Chapter-1: Introduction

1.1 Executive Summary

Role of labor and industrial laws are of paramount importance. During the recent years the world
of Business has changed vastly. We the people of different walks of life cannot be able to
imagine that what is going to be the future picture if these changes continue rapidly like this
speed.
This report attempts to show the emergence and implementation of labor law in the contents of
Bangladesh Bicycle Industries Sector. It is expected that this report will help to gather
knowledge about labor law and realize their importance in modern business world. I tried my
level best to compile information as comprehensively as possible.
I have tried my level best to complete the paper more meaning fully but at the same time I
express my regret for our failure of mentioning many other important information due to very
limited space allotted for assignment. However I think this study will prove pragmatic to those
who feel interested in the subject.
Law
According to the oxford English Dictionary the word Law means rule made by authority for
the proper regulation of a community or society or for correct conduct in life. In the words of
Woodrow Wilson, Law is that portion and the established habit and thought of mankind which
has gained distinct and formal regulation in the shape of uniform rules backed by the authority
and power of the Government.
Business Law
The term Mercantile Law or Business Law may be defined as that branch of law which
comprises laws concerning trade, industry and commerce. It is an ever growing branch of law
with the changing circumstances of trade and commerce.
With the increasing complexities of the modern business world the scope of Mercantile Law has
enormously widened. It is generally understood to include the laws relating to contracts, Sale of
goods, Partnership, Companies, negotiable Instruments sale of goods, Sale of goods and
Arbitration.
Labor Law
The term Labor Law can be defined as that branch of law which comprises laws concerning
the working conditions, wage level, working environment, job securities of the employees of any
business organization. It is an ever growing branch of law with the changing circumstances of
business organization to facilitate the employees of any business organization.

1.2 The Objectives of Study

The object of both the law is to establish a continuous process of harmonious relationship
between the employers and employee. They have another object of fastening together both the
labor and their rights in order to create an atmosphere that they are an indivisible whole in
Industry. The ultimate object of labor and industrial law is to maintain industrial peace security
and steady growth of Industrial practices.
The origin and growth of labor law may be ascribed mostly to the development of organized
industry where a large number of workers including women and children are employed under
conditions which tend to be detrimental to their safety and welfare and against which they are
often to protect themselves.
From historical point of view labor law has given birth to some fundamental industrial rights to
labors in the field of production. At the same time it has also provided protection for those rights.
From a practical point of view labor and industrial law provide for three types of dispute
settlement measures voluntary settlement machinery, quasi-judicial machinery and judicial
machinery.
1.3 Labor Law in Bangladesh
In the question of law it is easily say able that we the people of Bangladesh are not too much
respected to the law. People do not as obedient to the law as they supposed to be. In the question
of labor law there are The Factory Act 1965, which one is the establish labor law of our country.
Beside this our country also obeys the rules and regulations of united nation regarding the labor
or these types of community.
There are labor laws pertinent to health issues of workers in Bangladesh. The laws cover work
hours, wages, sick leave, maternity leave and benefits, compensation and other working
environment related issues. Because of the lack of implementation and/or violation of the laws,
workers often suffer from health hazards both at work and at home. The problem is compounded
by the fact that workers are unaware of many of the laws and the benefits they are entitled to
because of lack of education and resources. The paper discusses different types of illnesses and
through narratives of women Bicycle industries workers explores health hazards experienced by
them. It also suggests solutions for policy-makers, NGO activists, employers and workers.
The labor law of Bangladesh contains and formed on such factors which are mentioned bellow

Preliminary
Health and Hygiene
Safety
Welfare
Working hours of Adults
Child Labor
Leave and Holidays with Wages
Special Provisions

