CHAPTER - 1

Introduction of Term Paper

1.1 Origin of the term paper

1.2 Background of the term paper
1.3 Objective of term paper
1.4 Scope of the term paper
1.5 Methodology of the term paper
1.6 Limitation of the term paper

1.1Origin of the term paper

As a mandatory requirement of the Bachelor Business Administration BBA (Hons) under

BBA (Hons) at National University of Bangladesh, this report entitled TRADE UNION

1
IN PUBALI BANK LIMITED. My supervisor at Mirpur University College, Nasrin
Akter, assigned me the topic of the term paper & duly approved it. The report will definitely
identify how the Capital Market is working at Bangladesh and how the member houses are
cooperating, and also will help to apply theoretical knowledge in the practical life.

1.2 Background of the term paper

Business organization faces a lot of regulation from internal and external source. There
decision processes are greatly influenced not only by the top management but also by the
lower level employee. As employees are one of the major influencing forces in conducting
any types of business profitably, their needs and demands are considered as a matter of great
importance to any type of industry. Here, banking industry of our country is not out of this
scope. Since the standard practices regarding employment policy and labor law are not that
much strongly established in Bangladesh, employees are establishing trade union to protect
their rights.

Same as other business organizations Trade Union practices are have major impact in our
banking sector. The study has designed to identify whether Trade Union of PUBALI Bank is
complying with the rules and regulations of The Industrial Relations Ordinance (IRO),
1969. That means, how PUBALI Bank Trade Union conforms to this ordinance to solve any
disputes between management and workmen. In this context, this study deals with the
facilities, benefits and regulations of trade union practices governing the employees of
PUBALI Bank.

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1.3 Objective of the study
Trade Unions are the organizations, which are engaged in protecting the rights of the labor
force of the country. They are the registered unions, which are devoted for the betterment of
the workforce. The study has designed to identify whether Trade Union of PUBALI Bank is
complying with the rules and regulations of The Industrial Relations Ordinance (IRO),
1969. That means, how PUBALI Bank Trade Union conforms to this ordinance to solve any
disputes between management and workmen.

The Other objectives are:

To discuss the process of formation of Trade Union at PUBALI Bank
To discuss the various practices of Trade Union of PUBALI Bank.
To discuss the way of solving unfair practices on the part of employees and employers.
To identify the impact of trade union on the employee i. e whether it is beneficial or not.

1.4 Scope term paper

This report will cover the function of Trade Union of PUBALI Bank in the light of The
Industrial Relations Ordinance (IRO), 1969. Scope of the report will cover only Head Office
& Local Office of PUBALI Bank. It will consider the function of trade union will be the
same throughout all of the branches of PUBALI Bank.

1.5 Methodology of the term paper:

The required data to complete the report has been collected both from the primary and
secondary sources.
Primary Source: Primary data collection is based on the field survey with A Checklist of
Questions. Based on this checklist interview has taken with the employees and Trade Union
officials of PUBALI Bank. The CBA/Trade Union leaders/ workers have been selected at a
random. Primary data will be obtained from:
1. Response to the prepared Questionnaire.

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 2. Discussion with the CBA/management officials/Trade Union leaders.
Secondary Source: Besides secondary data is collected from the Website, official
documents, different publications, files and records of the Trade Union of PUBALI Bank.
Collected data then analyzed, summarized and interpreted to get a clear picture about the
Trade Union practices of PUBALI Bank.

1.6 Limitation of the term paper

As usual, this report has several limitations. These are:

The study is limited to only the Head Office and local office of PUBALI Bank. So
findings of this report may not be a perfect representative for all of the branches of this
bank all over Bangladesh.
Time constraints on the part of the authority in providing us with information.
Secondary data on the trade union practices of PUBALI Bank was not available.
During collection of primary data CBA and Trade Union leaders, officials were not that
much interested to provide information regarding their internal practices. Their feeling
of uneasiness and a little bit resistance in collecting data has hindered in collecting data
smoothly.

