Comparative HRM and Employee Relations in India and Bangladesh

This essay analyzes the HRM practices and employee relations in India and Bangladesh, focusing on the exploitation of low-cost labor by multinational enterprises. It examines the impact of globalization and the need for development to protect the rights of vulnerable employees. The essay also discusses the violations of labor laws in the textile and garment industry and the issue of child labor. Overall, it highlights the importance of ethical employee relations and the need for fair treatment of workers.

INTERNATIONAL AD
COMPARATIVE HRM AND ER

Introduction
This essay analysis the critical viewpoint with the help of government facts, reports, and
statistics. This essay examines HRM practises and the employee relation in two developing
countries India and Bangladesh. These developing countries have been selected because
developed economies generally contact for its low cost availability, which can become
competitive advantage for the multinational company. This essay highlights relations
between the local employees and the foreign employees (Amin, Diamond, Naved, & Newby,
2018). This scrutinizes the implemented policies in order to protect the interest of low cost
labour because they are mostly exploited at huge level. This will illustrate and review the
examples of multinational enterprises (MNEs) in the eye of several HR practises and
employee relations by comparing both employee situation among main branch and the
subsidiaries. This analysis will not cover the aspects of implementing policies on the part of
the company but also impact of foreign employees (Amin, Diamond, Naved, & Newby,
2018). There is a great impact on employee relations and HRM (human resource
management) in relation to the multinational companys. With the increase in competition,
liberalisation, and globalisation, there is a broad agreement where MNEs uses resources of
the foreign country in order to earn greater profits. In the light of huge profits, it is seen that
MNEs drives globalisation as the main ingredient, which have negative as well as positive
impact on society. MNEs claims FDI so that it can bring more technology, assist to improve
the living standards, more employment opportunities in order to create civilised world (Amin,
Diamond, Naved, & Newby, 2018). This essay brings out several findings, which includes
need for the development in order to reduce the employment of the foreign employees and
finally refine them in such a way to target vulnerable local as well as overseas employees
with the required labour regulations (Hesketh, Gamlin, Ong, & Camacho, 2012).

Employee relation in India and Bangladesh
Employee relations indicates the endeavours, which led to accomplish the associations
amongst the employees and employers. Ethical employee relations remain a competitive
benefit for the company as it provides reasonable and fair treatment to every employee
(Hesketh, Gamlin, Ong, & Camacho, 2012). This constructive atmosphere leads to
commitment and loyalty towards effort. With the varying framework due to increasing
liberalisation, competitiveness, and globalisation, human is no more workers rather they are
more on assets to an company Sasse, Bröckelmann, Goergen, Plütschow, Müller, Kreissl, &
Diehl, 2017). In today`s era, it is seen that Human resource management procedures include
workforce planning, commitment, placement, trustworthiness, employee commitment,
performance management, motivation, leadership, benefits, reimbursement, change strategy,
controlling authorities, diversity management, elasticity, talent management, rewards system,
performance system, relationships with the labour, communication and so on. This signifies
that some of the elements are closely related to employee relatives (Hesketh, Gamlin, Ong, &
Camacho, 2012).
Multinational enterprises (MNEs) are well known for bringing low cost labour in order to
reduce their total cost of recruiting. It is observed that MNEs hiring labour from India and
Bangladesh are exploiting them and violating new rules and regulations. These employees
work in poor conditions with low pay (Amin, Diamond, Naved, & Newby, 2018). There are
many opposing cases being reported in the name of several MNEs such as abusing and
harassment of female employees at the workplace and enforcing them to perform sexual
actions to get any further favour (Hesketh, Gamlin, Ong, & Camacho, 2012). Even after
regulating the laws on the necessity and mandatory basis in India and Bangladesh, textile, and
garment industry are continuously breaching the laws. Bangladesh immigrants often cause

