report on labor law bangladesh garments sector

Acknowledgement

Bangladeshi Garment Industry is the largest industrial sector of the country Though the history of Readymade Garment Industry is not older one but Bangladeshi clothing business has a golden history Probably it started from the Mughal age in Indian subcontinent through Dhakai Musline It had global reputation as well as demandable market around the globe especially in the European market

After industrial revolution in the west they were busy with technological advancement amp started outsourcing of ready made garments to meet up their daily demands Many LDCrsquos took that chance amp started ready made garment export at that markets As an LDC Bangladesh took this chance enjoyed quota amp other facilities of them Thus ready made garment industry started to contribute in our economy from late eightyrsquos (1977)

The history of the garment industry dates back to 1977 when the first consignment was exported to then West Germany by Jewel Garments The number of units however remained a meager 46 until the end of 1983 From a humble beginning the sector has thus made phenomenal growth over the last two decades the number of units growing to around 4500 The RMG industry achievement is noteworthy particularly for a country plagued with poor resource endowments and adverse conditions for industrialization Exports increased from approximately 32 million US dollars in 198384 to 14 billion dollars in 199293 In 198788 the RMG export share surpassed that of raw jute and allied products The figure further rose to 57 billion dollars in 200304 representing a contribution of about 75 percent of the countryrsquos total export earnings in that year4 The employment generated by the sector is estimated to be around 15 million workers

Several factors account for the outstanding lsquosuccessrsquo of the RMG industry in Bangladesh At the same time this industry had faced amp till facing many problems also These problems amp prospects of RMG industry in Bangladesh is my topic to find out as well as to make critical analysis on these The importance of my study has been raised up by recent labor unrest in RMG sector

To analyze this board topic a took fulltime guidance from my dissertation guide Mr Ishtiaque Ahmed in preparing questionnaire operating field survey presenting the survey report as well as constructing the report as a whole So I am grateful to him

Here I use data from different sources like BGMEA BKMEA CPD World Bank UNDP Lmd Journal ndash Published by Australian National University CIA ndash Report ADB Bureau of Economic Research- University of Dhaka The University of Chicago Press amp many other sources stated in reference section Thus I am obliged to all of them at the same time I would like to offer my warm thanks to all of them Many Garments owners workers amp buyers have helped my by providing their valuable opinion on the topic or through interview So I am grateful to

them for helping me by providing primary data Again I would like to offer my warm thanks to all of them for helping me a lot in construction of this dissertation report

Executive Summery

The Readymade Garment Industry of Bangladesh has become the largest foreign exchange earning sector exporting apparel of all sorts to the USA Europe and other developed countries The Readymade Garment (RMG) industry of Bangladesh tells an impressive story about the leadership of private enterprise and the countryrsquos successful transition to a major export-oriented economy The country registered its first apparel export in 1978 but the progress since the early 1980s has been simply phenomenal It has by now become a colossal industry earning the lions share of the countrys foreign exchange and providing the nations women with the largest formal employment

With the first garment exporting unit Reaz Garments in 1978 and along with that initiative Desh Garments led by the visionary entrepreneur Mr Noorul Quader Bangladesh stepped into a new promised land of prosperity The success story of the Readymade Garments sector of Bangladesh is based on employment generation and increasingly high value addition thus smoothening the path for growth and development of the country The apparel and garment industry propels sectors such as banking finance and insurance cargo shipping and transport entertainment and hospitality research and education and a lot more The mentioned performance of the industry has been possible due to A The cheap but disciplined and regimented workforce has been key for the success of this industry B The entrepreneur class has been dedicated and motivated to the countrys economic prosperity C The quality of the manufactured apparel which has been increasingly recognized by our international buyers and end users all over the world

D Buyers response has been encouraging through repeat orders The industry has been producing all sorts of apparels for all seasons and has managed to get repeat orders for every season E The import policy of Bangladesh has been flexible and friendly for import of accessories

This vital and vibrant export oriented industry has been facing some problems from local forces which may be termed weaknesses (or the Nations weakness) and some problems caused by forces beyond our geographicalpolitical boundary which may be termed as threats to our industry The Readymade Garment Industry is already 20 years old but during the last two decades no planned fruitful policy to build up a backward linkage textile industry to feed the RMG industry has been taken by the authorities Even the existing textile industries are not capable of producing high standard fabrics to offset the foreign ones from the market Shortage of capital necessary to develop local sources for quality fabricsyam is a major weakness The reason behind the shortage of capital however can be attributed to the socioeconomic condition of the country enabling foreign direct investment could however compensate for this Furthermore although the Government has responded to the RMG industrys requests for devaluation of the local currency ndash the Taka ndash from time to time it has failed to decrease the current rate of interest At the same time our financial policy measures are not sufficient to

attract entrepreneurs to invest in the textile industry Anomalies in the banking sector problems at the port vindictive political environment bureaucratic shackles electricity crisis and currency adjustment policy pursued by the country and the lack of some policy support from the government to sustain the countrys falling competitiveness against its competitors in the international market are other serious weaknesses

History of Bangladeshi Ready Made Garments (RMG) Industry

The history of the Readymade Garments Sector in Bangladesh is a fairly recent oneNonetheless it is a rich and varied tale The recent struggle to realize Workers Rightsadds an important episode to the story Below I present a detailed narration of theevolution of the RMG sector from its humble origins to the present day

The shift from a rural agrarian economy to an urban industrial economy is integralto the process of economic development (Kaldor 1966 1967) Although policymakersin the least developed countries (LDCs) have at various times attempted to makeagriculture the primary engine of economic growth and employment generation thisapproach has not worked not least because of the contributions of the GreenRevolution which has had the dual effect of increasing agricultural productivity inthe LDCs and displacing the rural labor force at the same time Led by the example ofthe East Asian economies most LDCs now accept the need for greaterindustrialization as the fastest path to economic growth In particular countries suchas Japan Taiwan and South Korea have demonstrated that an export-orientedindustrial strategy can not only raise per capital income and living standards in arelatively short time it can also play a vital role in modernizing the economy andintegrating it with the global economic system