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 CHAPTER - 2

Company Overview

2.1 Background of Pubali Bank Limited:

2.2 Vision of PBL
2.3 Mission of PBL
2.4 Aim of PBL
2.5 Social Responsibilities of PBL
2.6 Facilities of PBL
2.7 SWOT Analysis of PBL

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2.1 Background of Pubali Bank Limited:

PUBALI BANK LIMITED is the largest Commercial Bank in Private Sector in

Bangladesh. It provides mass banking services to the customers through its branch
network all over the country. This Bank has been playing a vital role in socio-
economic, industrial and agricultural development as well as in the overall economic
development of the country since its inception through savings mobilization and
investment of funds. During the last 5 years the growth rate of bank's earnings is more
than 25% on average.

The Bank was initially emerged in the Banking scenario of the then East Pakistan as
Eastern Mercantile Bank Limited at the initiative of some Bangalee entrepreneurs in
the year 1959 under Bank Companies Act 1913. After independence of Bangladesh in
1972 this Bank was nationalized as per policy of the Government and renamed as
Pubali Bank. Subsequently due to changed circumstances this Bank was
denationalized in the year 1983 as a private bank and renamed as Pubali Bank
Limited. The Government of the People's Republic of Bangladesh handed over all
assets and liabilities of the then Pubali Bank to the Pubali Bank Limited. Since then
Pubali Bank Limited has been rendering all sorts of Commercial Banking services as
the largest bank in private sector through its branch network all over the country.

2.2 Vision of PBL:

To excel as best private commercial bank in Bangladesh with meticulous observance
of rules and regulation and ensure commitment to corporate social responsibility.

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2.3 Mission of PBL:
To become most remarkable and admirable private commercial bank in the country.
To get recognition as a dynamic, innovative and customer service oriented bank. To
keep momentum of continuous & steady growth with maximum transparency and to
diversify products and resources. To expedite continuous update of information and
technology with all modern facilities to cope with demand and challenges of the time.

2.4 Aim of PBL:

To match corporate objectives with ownership and accountability
To increase our value by releasing each individuals true potential

2.5 Social Responsibilities of PBL:

Pubali Bank Limited (PBL) is the largest Commercial Bank in Private Sector in
Bangladesh addresses social concerns that threaten the structure of society and redress
social conditions that adversely affect the wellbeing of people and society. PBL
practice thus encompass the professional activities of helping individuals, families,
groups, organizations, and communities to enhance or restore their capacity for
optimal social functioning and of creating societal conditions favorable to this goal.

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2.6 Facilities of PBL:
2.6.1 Training:
PBL attach utmost importance to the development of its employees through
continuous training so that PBL executives can have competitive advantage in the
market.

2.6.2 Scholarship:
PBL has been awarding the largest number of scholarships in Bangladesh for the
meritorious and needy students every year since 2001.

2.6.3 Medi-Care Services:

PBL has established Rural Medi-Care service center at its rural branches to render
free medical services to the rural and destitute people of the adjoining areas especially
for the women and children.

2.6.4 Provident Fund:

There is a provident fund scheme under defined contribution plan. The fund is
operated by a separated board of trustee approved by national board of revenue as per
income tax ordinance,1984 all eligible employee contribute 15% of their basic pay to
the fund, The bank also contribute equal amount of employee contribution to the fund.
Benefits from the fund is given to eligible employee at the time of
retirement/resignation as per approved of the fund.

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2.6.5 Gratuity Fund:
The bank has a separate board of trustee for operating for operating the staff fund
approval by the national board of revenue .The provision for the gratuity fund is made
in the books of account of the bank for the eligible employees on the basic of the
assessment made by the actuary. The amount of provision is transferred to the trustee
board of the fund on a yearly basis.

2.6.6 Superannuation Fund:

The bank has a separate board of trustee for operating the staff superannuation fund
approved by the national board of revenue. The provision for the superannuation fund
is made in the books of account of the bank eligible employees on the basis of the
assessment by the Actuary. The amount of provision is transferred to the trustee board
of the fund on a yearly basis.

