Hrm 380 Employee Final 03

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INTRODUCTION: This report has been prepared exclusively for learning purpose. It is documentary part of the project that was assigned to our under Industrial Laws & Relations course- HRM: 380. Garments sector is the biggest and fastest growing sector in Bangladesh. It is also the highest foreign currency earning sector in Bangladesh. Thats why we chose Chaity Garment Industry Ltd. which is one of the largest apparel industry and fastest growing garments industries in our country. There is a closely interdependent and an intra-sensitive relationship between employee and employer can be found among them. Chaity Garment Industry Ltd. within a short span of time, has proved its worth as a most forward-working vigorous organization achieving success with its wide international network and strong local base. In this competitive business environment Chaity Garment Industry Ltd. is doing a great job by maintaining a sound relationship between employee and employer. In this report we are giving the overview of Chaity Garment Industry Ltd.

Objective of the report:As we are the student of BBA so it is very important for us to have a good knowledge about business. By studying we can only gather the theoretical knowledge but we need more knowledge about practical. So, to acquire a practical knowledge about business, we are doing this report and also-

To get an idea on the employee and employer relationship practiced by the


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To know the system of shared responsibility of employers and employees for

working practices, conditions and other areas of working life.

METHOLODGY: The report is based on both primary and secondary data, mainly through: Primary: Interview with the Chaity Garment Industry Ltd. - Management Information Officer Secondary: The internet Annual report

Limitation of the report: In this short time it is hard to have all the information. So, for the lack of information our report had to be done basically on annul report and internet information. The company did not want to expose much information about the internal problems of the company. The website of Chaity Garment Industry Ltd. does not contain much information about the company. Page 2


Company Overview:

Chaity Garment Industry Ltd. started in the year 1993 in knit garments export, crossed over a long way and found us as one of the best knitwear manufacturer- exporter of Bangladesh. Chaity Garment already got the national trophy for the best exporter in 2005-2006.Chaity Garmentare certified with Oeko-Tex, ISO 9001-2000, SCR. The company had already made a brand identity for themselves in the RMG sector. The company is full of strategic planning supported by sophisticated machinery, latest technology, skilled workmanship, substantial marketing, proper discipline and consistent effort from all. Chaity Garment Industry Ltd. comprise the ultra modern plants related to garment industry, such as independent knitting, dyeing, sewing, finishing and packaging with sufficiently supportive backward linkage facilities. Mission:Chaity Garment Industry Ltd. is the pole star of their form maximization of production of quality life saving products and services strictly on ethical and moral standards at minimum costs to the society ensuring optimum benefits to the consumers, the shareholders and other stakeholders


Chaity Garment Industry Ltd is the conception of business germinated. From their vision we can see it as a meaning to the well being of the investors, stakeholders, employees and members of the society at large by creating new wealth in the form goods and services that can satisfy the wants of all of them without disturbing or damaging the socio-ecologicaleconomic balance of the Mother Earth and the process of human civilization leading to peaceful Co-existence of all the living beings. Page 3


STRATEGIC GOALS & OBJECTIVES: To strive hard to optimize profit through conduction of transparent business operations within the legal & Social framework with malice to none and justice for all in respective of gender disparity, caste, creed or religion or region. To increase productivity To create more jobs with minimum investments To be competitive in the internal as well external markets. To maximize export earning with minimum imported in-puts To reduce the income gap between top & bottom categories of employees To promote corporate social responsibilities (CSR) amongst all.

Personal profile of interviewerName: A.K.M Bashir Uzzaman Mailing Address: 173/A R#04, Mahammadia Housing Ltd. Mohammadpur, Dhaka-1207 NATIONALITY: BANGLADESHI Phone: 01912771766 E mail : [email protected] Educational Qualification: Masters Division: First class Major: Merchandising Page 4


Year of passing: 2004-2005 Institution: BGMEA Honors Division second class Major : Management Year of passing:2001-2002 Institution: BGMEA Higher Secondary School Certificate. (HSC) Board: Sylhet Division: First division Group: Commerce Year of passing: 1995 Institution: Sylhet M.C College Secondary School Certificate. (SSC) Board: Sylhet Division: First division Group: Commerce Year of passing: 1993 Institution: Sylhet Govt. Pilot High School. Job title: Management Information Officer Job location: 226,Singain road, Hemayetpur Savar, Dhaka. Job Summary:

