Impact of Industrial Disputes on Readymade Garments Industry in Bangladesh

Abstract

This thesis examines and analyzes the causes of industrial disputes and their influence on the readymade garment sector of Bangladesh. The readymade garment industry is Bangladesh's most significant export earner and has a fixed place in the country's economy. The mark "Made in Bangladesh" is a source of pride and prestige for the nation. The industry is undergoing a quiet revolution, making a significant contribution to the economy by creating large jobs, increasing export earnings, boosting national GDP, eliminating child labor, reducing child marriage, and empowering women. The research reveals the causes and repercussions of labor disputes in Bangladesh's readymade garment sector. The study's aims were met using a mixed research strategy that included quantitative and qualitative data analysis. Inferential and descriptive statistical approaches were employed to analyze quantitative data, while narrative analysis was utilized to examine qualitative data. Six hundred (600) employees were contacted to fill out the structured questionnaire using a Structural Equation Modeling (SEM) model. For gathering information from executives, the researcher utilized in-depth interviews. A survey approach was used to acquire data from employees who are the most important members of an industry. Twenty-two (22) randomly chosen BGMEA-BKMEA members and DSE listed garment manufacturers in Dhaka, Gazipur, Savar, Narayangonj, and Chittagong received questionnaires. After discarding faulty, partial, and unanswered questionnaires, 485 were received, with 475 completed for analysis, resulting in an overall response rate of 80.83 percent for the research. For data to be considered reliable, Cronbach's alpha should be larger than 0.70. (Nunnally, 1978). FC .833, SCC .829, PC .789, EC .839, TC .742, and CC .840, form of disputes .847, effect of industrial disputes FI .847, SI .798, PI .742, and MI .819. Cronbach's Alpha of causes of industrial disputes like FC .833, SCC .829, PC .789, EC .839, TC .742, and CC .840. Meaning that the data gathered from primary sources is accurate and relevant to all of the constructs studied in this research. A two-step model analysis approach using SEM analysis has been considered. Each of the latent components was evaluated using several observed items in order to examine measurement errors. This research employed SmartPLS 3.0 to conduct confirmatory factor analysis and discovered that all of the items loading (46 items) is more than .70, with the exception of worker discharge (.662), indicating that the items fully reflect the factors (11 factors) (Table 5.8, 5.9 and 5.10). In exploratory research, composite reliability (CR) is defined as values between 0.60 and 0.70, and 0.70 to 0.90 in more advanced stages of research (Nunnally and Bernstein, 1994); values below 0.60 suggest a lack of dependability. In this study, the composite reliability of each construct ranges from 0.885 to 0.964 (Table 5.13), with a threshold value of higher than 0.70. These findings showed that the objects used to symbolize the structures are internally consistent. Average Variance Extracted (AVE) with a threshold value of 0.50 should be used to verify convergent validity (Ringle & Sarstedt, 2011). FC .600, SCC .591, PC .616, EC .756, TC .661, CC .613, FOD .674, FI .619, SI .623, PI .658, and MI .649. The HTMT ratio should be smaller than 0.85 for discriminant validity (Henseler et al., 2015). All of the HTMT ratios (Table 5.15) are smaller than.85, which is extremely significant for the research. The optimal SRMR value for the quality of model fit is less than 0.08 or 0.10, but the ideal NFI value is more than 0.90. (Hair et al., 2014). The investigation found that the SRMR was .076, and the NFI was .933 (Table 5.17), indicating that the model fit was sufficient. The reliability and validity tests of the measurement model pass, showing that the items used to measure constructs in this dissertation are valid and appropriate for estimating parameters in the structural model. There are twenty-one (21) direct hypotheses in this study. Twenty direct hypotheses (H1 to H19, H21) were supported because the p-value was 0.000 and tvalue was more than 1.96, but one direct hypothesis (H20) was not supported since the pvalue was 0.078 and t-value was less than 1.96 (Table 5.12 and 5.18) at the 0.01 level of significance. As a result, causes of industrial disputes (COD) have a direct favorable influence on Bangladesh's readymade garment industry's actual performance (FI, SI, PI, MI) (H1 to H4). Causes of industrial disputes (COD) have spawned forms of conflict such as general strikes, hunger strikes, sit-down strikes, lockouts, and picketing (H9 to H14). Furthermore, these types of disagreements (FOD) seriously impede Bangladesh's RMG industry's success (H5 to H8). However, the performance of Bangladesh's RMG sector has not been directly affected by causes of industrial disputes (COD) (H20). Though with proper mediation roles (FOD), causes of disagreements (COD) directly hinder Bangladesh's readymade garments industry's performance (H22). The present research employed Smart PLS (Ringle et al., 2015) to investigate the influence of forms of disputes (FOD) as a mediator and analyze the t-value using a bootstrapping technique. The results of the mediation analysis are shown in a case with a t-value larger than 1.96. As a consequence, FOD has a substantial mediation effect. As a result, FOD works as a link between COD and imp RMG. At the 0.01 significance level, hypothesis H22 is supported (Table 5.20). The researcher determines the descriptive results from the in-depth interview after assessing the qualitative data and giving relevant concepts and propositions. These ideas and propositions are researched and created using a literature study to identify diverse perspectives on the influence of industrial conflicts on Bangladesh's RMG sector. In the example of the effect of industrial conflicts on Bangladesh's RMG sector, the data were analyzed on a scale, and four kinds of results were discovered: Strong influence, Moderate influence, Weak influence, and No influence. The research concluded that there is some practical knowledge concerning labor-management conflicts in the RMG industry. Financial factors have a direct positive association with (FI, PI, MI, and SI) or organizational performance; according to the results, therefore, employees' legal minimum salaries should be protected. The RMG sector should adhere to the government-mandated minimum pay rates. Workers' pay should be paid as soon as feasible following the end of the month, according to the management of the garment factory. In addition, management should pay more attention to prompt payment of overtime, bonuses, and other financial rewards to employees. To avoid industry conflicts, RMG owners should pay close attention to the welfare, safety, and health of their employees. By making good use of works committees, joint consultation, and other measures, employees' contributions to the management of industrial issues should be emphasized. This should enhance managementworker communication, reduce industrial conflict, increase productivity, and increase effectiveness. Furthermore, the administration should follow through on the compensation agreements with NGOs and civil society. A friendly political environment is required to decrease conflicts and preserve a trade-friendly climate. As a result, the government and relevant legislative bodies must implement investment-friendly fiscal and monetary policies in order to reduce conflicts and enhance working conditions in Bangladesh's readymade garment sector.