2.7 SWOT Analysis Of PBL:

2.7.1 Strength:
Pubali Bank Limited is one of the leading banks in Bangladesh. It has 207 branches
through out the country. This is one of the largest branch networks among all schedule
banks. It is strength for the bank. Pubali Bank Limited can use network of branch to
transfer money in any of the area of the country which can be done a few commercial
bank.
Well decorated and air conditioned facilities.
Structural set up and business location is strategic.
Bank is very alert to preserve the asset quality of the bank.
Continuous training both at home and abroad is going on the develop the skill
of human resources.

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 Pubali Banks assets position is quite satisfactory.
2.7.2 Weakness:
The main weakness of Pubali Bank Limited is that their loan and advance strategy is
not appropriate enough to survive in the market. They always face default problem for
lack of proper monitoring.
Dependent on fixed deposits.
Limited Market Share.
Absence of an upgraded website.
Lack of setting arrangement for the waiting customers.
Limited branch network.
Some officials dealing with retail products have not been as a professional
as a private bank does require.
Sometimes the Customer Service Officers were so busy that it creates delay
to the customer service. And at the end of the day the closing were also
delayed.

2.7.3 Opportunity:
Here the opportunity means an area of buyer need or potential interest in which a
bank can perform profitably. If the management can use the continuous support
properly it can enjoy huge opportunity for improving its growth. Other opportunities
are-
Expansion of new area of investment
Credit card business
Regulatory environment favoring private sector bank.
Technical support to small Scale industries (SSI) in order to enable them to
run their enterprises successfully.
SME and Agro based business.
Besides, the Bank is to provide full range of commercial banking services.

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2.7.4 Threat:
The environmental threat is a challenge posed by an unfavorable trend or
development that would lead to deterioration in sales or profit. Banks other
threats are as follows-
Number of potential competitors in home and abroad is increasing day by day.
Restless political condition in Bangladesh, such as Strike, Boom blast, etc.
threats the prosperity of Bank.
Market pressure for lowing Profit rate.
The bank must be bound to follow the rules of central Bank.

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 CHAPTER - 3

Theoretical Background of Motivation

3.0 Introduction
3.1 Trade Union:
3.2 Worker and Workmen:
3.3 Trade Unions and Freedom of Association:
3.4 Establishment of Trade Unions:
3.5 Goals And Objectives Of The Trade Unions:
3.6 Membership of Trade Union:

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3.0 Introduction
Formation of Trade Union is guided by the The Industrial Relations Ordinance , 1969. So
to get a clear picture regarding formation and function we need some basic and elementary
knowledge about the legal terms and sections of The Industrial Relations Ordinance, 1969.
So some basic legal terms relating to trade union have mentioned below acknowledging that
they have been quoted from Basic Labour Laws of Bangladesh compiled and edited by
Professor Iqbal Ahmad.
The Industrial Relations Ordinance (IRO), 1969 is an ordinance to amend and consolidate the
law relating to the formation of trade unions, the regulations between employers and
workmen avoidance and settlement of any difference or disputes arising between them. The
Ordinance extends to the whole of Bangladesh.
It does not apply to any person employed in the police or any of the Defense Services of
Bangladesh, including an ordinance factory maintained by the Government; or to any person
employed in the administration of the State other than those employed as workmen by the
Railways, Posts, Telegraph and Telephone Departments. It came into action at once.

3.1 Trade Union:

Trade union means any combination of workmen, of employers formed primarily for the
purpose of regulating the relations between workmen and employers or workmen and
workmen or employers and employers or for imposing restrictive conditions on the conduct
of any trade or business and includes the federation of two or more trade unions.

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3.2 Worker and Workmen:
Worker and workmen means any person, including an apprentice, not falling within the
definition of employer who is employed in an establishment or industry for hire or reward
either directly or through a contractor to do any skilled, unskilled, manual, technical or
clerical work whether the terms of employment be expressed or implied, and, for the purpose
of any proceedings under this Ordinance in relation to an industrial dispute includes a person
who has been dismissed, discharged, retrenched, laid-off or otherwise removed from
employment in connection with or as a consequence of that dispute or whose dismissal,
discharge, retrenchment, lay-off or removal has led to that dispute but does not include a
person
a) ployed as a member of the watch and ward or security staff or confidential
assistant of any establishment
b) Employed in a managerial or administrative capacity
Who being employed in a supervisory capacity performs, by virtue of the duties attached to
his office or by reason of the powers given to him, functions of managerial or administrative
nature.