issues among the parents for the safety of the daughters and the wives (Hesketh, Gamlin,
Ong, & Camacho, 2012).
MNEs (multinational enterprises) is elaborated with the controlling power of the production
in more than two countries. Its facilities where the employees should have access and work
comfortability (Gunsteren, 2018). However, it has been observed MNEs do not comply with
the mandatory rules made and they exploit the employees and labours at huge extend. Some
of the instances of devastating MNEs have adverse effect on the developing countries. Nike
has poor working conditions in Vietnam, exploitation of children in the India and Bangladesh
especially in the Nike factories (Gunsteren, 2018). Another example is the environmental
degradation, which is caused by the shell oil in Nigeria (Epstein, Zelefsky, Sjoberg, Nelson,
Egevad, Galluzzi, & Eastham, 2016). While discussing the issue of the child labour in
relation to employee working condition is extremely poor (Hesketh, Gamlin, Ong, &
Camacho, 2012). Case of northeast states especially Jharkhand is quite common where
cosmetic MNEs such as L’Oreal, Mac, Maybelline, and lakme who uses MICA in their
products are extracted from the mines in Jharkhand (Epstein, Zelefsky, Sjoberg, Nelson,
Egevad, Galluzzi, & Eastham, 2016). Mica is extremely harmful for skin as well as health of
the children. Mica is widely used in Makeup as it is a mineral glimmer (Hesketh, Gamlin,
Ong, & Camacho, 2012). It is seen that India holds an strong monopoly nearly 60 percent of
the production of Mica is derived from Jharkhand and Bihar which further account to the
contribution of 25 percent of the global mica production because this area greatly suffer from
poverty (Epstein, Zelefsky, Sjoberg, Nelson, Egevad, Galluzzi, & Eastham, 2016). There are
other more industries such as Estée Lauder, MAC, Rimmel, Bobbi Brown, Clinique, Too
Faced, Schwartzkopf, Intercos, Sun Chemicals, Tesco, Asda, BMW, Vauxhall, and Audi.
Children in these states do mining, as it is their source to earn their livelihood, which means
slavery by the MNEs can easily enter in their supply chain. Most importantly, L’Oreal, which

is considered as notable second largest cosmetic company, is among the company, who
undertakes child labour for its products (Epstein, Zelefsky, Sjoberg, Nelson, Egevad,
Galluzzi, & Eastham, 2016). Before understanding the breakdown or breaches of these labour
laws, it is seen that Bangladesh labour Act in 2006 has to be reviewed for both local as well
the foreign workers. The act sees the contractor where workers are treated as the employer
where it is liable for the violations of the laws (Haque, & Azmat, 2015). This act signifies
that there are number of protections, which are related to the minimum wage rate system,
working hours, compensation related benefits, wages manipulation, welfare environment, and
healthcare safety. It is seen that Bangladesh’s economy has been improving with the increase
in the engagement of people in the apparel industry. This success has deteriorated the lives of
the people, it is observed that Bangladesh has been paying extremely less to the people who
are working in the garment industry. Apart from this, it has been exploiting female workers
who already suffer from physical issues because of their low worth and status in the industry
(Haque, & Azmat, 2015). According to the wage rate structure, it is seen that at the entry
level, a labour should be paid near to US$ 95 per month. Other more factories pay US$68.
After the surveillance of all the economies, it is observed that it is among the lowest paying
country to its workers. Recently, Bangladesh has emerged as one of the largest exporter of
the garment apparels around the globe after earning US$27 billion each year and it started
exporting to the US and EU (Backer, 2016). It is seen that child labour is one of the strongest
factor while viewing the success of the sector in Bangladesh (Blyth, Mladenovic, Nardi,
Ekbia, & Su, 2016). With the awakening of the working and laborious class, it is understood
that low wages might not be tolerated for very long time (Haque, & Azmat, 2015). After
going through the manufacturing of the garments, it is seen that 12 percent of the revenue is
relying on the wages it pays which takes the strict actions (Naved, Mamun, Parvin, Willan,
Gibbs, Yu, & Jewkes, 2018). As per the action of Bangladesh, labour act, 2006 has stated that

