ADR in resolving labour disputes

Bangladesh's economy is labour-intensive, where the contribution of workers is immense. To ensure sustainable development and stability in the industrial sector, it is crucial to maintain smooth labour-management. However, incidents of labour unrest have long-term negative impacts on the economy. Addressing the root causes of these issues and taking effective and timely measures are essential to overcoming this crisis. Alternative Dispute Resolution (ADR) is a promising approach to resolving such problems quickly and effectively.

Labour unrest in Bangladesh stems from multiple factors, including improper implementation of wage structures, delayed salary payments, political instability, international political influence, unresolved grievances, weak human resource (HR) practices, and an unfavourable working environment. In this context, ADR serves as an effective tool for the swift resolution of labour disputes.

ADR is a method of resolving disputes outside the court system. Due to its cost-effectiveness and time-saving nature, ADR is becoming increasingly popular.

The key components of ADR include:

Negotiation: Direct discussions between workers and employers to resolve issues. This is a simple, effective, and quick process.

Mediation: A third party facilitates discussions between both sides to establish a mutual agreement. A neutral mediator listens to both parties and provides a logical solution.

Arbitration: A neutral arbitrator hears both sides and makes a final decision, which is legally binding.

Conciliation: Complex issues are resolved through mutual discussions, fostering long-term solutions.

Negotiation and mediation are direct and effective ways to quickly resolve labour-management disputes. Arbitration and conciliation, while effective for complex disputes, can be time-consuming.

Stages of Labour Unrest and the Role of ADR

Labour unrest generally occurs in three stages, and ADR methods can be applied at each stage to solve the problem:

Primary Stage (Complaint and Resolution): Workers directly inform their supervisors, line leaders, section chiefs, and production managers about their grievances, which are usually related to wage discrepancies, working conditions, etc. If management provides a prompt and effective solution, the issue is resolved at this stage. Negotiation process can help reach a quick resolution. Additionally, resolving minor inconsistencies identified during inspections by the Department of Inspection for Factories and Establishments (DIFE) can prevent issues from escalating.

Secondary Stage (Discussion and Settlement): If the problem remains unresolved, it spreads among labour unions or larger groups of workers. Multiple departments express solidarity, leading to negotiations with management. At this stage, an ADR team can use the skilled and strategic mediation to provide a peaceful resolution. Timely intervention can prevent violence.

Final Stage (Conflict and Resistance): If initial and secondary resolution efforts fail, labour unrest may escalate into protests, strikes, and violence. Law enforcement intervention may become necessary, and in some cases, industrial establishments may shut down permanently, endangering workers' livelihoods. Conflict resolution specialists attempt to restore peace through mediation, and if unsuccessful, disputes are resolved through ADR or labour courts, which can be time-consuming and costly.

If minor grievances at industrial establishments are addressed with seriousness and resolved promptly through discussions, the risk of large-scale unrest decreases. The ADR process, particularly Negotiation and Mediation, helps establish a worker-friendly environment, which enhances productivity and stability in the industry.

Success of ADR in the garment industry:

ADR plays a crucial role in the garment industry. In 2018, several labour disputes related to wage issues were resolved efficiently through ADR methods. Such initiatives are vital in building trust among workers.

Future Prospects of ADR:

The ADR process can protect workers' rights while ensuring business stability for employers, thereby strengthening Bangladesh's competitive position in the global market.

Effective implementation of ADR:

Training and Awareness--providing ADR and conflict resolution training to employers, workers, and mid-level managers: Training programmes should include real case studies for effectiveness.

Government oversight: The Ministry of Labour and DIFE should ensure timely inspections, discussions, and mediation, appoint experts and introduce a digital reporting system to monitor labour unrest.

Legal Obligation: The government should amend labour laws to make the ADR process mandatory and implement activities through coordination between government and private organisations. If disputes are not resolved in the initial stage (worker-employer negotiation), ADR procedures should be explicitly incorporated into labour laws (Section 33 of the Labour Law), added to regulations, or included through a government directive as appropriate.

GRS Committee Oversight: Every industrial establishment has a Grievance Redress System (GRS) committee responsible for handling worker complaints. Labour ministry inspectors should oversee this committee's reports and resolve disputes through ADR. This ensures direct dialogue between workers and employers, reducing labour unrest and maintaining a peaceful working environment.

Research and Development: There should be research to evaluate and improve ADR's effectiveness.

The effective and timely implementation of ADR can reduce labour unrest. Mediation and negotiation in the primary and secondary stages can resolve most disputes. Coordinated efforts by the Ministry of Labour and relevant organisations, along with skilled ADR teams, can ensure industrial stability, which is crucial for economic growth.

Dr. Sohel Miah, PhD (Labour Unrest) is a labour relations specialist