CASE STUDY 4: POOR WAGE STRUCTURE

CASE BACKGROUND

In RMG sector, there was happened a great conflict between garments labors’ and garments’
owners’ in August’2010. More than 100 garment factories halted production in August’2010 as
workers continued riot for cancelling new wages, stoking concern about the industry’s future.The labour
trouble, which has continued to rock the country’s two apparel hubs outside the capital, left more than
50 people injured and police said workers smashed dozens of factories and several vehicles at Jamgora
in Ashulia.

Owners said they were forced to suspend operations for the day after thousands of workers went on
the rampage, vendalising plants, putting up barricades and damaged vehicles on the roads. In Fatullah,
workers clashed with police, which led to the suspension of several factories in the area as owners
feared further trouble.Workers of Pall-mall, Microfiber, Liberty, Mitsuwear and Cadtrex garment
factories, all located in the city’s Katherpul area, started demonstrating inside their factories. They tried
to come out of the factories, but the move was thwarted by armed police, deployed at factory gates.
Most of the garment factories remained closed for the time being. Additional police forces were
deployed in the area to avert any unwarranted situation.

Personnel from the elite force Rapid Action Battalion were also patrolling in the areas. The workers
also chanted slogans demanding immediate release of a union leader Manto Ghosh. The workers of
Sonargaon’s Sinha and Opex factories also brought out demonstrations inside their factories. Jibon Kanti
Sarker, chief of the Fatulla Model Police Station, said the police dispersed the agitators as they tried to
obstruct the traffic on the highway. Hundreds of workers also staged demonstration at Mirpur in the
capital but police cleared the street when workers assembled.

President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Abdus Salam
Murshedy said owners would be compelled to stay out of apparel business if the situation does not
improve in the industrial belts. “We need security for our investment. Such vandalisms will shatter the
image of the country and will force global retailers to change their destination,” he added. Meanwhile,
two cases were filed against 10,000 workers with Ashulia police station last night on charges of
vandalism and creating anarchy in the industrial hub. One filed by police and another one by general
manager of Shed fashion The government Thursday announced news wages for the country’s three
million apparel workers increasing their minimum monthly basic wages to 3,000 taka (43 dollars), up by
80.45 per cent from 1,662.50 (28 dollars).

The union leaders and workers have rejected the salary-structure and demanded of 5,000 taka as
minimum monthly wages with the effect from August 1 and warned of launching a nationwide
shutdown unless their demand was met.
ISSUES

INTEREST CONFLICT

1. That means Conflicts of interest result when one or more of the parties believe that in order to
satisfy his or her needs, the needs and interests of an opponent must be sacrificed. Interest-based
conflict will commonly be expressed in positional terms. A variety of interests and intentions underlie
and motivate positions in negotiation and must be addressed for maximized resolution. Interest-based
conflicts may occur over substantive issues (such as money, physical resources, time, etc.); procedural
issues (the way the dispute is to be resolved); and psychological issues (perceptions of trust, fairness,
desire for participation, respect, etc.).

2. INTER-GROUP CONFLICT

This confliction stage or level was inter-group conflict. That means inter-group conflict occurs
between two competing or distinct groups. Intergroup relations between two or more groups and their
respective members are often necessary to complete the work required to operate a business. Many
times, groups inter-relate to accomplish the organization’s goals and objectives, and conflict can occur.
Some conflict, called functional conflict, is considered positive, because it enhances performance and
identifies weaknesses. Dysfunctional conflict, however, is confrontation or interaction between groups
that harms the organization or hinders attainment of goals or objectives.

ANALYSIS - RESPONSIVE INTERVENTIONS

1. INTEGRATION OF INTEREST “Interest-Based Relational (IBR) Approach

Interest-based conflict is best resolved through the maximizing integration of the parties’ respective
interests, positive intentions and desired experiential outcomes. The Interest-Based Relational (IBR)
Approach resolution strategy respects individual differences while helping people avoid becoming too
entrenched in a fixed position.(Mooney2017).

2. In-house alternative dispute resolution (ADR) programs

It is crucial that the organization determines the needs of its stakeholders, the types of conflict that
occur, and the conflict culture (how conflict is dealt with) within the organization before initiating an
ADR program. Any program must allow for creativity, approachability, and flexibility if people are asked
to utilize it. All employees should be aware or involved in the establishment of an ADR program, if it is to
work properly.

Responsible measures to reduce barriers and encourage a true paradigm shift are training, incentives,
marketing, periodic review, case studies, and top management support and participation. Facilitators
trained in mediation and other forms of ADR are a necessary resource from outside or within the
organization. The workplace of the new millennium will have inhouse mediation or other conflict
management programs to reduce formal claims and act as a risk management business practice. (Nolan
-Haley 2013)

REFERENCES:

Mooney, Charles W. Jr., "Choice-of-law Rules for Secured Transactions: An InterestBased and Modern
Principles-Based Framework for Assessment" (2017)

Nolan-Haley, J. M. (2013). Alternative dispute resolution in a nutshell. St Paul (Minn.: West.)