The ready-made garments (RMG) sector has a venerable history of about 25 yearsThis period cannot simply be termed as long as this would be the understatementof the decade This history is one of success endeavor and the continuous struggle ofthe class of entrepreneurs who remained focused on achievement and challengesWith the first garment exporting unit Reaz Garments in 1978 and along with thatinitiative Desh Garments led by the creative thinker entrepreneur Mr NoorulQuader Bangladesh stepped into a new promised land of prosperityUpon seeing the advertisement for recruits the country wondered in awe andquestioned Mr Quaders plans of sending 129 graduates and engineers to be trainedin Korea Why would simple sewing operations need high tech applications Manyeven suspected something naughty in this venture But after rigorous training inKorea these graduates returned home qualified and efficient bringing to the land a new discipline of line management which elevated our tailor status to standardizedmanufacture

Hence RMG took birth in this land with the help of financial institutions and thelimited financial resources of the family of the young entrepreneur who respected inhim a dream to set up an industrial unit allowing him global access and exposureThis is how RMG experienced lift off and till date with the exception of a few

government policy directions the sector can boast of not resorting to large publicfunding and can assert its base being in the core of purely private initiative

Literature Review

Introduction (for legal rights of Bangladeshi workers)

This study builds on the current campaign for labour law reform being waged by the trade unions in Bangladesh In brief the study seeks to flesh out the objective and substantive basis for the reform movement and the needed reform measures to build a just labour relations system in Bangladesh in the context of the ILOrsquos Decent Work Agenda (DWA) and the countryrsquoscommitments to the UNrsquos Millenium Development Goals (MDGs) As defined by the ILO decent work is work obtained in conditions of freedom equality security and dignity on the other hand the MDGs seek to reduce poverty by half by 2015

The overall objective of this study then is to propose reform in the labour law for the promotionof decent work reducing poverty and ensuring workersrsquo protection

Decent work and mass poverty

Bangladesh has integrated the promotion of decent work as part of the ldquostrategic blocksrdquo underits ldquoPoverty Reduction Strategy Papersrdquo (PRSP) Updated periodically the PRSP outlines thebroad socio-economic development programs being pursued by the country to meet its MDGcommitments

As it is mass poverty has remained the single most critical development-retarding problem inBangladesh The country has reduced poverty by only one percentage point per year during the1990s This has allowed a vast and growing number of people to remain unemployed andunderemployed There are presently over 63 million people below the poverty line one-third ofwhom are trapped in extreme poverty

The slow pace of MDG fulfilment by Bangladesh is due partly to the pursuit of a narrow growth only economic strategy which has over the years produced an unequal and even job-less growth pattern It has also resulted in a mismatch between sectoral growth and overall labour absorption in the country (Titumir and Hossain 2005)

For instance while the contribution of the industrial sector in the GDP has jumped from 2973per cent in 2008-09 to 1731 per cent in 1980-81 nearly 80 per cent of the countryrsquos employed are still in the huge informal economy where labour standards are hardly observed Additionally the situation in the formal manufacturing sector is far from sanguine Reports of worker and human rights violations within and around the different factories are widespread The repression of these rights has in fact led to numerous factory protests and blockades in recent years Most of the workers in the private manufacturing sector also do not get the various non- wage benefits enjoyed by their counterparts in the public sector such as accommodation and transportation facilities subsidized meals maternity protection medical allowances bonuses pension provident fund and insurance benefit

( However there is an increasing participation of women in the labour market growing at a rate of 545 per cent annually versus 123 per cent for men for the period 2003ndash06 (although the women workers account only for one-fourth [121 million] of the total labour force of 495 million)

There are other decent work deficits On wages the average workerrsquos compensation is notsufficient to maintain a minimum standard of living given the inflation rate in the country There are also delayed wage payments long working hour work discrimination unsafe working conditions and poor work environment Workers are mostly unorganized and face many barriers in union formation Consequently the institution of collective bargaining has by and large not been effective in the country

Clearly so much has to be done ndashby way of economic and labour reforms -- to meet the DWAand MDG goals in Bangladesh In the area of labour reforms the revised Bangladesh Labour Law of 2006 (BLL) an amalgamation of the previous 25 labour laws has weaknesses Not all workers enjoy the basic rights spelled out in the law There are also rampant violations and non-implementation or non enforcement of the BLL Trade unions have long been vocal about the legal shortcomings and the weak implementation of the laws guaranteeing workersrsquo rightsThus a critical review of the BLLrsquos implementation and its shortcomings in terms of coverageand enforcement is long overdue

Decent work indicators

This study has adopted the decent work framework in the review of the labour law system ofBangladesh As a backgrounder decent work has four constituent pillars access to productiveemployment and income opportunities rights at work particularly with respect to the core labour standards systems of social protection and a voice at work through social dialogue

These are interdependent and mutually reinforcing (Bell and Kristen 2010) In this context the observance of labour rights can be measured in terms of broad and specific legal provisions or indicators supportive of the key or core areas of labour laws

The core areas are ndash (1) employment standards (2) occupational safety and health (3) welfareand social protection (4) labour relations and social dialogue and (5) enforcement

Conduct of the study

This study was undertaken in close consultation and cooperation with the Research and Advisory Team of the Bangladesh Institute of Labour Studies (BILS) Established in 1995 BILS has been supporting the work of the 13 cooperating National Trade Union Federations in the areas of training research and information sharing BILS espouses just and worker-friendly policies in Bangladesh