1.4 Bicycle Industries in Bangladesh

The Bicycle Industries has experienced tremendous growth in the recent years. This expansion
can be traced to two factors. Firstly, bicycles provide a quick and easy way around the
unbearable traffic jam in major cities. Secondly, the rise of some community groups, like
Bicyclists, has specially contributed to transforming riding a bicycle into a trend.
Bicycle Industries is our single most successful light engineering export industry, and its success
has largely been linked to exporting to the EU and penalty imposed on the worlds largest bicycle
manufacturer, China. The expiration of the penalty in 2016 can expose us to extreme
competition, especially since Bangladeshi exporters bear a 30-50% higher lead time and 10-20%
higher price than Chinese exporters due to the lack of parts and components suppliers. Despite
bearing the third best growth rate (20.79% in 2014), average value per unit dropped by about
6.57%, while Chinas and Cambodias average value per unit increased by 46.28% and 9.93%
respectively.
Currently the Bicycle Industries is comprised of 3 major active manufacturers. Meghna Group is
our largest bicycle manufacturer and exporter (90%). Meghna Group has about 9 factories,
including 2 for handling exports, 2 for meeting local demand and 5 to produce bicycle
components. They currently produce six types of bicycles. Alita Bangladesh is a Taiwan based
company but one of our largest bicycle exporters. Pran RFL Group is the latest entry with a
manufacturing capacity of 500,000 bicycles annually.
Bicycle industries industry at large is even worse. The nations top export earner employs 15
million workers under conditions of super-exploitation. The majority are young women from
rural areas who have migrated to the urban centers in search of work. The sweatshops are more
like prisons than factories, with no fixed hours, regular breaks or days off. Workers earn between
$7 and $10 a month, for an average of 13 hours a day, up to 27 days per month. This comes to an
hourly rate of two or three cents! The bourgeois media reports that the industry currently owes $
300,000 in back pay, a staggering amount considering the miserly wages.
Bicycle industries workers change jobs frequently because of wage arrears, lay-offs, ill health or
harassment from the bosses and their security guards. As the vast majority of employees are
Boys and young boy also women and largely amount of labor is child most living apart from
their families there are many cases of physical and sexual harassments.
Bicycle Industries in Bangladesh are a very prospecting industries in Bangladesh. The total
demand of our can be fulfilled by the domestic made Bicycle industries and so also this sector is
doing very well in the sense of exporting. The major portions of our exports come from the
Bicycle Industries. Even though the major portion of the government revenue comes from this
sector but only few people are thinking about the present situation of the workers of this sector.
As it is very significant issue of the country so intellectuals should watch about it. They have
reflected on it how the problem can eliminate on this sector.

Chapter-2: Conceptual Overview

2.1 Working environment and Law in Bicycle Industries in Bangladesh
There are some certain criteria in working condition. Every employer is bound to provide sound
working environments for their employees according to different section of the factor is act
1965. In working environment the following criterias should be provide by the environment for
employees of his/her organization. This areHealth and Hygiene

Cleanliness
Disposal of wastages and effluents
Ventilation and temperature
Dust and fume
Artificial humidification
Overcrowding
Lighting
Drinking water
Latrines and urinals
Spittoons

Safety

Precautions In case of fire

Fencing of machinery
Working on or near machinery in motion
Employment of childrens on dangerous machines
Striking gear and devices for cutting of power
Self-acting machines
Causing of new machineries
Prohibition of employment of women and children near cotton openers
Revolving machinery
Floors stairs and means of access.
Excessive weights.
Production of eyes.

Welfare

Washing facilities.
Fast aid appliances.
Shelters.
Canteens.
Rooms for childrens.

Working hours

Weekly hours.
Weekly holiday.
Compensatory weekly holiday.
Daily hours.
Intervals for rest or meals.
Spread over.
Night shift.
Prohibition of overlapping shift.
Extra allowance for over time.
Restriction on double employment.

Employment of young person

Prohibition of employment of children.

Certificate of fitness.
Working hours for childrens.
Register of child workers.
Power to require medical examination.

Leave and holidays with wages

Annual leave with wages.

Festival holidays.
Casual leave and seek leave.
Maternity leave.
Wages during leave or holiday periods.
Payment in advance in certain case.

Miscellaneous

Penalties.
Accident offences by workers.

Those are the specific criteria which are mention in the factories act 1965. Each and every
section of the law is not mentioned and describe here due to the shortage of space and those are
not subject related. Those laws must be followed by the employer of Bicycle industries worker.
2.2 Employer Obligation
The employers obligation is to correct all hazards identified by the consultant within reasonable
period. This commitment is made in advance. The employer must also agree to post the list of
hazards that accompanies the consultants report. If an employer refuses To correct or verify

correction of a serious hazard, the inspector may refer the matter to compliance, a violence of
law.

2.3 Wage level and Law

Bicycle Industries workers are not well paid and so also there are no possibilities to be the future
bright. Though the Bicycle industries are paying ill but still people are interested enough to get a
job in a Bicycle factory. The main reason behind it is the high unemployment rate of the country.
People are completing their degree but they are not being able to get appropriate job according to
their demand. This is why people are taking job in Bicycle factories. The employers are taking
these chances. Since people dont have any other opportunities so they are performing the job
though they are ill paid.
2.4 Leave and holidays and wages

Annual leave with wages.

There are Two Festival holidays.
Casual leave and seek leave.
Maternity leave.
Wages during leave or holiday periods.
Payment in advance in certain case.

