LTD. (sister concern) started its production from May'2009. The respective new unit is based in Gazipur, very near to Dhaka City . A.H. PACKAGING & ACCESSORIES LTD. (sister concern) started its production from December'2003. The respective unit is based in Gazipur, very near to Dhaka City .
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We are one of the largest sweater manufacturer and exporters in Bangladesh . Our monthly production capacity is around 650,000pieces in 3, 5, 7, 9 & 12 gauge and total no. of Knitting machine is 5,000 sets.

BSCI DBID NO

: 4866

SEDEX : S5837173922403 Membership No ISO 9001 : 2000 : 27950 -1 (For Fancy Fashion Sweaters Ltd) 27950 -2 (For Hannan Fashion's Ltd) WOOL MARK License : We are wool mark certified. Our License no #0022BD05W (Wool mark), Our License no #0022BD04B (Wool mark Blend). Wool Mark Gold license is under process. : Our garment is Oko-tex certified for the following qualities: A. All kinds of Acrylic B. 100% cotton & cotton melange C. Acrylic/cotton blend D. Acrylic /wool blend Product Yarn Quality : All kind of flat Knitted Sweaters, Pullover & Cardigan. : Various Cotton & melange, cotton/nylon/spandex, cotton/wool, cotton/cashmere, cotton/wool/cashmere, cotton/acrylic, viscose/cotton, viscose & melange, viscose/nylon/spandex, viscose/wool, various Acrylic & melange, acrylic/wool, lambs wool, lambs wool/nylon, viscose/polyamide/wool/cashmere, Tape yarn and other fancy blended yarn from China , Taiwan and Korea . : 510,000sft : 6,150 persons at this moment.

OKO-TEX Certificate

Total Factory Space Total No of

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Employees CORPORATE OFFICE : 1153-54, Shahid Siddique Road , Khailkur, Board Bazar, Gazipur-1704, Bangladesh . Telephone : 88-02-9292032-34 Fax : 88-02-9292035 Web : www.fancybd.com

Bankers : A ARAB B) EXPORT IMPORT BANK C)ONE BANK LTD. ) BANGLADESH OF BANGLADESH LTD. PRINCIPAL BANK MOTIJHEEL BRANCH, BRANCH, LIMITED . SHARIF MANSION , 45, DILKUSHA PRINCIPAL 56-57 MOTIJHEEL C/A, C/A, BRANCH DHAKA-1000, DHAKA-1000, 30-31 BANGLADESH BANGLADESH . DILKUSHA C/A TLX : 642506 BXMJH BJ TLX : 642491 DHAKA-1000, OBLPB BJ BANGLADESH SWIFT : EXBKBDDH SWIFT : TLX : 632281 001 ONEBBDDH 001 ABB PB BJ SWIFT : ABBLBDDH FACTORY LOCATIONS Factory Location ( Fancy Fashion Sweaters Ltd ) 1153-54, Shahid Siddique Road , Khailkur, Board Bazar, Gazipur-1704, Bangladesh . Factory Location (Hannan Fashion's Ltd ) 1155, Shahid Siddique Road , Khailkur, Board Bazar, Gazipur-1704, Bangladesh . Factory Location ( Hannan Knit & Textiles Ltd ) 505, Kalmeshor, Board Bazar,
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Gazipur-1704, Bangladesh . Factory Location ( Hannan Knitwear's Ltd ) 868, Shahid Siddique Road , Khailkur, Board Bazar, Gazipur-1704, Bangladesh . Factory Location ( A.H. Packaging & Accessories Ltd ) 1178, Shahid Siddique Road , Khailkur, Board Bazar, Gazipur-1704, Bangladesh . Chairman/M D & CEO (Contact Person) A.B.M Shamsuddin, 50, Post Graduate in Personnel Management. After completion of his educational life, he joined in Bangladesh Jute Mills Corporation under Ministry of Jute. During his 17 years service he acquired sufficient credibility in managing, controlling of industrial units having about capital investment of 300 to 500 million and labour force up to 12,000. He is involved with different commercial and social organization. He was the Elected Vice President (Finance) of Bangladesh Garment Manufacturers & Exporters Association ( BGMEA). Mrs. Ferdousi Sarker, 41, Graduate. Wife of Mr. A. B. M Shamsuddin and Director of the company is an established business personality. Her active participation in this organization is benefited specially managing female labour force.