The study adopted a composite of research methods which include case studies interviews with key informants focused group discussions (FGDs) brainstorming sessions with the BILSrsquo advisory team and in-depth reading of the labour laws A baseline survey of the workersrsquo appreciation of their rights under the Bangladesh labour system was also conducted among a sample of workers in the ready-made garments industry (for the formal sector) and construction industry (for the informal sector) Garments employs 24 million workers 85 per cent of whom are women construction has 153

million workers 93 per cent of whom are men Respondents for the two industries were selected from the industrial areas of Dhaka and Chittagong

Overview of Bangladesh labour laws

The labour law system is more than a century old in Bangladesh The first labour law wasenacted in the Indian sub-continent during the British period in 1881 Subsequently the BritishGovernment introduced several laws concerning different labour issues eg working houremployment of children maternity benefit trade union activities wage etc

The Factories Act (1881) Workmens Compensation Act (1923) Trade Unions Act (1926) Trade Disputes Act (1929) Payment of Wages Act (1936) Maternity Benefit Act (1939) and the Employment of Children Act (1938) were remarkable labour laws enacted during the British period

In 2006 the country adopted the revised Bangladesh Labour Law of 2006 or BLLThe BLL is fairly comprehensive and progressive The law is a consolidation and updating ofthe 25 separate acts The comprehensive nature of the law can immediately be gleaned from itscoverage -- conditions of service and employment youth employment maternity benefit healthand hygiene safety welfare working hours and leave wages and payment workerscompensation for injury trade unions and industrial relations disputes labour court workersparticipation in companies profits regulation of employment and safety of dock workersprovident funds apprenticeship penalty and procedure administration inspection etc

The BLL is also considered an advance because it removes certain ambiguities in the old anddiverse labour acts and aligns the labour law system with the ILO core conventions On theremoval of ambiguities the definition of a ldquoworkerrdquo is now very specific Another example theexclusion under the term ldquowagesrdquo of the following items -- expense for housing facilities likelighting and water supply employersrsquo contribution to the provident fund traveling allowancesand other sums paid to worker that are needed to cover work-related expenses

The BLL is also an advance because of its wider coverage for example workers and staff ofhospitals nursing homes and even non-governmental organizations are now covered by the law Also certain welfare and social benefits have been improved or instituted eg death benefit (financial support to family of deceased worker) application of provident fund benefit to all workers in the private sector expansion of maternity benefit from 12 to 16 weeks adoption of group insurance for establishments with 200 or more workers and increased employee compensation for work-related injury disability and death

On the ILO core conventions Bangladesh has ratified the following International LabourConventions (ILCs)

ILC 29 (Forced Labour) ILC 87 (Freedom of Association and Protection of the Right to Organize) ILC 98 (Right to Organize and Collective Bargaining) ILC 100 (Equal Remuneration) ILC 105 (Abolition of Forced Labour) ILC 111 (Discrimination in Employment and Occupation) and

ILC 182 (Elimination of the Worst Forms of Child Labour)

The only core convention not ratified by Bangladesh is ILC 138 (Minimum Age Convention)However the BLA provides that the minimum age to work is 14 (although a special clause states that children between the ages of 12 and 14 may be employed to do ldquolight workrdquo that does not endanger their health development and education)

Salient features of the BLL

The BLL features the following key provisions

Employment standards

An employee or ldquolabourrdquo is defined as any person including a traineeprobationerwhether the terms and conditions of hisher employment are expressly written or not whois employed directly or through a contractoragency for any skilled unskilled physicaltechnical business development or clerical job in any establishment or industry

Workers are classified into six categories

Apprentice A worker who is employed in an establishment as a trainee andduring the period of training he is paid an allowance is called an apprentice

Badli A worker who is employed in an establishment for the period of temporaryabsence of a permanent or probationer worker

Casual A worker employed on a casual basis

Temporary A temporary worker in an establishment for work that is basicallytemporary in nature and is likely to be finished within a limited period

Probationer A worker provisionally employed in any establishment to fill up apost of permanent vacancy and his probationer period has not to be completed

Permanent A worker employed with a view to fill up a permanent post or if hecompletes satisfactorily his probation period in the establishment

Appointment letters ID cards and service books are made mandatory The law specifieswhat information should be included in the appointment letter and in the service bookand requires the latter to be signed by both the employer and the worker

The law defines who is responsible for payment of wages employerowner chiefexecutive officer (CEO) managerperson assigned responsible by the company and thecontractor in case of worker appointed by the contractor In case of the failure of thecontractor to pay the wages to the worker the principal owner shall pay the same andsubsequently it can be adjusted with the accounts of the contractor

On job terminations the employer is required in the case of

Retrenchment to give one monthrsquos notice and the equivalent 30-day wages orgratuity for every year of service if the worker is employed on continuous servicefor not less than one year and

Discharge to give financial benefit equivalent to 30-day wages for everycompleted year of service by an employee found to have physical or mentalincapacity

However the employer is allowed

Termination simplicitor to terminate services of worker without explaining anyreason by giving a written notice of 120 days for permanent workers employed ina monthly basis and 60 days to other workers

Misconduct to dismiss workers without serving prior notice due to workerrsquosconviction for any criminal offence or if the worker is proved guilty ofmisconduct which may be any of the following willful insubordination (alone orin combination with others) to any lawful or reasonable order theft or fraud ordishonesty taking or giving bribes habitual absence without leave for more than10 days habitual late attendance habitual breach of any rule or law applicable tothe establishment riotous or disorderly behavior habitual negligence or neglect ofwork frequent repetition of work on which fine can be imposed resorting toillegal strike or to go slow or instigating others to do so and falsifying tamperingthe official document of the employer

Retirement age for workers employed in any establishment is 57

Work hours are set at eight hours a day 48 hours a week with a weekly rest day

Overtime (OT) work is maximum of two hours a day OT pay is twice the hourlyremuneration