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Oversees the activities of top management, Customers and Collaborates with the chief executive officer in establishing objectives, plans, and policies. Duties and Responsibilities: Supports operations and administration of Board by advising and informing Board members, interfacing between Board and staff, and supporting Board's evaluation of chief executive. Recommends prudently manage organization's resources within those budget guidelines according to current laws and regulations. Assures the organization and its mission, programs, products and services are consistently presented in strong, positive image to relevant stakeholders.

Definition of the parties involved in Employee and Employer relationship:

Employers: Employers possess certain rights vis--vis labors. They have the right to hire and fire them. Management can also affect workers interests by exercising their right to relocate, close or merge the factory or to introduce technological changes. Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions. Government: The Government influences and regulates industrial relations through laws, rules, agreements; it also includes third parties and labor and tribunal courts. Definition of the labor relationship according to scholars: Page 6


A contract of service, or employer-employee relationship, generally exists when aworker agrees to work for an employer, on a full-time or part-time basis, for a specified or indeterminate period of time, in return for wages or a salary. The employer has the right to decide where, when and how the work is to be done.

A contract for service, or business relationship, generally exists when a workeragrees to perform specific work for a payer in return for payment. The self-employed worker is not normally required to perform the services personally.

Objectives of Industrial Labor Relation: 1. To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production. 2. To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country. 3. To increase productivity to a higher level in an era of full employment by decreases the tendency to high turnover and frequency absenteeism. 4. To establish and nurse the growth of an Industrial Democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well. Importance of Industrial Labor Relations: The healthy industrial relations are keys to the progress. Their significance may be discussed as underPage 7


1. Uninterrupted production The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. 2. Reduction in Industrial Disputes Good industrial relation reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production. 3. High morale Good industrial relations improve the morale of the employees. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results. 4. Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employers authority. It will naturally have impact on production because they recognize the interest of each other.

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5. New Programs New programs for workers development are introduced in an atmosphere of peace such as training facilities, labor welfare facilities etc. It increases the efficiency of workers resulting in higher and better production at lower costs. 6. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.

Employee Employer relationship according to Bangladesh labor law 2006:***Unfair Labor Practices from the Part of the Employers Provisions of the new labor law: Section 195 of the new labor law, 2006 provides a list of conducts or activities, which Tantamount to unfair labor practices from the part of the employer. Following are the actions in brief: Imposition of any condition in a contract of employment seeking to restrain the right of a person to join a trade union or to continue her/his membership of a trade union. Refusal to employ or refusal to continue to employ on the ground that a person is, or is Not a member or officer of a trade union. Discrimination against any person in regard to any employment, promotion or condition of employment on the ground that such person is or is not the member or officer of trade union. Discharge or dismissal of any person on the ground that the person is or is not the member or officer of a specific trade union. Instigating or seeking a person to be the member of a particular trade union. Inducing a person to refrain from becoming, or to cease to be a member or officer of a Trade-union. Page 9


Compelling any officer of the CBA to sign a memorandum of settlement by intimidation or by coercion. Interfering with or in any way influence the balloting provided for the election of the CBA. Recruitment of new workman during the currency of a legal strike.

Unfair Labor Practices from the Part of the Workmen:

Provisions of the new labor law:

Section 196 of the new labor law deals with the provisions of unfair labour practices from the part of the labor. Following activities of the labor constitute the unfair labor practice from the part of the labor: Persuading a workman to join or refrain from joining a trade union during the working hours. Intimidating any person to become or refrain from becoming a member or officer of a trade union(TU). Inducing any person to become or refrain from becoming a member or officer of a trade union. Compelling or making any attempt to compel an employer to sign a memorandum of settlement by using intimidation. Determination of the Collective Bargaining Agent (CBA)

Provisions of the new labor law:

Section 202 of the new labor code deals with the provisions relating to the determination of Collective Bargaining Agents (CBA). The Law provides for the following procedure: 1. Where there is only one trade union, that trade union shall be taken as the Collective Page 10


Bargaining Agent (CBA) for that establishment 2. Where there are more than one trade union in an establishment , the Registrar shall take necessary steps to elect the Collective Bargaining Agent, upon the application of any of the trade unions having members of more than one third of the total workers employed in the establishment. 3. Upon the receipt of the application as above the Registrar shall, by notice in writing, Communicate to all the trade unions as to whether they would want to contest for the Secret ballot for their representation in the CBA or not - giving a time limit of fifteen day 4. If a trade union fails to indicate within the time specified in the notice, its desire to be a Contestant in the secret ballot, it shall be presumed that it shall not be a contestant in such A ballot/poll. 5. Every employee shall(a) On being so required by the Registrar, submit to the Registrar a list of all workers Employed in the establishment, excluding those whose period of employment in The establishment is less than three months or workers with records of Insubordination and negligence-to-duty. (b) Provide such facilities for verification of the list submitted by her/him as the Registrar may require. 6. On receipt of the list of workers from the employer, the Registrar shall send a copy of the list to each of the contesting trade unions and shall also affix a copy thereof in a Conspicuous place of her/his office and another copy of the list in a conspicuous place of the establishment.

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7. The Registrar shall make such amendments, alterations or modifications in the list of Workers submitted by the employer as may be required by any decision given by her/him On objections received under previous sub-section. 8. After amendments, alterations or modifications, if any, made under above sub-section or where no objections are received by the Registrar within the specified time, the Registrar shall prepare a list of workers employed in the establishment concerned and send copies thereof to the employer and the contesting trade unions at least four days prior to the date fixed for the poll. 9. The list prepared under the aforesaid sub-section shall be deemed to be the list of voters and every person whose name appears in the list shall be entitled to vote to elect the Collective Bargaining Agent. 10. Every employer shall provide for such facilities as are required by the Registrar to Conduct the poll. 11. For the purpose of holding the secret ballot to determine the CBA, the Registrar shall do the following: a. Fix a date and intimate the same to the contesting trade unions and the employer b. Set the sealed ballot boxes, which are sealed in presence of the representative of Each of the contesting trade unions if any one present c. Conduct the poll in the polling stations where the representative of the contesting Trade unions shall have the right to enter d. Count the votes in presence of the representative of the contesting trade unions if anybody is present. e. Declare the result and the name of the elected Collective Bargaining Agent.

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12.Where a registered trade union is declared as the Collective Bargaining Agent according to the above rules, no such application for the determination of the CBA shall be entertained within the subsequent two years.

The Right of the Collective Bargaining Agent:

Provisions of the new labor law:

The Collective Bargaining Agent in relation to an establishment or group of establishments shall be entitled toI. Undertake collective bargaining with the employer or the employers on matters connected with the employment, non employment or terms of employment. ii. Represent all or any of the workmen in any proceedings iii. Give notice of and declare a strike in accordance with provisions of the Law. iv. Nominate representatives of workmen on any committee, fund constituted as per the provisions of law or agreements. Functions of the Participation Committee:

Provisions of the new labor law:

The functions of the Participation Committee shall be to inculcate and develop a sense of belongingness and workers commitment and in particular: To endeavor to promote mutual trust, understanding and co operation between the employer and the workmen To ensure application of labor laws To foster a sense of discipline and to improve and maintain safety, occupational health and working condition To encourage vocational training, workers education, and family welfare training To adopt measures for improvement of welfare services for the workers and their Page 13


families. Implementation of the Recommendation of the Participation Committee:

Provisions of the new labor law:

The employer and the trade union shall take necessary steps to implement the specific recommendations of the Participation Committee within the time specified therein Should the employer or the trade union fail to implement the measures suggested by the Participation Committee, it shall forthwith communicate the matter to the respective committee and take every possible step to implement it as early as possible. Trade Unions: Provisions of the new labor law:

Special definition of worker for the purpose of industrial relation: For the purpose of the industrial relations the word worker means and includes every worker as defined under section 2(65), and any labour who is laid off, retrenched , discharged or dismissed or otherwise terminated for which an industrial dispute has been arisen. But it doesnt includeany security staff like guards and fire fighter or any confidential assistant etc. Trade union and freedom of associations:

Section 176 of the new labor code deals with the provisions related to trade union and freedom of association: Fundamentally to control the relation between workers and workers, Workers and employers or employers and employers, without distinction whatsoever, shall have the Page 14


right to establish and join the union of their choice subject to the constitution of the respective trade union Basically to control the relation between workers and workers, Workers and employers or employers and employers, without distinction whatsoever, shall have the right to establish and join the union of their choice subject to the constitution of the respective association The employers and the workmen shall have the right to form a federation of their trade Unions and they can also affiliate that federation with any international federation or confederation of trade unions

Strike and Lock Out:

Provisions of the new labor law: Section 211 of the new labor code deals with the provisions of the strike and lock-out in an industry and other establishments. The relevant procedure is as follows: 1. The party raising the industrial dispute, within a period of fifteen days of the receipt of the certificate of failure from the conciliator shall serve a written notice of Strike or lock out whatever is applicable, and the party also mention the date of commencement of the aforesaid strike or lock out within 7 to 14 days of serving such notice or the party raising the dispute may file a case to the labor court, on the matter 2. No such notice of strike shall be issued by the CBA unless a secret ballot is held in this behalf under the supervision of the Conciliator and three fourth of the members of the CBA opted for the strike 3. When the strike or Lock-out has already commenced, then any party can go to the Page 15


labor court for the settlement of dispute 4. The Government can stop any strike or lock-out if it continues up to a period of 30 days, provided the government can stop it before the expiry of the above period, if it believes that it is expedient for public interest. Labor Court:

Formation of court under the New Labor Law: Section 214 of the labor law 2006 deals with the formation of the Labor Court, as per that section, the labor court shall consist of a chairman and two members to advise him. But for the trial of any offence under section 215 or for the trial of any matter of chapter X and XII the court shall consist of the chairman only. S 214(3) A running District Judge or an Additional District Judge shall be appointed by the government as the chairman of the labour court. S 214(4) Members shall be the representatives of both the employers and workers respectively. S 214 (6) Jurisdiction Under the New Labor Law:

Following are the Jurisdiction of the Labor Court: To adjudicate and determine industrial dispute Enquire and adjudicate any matter relating to implementation or violation of any settlement referred by the government Try offences under this Act. Any others function conferred upon or assigned by the Labor law 2006 or by any other law. 45 Procedure of the Labor Court: Page 16


The Labor court shall follow the summary procedure of the code of Criminal procedure as described in chapter XXXV of the aforesaid Act and for this purpose the court shall be deemed to be a criminal court. The Labor court in trial of an offence shall be treated as a court of a Magistrate first class but in case of imposing penalty it shall have the jurisdiction of a Court of Session. S 215

Chaity Garment Industry Ltd.- Human resource management:Chaity Garment Industry Ltd. (the "Company") has one of the largest employers in Bangladesh. The total number of employees is 2,600. Human Resource Department has always been a very integral part of Chaity GarmentIndustry Apparels Ltd. Through this department, the organization opens up doors for potential employees to explore their capabilities and utilize in their required field. This is also a media through which employees get a chance to assess their qualification and orient themselves for further development. HR Department is designed in a way to add value to an employees position by enriching with duties and responsibilities aimed to add to the companys image and bring profitable business to the company. With the support of attractive and competitive Compensation packages, various facilities like free meals, free transportation , 24 hour medical center Chaity GarmentIndustry Apparels Ltd has built a dedicated workforce. Always ready to serve the organization with outmost priority and sincerity. The goal for Human Resource Department (HRD) is to increase staff capacity with proper gender balance (Equal Employment Opportunity) in quality and quantity. Without this mission of poverty eradication, sustainable development and most important sound relationship cannot be successful. Page 17


Chaity Garment Industry Ltd. Employee Employer Relationship:

The relationship between an employer and its employees is an important factor in the company's success. Employers will treat their employees with respect and visa versa if they all want to succeed and achieve goals. Some companies forget to focus on employee retention and appreciation, and then they lose productivity. Find out how you can improve employer and employee relationships and keep your team motivated for the long haul.The employer-employee relationship should not be looked at simply in economic terms. It is a significant human relationship of mutual dependency that has great impact on the people involved. With stakeholders everywhere, the relationship is laden with moral responsibilities. Most significantly The employer has a moral obligation to look out for the welfare of employees. It is not a question only of fair pay and good working conditions, there should be a real and enduring concern for employees. Companies should be loyal to workers as well as shareholders. Employees also have moral obligations, and they go beyond giving a full days work

for a full days pay. Loyalty goes both ways. Employees have moral duties to the organization, co-workers, and customers.

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Diagram: Relationship between employee & employer From the employer's point of view, industrial relations is about having the right to manage - the ability to plan for the future so that a company can continue to be a success, to make profits for its shareholders and to keep its employees motivated. From the employee's point of view, it is all about securing the best possible conditions and living standards for employees.

Chaity Garment Industry Ltd. emphasizes on the following things :

Determinants of Relationship



Disput e

Work Schedule

The work Environmen t

Grievanc e

Healthy & Safety

Hours of work

Productio n Target

Diagram: Determinants of EERPage 19


Employee Rights:

Employee Motivation Training : Seminars, workshops and courses to make the most out of staff. Customer Experience: Learn how to turn the organization into customer champions Performance Improvement: Sustainable results engaged people Experts in business transformation. Human Rights: Short course in Geneva on diplomacy and human rights. Workforce Management: Improve outcomes using integrated workforce management solutions. Real Team Building Events: A Unique Experience for Any Budget Groups Up to 500 People Training Materials: Customizable and Reproducible. Easy, Fast & Very affordable! HR PowerPoint Slides: Excellent PowerPoint Slides on HR Management and Personal Development Leadership Development: Join executive program to develop the leader.

Basic provisions in a written contract of employment : A written contract of employment specifies the terms of relationship between an employee and employer. Some companies use letters of offer. Whether a letter of offer or a written agreement, either document should include the following key terms: 1. Job specification- what does the job entails? 2. Employee's responsibilities- what are the tasks the employee is expected to carry out from day to day.

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3. Salary and fringe benefits 4. Duration of leave and leave bonus 5. Hours of work 6. Grounds for termination of employment 7. Promotion 8. Protection of trade secrets and ownership rights (this does not apply in all employment contracts, it depends on the nature of the company's business, usually applies in manufacturing and information technology companies) 9. Settlement of disputes-methods of resolving disputes

Employee Orientation:Employee orientation provides new employees with the basic background information about the organization, information they need to perform their job satisfactorily. Orientation is actually one component of the employers new employee socialization process. Socialization is the ongoing process of instigating in all employees the prevailing attitudes, standards, values, and patterns of behavior that are expected by the organization and its departments. The new employees initial orientation helps him or her to perform better by providing needed information about company rules and practices. It can also help to reduce the new employees reality shock he or she might otherwise experience.

Chaity Garment Industry Ltd.Disciplinary Action:


Warning 1st

Warning 2nd

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Written warning

Diagram: Disciplinary action without punishment Chaity Garment Industry Ltd. Incentives & Benefits: Pay-for-Performance and Financial Incentives:

Pay-for-performance, which is incentive basis payment, is recognized as constant rewards to employees so that they continue contributing the organization ensuring there best efforts. There are worldwide traditional customs of rewarding employees of different level of the organizational hierarchy with different payment plans, which is directly related to the seniority, significance of their positions and responsibilities as well as their degree of performance. It is based on three assumptions. First, individual employees as well as work teams differ in their contributions to the firm not only in what they do, but also in how well they do it. Second, Firms overall performance depends to a large degree on the performance of individuals and groups within the firm. Finally, it is there to attract, retain and motivate performance and to be fair to all employees. The fixed salary plan is based on a significant assumption, which is very much related to human psychology. People always seek security in terms of financial as well as social Page 22


