MEASURING TRADE UNION EFFECTIVENESS IN THE RMG INDUSTRY IN BANGLADESH: THE MEDIATING EFFECTS OF BUYERS’ CODES OF CONDUCT

Abstract

The purposes of this study are to measure the relative importance of
organizational effectiveness (OE), collective bargaining effectiveness (CBE),
industrial relations climate effectiveness (IRCE) with the effectiveness of trade
unions (TUs) and to examine the mediating effects of buyers’ codes of conduct
(BCoC) on TUs. This study has been conducted using a positivism paradigm and
cross-sectional survey design. Based on the literature and conceptual model, ten
hypotheses were drawn. A structured questionnaire with closed-ended questions
was developed, designed, and surveyed and had 276 responses with an answer
rate of 62.73% using the convenience sampling technique. A partial least square
(PLS) based structural equation modeling (SEM) approach is used to analyze the
data. The study finds a significant positive relationship between the OE, CBE,
IRCE, BCoC, and TUs effectiveness where BCoC results mediation relationships
of OE, CBE, IRCE, and TUs effectiveness, and such mediation increase the
effectiveness of TUs in protecting the rights of the workers in the RMG industry
in Bangladesh. The findings of this study have significant policy implications in
the Bangladeshi context.