Workers are entitled to rest and meal in a day as follows (i) one hour interval for over sixhours work a day (ii) half an hour interval for more than five hour work and (iii) onehour interval once or half an hour interval twice for more than eight hours work a day

Workers are entitled to holidays casual leave festival leave annual leave and sick leave

Every worker has the right to participate in companys profitsbenefits

No young worker is permitted to work in any establishment between the hours of 7 pmand 7 am

No children (under 14 years of age) are allowed to work in any occupation orestablishment However a child who has completed 12 years of age is permitted to dolight work not harmful to his health development and education

AlsquoMinimum Wage Boardrsquo is established to determine the minimum rates of wages indifferent private sectors taking into consideration varied criteria cost of living standardof living cost of production productivity price of products business capability andeconomic and social conditions of the country

Employers are mandated to observe equal wages for male and female workers for workof equal nature or value

Forced labour is prohibited

Occupational safety and health

Establishments are required to put up for every 150 workers one first aid box and onetrained person per first aid box and an equipped dispensary with a patient-room doctorand nursing staff

Employers are required to take appropriate measures to protect workers from danger anddamage due to fire

Every establishment is required to be kept clean and free from effluvia arising out of anydrain privy or other nuisance

The work room should not be overcrowded and injurious to the health of the workers

Every establishment should provide pure drinking water sufficient light and air andseparate toilets for its male and female workers

Welfare and social protection

Gratuity is defined under the law as separation payment at least 30 days for workersdischarged from work and yet have worked not less than 6 months Factories are required to have an in-house canteen for every 100 workers

Every establishmentemployer is required to form a Provident Fund if three-fourths of itsworkers demand it by written application and a Workersrsquo Participation Fund and aWorkersrsquo Welfare Fund for its workers

Establishments with 200 or more workers should institute a group insurance

Every employer should provide compensation to its workers for work-related injurydisability and death

Various womenrsquosrsquo issues are also covered maternity leave of 16 weeks (8 weeks beforeand 8 weeks after child birth) no gender-segregated wage structure prohibition of anyform of discrimination against women prohibition of women working between 1000pm and 600 am without consent prohibition for women handling running ordangerous machines (unless they are sufficiently trained to operate such machinery)

prohibition for women working under water or underground

Labour relations and social dialogue

Every worker employed in any establishment has the right to form and join a trade unionof their own choice Trade unions have the right to draw up their own constitution andrules and to elect their representatives Also trade unions have the right to form and joinin a federation and such unions and federations have the right to affiliate with anyinternational organization and confederation of trade unions

The trade union is allowed to serve as a collective bargaining agent in any establishment

In case of industrial disputes the two sides can seek resolution through negotiationfollowed by conciliation and eventually arbitration if negotiation fails

The collective bargaining agent is entitled to file a notice of strike (or lockout in the caseof the employer) with a 15-day cooling-off period

Employers can not recruit new workers during the period of a strike

Employers are also prohibited in terminating workers in the course of trade unionorganizing in the work place

Enforcement

Government shall appoint the Director of Labour and ldquosuch numberrdquo of AdditionalDirector of Labour Joint Directors of Labour Deputy Directors of Labour and AssistantDirectors of Labour as necessary for monitoring workplace activities

The Government shall appoint a Chief Inspectors and requisite number of Deputy ChiefInspectors Assistant Chief Inspectors or Inspectors These officers have the power toenter inspect and examine any workplace premises and ascertain the observance oflabour laws

The Government has the power to establish as many Labour Courts as it considersnecessary A Labour Court shall consist of a chairman and two members (onerepresenting employers and the other the workers)

Research findings

From the baseline survey it appears that more than half of the workers have been working fornot more than three years with over 40 per cent of the workers in the garments industryregistering a work experience of less than a year This shows the preference of employers forthe short-term hiring of young workers particularly in the garments industry In the constructionindustry most of the workers have longer work years of 3-10 years However the prevalence ofthree types of employment status -- day labourer contractual labourer and monthly-basedlabourer ndash indicates a high level of employment informality or flexibility in this industry In fact

the overwhelming majority of the construction workers are hired through contractors or subcontractorswithout the benefit of any employment contracts Thus both the garments and theconstruction industries employ flexible (meaning easily replaceable) workers

In general the research findings show that workers in both the garment and constructionindustries are deprived of many of their rights such as the non-issuance of appointment lettersand identity cards the non-observance of OSH standards and social security provisions thelimited space for unionism and collective bargaining and the weak protection provided by thelabour law enforcement and judicial system Below is a summary of key research findings

Appointment letter A dream to most workers Though the law has made it mandatoryfor employers to provide appointment letter to the workers a large number of garmentsworkers are still deprived of appointment letter (453) Although garments employersoften prepare appointment letters (usually two copies one for employer and another forglobal garments buyers) they do not give copies to the workers In the constructionindustry none of the workers reported receiving any appointment letter

Oral contract pervasive Practice In the absence of written contracts what prevails ingeneral is oral contract Also a good number (302) of workers do not get identitycards from their employers

Dismissal of workers without notice Over one-fourth (264) of the respondents in thegarments industry affirmed that employers always dismiss workers without any priornotice The situation is more or less the same in the construction industry

8-hour work OT rules hardly followed All the garments workers said that they workmore than eight hours daily Sometimes they work 13-14 hours a day There are workerswho even work extra five hours of daily OT About one-third (335) of the garmentsworkers do not know the OT rate with 13 per cent of the respondent garments workersgetting less than Tk10 for every hour of OT work against the minimum Tk1080 perhour OT work For the construction workers work hours range at 8-12 hours

