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: 2016-12-30
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Employment Relations of Bangladesh ()
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Word Doc

BA 402 - Comparative Industrial Relations


Instructor: Lyman A. Hussey


March 2007


Employment Relations of






Roman Walker







Labour and Unions.3




Education System...5


Legal System6


Labour Laws.7


Tax Structure8


Treatment of Foreign Nationals.9


Grameen Bank10




Bangladesh is a small country, located North-East of India, which

surrounds it. Bangladesh borders India in the West, North, and East. It

also borders to Burma in the South-East and its South coast is located

at the Indian Ocean. Bangladesh is 130,200 km? big and has a population

of 123,633 million people (2000). The capital of Bangladesh is Dhaka.


The majority of Bangladeshs countryside is lowland at the bottom end of

the Ganga and Brahmputra. Mountains can only be found in the East and

South-East of the country. The climate is subtropical to tropical



98% of the population are Bengals. The other minorities are Bihari and

some mountain tribes. Bangladesh is one of the thickest populated

countries in the world which can hardly cope with the annual economical

and social growth of 3%. The state religion is Islam.



Labour and Unions:


The labour force in 1998 was estimated at about 64 million workers. 11%

of the civilian labour force was employed in the industrial sector, 63%

in agriculture, 26% in the service industry in 1996. It is not possible

to rely on statistics because of a huge unreported black market. The

unemployment rate in 2001 was at about 35%.


The structure of the labour market and the role of unions in Bangladesh

are can be compared to those in other South Asia countries. Bangladesh

has three types of labour markets: formal, rural informal, and urban

informal. The formal labour market is characterized by a contractual

relationship between the employer and the employee and supported by

labour laws and regulations that protect workers, such as minimum wages,

allowances, and limitations on the employers ability to fire his

workers. The other types of labour markets are not covered by any labour

regulations. The informal sector dominates the labour market surface. In

1991, 47,2 % of the labour force were classified as unpaid family

workers, 15,4% were self-employed, 13,9% were classified as casual

workers (day labourers), and only 11,7% had regular full time wage



Joining unions is granted by the Bangladeshs constitution, as well as

the formation of a union only after a government approval. Still in some

cases people are harassed and fired who tried to organize a union.

People working in the government civil servants, military, and police

are not allowed to join unions with the exception of railway, postal,

and telegraph workers. Instead they are allowed to join associations

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