Director

The company is very much familiar with the following reputed buyer's and working with them round the year: CELIO of France (Brand : SPORTSWEAR, CASUAL & CELIO CLUB) STREET ONE of Germany S. OLIVER of Germany MQ of Sweden GINA TRICOT of Sweden LINDEX of Sweden KAPPAHL of Sweden
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TESCO of UK (Brand - F&F & CHEROKEE) ESPRIT of Germany BEST SELLER of Denmark (Brand JACK & JONES) H & M HENNES & MAURITZ of Sweden

To ensure its garments quality, the company has introduced Independent Quality Control Team (GPQ) and also introduced all the modern machineries and equipment in its factory premises. The units and its atmosphere are approved by all of the above buyers CODE OF CONDUCT team and all the units are in full compliance with ILO and Bangladesh labor law.

Company Management
ALL CONTACT Managing Director & CEO Mr. A.B.M Shamsuddin Chairman/MD & CEO Email : [email protected] Cellular Phone No : 0 0 8 8 - 0 1 7 1 1 -5 6 3 1 4 0 Planning Department : Mr. A.B.M Shamsuddin Chairman/MD & CEO (Head) Mr. Shamim Ahmed General Manager, Sales & Merchandising (Member) Mr. Md. Abu Taher General Manager, production (Member) Compliance Department : Mr. Md. Billal Hossain Manager, HR & Compliance Email : [email protected] Cellular Phone No : 0 0 8 8 - 0 1 7 1 1 3 9 6 7 9 1 Marketing & Merchandising Department:
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Mr. Shamim Ahmed General Manager, Sales & Merchandising Email : [email protected] Cellular Phone No : 0 0 8 8 - 0 1 7 1 1 -5 9 1 2 2 5 L/C & Documentation Department: Mr. Aminur Rahman Khan, Dulu Assistant General Manager, Commercial Email : [email protected] Cellular Phone No : 0 0 8 8 - 0 1 7 1 4 -0 5 4 3 5 1 Product Development Department: Mr. Shekh Md. Ali Asgar Technical Manager Email : [email protected] Cellular Phone No : 0 0 8 8 - 0 1 7 1 3 0 6 1 3 4 2

Reason behind industrial unrest

The new industrial set-up has given birth to the capitalistic economy which divided the industrial society into two groups of labour and capitalists. The interests of these two groups are not common which created industrial disputes.

The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes. The economic causes will include issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments. The non economic factors will include victimization of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc.

Economic causes:
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The most common causes of industrial disputes are economic causes. These are follows:

Demand for higher Wages: Rise in the cost of living forces the workers to demand more wages to meet the rising cost of living index and to increase their standards of living. This brings them into conflict with their employers who are never willing to pay more wages to workers.

Demand for Allowances and Bonus: Increase in cost of living was the main cause of the demand of certain allowance allowances such as dearness allowance, house allowance, medical allowance, night shift allowance, conveyance allowance etc; by the workers to equate their wages with the rise of prices. Bonus also plays an important role as a cause of industrial dispute. Both the amount and the method of bonus payment have led to a number of disputes.

High Industrial Profits: In the changing world, concept of labour has changed considerably. At the present, employers consider themselves as a partner of the industry and demand their share in the profits.

Non- Economic Causes:

Working Conditions and Working Hours: The working conditions in Indian industries are not hygienic. There is not ample provision of water, heating, lighting, safety etc. On the other hand, working hours are also greater. The demand of palatable working conditions and shorter hours of work led to labour disputes

Modernization and Automation of Plant and Machinery: The attempt at modernization and introduction of automatic machinery to
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replace labour has been the major cause of disputes of India. Workers go on strike, off and on, to resist such rationalization.

Personnel Causes: Sometime industrial disputes arise because of personnel problems like dismissal, retrenchment, layoff, transfer, and promotion etc.

Political Causes: Various political parties control trade unions in India. In many cases, their leadership vests in hands of persons who are more interested in achieving their political interests rather than the interests of the workers.

Indiscipline: Industrial disputes also take place because of indiscipline and violation on part of the workforce. The managements to curb indiscipline and violence resort to lockouts

Non-reorganization of trade unions: The employers usually do not like the interference by trade unions. They do not recognize them. This brings the workers into conflict with their employers.