Low wage awareness More than half (524) of the respondents do not know whetherthey are receiving wages according to their grades A large number (about 40 ) ofrespondents in the garments industry also do not know whether the minimum wage isimplemented at their workplaces More than half (547) of the garments workers andalmost all (981) of the construction workers do not receive pay slip or any otherdocument concerning the payment of wages and benefits

Missing workersrsquo participation in companys benefit Garments workers are not awareabout any provision regarding workersrsquo participation in companyrsquos benefit

Weekly rest day and leaves not observed Many garments workers do not have thechance to enjoy weekly rest day Most workers get festival leave but employers oftenimpose conditions to enjoy the leave Legal provisions on casual leave sick leave andannual leave are widely violated Sometimes some employers make wagesalarydeductions for the workers to enjoy weekly rest day casual leave sick leave and festival

leave In the construction industry most workers do not have the chance to enjoy theseleaves as the compensation policy is simply lsquono work no payrsquo

Rest periods irregular Only 132 per cent of the garments workers have admitted thatthey enjoy regular rest periods meaning the majority enjoy this right in a highly irregularmanner In the construction sector 495 per cent respondents reported that this right islimited in practice12

Child labour still a reality Both the garments and construction industries still employchild workers (below 14 years of age) per observation by 99 per cent of workerrespondents in the garments industry and 131 per cent in construction Threerespondents happen to be below 14 The employment of child workers in both thegarments and construction industries is governed by oral contract The nature of workgiven to these child workers are the same as those given to adult workers

Women discriminated in job placement increment and promotion Female garmentsworkers are not discriminated with regard to wages But they face discrimination in jobplacement increment and promotion In the construction industry females arediscriminated in wages benefits and other areas

High occupational risks low risk information limited risk prevention Workers in bothindustries face numerous occupational risks and accidents The most common risks ingarments are the ldquopricking of finger by needlerdquo followed by ldquocutsrdquo in hand Inconstruction the most common risk is ldquofalling down from high placerdquo And yetemployers usually do not provide information on these occupational risks as explainedby 43 per cent of worker respondents in the garments industry and 65 per cent inconstruction Majority (618 in garments and 721 in construction) of respondentssaid that authorities have not taken any measure to prevent further accidents at theirworkplaces In garments while some measures are taken these are not sufficient andoften done before the global buyersrsquo presence

Safety facilities inadequate in garments and absent in construction In garmentsfactories fire extinguishers and emergency stairs are present but are generally inadequatecompared to the number of workers Some factories do not even have these facilitieswith emergency stairs even kept under lock and key by some employers Safetyequipments and tools are also not always provided to the workers A large number (46)of respondent do not know whether they are provided safety tools Many workers also donot get any risk reduction training Only 28 per cent of the construction workers getsafety tools from the employer

Unfriendly work place environment While majority of the respondents said that theconditions of ventilation lighting temperature and humidity are good in their work placeabout one-fourth said that this is not so In the construction sector most of therespondents claimed that the facilities to contain dirt heat ventilation dust noise

smoke humidity and so on are bad or non-existent Further in most cases there is nosafe drinking water

Occupational illness The proportions of workers who said that they have sufferedoccupational illness are 184 per cent in garments and 29 per cent in construction

Harassments at the workplace About 40 per cent of the garments workers and 30 percent of the construction workers said that they endure mental harassment (due to verbalabuse and the likes) More worrisome more than one-fifth (217 ) in the garments13industry and a few (84 percent) in the construction mentioned that they haveexperienced or faced physical harassment and torture A few respondents (19 ingarments and 09 in construction sectors) also admitted that they were harassedsexually at their workplaces All these answers were affirmed by the FDG participants

Welfare facilities available in law only The BLL enumerates various welfare facilitieslike first aid kit canteen restroom day carechildrenrsquos room medical care separateplaceroom for lunch at the workplaces of the workers However a large number of therespondents said that they are not provided with many of these facilities In theconstruction sector very few (9 ) said that they have first-aid kits most said that theother facilities are generally absent

Violations of maternity and social welfare programs No factory provides maternityleave for four months and most factories give maternity leave only without payParticipants also report that female workers many times do not want to bear child becauseof fear of losing the job Very few garments factories have introduced provident fund andgratuity for the workers Group insurance is also not effective in most of the garmentsfactories In construction sector workers are completely deprived of all these programs

Garment and construction generally unorganized Most of the workers in the garmentsand construction industries are not organized Almost all of the respondents mentionedthat there is no workersrsquo association in their factory or at the workplace A few reportedon the existence of workersrsquo association that are not trade union in nature

Barriers to TU formation fear of losing Job long hours of work Garments andconstruction workers do not join trade unions as they do not want to lose their jobsWorkers in both sectors disclosed that their employers would dismiss them from job ifthey are found engaged in any sort of activities related to workersrsquo association There arecases where employers send workers suspected of union organizing to police custodyAlso since workers of these two industries log long hours of work every day they hardlyhave time for trade union activities

Collective bargaining limited and informal in nature Predictably only 28 per cent ofworker respondents in the garments industry and 09 per cent in the construction admittedthat they have knowledge or been involved in collective bargaining with their employersMoreover bargaining is of the limited informal type with garments workers bargainingwith the employers through informal mediators and construction workers with individualcontractors

Right to strike widely unrecognized Only 75 per cent of the garments workers and 47per cent workers in the construction said that strikes were conducted at their workplacesWorkers in both industries perceive that the right to strike is never recognized at theirworkplaces with some employers even punishing workers who go on or participate instrikes A significant number of workers even do not know whether they have this right14

Inspection ldquofire brigaderdquo approach Most workers said that they never met anygovernment officials coming and inspecting their workplaces Those who have visitedtheir work places talked only to the employers Also inspections take place only aftersome accidents have occurred like the fire brigade taking action after the fire

