SHIP BREAKING INDUSTRY

Contents at a Glance

Part I Project on Shipyard Industry

Executive Summary

1.01 Introduction …………………………………………………………...........

1.02 Objective of the Study ……………………………………………………..

1.03 Significance of this study ………………………………………………….

1.04 Methodology ………………………………………………………………

1.05 Result ………………………………………………………………………

1.06 Recommendation ………………………………..........................................

1.07 Conclusion………………………………………………………………….

Part II Appendix

2.1 Appendix I ………………………………………………………………….

2.2 Appendix II …………………………………………………………………

 Executive Summary

In this research paper, we tried to investigate the current situation of the labor working in

the shipyard industry. We try to investigate things more closely. We used multi

dimensional data collection system and data analysis system. After that we tried to come

up with the result that is effective and relevant to the situation. We interpreted the result

in a way that is understandable to all. At the end we try tried to give some suggestions for

improvement of this industry through labor satisfaction. Our recommendation was based

on our analysis, so we hope that we will be able to fulfill our project objectives.

Our course instructor of MGT 351, Mr. Amitabh Bose Bapi, for executing this research

project, has provided many relevant help and guidance to us.

 Project

The current situation of the labors involving with the shipyard industry

1.01 Introduction:
The history of shipyard industry is not very long in our country. But the impact of this
industry is very large as it involves environment, government, human rights and economy
as well. Nearly 1 million people are directly or indirectly involve with shipyard industry.
Because of objection from environment and human rights group, this industry is facing a
tremendous criticism. Recently from our observation it has been found that, labors
working in this industry. In this study, we have showed a tremendous violation of human
rights. So in this paper we have tried to investigate.

 The degree of violation of human rights in shipyard industry,

 The reason behind involving lower class people with this industry.
 The health issue of labor class people involving with the industry,
 The benefit package of the labor class people are actually getting.
 Government and other human rights agencies role regarding this issue.
1.02 Objective of the Study:

The main objective behind our study is to bring out the real scenario of labor class people
in the shipyard industry. Besides we want to bring this issue in front of the general public,
govt. agencies and human rights agencies to make these groups of people understand
about the importance of the issue and to make collective efforts toward establishment of
full rights of labors, working in the shipyard industry.

The reason behind choosing this topic: there are basically 5 reasons behind choosing this
topic:--
1. It is one of the current issues and the growth of this industry is very high.
2. It mostly involve labor class people who are unaware about there rights.
3. Not a lot of research has been done on this topic.
4. 27% of the people in the north of Chittagong city on the Bay of Bengal directly or
in directly depends on this industry.
5. The importance of this industry has not yet been understood by government or
other agencies involving with this industry.

1.03 Significance of this study:

This research since it is based on authentic data and careful analysis of data, create an
impact in the lifestyle of labor class people working in the shipyard industry, we all know
that, labor strike can cause tremendous damage to an industry. So, we hope as a result of
this study more importance will be given to the labors of the shipyard industry that will in
turn reduce the dissatisfaction of labors in this industry. So, it will not only help the labor
class people but also the owner of the company by giving better chance to survive. From
societal perspective unemployment can be reduced. And, from economic perspective an
industry zone will be created from where more foreign exchange will be earned, since
most of the dealings in this are done with foreign buyers. Altogether, our country will be
beneficial.
Range(year) Percentage
Below 18 10.94%
18-22 40.75%
46-60 1.13%

N.B: 46.42% of yard workers are illiterate while 43.02% attained primary school
education.

Background of Shipyard industry in Bangladesh:

Ship breaking activities in Bangladesh is concentrated in

Sitakund (Bhatiary to Barwalia), just north of Chittagong
city on the Bay of Bengal. It is of paramount importance to
the macro and micro economies of poverty stricken
Bangladesh. Ship breaking activities present both
challenges and opportunities for our coastal zone
management. Meeting the increasing demand for raw
materials such as steel needs to be balanced with the
negative impact this activity is having on our coastal
environment and the conditions of the workers.

The shipbreaking industry started its operations in the 1960s when a Greek ship ‘MD
Alpine’ was stranded on the shores of Sitakund, Chittagong after a severe cyclone. The
ship remained there for a long time before the Chittagong Steel House brought the vessel
and scrapped it.
During the Liberation War in 1971, a Pakistani ship ‘Al Abbas’ was damaged by
bombing. It was later salvaged and brought to the Fauzdarhat seashore. In 1974,
Karnafully Metal Works Ltd bought it as scrap, introducing commercial shipbreaking in
Bangladesh. The industry flourished during the 1980s. Today it has become large and
profitable industry for Bangladesh.

1.04 Methodology:

Source of data:
We want to make sure that we have all the necessary data required to come up with
effective result. Therefore, we have combined both primary and secondary data collection
method. All data related to this study is attached with the appendix. Here we showed only
data collection method.

A. Primary source of data:

• Labors working in the industry
• Researcher involving with this industry
• Employers of the firm in the industry

B. secondary source of data:

• Internet
• Processed data from government organization

Data collection method:

We followed different method for different source of data. Few of them are mentioned
below-
• Easy questionnaire for labors working in the shipyard industry.
• Telephone conversation with researchers.
• Personal interview with the owners of the firm
• Data from different website.

