HRM-410

HRM-410Final presentation on

OBJECTIVESThe Objective of our research is to analyze whether an organization follows certain laws or regulations from the Bangladesh Labor Act, 2006 or not.The implementation of certain labor acts in ACI ltd.To prescribe certain remedies that can be useful to get more efficiency in the organization.

MethodologyIn preparing the report we have maintained some steps. Which are given bellow-At first, we select ACI-LTD for making our report on implementationoftheBangladeshLaborAct-2006specially chapter 1, 15 and 19.We have prepared a questioner and conducted a personal interview from MR. Kaiser Rajib For primary researchWe have used the website of ACI ltd. along with some other research and reports that discussed about labor laws

Company backgroundICI Bangladesh Manufacturers Limited was a subsidiary of world renowned multinational ICI Plc. and was a listed public limited company under Dhaka Stock Exchange. In 1992 ICI Plc. divested its shareholding through a management buyout and the company name was changed from ICI Bangladesh Manufacturers Limited to Advanced Chemical Industries (ACI) Limited. ACI Formulations Limited, a subsidiary of ACI, became a public listed company through direct listing.ACI has diversified into four major strategic business divisions which include Health Care, Consumer Brands, Agribusinesses and Retail Chain.

Company Background (Cont.)Strategic Business Units:PharmaceuticalsConsumer Brands & Commodity ProductsAgribusinesses:Crop Care Public HealthAnimal HealthFertilizerCropexSeedsACI has the following subsidiariesACI Formulations Ltd.ACI AgrochemicalsApex Leather crafts LimitedACI Salt LimitedACI Pure Flour LimitedACI Foods LimitedPremiaflex Plastics LimitedCreative Communication LimitedACI Motors LimitedACI Logistics Limited

Labor acts that are coveredChapter : 1- Primary laws including definitions and commencements

Chapter : 15 workers participation in companies profit.

Chapter : 19- Penalty and procedures

Data Analysis and Findings

Chapter 1(BLA,2006 and 2013 amendment) (Section 1 and 2)Preliminary

Male female ratio is 75:25 Retirement age is 57Trade union is only visible in Pharmaceutical sectorNo chance of going slow as all the equipment used in production is automatic.Employee turnover rate is very rare and found the employees and workers very satisfied about the work and working condition.Gratuity is paid as per their work age.Employees and workers get festival as well as privilege leave as per as company policy and their requirement.Employee salary and workers wages are paid on 1st day of a month. Both workers and employee salaries are paid in their own bank account.They have housing arrangement for some of the worker.Provide insurance to workers and employee.Workers overtime limit 5 hours a day. They Provide two work shifts for their worker.

Chapter 15 (BLA,2006 and 2013 amendment)(Section 231-252)Workers Participation in Companies ProfitData Analysis and Findings

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Section 236: where any company or board of trustee fails to comply with the provisions of section 234, the government may, by an order in writing, require it to comply those provisions within such time as may be specified in the order. If fail to comply within the time specified therein, pay by way of penalty a sum which may extend to maximum one lac Taka and in the case of continuing failure, a further sum of which may extend to five thousand taka for every day. (BLA,2006)Section 241: The employees who have passed the initial 6 months probationary period are allowed to participate in that profit sharing. Section 242: Two third of the participatory fund (Tk 35,551,000) is distributed in equal proportion to all beneficiaries in cash. (According to ACI quarter report September 2014)Section 246: ACI exempts the income of the worker from income tax.

Chapter 19(BLA,2006 and 2013 amendment)(Section 283-316)offences, Penalties and Procedure Data Analysis and Findings

Section 284: The whole organization has a restriction on child labor. The candidates have to submit the National ID or any relevant documentation that proves that s/he is 18+.Section 286: ACI proves 4 months of maternity leave to its female workersSection 289: ACI has maintained the minimum wage level in the organization.Section 292: 5 year ago there was a little workers unrest in their pharmaceutical factory but was dissolved within a few hours. Till now no illegal lockout or this kind of incident took place in their organizationSection 297: If there are cases that went to the Labor Court and the worker is found fresh with no guilt then after the settlement the authority pays the basic payments of days

Section 303: Giving false statement of anything or information disclosure are taken care according to their level of damage and decisions are made according to that. In case of absence in working place without prior notice for 3 or more days which is a compliance as per BLA-2006, the authority asks for the reason and the company has to show cause. If the reasons are proper then they get consideration but if the information or documents are not satisfactory then the authority takes actions as per the labor law.Moreover, still there is no report on illegal strike or lock out, go-slow activity, misappropriation of provident funds or trade union funds, dual membership, obstruction, violation of dangerous consequence, if occur in future they will take action according to BLA, 2006.For any kind of illegal activities like theft or fraud in funds is taken care by the COC .

RecommendationEstablish worker fund according to section 234, BLA,2006ACI should establish medical center with registered practitioner in their factory site.ACI need to establish Board of Trustees as soon as possible according to section 235, or else they might have to pay fine according to section 236 of BLA, 2006. Strictly follow their workers working time as they dont have fixed working time in all the SBUs.

LimitationTime ConstrainDifficulty in managing appointment with HR manager of ACI.Some of the sophisticated data were not revealed properly.Data collection about labor union was not up to the mark as ACI has trade union only in their pharmaceutical sector.

ConclusionACI believe in empowerment and delegation. They practice modern HR Policies and procedures for Recruitment & Selection, Manpower Planning and succession planning. They use a combination of qualitative aspects and Balanced Score Card for performance appraisal.We found a little bit gaps between their commitment and the reality in different HR practice. We did not find out any major violations, but there were minor mismatches with the laws which might create problem in long run. But most of the time they are very concern about their HR issues very strictly and they follow the Bangladesh Labor Act-2006 and 2013 amendment in different issues regarding the HR.

Any Questions?

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