3.3 Trade Unions and Freedom of Association:

Subject to the provisions contained in this Ordinance-
a) Workers, without distinction whatsoever, shall have the right to establish and, subject
only to the rules of the organization concerned, to join associations of their own choosing
without previous authorization
b) Employers, without distinctions whatsoever , shall have the right to establish and, subject
only to the rules of the organization concerned, to join associations of their own choosing
without previous authorization
c) Trade unions and employers associations shall have the right to draw up their
constitutions and rules, to elect their representatives in full freedom, to organize their
administration and activities and to formulate their programs.

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d) Workers and employers organizations shall have the right to establish and join
federations and confederations and such organizations, federations or confederations shall
have the right to affiliate with international organizations of workers and employers
organizations.

3.4 Establishment of Trade Unions:

Although there are six trade unions in PUBALI Bank mainly two (2) trade unions are most
influential in this bank. One is PUBALI Bank Jatiotabadi Kormochari Union bearing the
registration no of B-1191. This trade union has established in 1968 and currently it is the
CBA of this bank. Another trade union is known as PUBALI Bank Kormochari Porishad
bearing the registration no of B- 2083. This trade union has been established in 1974.

3.5 Goals and Objectives of The Trade Unions:

To protect the social and economic rights of the members of the trade union.

To maintain unity and strong relationship among the members of the trade unions.

During strike or loss of job, providing assistance, financial, if necessary.

To solve any conflict between members, management, employers.

To ensure proper salary package, benefits of the workers of the PUBALI Bank

To take necessary actions at the case of dismissal.

To ensure duties and responsibilities of the union members to the union, bank and to the

country.

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3.6 Membership of Trade Union:
Any employee or worker who is employed in PUBALI Bank and who is above eighteen
years of age can become a member of trade union of the bank regardless of race, religion, age
and sex. Here, members are liable to pay the membership fee or any other fees fixed by the
trade union. This fee may be monthly fee and admission fee. The rate of subscription of the
members can be changed upon the consideration in the meeting of the executive committee.
In this context, each member is liable to abide by the rules and regulations of the union and
also the decisions taken in the various meetings.

General membership and 18 years of age is required for the members to be qualified for an
official and member of the executive committee. All of the officials and members of the
executive committee will be elected through secret ballot of the general subscribing
members. For the well being of the members and union and to achieve the aims and
objectives of the union, executive committee take the necessary steps.

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 CHAPTER - 4

Trade Union Practice in PUBALI Bank

Ltd.
4.1 Trade Union Practices of Pubali Bank
4.2 Different types of workers
4.3 Leave and holidays
4.4 Treatment of laid off workers:
4.5 Dismissals and discharge at Pubali bank
4.6 Exercise of punishment
4.7 Benefits at termination
4.8 Interaction with the workers
4. 9 Lockouts and strike
4.10 Steps to dissolve disputes
4.11 Cases in labor court
4.12 Collective bargaining agent
4.13 Interaction with management

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4.1 Trade union practices of Pubali bank
The practice of IRO, 1969 deals with any dispute or difference between employers and
employers or between employers and workmen or between workmen and workmen, which is
connected with the employment terms and conditions, benefits of the workers. Leaders of
different trade unions and CBA leaders have clear idea regarding the various terms and
conditions cited in the Industrial Relations Ordinance, 1969, in case of practicing trade union
activities and in protecting the rights and privileges of the members of those trade unions. In
the following sections, according to the CBA and the trade union leaders, various terms are
clarified regaring the IRO, 1969 practices in the PUBALI Bank

4.2 Different types of workers:

In PUBALI Bank, employee means those are employed in permanent basis. There is no
existence of temporary and badli workers. In case of employing new and fresh employees,
there is a probation period. This probation period depends on the learning and skills of those
employees. Also in case of employing experienced employees, there may be probation
period. This period of probation totally depends on the prevailing laws and also on the
contracts of employee and employer at the time of placement.