Access to judiciary low awareness Very few workers get the opportunity to take legalmeasures concerning conflicts with employers They usually inform the police about suchissue and a few take action through the workers association A large numbers of workers(684 in garments and645 in construction) do not know whether they can take legalmeasures against their employers

GAPS and WEAKNESSES in the BLL

From the foregoing research findings it is clear that there are widespread violations of labourrights and labour laws in Bangladesh Can these violations be cured by stricter enforcementThe answer is yes But this is not enough because the BLL itself has some weaknesses Belowis a discussion of major gaps and weaknesses in the BLL identified by research team

Employment standardsThe BLL fails to include a large number of workers -- domestic workers agriculture workersand workers working at schoolsThe law has classified workers into several categories This has given some employers flexibilityto resort to the hiring of non-regular workers (ie apprentice casual badli probationertemporary) to escape payment of various workers benefits and avoid unionismWorker dismissal is terribly easy under the provision on termination simplicitor where theemployer is not required to give any reason to terminate a worker and the worker is not given

any chance for self-defense Also the notice period for the temporary workers in this regard isquite shortGetting financial benefit due to termination are quite lengthy too For retrenchment anddischarge a worker must show proof of a minimum one-year serviceWorkers who resign from their jobs are entitled to certain separation benefits However gettingthese benefits is bureaucratic The concerned worker is also asked to give the employer advance notice 60 days 30 days and 14 days (corresponding to employment status of permanenttemporary [monthly])

In cases of serious misconduct the law allows summary termination without prior notice Thisdeprives the worker not only compensation but also and more importantly the right to dueprocess or the right to be heardThe BLL prohibits employers to employ women workers for the period between 10 pm to 6am and yet relaxes this rule by allowing the same women workers to work if the latter givetheir consentIn the determination of minimum wage the family size criterion has not been considered Nor isthe need to balance efficiency and equity Further the mandatory wage review of every fiveyears is too long given the rapid changes in the economy and rising workersrsquo needsThe law still lacks clarity as to what items can be deducted from the basic wage what can not bededucted and what are the sources (and basis) of any wage deductionsThe calculation of OT pay is not spelled out for piece-rated workers In the first place the lawdoes not provide specific guidelines on the fixing of basic wages for the piece-rated workersThe BLL recognizes various types of leaves eg weekly holiday casual leave festival leavemedical leave annual leave and maternity leave However the law is discriminatory in thesense that the level of leave entitlement is not same for all categories of workers for examplesome workers like tea-state workers do not enjoy casual leaveAlthough the current law extended the maternity leave this is not enjoyed by the many who areunder short-term hiring arrangements especially since the law states that a six-monthemployment is needed to get maternity leaveForced labour is prohibited and yet there are no penal sanctions against thisOn child labour the prohibition is contradicted by the provision which allows the employmentof children who are 12 years old in works that are supposedly not detrimental to their health andeducationThe law lacks specific provisions on discrimination related to work place facilities treatment ofnon-wage issues (eg promotion and placement) and other grounds of discrimination such asrace religion ethnic group etc

Occupational Safety and HealthThe law has no clear provisions on the following16(i) specific weight limit (for load carried by workers in any factory) according to agecondition and sex(ii) ratio of alternative stair as precaution in case of fire and other apparatus against thenumber of workers and(iii) workers-toilet ratio

Welfare and Social Protection

The establishment of provident fund is not mandatory It is dependent on the demand of a prerequisitenumber of workers Group insurance is also dependent on the number of the workersand the prerequisite number is quite highThe amount of compensation given to workers due to work-related injury disability and death isnot adequate for the worker and hisher family The provision of compensation is alsodiscriminatory in terms of age of the workers with an adult worker getting Tk 125000 forcomplete permanent impairment whereas a childadolescentyoung worker gets Tk10000 onlyOther aspects of social protection have remained untouched in the labour law of Bangladesh suchas provisions on pension and medical and life insurance for the workers

Labour Relations and Social DialogueA new provision in the law has banned TU offices within the 200 yards of an industry Thislimits physically the scope for trade union activitiesThe law allows the functioning of three registered trade unions in an establishment or a group ofestablishments and yet an amendment states that workers of Chittagong and Mongla Sea Portare allowed to form only one trade union at their respective workplaces Thus the law isdiscriminatory as well as self-contradictoryThe law sets a very stiff requirement in trade union formation -- support of 30 per cent of theworkers in an establishment For new unions this is virtually a trade union banThe law has also imposed a ban on strikes in some industries in particular a 3-year ban onstrikes in newly-established industries and industries established for or supported by foreignersThis collides head-on with ILCs 78 and 98 and Freedom of Association and CollectiveBargainingThere is a 30-day limitation to file appeal before the Labour Court when the Director of Labourrejects any application to register a trade union This is relatively short for unions with limitedresources and whose members work long hours daily There is also time limit in appealingbefore the Labour Appellate Tribunal According to the law an aggrieved person can appeal theverdict of the labour court on lay-off retrenchment discharge and dismissal within 30 daysThe law is not clear on the right of labour leaders and the workers themselves to represent unionmembers and themselves in the labour courts The rules of the court are also technical and tendto favour the financially capable employersThere are no clear rules on how grievances can be raised at the plant levelAs to disputes elevated outside the plant the process of dispute settlement is complex timeconsumingand expensive for the workers and the unions There are many stages in the processand each takes a long timeThe BLL has no express provisions on the principle of ldquodue processrdquo which should be observedby employers in disciplinary suspension and termination cases Due process means workersshould be given ample opportunity to be informed or notified about the basis of the specific casesagainst them and to defend themselves through a procedure that is fair and objectiveThe system of tripartism tripartite consultations and formation of tripartite bodies requiresclearer rules For example the BLL is silent on the tenure of the tripartite members of the WageBoard and the manner and criteria guiding the selection of the workerrsquo and employersrsquorepresentatives in the Wage Board

