dCollective Bargaining Agent (CBA)

The formation and functions of Collective Bargaining Agent (CBA) come under the purview of
the Bangladesh Labour Act, 2006 (hereinafter referred to as "BLA 2006") and the Bangladesh
Labour Rules, 2015 (hereinafter referred to as "BLR 2015"). The right to collective bargain is
considered as a fundamental right of the workers. By virtue of section 2(52) of the BLA, 2006 a
CBA is essentially a trade union of an establishment, which acts as the agent of the workers for
collective bargaining with the management in such establishment. In case if there is already a
trade union, the said union will automatically be considered as the CBA of your establishment.
For an establishment having more than one trade unions, the unions shall, by way of nominating
an election commissioner amongst themselves, initiate steps for election of the CBA. If the same
is not the case, the Director General of Labour Department shall, upon application being made in
this regard by the trade union or by the employer, hold a secret ballot, within a period of 120
days from the date of receipt of the said application, in order to determine as to which trade
union shall be the CBA for the establishment.
A CBA's tenure is for 2 years in case of an establishment. Upon formation of the CBA as
aforesaid, it shall be entitled to perform the following functions under section 202(24) of the
BLA, 2006:
a. bargaining with the employer in matters of the state of joblessness, conditions of work or
environment of work of the workers;
b. representing all or any of the workers in any proceeding;
c. giving notice, and declaring, a strike in accordance, with the provisions of the BLA, 2006;
d. nominating representatives of the workers in any welfare institution or provident fund and in
the board of trustees of the workers' participation fund; and
e. conducting litigation on behalf of any individual worker or a group of workers subject to their
approval.
Further, an employer or a CBA can opt to take assistance from a specialist in order to perform
the respective activities.

Working process of CBA: It is common for any CBA to issue a 'charter of demand' to the
management demanding certain rights, privileges and benefits in terms of their working
conditions. Once a charter of demand is produced by the CBA, the management and the CBA,
need to go through certain consecutive and clearly defined processes in order to reach a
settlement. The process starts with mutual discussion and if the same is not settled then the
matter is attempted to be resolved through conciliation. In case if the conciliation also fails, the
matter is solved either through arbitration or through the labour court proceedings. Resolution of
industrial dispute through the above stages is a crucially important task for both the management
and the CBA for ensuring the continuity of smooth and healthy operation of the organisation.
The leaderships of both the CBA and the management of the organisation require high degree of
professionalism, prudence, sense of relevance, mutual respect, openness, consideration about the
overall and holistic betterments of the organisation, negotiation skill, legal knowledge,
understanding of good market practices etc. in order to successfully end an industrial dispute.
Once a CBA is formed, it shall arrange for training sessions for the executive committee
members of the CBA and the management for better understanding of their respective roles and
duties. 
 Pertinently, the employer shall be required to allot an office room for the elected CBA in
accordance with the establishment's infrastructure. Moreover, the room shall be in conformity
with ventilation system and there shall be facility for workers to move conveniently in and
outside the establishment. Moreover, the employer shall provide required number of office
chairs, tables, cabinets, power supply, electric ceiling fans, lights, notice boards, etc. in the office
room of CBA. It is imperative to mention that upon requests of the CBA, the employer shall
deduct from the wages of the workers who are workers of the establishment and also part of that
CBA union, such amount for the purpose of subscriptions to the fund of CBA union with the
approval of every individual worker named in the demand statement furnished by CBA and shall
keep the sum so deducted separately. Even members outside the CBA union can pay
subscriptions by receipts. In this regard, the employer shall deposit the deducted sum as stated in
the account of the CBA union concerned within next 15 days from the date of deduction.
Although the law is silent on how this money shall be used, but it can be safely stated that this
subscription money may be utilised by the CBA for covering their administrative, management
and operational costs.

Principles of Collective Bargaining:

For management
▪ Should think of realistic principles and policies for labour regulations.

▪ The recognitions of a trade union to represent the problems is more essential. If

there are more than one union, the management can recognize on which is having
the support of majority of workers.
▪ Management should follow a policy of goodwill, and cooperation in collective
bargaining rather than an indifferent attitude towards the union.
▪ Managements need not wait for trade union to represent their grievances for
settlement.
▪ Management can voluntarily take measures to settle the grievances. Managements
should give due consideration to social and economic conditions of workers in
collective bargaining.

For unions
▪
▪ Unions should avoid undemocratic practices.
▪ Unions have to recognize their duties to the management also before emphasizing
their demands.
▪ Unions have to consider the benefits to all workers rather than a section of workers.
▪ Strike lock-outs should be resorted to, only as a last measure. As far as possible
they have to be avoided by compromise and discussion.
▪ The success of collective bargaining is based on certain principles.
 These principles are to be followed by the employers and unions.
Prof. Arnold. F. Campo has laid down certain principles for union and management, for
management and for union. For both union and management Collective bargaining process
should give due consideration to hear the problems on both sides. This will develop mutual
understanding of a problem which is more important for arriving at the solutions.
▪

▪ Both the management and union should analyze the alternatives to arrive at the best
solution.
▪ There must be mutual respect on both the parties. The management should respect
the unions and the unions should recognize the importance of management.
▪ Both the union and management must have good faith and confidence in discussion
and arriving at a solution.
▪ Collective bargaining required effective leadership on both sides, on the union side
and management side to moderate discussions and create confidence.
▪ In collective bargaining both the union and management should observe the laws
and regulations in practice in arriving at a solution.
▪ In all negotiations, the labour should be given due consideration – in wage fixation,
in working conditions, bonus etc.