Weakness of Trade Unions: Weaknesses of trade unions encourages the employers to deny certain basic needs of the workers such as medical, education and housing facilities etc. This led to resentment on the part of workers who resorted to direct action.

Miscellaneous causes: Behaviour of supervisors, Lack of proper communication between management and workers, Rumors spread out by trade union, Inter-trade union rivalry etc; are the other causes that cause dispute between management an
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Outcome of industrial unrest

Due to industrial unrest different problem are arises. And these are very harmful for any organization. These oucome is called like Strike, go slow, boycott, picketing etc.

Strikes
The concept of union strikebreaking or union scabbing refers to any circumstance in which union workers themselves cross picket lines to work.

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Unionized workers are sometimes required to cross the picket lines established by other unions due to their organizations having signed contracts which include no-strike clauses. The no-strike clause typically requires that members of the union not conduct any strike action for the duration of the contract; such actions are called sympathy or secondary strikes. Members who honor the picket line in spite of the contract frequently face discipline, for their action may be viewed as a violation of provisions of the contract. Therefore, any union conducting a strike action typically seeks to include a provision of amnesty for all who honored the picket line in the agreement that settles the strike. No-strike clauses may also prevent unionized workers from engaging in solidarity actions for other workers even when no picket line is crossed. For example, striking workers in manufacturing or mining produce a product which must be transported. In a situation where the factory or mine owners have replaced the strikers, unionized transport workers may feel inclined to refuse to haul any product that is produced by strikebreakers, yet their own contract obligates them to do so. Historically the practice of union strikebreaking has been a contentious issue in the union movement, and a point of contention between adherents of different union philosophies. For example, supporters of industrial unions, which have sought to organize entire workplaces without regard to individual skills, have criticized craft unions for organizing workplaces into separate unions according to skill, a circumstance that makes union strikebreaking more common. Union strikebreaking is not, however, unique to craft unions.

Go slow
A slowdown (usually called a 'go-slow' in British English) is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. A slowdown may be used as either a prelude or an alternative to a strike, as it is seen as less disruptive as well as less risky and costly for workers and their union. Striking workers usually go unpaid and risk being replaced, so a slowdown is seen as a way to put pressure on management while avoiding these outcomes. Other times slowdowns are accompanied by intentional sabotage on the part of workers to provide further disruption. Nonetheless, workers participating in a slowdown are often punished, sometimes by firing and other times by law.

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At Ford's plant in Dagenham, UK, during the 1970s, workers introduced a slowdown after Ford management increased the production line speed from 18 to 21 feet per minute. This was a second speed increase and workers felt that this was unfair. After a slowdown by production line staff, Ford management reduced the line speed back to 18 feet per minute.

Boycott
A boycott is a form of consumer activism involving the act of voluntarily abstaining from using, buying, or dealing with a person, organization, or country as an expression of protest, usually for political reasons.

Picketing
Picketing is a form of protest in which people (called picketers) congregate outside a place of work or location where an event is taking place. Often, this is done in an attempt to dissuade others from going in ("crossing the picket line"), but it can also be done to draw public attention to a cause. Picketers normally endeavor to be non-violent. It can have a number of aims, but is generally to put pressure on the party targeted to meet particular demands. This pressure is achieved by harming the business through loss of customers and negative publicity, or by discouraging or preventing workers from entering the site and thereby preventing the business from operating normally. Picketing is a common tactic used by trade unions during strikes, who will try to prevent dissident members of the union, members of other unions and non-unionised workers from working. Those who cross the picket line and work despite the strike are known pejoratively as scabs.