Those criteria should be followed by the Bicycle manufacturer of our country but most of them
are violated.
Sex disparity in wage level is another common phenomenon in the Bicycle factories. Some cases
manufacturers are paying ill to women workers though lady workers are giving same services as
like men workers.
2.5 Labor organization
Labor organizations are existed partially in Bicycle manufacturing industry. Though partially it
is existed but these organizations do not have much more freedom to do anything for the labor
people. Bicycle workers should give the opportunity to build a union for their better opportunity.
Though the union should not be supported in any short of productive organization but in the case
of Bicycle workers it should be established. Otherwise the government should take all the
necessary initiative to make their good.
Bicycle workers are all alone their employer will not help them to improve their luck. So it is
themselves or the government who should take initiatives for them.
2.6 Future prospect and Law
Though the Bicycle sectors are very prospective one for the Bangladeshs economy but the
people who are making this sector prospective they are not well entertained by the manufacturer
and government. There are different types movements are running for them. Different communist

parties, NGOs are working for their better prospect. But their condition will not improve until the
economy of Bangladesh shines.

3. Result and Discussion

In response to the Discussions and interviews with many experienced labor of Bicycle Industries about
labor recruitment, out of 100 respondents, 52% experience, 37% skill, 7% physical strength and 4 %
Gender. The main reason to recruit experience people is to reduce training cost, participating large scale
production and efficiency level of experience people is very high.
Different Criteria for Labor Recruitment

60
50
40
30
20
10
0

Percentage

As a measure of labor law condition working environment in the Bicycle Industries, 55% opine with good
while 9% suggest environment is very bad. When skill and experience labor move to another company
they are familiar to any environment. Averagely, they are satisfied regarding working environment.

Working Environment
60
50
40
30
20
10
0

Percentage

Good

Not so Bad Very bad

bad

From the bar chart we can see that percentage of participation in labor union illustrates that moderate
participation like 40% while 33 % labor opine no participation in any labor organization. Employees
are moderately motivated to participate in the labor union because they think that they are capable to
forward their different issue to corresponding authority by labor union.
Ground of Discrimination
60
50
40
30
20
10
0
Gender

Physical
strength

Task

No
participation

Percentage

In case of gender and physical strength, there is no discrimination but most of the case they always
prefer to experience and skill people based on their task.

Satisfaction Level for Wage of Labor

7%
25% 21%

Very low
Low

47%

Medium
High

The pie chart shows that majority of the respondents (47%) like to assign high satisfaction level for
wage of labor. The level of satisfaction of labors are moderate for the purpose of wages, they try to
fulfill their basic needs as they are expected.

Medical Facilities
60
50
40
30
20
10
0

Percentage

Medical Facilities is Always available in this sector. Because future is uncertain, so all types of
medical aspects is necessary.

It is realistic scenario that labors are not participating in decision making but they always forward
their decision to authority regarding their basic requirements. Here the participation in decision
making is indirect for maximum labors rather than full participation, no participation and direct
participation.

Working Hour
70
60
50
40
30

Percentage

20
10
0
6-8 Hour 8-10 Hour 10-12
Hour

12-14
Hour

In BICYCLE INDUSTRIES, most of the authority tries to discourage child labor but few cases it has
been seen in some cases. Here a good prospect is that, maximum labors voted for not availability of
child labor & then for banned.

Child Labor
Banned
Not available
Percentage
Available
Recruited
0

20

40

60

Mainly, Job security is based on labors performance on the other hand unsecured labors is highly
unsatisfied at Bicycle Industries. Here maximum labors agreed that, their job is secured.

Job Security
60
50
40
30
20
10
0

Percentage

10

The level of work stress is moderate at BICYCLE INDUSTRIES; Moreover, Labor of export oriented
Industry are practicing high stress. Pie chart shows that 46 % medium, 27 % no stress, 24 % lower
and 3 % higher.

Work Stress

3%
27%

Higher
Medium
46%

Lower
No stress

24%

Labors are communicated with their supervisor in different department. Most of the times labors are
maintain indirect communication with their authority. Moreover if labors are able to communicate
with top level management at BICYCLE INDUSTRIES, they should be highly satisfied and highly
motivated in working palace.

Communication proces
52
28
14

By hiearchy
basis

Direct from
albor to
manager

6
Indirect
comunication

Can not
communicate
with higher
level

Percentage

11

Most of the time labors are getting promotion based on their performance. Here maximum time
bonuses are given to the employees as reward and then occasionally rather than if profit is made and
annually.

Job Promotion
Fast promotion
3%
Moderate

33%

44%

Baised
20%

Depend on good
performance

BICYCLE INDUSTRIES follows to particular wage board for providing salary to employees/ labors.
In that of sense, there is no discrimination among the wage of labors in EPZ area. Here we see that,
there are lower discrimination for salary & no discrimination for women.