Enforcement

Punishment for labour law violations is not spelled out under the BLL In some cases the law issimply silent like in the case of forced labour prohibition In other cases the penalty isinsufficient or meager for example Tk 5000 as fine for violation of provisions on maternityleave employment of child and adolescent workers and minimum wage Still in other cases theapplication of penalty defies logic for example imprisonment up to one year for the violation ofminimum wage provision but not in the violation of the laws on maternity and employment ofchild and adolescent workersIn addition there is a recent amendment weakening the penalties for erring employers ndash paymentof only Tk 5000 as fine for the previous punishment of lsquoimprisonment up to three months orfine up to Tk 1000 or bothrsquoAs discussed in the research findings there are also numerous problems related to the system oflabour inspection18As to access to the judiciary the labour law has a general provision guaranteeing workersrsquo accessto the judiciary for redress of grievances but is not clear on how such access can be realized stepby step at minimum or affordable cost to the workers and their unions

LABOUR REFORMS forDECENT WORK and INDUSTRIAL DEMOCRACY

The Constitution of Bangladesh in Article 14 states

ldquoIt should be a fundamental responsibility of the State to emancipate the toiling masses ndash thepeasants and workers - and backward section of the people from all forms of exploitationrdquoThe reality is that so much have to be done to make the above constitutional vision of workeremancipation from all forms of exploitation a reality Economic reforms are obviously needed toput Bangladesh on the path of balanced job-full and inclusive growth process Political reformsare also needed to insure that growth is sustained in the framework of a stable democracyHowever in the area of labour laws and labour relations the foregoing research findings andanalysis of the Bangladesh labour law system show that urgent labour law reforms are neededThese reforms should be pursued in the context of the DWA MDG and the Constitutionalmandate for workers protection against all forms of exploitation In this connection theresearch team is proposing the updating of legal provisions in employment standards health and safety and socialwelfare and social protection strengthening of legal provisions on trade unionism and collective bargaining andenforcement of labour rightsIn particular the following key reforms are needed

Align the BLL with international norms particularly ILC 87 and ILC 98 As asignatory to many of international conventions and covenants related to worker rightsBangladesh should align the BLL with internationally recognized workersrsquo rightsparticularly those relating to the core ILO conventions More specifically

The BLL should cover all workers without exception These include the domesticworkers agricultural workers school workers and informal workers

The right to form unions especially in the garments industry should be given widestspace in terms of legal provisions Some doableso Removal of the 30 per cent requirement for trade union registrationo Amendment of the frac34 requirement for a strike to be declared to a simplymajorityo Removal of any strike ban in any industry19o Removal of any rules on where to locate trade union offices and all artificialbarriers to union formationo Workers should should be given the full freedom to choose theirrepresentatives and form unions without fear of dismissal or harrassmento Enactment of laws against unfair labour practices committed by employerseg dismissal of trade union officers and members intervention in internaltrade union affairs and so on The right to negotiate and conclude collective bargaining should be expresslyrecognized in the law Some doableso Mandatory provision on good-faith bargaining by both sides once a union isduly registered and recognized as the most representativeo Provisions on how both sides can bargain in the spirit of mutual respect withincertain time lines

Promote coherence in the BLL in the context of DWA MDG and Constitutionalmandate on protection for all workers against all forms of exploitation Among othersthis entails ndash

Strict regulations on the use of short-term workers eg apprentices (should be forreal learning purposes and not for employment at below minimum wages) casualsbadly temporary probationers and so on

Purging the BLL of contradictory provisions eg on enjoyment by workers ofweekly rest day employment of child labour and the number of trade unions to berecognized at the workplace as discussed earlier

Elimination of discrimination at the work place by covering non-wage and otherissues such as race religion ethnic group age group etc

Removal of obstacles to workersrsquo entitlements to certain benefits eg in filing claimsfor separation benefits on resignation compensation for work-related injury oraccidents etc

Timelines for the processing of workersrsquo claims should be subject to the test offairness and equity

Application of the principle of universality in the development and application ofvarious social welfare and social protection schemes such as provident fund groupinsurance and so on

Strengthen enforcement and administration of labour justice There are major concerns

that should be addressed under this theme such as --

Removal of termination simplicitor and its replacement with the proviso that seriousmisconduct can be a ground for worker dismissal only after the worker is given dueprocess or the right to be informed the right to be heard and the right to sort out thetruth through an objective and fair process The due process principle should be enshrined and should apply to all cases ofsuspension and termination

A schedule of progressive (from light to heavy) penalties for erring employers forvarious labour standard or labour right violations should be enacted and enforcedstrictly

The system of labour inspection should be upgraded and should involve the unions inthe development of inspection standards and norms

The BLL should be purged of provisions weakening workersrsquo exercise of their rightssuch as work during festivals or doing excessive overtime if they have the so-calledldquoworkersrsquo consentrdquo or allowing 12-year olds to work if they have consent and so on

Unclear provisions such as estimation of OT rate for piece-rated workers should bespelled out under the law

The maternity law should be reviewed and should not be used as an excuse for hiringonly single or unmarried women on short-term basis

The Wage Board and other tripartite bodies should be reconstituted on the basis ofclear criteria in the selection of tripartite representatives clear mandate on theirpowers and functions and their tenure

Workers and union representatives should be recognized in the labour courts whichshould conduct their proceedings or hearings in a non-technical manner

The Ministry of Labour should spell out how organized and unorganized workers canseek redress for various grievances in various forums ndash in the workplace at the labourministry or at the labour court

Bangladesh beats Indiarsquos RMG sector

Bangladesh has overtaken India in readymade garment exports despite the recent setbacks it received like instances of building collapses and fire at manufacturing units says a study by Exim Bank reported Times of India