several unfair practises which should not be considered and practised in the factories. An
interview was conducted in the capital city where there were various abusive practises, which
are under the laws. It is seen that the females face various threats and harassments in regards
to sexuality (Backer, 2016).
On the other hand, while accounting the labour exploitation in regards to overseas fraudulent
recruitment agencies are discussed with a broader approach. It is believed that human labour
and exploitation is extensive in Bangladesh especially Maldives, Thailand, Europe, Malaysia,
and the Persian Gulf (Backer, 2016). Many Bangladeshis people are recruited for the
overseas work in regards to fraudulent promises for their employment but in future to such
situation where they are exploited on greater rate (Backer, 2016). Although, it is seen that the
working conditions have improved with the implication of protection of labour rights for
protection. As an outcome, with the economic growth, there are several employment
opportunities but they are still at the low wages with dangerous working conditions (Koh, &
Shah, 2018). Labour exploitation has undertaken many types in Bangladesh such as
underpayment, excessive hours for working, abusive conditions for working, verbal abuse
and physical abuse. Some cases lead to exploitation in regards to human trafficking (Koh, &
Shah, 2018). For instance- victims of internal transferring that is found for Brick construction
industry, garment industry, and fishing industry in the Bangladesh (Haque, & Azmat, 2015).
In some of the cases, children are even sold especially girls in order to pay debt bondage by
the parents where other are induced through physical coercion and fraud (Lattemann,
Fetscherin, Alon, Li, & Schneider, 2019). It is seen that on 13 April 2013, the globe has
witnessed industrial spill overs where construction of Rana Plaza where the building
construction lead to killing of 1134 employees and numerous injured (Koh, & Shah, 2018).
This tragedy lead to global attention until the reality is being achieved in regards to

exploitation and several issues at the workplace safety and reliable labour rights in the textile
industry in Bangladesh (Dhaka Tribunal, 2019).
Extremely low wages is not only the reason and issue that is realized in the Bangladesh.
Severe and bad 1operational condition is major issue. Productivity tends to be very low as
compared to other industries (Koh, & Shah, 2018). With the poor infrastructure, some
incidents happened in 2012 and 2013. The insufficient infrastructure has managed to the
demise of everywhere 200 workers at the Tasreen garment industrial unit in 2012. In this
happening, nearly 1134 persons expired in the Rana Plaza disaster in 2013 (Dhaka Tribunal,
2019). Surveys has also been done that states that nearly 70% garment employees protested
against the government regulations (Koh, & Shah, 2018). Numerous women employees have
been facing the shealth related complications because of stringent rules, absence of the
maternity leave, and unsafe factory condition (McDougall, 2007). Moreover, labours are
knowledgeable at the previous instant that they have do overtime in terms of hours. If they do
not get organized to effort for extra hours, they are vulnerable to the verbal exploitation as
well as drawbacks (Dhaka Tribunal, 2019).
According to Section 201 in the labour law, 2006, it is seen that employees are only invented
to effort for more than eight hours. Garment workers in industry are to work for additional
hours on regular basis in order to meet the manufacturing objectives as per industrial unit
vendors (Dhaka Tribunal, 2019). Research from the survey, it is seen that nearly 80% of the
females workers authority the industrial unit between 8 pm to 10 pm even after doing
overtime, women remain unpaid. Proprietors of industrial unit also cut their eventually
compensation when they need and want it (Mani, Agrawal, & Sharma, 2014). Other factory
proprietors not only tend to survey the Bangladesh law of 2006 that safeguards the right of
motherhood leave (Koh, & Shah, 2018). Female workers also enforced to leave of absence

the job after charitable job. It is due to they have faith in that women cannot work at the
foregoing mark (Haque, & Azmat, 2015).
Conclusion
With time, L’Oreal have conducted mainstream policies to commit itself towards the limited
number of the suppliers in order to source itself from the legal mines where the working
conditions and human rights are closely monitored. In order to have a closure view, the
company undertakes the independent audit in order to ensure the commitment and invest in
social services especially in the areas where they have caused the underlying negative impact.
The government felt huge pressure from the public and international in order to protect the
interest of labours as well as their rights. With the implication of tripartite action plan
combined several workers, government, and actors and also building of the framework to
improve the working conditions in regards to the textile industry in the country. It has also
lead to improvement in the policies of health policies with the change in the labour laws,
which includes worker representation, union registration, and provision facilities. It is
observed that the country has improves its provisions regarding some of the industries such as
fish, jute, leather goods, and tobacco.

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