Gherao
Gherao, meaning "encirclement," is a word originally from Bengali, and is a typically South Asian way of protest. Usually, a group of people would surround a politician or a government building until their demands are met, or answers given. This principle was introduced as a formal means of protest in the labour sector by Subodh Banarjee, the PWD and Labor Minister in the 1967 and 1969 United Front Governments of West Bengal, respectively. Owing to its popularity and intensity as a new method of labour action the word gherao got inducted into the Concise Oxford English Dictionary, Eleventh Edition, 2004, on page 598 has the following entry: Gherao: n (pl. gheraos). Indian; a protest in which workers prevent employers leaving a place of work until demands are met; Origin: From Hindi and Subodh
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Banarjee was referred to as the Gherao minister. In usage, the past tense of the verb, gheraoed, is more common

Recommendation
There are two alternatives to tackle the challenge of the competitive world initiated by the continuous pressure of global garment chain. One can continue to exist in the competition by adopting time-honoured work systems or immoral practices. But it is uncertain how long they can continue to exist. In connection with the garment industry of Bangladesh, we can say that this is the right time to follow a competitive policy, which improves quality. If the MFA opportunities are eliminated, will it be feasible to keep the competitiveness through low-wage-female labour or through further drop in female wages? Possibly not. Since the labour charges are so minimal that
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with such wage, a worker is not able to maintain even a family of two members. Enhancing the efficiency of female workers is the only solution to increased competition. Proper education and thorough training can help achieve these positive results. To rule the global market, Bangladesh has to come out of low wage and low output complex in the garment industry. Bangladesh can enhance labour output through constant training, use of upgraded technology and better working environment. Bangladesh should plan a strategy intended for promoting skill development, speeding up technology transfer and improving productivity height of the workers. Another method is to adopt best system or ethical course. Those companies, which react to heightened competition by stressing quality, speedy answer of the customers, fair practices for labourers should have the most innovative practices. We think that we are now living in the age of competition in producing improved quality over cost-reduction policy. The objective of change efforts at the workplace has been modified over the time - from making the job humane in the 1960s, to job satisfaction and output in 1970s, to quality and competitiveness in the 1980s. It is necessary for a company to pursue a competitive policy that improves quality, flexibility, innovation and customer care. If they rely on low costs by dropping labourers' wages and other services, they will be bereaved of labourers' dedication to work.

This unit deals with the skills and knowledge required to manage workplace relations from an industrial relations perspective. It focuses on the skills and knowledge needed by frontline managers, owners/managers of small businesses and human resource specialists.

PERFORMANCE CRITERIA 1. Provide employees with accurate and impartial information on industrial matters likely to affect them. 2. Identify workplace changes or issues which may cause industrial unrest promptly and take appropriate action. 3. Identify potential causes of industrial unrest in external environments promptly and take appropriate action. 4. Create conditions of employment in accordance with relevant legislation and industrial awards/agreements. 5. Implement mechanisms for consulting with staff and facilitating two-way communication. 6. Ensure induction and training initiatives are used effectively to
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develop a competent workforce. 7. Establish consultative structures for the identification and resolution of grievances.

On these processes the unrest could be solved. Because we know that the conflict is arise when there is create dissatisfaction between employees. So there satisfaction is important.

Bangladesh's quest to boost the quantity of textile trade was also helped by US and EU caps on Chinese textiles. The US cap restricts growth in imports of Chinese textiles to 12.5 per cent next year and between 15 and 16 per cent in 2008. The EU deal similarly manages import growth until 2008.
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Bangladesh may continue to benefit from these restrictions over the next two years, however a climate of falling global textile prices forces wage rates the centre of the nation's efforts to increase market share. Prior to the Wage Board's announcement of its recommended minimum wage of $24, Tk1,604, in 2006, the rate had remained unchanged at Tk950, about $15, for more than 12 years. Although the government may allow up to three years for the new wage to be implemented, and inevitably there will be compliance issues as manufacturers drag their feet, it seemed politically untenable for wages to remain at those levels given the unprecedented industrial unrest.

After the emergence of Bangladesh radical change has come to our garment sector. Garment industries started working from the 10's of the late century. At present there are about 3000 garment industries in the country and 75 percent of them are in Dhaka. The rest are in Chittagong and Khulna. These Industries have employed fifty lacks of people and 85 percent of them are illiterate rural women. About 76 percent of our export earning comes from this sector.

The garment industry of Bangladesh has been the key export division and a main source of foreign exchange for the last 25 years. At present, the country generates about $5 billion worth of products each year by exporting garment. The industry provides employment to about 3 million workers of whom 90% are women. Two non-market elements have performed a vital function in confirming the garment industry's continual success; these elements are (a) quotas under Multi- Fibre Arrangement1 (MFA) in the North American market and (b) special market entry to European markets. The whole procedure is strongly related with the trend of relocation of production. So the government should need to solve that problem permanently.

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