Salary Discrimination
Percentage
Lower wage for women

No descrimination

50

Lower
Higher

37
5

12

Chapter-4: Recommendation and Conclusion

Recommendations
As the situations are changing so it can be expected by us that the present condition of our
Bicycle workers should be changed. Government of Bangladesh has to take each and every
proper initiative to make their present situation better.
There are three different parties who can do some good job for a little bit food for the Bicycle
workers and these three different parties are

The Government
The Employers and
The workers themselves

Here government has some duties to performs which are mentioned bellow

Build a monitory commission to evaluate the performance of the Bicycle

manufacturing organizations.
Make an institute for the Bicycle workers so that they can improve their skills.
Crete pressure on the Bicycle organization to make sure that they are following the
rule and regulations of the labor or industrial law of the country.
Provide tax discount on their income to make them lead a better life.
Ensure the industries that they are providing the standard working environment.
Make influenced the NGOs to be interested to work with the Bicycle workers to
improve their life style.
Provide the night schooling facilities to make the Bicycle workers educated which
will help to improve their life.
Make a specific area for the Bicycle factories and arrange some housing facility so
that they can live their life in a secure environment.
Re-arrange some special bus service for Bicycle workers which was practiced by
BRTC.
Regulate the law and make the law established and followed by the Bicycle
manufacturer organization.
Try to build up a good relationship between the employer and the worker of Bicycle
factories.

The fact is not that to improve the present scenario it is not that the only duty to perform by
the government and the employer. There are some specific duties which should be performed
by the workers themselves. Because they are the real force who can improve their situation.
It is for sure that nobody can help them to improve their situation until they help themselves
to improve their condition.
What are the duties that the Bicycle workers should perform to improve their present
scenario? Those duties or recommendations are given bellow

Build up some associations to make their present situation.

Encourage themselves to be cooperative minded and try to make some savings to
make future productive investment.

13

Build cooperative society to influence people to save some of their money for future.
Encourage themselves to work together and so also live together.
Try to make their child educated so that their children can get some better job and lead
a better life.
Be active and cheerful to improve their present situation.

The initiative which should be taken by the Bicycle factories of our country are mentioned
bellow

Not to over or under valued the capabilities of the workers.

Give fair chance of the workers in recruitments of new workers.
Give fair chance of the workers in the terms of sex disparity.
Provide the proper working environment so that workers can work properly.
Provide the clean and hygiene working environment.
Provide maternity leave to the lady workers with their basic salaries.
Provide job securities to theirs workers.
Provide after retirement facilities like pension, provident fund and so also.
Promotional and carrier improvement facilities so that it can make them motivated.
Opportunities to express free opinion and freedom in performing duties.
Opportunity to form a combined union which should be free from political influence.
Every factory should set a standard wage level for the employees and make sure to
follow that standard.
Pay the salaries and bonus to the employees on due time.
Fix the standard working hour for the employees and pay over time for extra work.
Training facility for the new workers so that they can improve their skills.
Pay the extra money for extra work with their basic salary in due time.
Arrange some recreation for the employees as a routine work.

Conclusions
In comparison the salary with the first world country the salary level of our workers are not
only poor but also horrible. This is a good reason that people are investing in our country, and
the main reason behind is the low labor cost. And it for sure that every people will try to make
the highest output from his \ her investments. But one thing should always remember that it
will not take huge amount (in compression of the investment of the employer) if the employer
try to provide some standard facility to their employees and it is sure that it will not hamper
their profit amount cause it will help to increase output.
Bicycle worker in Bangladesh are leading a very poor lives. Most of the Bicycle working
leading a life below the poverty line. It can be told about them that they are living hand to
mouth. Salary of Bicycle starts from only taka four hundreds and most of the cases its finish
in the amount taka fifteen thousand only. These are the very poor amount to survive in
current market where it takes taka twenty to purchase one kilogram rice.
The workers of Bicycle are same as us and there is no difference in between them and we
people. So people should be sympathetic about their problems and government of our country
should take proper initiatives to solve their problems so that they can live a moderate life. As
a citizen of this country these are their basic rights.

14

Reference
1.
2.
3.
4.
5.
6.

Outstanding guideline to our course instructor

Wikipedia and Banglapidia
Websites of related subject
Newspapers
Interview with industrial labors to get data and point of views
Collect information from Bangladesh bicycle Merchant Assembling & Importers
Association (bicycle.association@yahoo.com

7. http://www.lightcastlebd.com/blog/2015/10/market-insight-bicycle-industry
8. http://bdnews24.com/business/2015/03/23/businessmen-expect-sharp-rise-in-bicycleexports
9. http://www.bicyclebd.com/store/meghna-bangladesh-limited/
10. ndc.gov.bd/lib_mgmt/webroot/earticle/.../Bangladesh_labour_Law.pdf

15