4.3 Leave and holidays:

The workers of the PUBALI Bank enjoy all of the holydays and leaves declared by govt.
They also get annual leave, casual leave and medical leave as per suggested by Bangladesh
Bank. But in some cases, if any employee doesnt get the legitimate leave and holidays, CBA
arranges necessary actions with management to have a clarification of the reasons and

18
conditions of this situation. Management of PUBALI Bank keeps tracks of all the leaves and
holidays of the employees and adjusts the necessary remuneration and benefits packages.

4.4 Treatment of laid of workers:

Trade union and CBA leaders of PUBALI Bank are very much conscious in treating the laid
off workers. They try at their best to protect the rights of laid off workers. Even they bargain
to have some financial assistance from management at the time of this type of situations.

4.5 Dismissals and discharge at Pubali bank:

CBA leaders keep all of the records of the dismissed and discharged employees and by
consulting with the management; they try to support those employees in a legal way. In this
type of situations, dismissed and discharged employees get only their contribution provident
fund. In this context, workers give 10% of their basic salary in the provident fund and
PUBALI Bank also give same amount of money in the provident fund.

4.6 Exercise of punishment:

In case of unfair activities, PUBALI Bank takes necessary steps before providing punishment
against the employees. In this case CBA leaders keep contact with management in proper
inspection of those incidents, charge sheet preparation process, punishment procedure, time
after notice of show cause against those employees. So in case of punishment of workers,
CBA of PUBALI Bank exercises the proper steps and related laws.

4.7 Benefits at termination:

At the time of termination of the workers of PUBALI Bank, the bank management only give
the provident fund of the worker, pay gratuity at the rate of sixty days wages for every
completed years of service at the bank or for any part of year at service at the bank in excess
of six months. Moreover, certificate of service is also provided to the terminated workers, if
those workers ask for this certificate.

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4.8 Interaction with the workers:
Trade union and CBA leaders keep frequent contacts with the workers to communicate the
activities of trade union and CBA and also their thoughts by arranging meeting at regular
intervals, verbal communications with the employees. Along with this, if a worker is facing
problems related to his job (leaves, increment, transfer, promotion, demotion, dismissal etc),
he/she then comes to the CBA office (4th floor) and talk to the leaders. The leaders look after
the legal aspects of the claim and record it in file of their own (if necessary). After that, they
communicate with the related officer/management regarding the dispute in written format or
orally. If the dispute is not dissolved, they follow the steps mentioned in IRO 1969.

4.9 Lockouts and strike:

In case of lockout and strike, CBA leaders and management of PUBALI Bnak follow the
necessary steps. Here, CBA leaders go for 10, 21 days of steps for calling strike.

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4.10 Steps to dissolve disputes:
Disputes among CBA, employers, and workers in PUBALI Bank are dissolved with some
steps. These steps are--

Industrial Disputes

Negotiation with management

With 10 days notice

Presentation of the
Issue of the Conciliator

Notice of Strike or Lockout

Conciliation

Arbitration

Strike or Lockout

Application to
Director of Labor

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4.11 Cases in labor court:
Whenever any dispute is not dissolved, even after taking necessary steps, CBA leaders file
cases against management in labor court. These cases are mainly related to employment
terms, conditions, benefits, and punishment of the workers.
4.12 Collective bargaining agent:
Collective Bargaining Agent is a representative body of workers, which is being made by the
direct voting by the listed workers. There should be minimum 1/3 of the total
members vote to make a CBA. And the trade union manage to get highest vote
becomes the CBA. At PUBALI Bank PUBALI Bank Jatiotabadi Kormochari
Union is the CBA.