Strategy to develop questionnaire:

We developed two different structured questionnaires for two different classes of people.
The first one is for labor class which is more is to understand. The questions were formed
in a way that labors can answers only by saying yes or no. Questions that were asked to
researchers or owner of the company were little complicated and discussion based. In the
appendix we have showed sample of these questionnaires. In developing questions we try
to bring out the true scenery and we tried to be goal focused. We were fair by putting
views both from labors and owners.

Sample Size:

We surveyed among 1200 labors working in this industry in 10 different firms. We also
talked with the owner of those 10 companies operating in this industry. Besides, data was
also taken from government research agencies and internet as well. So, it is clearly visible
that our study is based on sufficient sample size.

Data analysis Technique: At first, we screened data and classified those data
according to importance. We tried to use different techniques of statistics to come up
with effective result. We did 3 hypothesis tests to clarify the issue and to make data
analysis process simple.
H1: The impact of working environment on labors health.

H2: Lack of awareness leads to low payment rate.

H3: Workers are forced to work in this environment.

Besides, we also used some graphical presentation and tabulation for better and easy of
understanding.

Data presentation technique:

We tried to make our data presentation easy to understand. Therefore we issued very
simple statistical tools, besides, we classified our data through tabulation and these
classified data were then processed and outcomes from the processed data were shown in
graphics and pie charts

1.05 Results:
Results from hypothesis tests are one of the finest finding of our study. In case of first
hypothesis, we have found that, the hostile working environment effect the health of the
labors. People who are working in that environment have an average life of 40 years.
Beside risk of major injury in the working environment is very high.

Findings from the process data to prove H1:

Though ship breaking has earned a good reputation for being a profitable industry in
developing countries there are a number of environmental and human health hazards.
Depending on their size and function, scrapped ships have an unladened weight of
between 5,000 and 40,000 tons (the
average being 13000+), 95% of
which is steel, coated with between
10 and 100 tons of paint containing
lead, cadmium, organotins, arsenic,
zinc and chromium. Ships also
contain a wide range of other
hazardous wastes, sealants
containing PCBs, up to 7.5 tons of
various types of asbestos and; several thousand liters of oil (engine oil, bilge oil,
hydraulic and lubricants oils and grease). Tankers additionally hold up to 1,000 cubic
meters of residual oil. Most of these materials have been defined as hazardous waste
under the Basel Convention. In Bangladesh, ships containing these materials are being
cut up by hand, on open beaches, with no consideration given to safe and
environmentally friendly waste management practices.

Findings from the process data to prove H2:

About our second hypothesis, we have found that most of the labors are illiterate and
unaware about their rights. Therefore, the employers are taking these advantages and
giving less payment to the labors.
  A lack of occupational health and safety standards, training or personal protection
equipment provided.
 Limited or no access to treatment, emergency
services and compensation when a worker is
injured or killed on the job.
 Less than minimum wages.
 Use of child labor.
 Extensive working hours with no right to
overtime, sick or annual leave.
 Lack of job security: no work no pay.
 No right to join or form a trade union

In the majority of the shipyards, workers are being deprived of their rights. They work
under risky conditions but have no access to safety equipment, job security or a living
wage.

Findings from the process data to prove H3:

Finally, about 3rd hypothesis, in north of Chittagong

city on the Bay of Bengal area number of jobs
compared to the demand is very low. Therefore, besides hostile environment people are
increasing with this industry. Below we have showed the satisfaction level with different
offers provided to the labor of shipyard industry. It shows that very low percent of people
are satisfied with their current benefits. Besides all these dissatisfaction, they are still
working in the industry because this is the only industry currently growing in the north of
Chittagong city on the Bay of Bengal area.

Factors Percentage of
Satisfaction
Salary 10%
Medical Allowance 08%
Over time payment 23%

Work Environment 06%

Other benefits 15%

Limitation of the study:

In doing this study we have to face some limitations, those are –

 Employers were not interested to talk.
 Labors were not very much friendly to express themselves.
  Since conversation with researchers was through telephone, lots of information
was missing there.
 For understandability we had to use very simple statistical tools.
 We were not able to collect enough information from government research
agency.

1.06 Recommendation:
 Increasing the quality of work place

 Increasing the per hour pay rate

 Providing insurance benefits

 Providing medical allowance

 Providing transportation service

 Providing pension benefits

 Increasing the duration of intervals during the working period

 Implementing effective supervisory system

 Proper implementation of EEO and laws and regulations involving this industry

 Continuous focus of govt. and the other human rights agencies

1.07 Conclusion:

The shipyard industry and its future prospect in our country is very high. But taking the
full advantage of this industry depends on labor satisfactions. And from our survey we’ve
found that it is possible only when there will be proper implementation of our
recommendation. We believe our study contents enough information on the basis of
which govt. and other human rights agencies can take key decisions regarding shipyard
industry. This is where the reward of all of our efforts lies.