factors. To reduce this stress, a minimum fixed salary must be there to ensure his financial security. Once, this tension is tranquilized, the person receives a better intensive to concentrate more on work. In addition to this, theoretically, there are other pay-forperformance plans like merit pay, bonus and award and piece rate system. 1. Merit pay: It is a periodical increment in salary to recognize long-term dedication of an employee to his/her job with the same organization. It is not directly related to extraordinary performance but to continuation quality (standard) service. 2. Bonuses: It is a one-time lump sum payment that may be related to extraordinary performance or may be based on cultural tradition or festival purpose (such as, Eid for Muslims). 3. Reward: Which is also recognition of outstanding quality of service but not in terms of direct monetary payment. It can be certificates or subsidized holiday travel arrangement, which is not otherwise un-cashable. However, piece rate payment scheme is not necessary here to be defined in our consideration.

Advantages:The advantage is that, as the salary and advancement (promotional) policies are clearly mentioned in each employees contract or recruitment (or promotion) letter beforehand, an employee gets to know about the whole salary system. S/he can easily predict what his/her salary is going to be at any given time. So theres no chance for him/her to have dissatisfaction, as far as the salarys concerned. At least, Ajis HR management believes so.

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Disadvantages:From Chaity GarmentHR managements perspective, no such disadvantage of their pay plans were identified as yet that might radically damage their employees motivation and loyalty. However, from my point of view, a question of discrimination still remains in case of their differential pay plans for officers. Also, as there is no team based compensation plan, they may lack in teamwork motivation in some departments, like marketing or operations, where teamwork is extremely important.

Organization wide plans:In present international HR context, several organization wide compensation plans are exercised worldwide, such as Employee Stock Ownership Plan (ESOP), profit sharing, gain sharing, etc. Among them, Chaity Garmentfollows the profit sharing and gain sharing plan. Profit Sharing:

Under profit sharing plan, a firm distributes a certain proportion of its corporate profit among its employees. In Aji, employees share a portion of the firms annual profit equally after the firm meets all other claims of equity owners. Employees receive the profit through an employee welfare trust. Gain Sharing:

Gain sharing is such a package under which the cost that is collectively or individually saved by the employees on firms account is distributed among the employees. Chaity Garmenthas a limited gain sharing package and they do not actually want to include it under compensation package. The amount of cost saved individually gets to be calculated on individual basis, and it gets referred to the performance appraisal as individual contribution to the firm. Thus, the person wins an opportunity to receive a special bonus reward. In case of collective cost saving, the saved cost is accumulated in the employee welfare fund and is distributed among the workers. Page 24


Benefits and Services:Chaity Garmentoffers a good number of benefits and services to its employees. They are as follows Supplement pay benefits: Vacations, holidays and leaves under various considerations Retirement Benefits Provident fund Gratuity Job Related Benefits: Food Services Subsidized employee transportation Medical Facilities and hospitalization. Miscellaneous

These provisions and characteristics are elaborately described below.

Vacations and Holidays:Every company has arrangement for providing its employees with vacations an holidays, but this arrangement differs from company to company in terms of the number of days an employee is eligible to take leaves. In Chaity Garmentthe vacation and holidays primarily fall under three categories. These are medical leave (sick leave), causal leave, and earned leave. An employee is eligible to take 10 days off as medical leave, and the same goes for casual leaves. Also, an employee is able to get up to 30 days of earned leave. These are all paid leaves.

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Chaity GarmentApprales Industry Ltd.has arrangement for maternity leaves for its female employees. A female employee can take two months off as maternity leave. Apart from these, the regular weekends (which add up to 51/52 per year) and other 21 government-declared holidays in a year also apply to Chaity Garment Industry Ltd. employees as in other companies. Yet, when an employee has used up the provisions for all these leaves and still wants to farther days off, he has to apply to the management and get their approval. If s/he can show authentic reasons behind the leave to be taken, it falls under Special consideration from management; if not, then s/he gets a leave without pay.