4.13 Interaction with management:

CBA leaders claimed that the management is unwilling to accept the worker list given by the
Director of Labor. CBA is also claiming that management is not willing to arrange the
election at due time by considering expenditure, security etc. Moreover, in some cases
management doesnt want to implement the contracts between CBA and management. These
contracts include various types of monetary and non-monetary benefits and rights of the
workers. Besides, in case of recruitment and selection, management doesnt call CBA leaders
to take part in the screening process. The management also takes disciplinary actions without
sending any letters to CBA.
In this context, President of CBA, Mr. Khan Azizur Rahman expressed that management
doesnt keep all of the promises made at the time of contracts or at the time of dissolving
industrial disputes. So CBA leaders also dont become serious in maintaining the terms and
conditions of contracts with management.
Because protecting the rights of workers are main objective of forming trade union and CBA
leaders. So they always try to have bargain with management regarding the legal rights and
privileges of the workers of PUBALI Bank. The CBA leaders showed great detest in
termination related issues. They expressed that this should be changed for the betterment of
all workers. Moreover management doesnt call CBA leaders at the time of recruitment and
selection process to take part in the screening process.

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CHAPTER - 5

Recommendations
& Conclusion

23
5.1 Recommendations

Based on the above discussions, we recommend the following action:

To have a better working environment for both management and workers, CBA election

should be held on time. Because proper election will make employees to feel that they
have a way to bargain with management regarding their rights.
Strikes harm the working environment. In cases of industrial disputes, management and

CBA leaders should arrange frequent meetings to prevent strikes and to maintain a good
working environment.
To aware the basic knowledge regarding the right and privilege of the worker,

Management of PUBALI Bank can arrange training session on the basic labor laws of
Bangladesh for the workers of the bank. This will help the management from the
demand for unusual leaves, overtimes, misconducts, illegal strikes or union activities.
Most of the conflict arises due to the misunderstanding. So both management and

TU/CBA leaders should share information with each other to reduce the level of
misunderstanding and misinterpretation of the various types of confusing terms and
conditions of contracts between these two parties.
Not only the workers, but also the management HRD officials, who are dealing with the

rights and privileges, should have proper institutional knowledge and training.

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5.2 Conclusion
On the based on the above discussion we can summarize our observation regarding the trade
union practice in PUBALI bank:
Recruitment: In case of recruitment management does not keep the CBA leaders to sit in
interview board
Trade Union: There are two trade union functioning in PUBALI Bank.
Election: CBA is claiming that management is not willing to arrange the election at due
time by considering expenditure, security etc.
Lockout & Strike: In case of lockout and strike, CBA leaders and management of
PUBALI Bnak follow the necessary steps. Here, CBA leaders go for 10, 21 days of
steps for calling strike.
Communication with the member: Trade union and CBA leaders keep frequent contacts
with the workers to communicate the activities of trade union and CBA and also their
thoughts by arranging meeting at regular intervals
Benefit when terminated: At the time of termination of the workers of PUBALI Bank,
the bank management give the provident fund of the worker, pay gratuity, certificate of
service.
Cases: Whenever any dispute is not dissolved, even after taking necessary steps, CBA
leaders file cases against management in labor court. These cases are mainly related to
employment terms, conditions, benefits, and punishment of the workers.
Leave: The workers of the PUBALI Bank enjoy all of the holydays and leaves declared
by govt. The also get annual leave, casual leave, medical leave and other leave as per
suggested by Bangladesh Bank
Punishment Process: The management does not send any disciplinary action
notice/letter/copy of notice to the CBA leaders, they only deals with the worker with
letters/notice. In case of disciplinary actions CBA leaders keep contact with
management in proper inspection of those incidents, charge sheet preparation process,
punishment procedure, time after notice of show cause against those employees.

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 Bibliography

1. Ahmad, Iqbal; Basic Labour Laws of Bangladesh; 2nd Edition; 1996; pp 159-195
2. Annual Report of PUBALI Bank
3. HRM Departmental documents that are collected from Pubali Bank Ltd.
4. Different Handouts of the PUBALI Bank
5. www.banglapedia.search.com.bd
6. www.pubalibank-bd.com
7. www.google.com

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