Provident Fund (PF):

Provident fund is a benefit that company provides to its employees after a certain period of time. In such benefit company saves specific percentage of its employees salary in a fund (which is called employees contribution) and the same amount is added to it after a certain period of time (for example 3 or 5 years) from the employer (which is called employers contribution). Chaity GarmentApprales Industry Ltd. also provides such benefit to its employees. To provide this the firm keeps back 10% of employees salary. If the employee quits before 3 years s/he gets only the employees contribution. If s/he quits working after 3 years but before 5 years, they s/he get only the 50% of the employers contribution. After 5 year s/he receives the whole of both contributions. The funds are invested in FDRs or security bonds. The interest or profit earned from that investment is also added to the fund. Here also, employees can take loan up to 90%, and the advantage is that they dont have to pay any interest for that loans.

Gratuity:Page 26


Gratuity is another HR tool to harness long term employee loyalty and motivation that is practiced worldwide. Under this benefit plan, a firm offers its employees a lump sum on time payment after working for a certain period of time. Usually, the amount is determined by multiplying the last months basic salary with a multiplier which is predefined in the firms benefit policy. The real scenario in Chaity Garmentis they activate the gratuity after 5 years of service. Once five years are completed, an employee deserves one months basic salary for each additional year worked with the firm. Thus, the multiplier in Chaity Garmentis the number of additional years worked after first five years.

Food Services:Chaity Garmentoffers subsidized lunch and breakfast facilities for its employees. In its cafeteria workers can take their breakfast for Tk.7 as well as lunch for Tk.12. Similar package is also available for staffs and mid level employees. However, it costs them a little higher, Tk.10. Again, during Ramadan, employees are treated with free Iftar.

Subsidized Employee Transportation:There are subsidized employee transportation facilities in Aji, although workers and lower level employees have to manage transportation on their own. Chaity Garmentprovides its top level managers with full time car. Also there are pickup car pooling arrangements for staffs and entry level employees.

Medical Benefit:Chaity Garmenthas outdoor medical service arrangements for their employees from where employees can get medical care at company cost in case of physical injuries during work.

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And, if any exceptionally severe accident takes place, the company bears the full cost of medical treatment.

Miscellaneous:Chaity Garmentprovides its workers with two sets of uniforms (summer and winter uniforms). In rainy season, they give umbrellas to the workers. Some other insignificant incentives are also there. Today, most of the firms provide various insurance benefits to their employees, such as life insurance, health insurance, disability insurance, etc. But, Chaity Garment Industry Ltd. does not have any such specific package. They only provide the medical facilities and bear any necessary external treatment cost as mentioned earlier. About pension plans, they follow the industry custom that private organizations mostly do not offer pensions. Also, there is no provision for severance payment in case of termination.

Recommendations: The relationship between an employer and its employees is an important factor in

the company's success. Employers will treat their employees with respect and visa versa if they all want to succeed and achieve goals. Some companies forget to focus on employee retention and appreciation, and then they lose productivity. Find out how we can improve employer and employee relationships and keep our team motivated for the long haul. Motivate employees by giving them incentives within the workplace. Treat all of employees equally and give them all the chance to win a free trip, a free dinner or tickets to the next theatre production. Reward your employees for their improved hard work.

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Spend time with employees. Many bosses and owners forget the 'little people' that make it all happen. Sit down and talk with each one of employees when have time and ask if they are happy with their jobs and what improvements they think the company should make. Plan a team building event and ask all employees to attend including upper, middle and lower management. Get everyone together as a team and allow them to undergo various team building and trust creating activities. Ask managers to work closely with their teams and to support any issues that come up, or mistakes that might occur. Get everyone working together on finding a solution that everyone agrees on. If there is a problem and ask everyone to work on it to find the answer.


The world market for ready made garments is an open market and Chaity Garment Industry Ltd. can exploit their internal strengths/opportunities to increase their profitability and at the same time can contribute more to the export income of Bangladesh. If the organization can solve some of their internal problems they can easily maintain their top position in textile industry. This report involves providing forms for employees to fill up and then analyzing those forms while appraising the employee in front of them. This enhances transparency and improves worker morale.


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EMPLOYEE & EMPLOYER RELATIONSHIP(EER) Book: Bangladesh labor law 2006

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