Between January and October 2013 readymade shipments by Indian exporters to the US grew 63 per cent to $32 billion while the same by Bangladesh jumped 114 per cent at $49 billion the premier export finance agency said

ldquoIn the absence of latest data imports by the US are a very good benchmark of understanding the latest trends Bangladesh has been aggressively pushing the garment exports and has made a slew of policy changes to facilitate thoserdquo Exim Bank Chief General Manager Prahalathan Iyer told PTI

Bangladesh`s garment exports increased from $68 billion in 2005 to $199 billion in 2012 recording a compounded annual growth rate (CAGR) of 166 per cent

During the same period India`s outward shipments rose from $87 billion to $138 billion a CAGR of just 68 per cent

Iyer and his colleagues conducted a study which revealed that Bangladesh offers sops like uninterrupted power and a priority at the Chittagong port for shipment

ldquoThey have to take it very seriously as the garment exports contribute 80 per cent of Bangladesh`s total export earningsrdquo he said

Asked if recent events like a spate of fires and collapse of garment factories which led to some anxiety over safety norms at these units among the Western retailers sourcing goods from the country`s eastern neighbour is favourable for India Iyer replied in the negative

He said in October 2013 because of these incidents there was a slowdown in Bangladeshi garment exports which grew only 3 per cent

But initial trends point out to a robust growth of over 41 per cent in November suggesting a healthy bounce back by the key sector

Iyer said many of the sourcing companies have South Asia offices situated in India but they source garments from either Bangladesh or Sri Lanka

Some more info RMG sector navigating the challenging times ahead

Bangladeshrsquos export performance in the first quarter of fiscal 2014 has been quite robust mdash export earnings were 212 percent higher than the corresponding period of fiscal 2013 Excepting the negative growth in the Canadian market (-14 percent) export was high in all major markets (EU 27 percent USA 157 percent)

Exports record in quarter 1 would imply that a growth of 103 percent will be required over the next nine months to reach the target of 129 percent planned for the whole of fiscal 2014In regards to RMG exports performance in Q1 of fiscal 2014 was equally impressive Growth of RMG was 242 percent with knitwear recording a rise of 244 percent and woven wear 239 percent over the corresponding period of fiscal 2013RMG exports will need to register a growth of 86 percent over the next three quarters from the same time last year if the overall RMG growth target of 122 percent for fiscal 2014 is to be achieved This appears to be an attainable target in view of current trends and emerging market signalsHowever a number of factors will make the journey over the upcoming months a particularly challenging one to navigateFirstly the high RMG growth in the first quarter was based on a relatively low growth of 38 percent posted in the first quarter of fiscal 2013 There was thus a favourable base-line effect In October-June of fiscal 2013 RMG growth was 157 percent This would imply that growth over the next three quarters will have to be attained on the relatively more robust performance record and higher base line of the preceding yearSecondly over the next few months the orders placed in the post-Rana Plaza tragedy period will

start to be reflected in the export figures As of now market intelligence is not transmitting any disquieting signalsHowever much will depend on Bangladeshrsquos ability to undertake the needed homework and implement the various action plans that have been put in place in view of the Rana Plaza incidentThese include various activities envisaged as part of tripartite agreement ILO Work Plan and measures to be taken under the purview of lsquoAccordrsquo and the lsquoAlliancersquoIn matters concerning work place safety of workers and employees in the RMG sector zero-tolerance should be the overriding motivation Any failure in this regard will also put the RMG sector at a disadvantage in addressing the generalised system of preferences (US-GSP review in December 2013 EU-GSP review in January 2014) assuaging the concerns of consumer groups in developed country markets and most importantly in dealing with the major buying houses There should be full commitment in this regard on the part of all involved stakeholders This is critical to safeguarding the medium to long term interests of the sectorThirdly in spite of Bangladeshrsquos good performance in both the EU and the US markets Vietnam has been outperforming Bangladesh in the US market and Cambodia in the EU marketIn recent years market share of all these three countries have gone up at the cost of China whose exports and market share have continued to decline particularly in the US marketIn the foreseeable future the advantage and attention that Bangladesh has enjoyed thanks to the China plus one policy pursued by major buyers is likely to face increasing competitive pressure from Vietnam Cambodia and also India among others Bangladesh will need to keep competitors on the radar screen and calibrate policies and initiatives accordinglyFourthly Bangladeshrsquos RMG export performance received a positive jolt in the EU market in recent times thanks to changes in the rules of origin for woven-RMG products under the EU-GSP scheme The initial advantages resulting in higher exports which arose from Bangladeshrsquos capacity to access the preferences is likely to taper off over the medium term Bangladesh will need to be cautious about this prospectFifth a sharp depreciation of the currencies of some of Bangladeshrsquos competitors particularly India has put Bangladesh to some disadvantage A market analysis at disaggregated level shows that for example in the EU market out of Bangladeshrsquos ten topmost (six digit-level) knitwear items eight items figure among Indiarsquos top ten items (for wovenwear the number is six)Although no adverse impact of the relative appreciation of the taka has been visible in major export markets till now it will be prudent to keep a sharp eye on the dynamics of the relative market shares over the coming months and take corrective measures if neededSixth enterprise-level production costs in the RMG sector will go up in view of the investment needed to address compliance-related concerns and also consequent to the expected rise in the minimum wage for the apparels workersBangladeshrsquos continued competitiveness will depend on the ability of the entrepreneurs to remain competitive go for higher productivity and more value addition move upmarket and the ability to pass on a part of the higher cost on to the buyers On all these counts there will be formidable challenges which will need to be addressedSeventh in view of recent market dynamics and the likely changes in the strategy pursued by major buyers the prevailing sub-contracting system is likely to be eased out

The RMG sector will undergo important structural changes This may not necessarily have a negative impact on overall export performance but from the medium term perspective the longstanding production practices based on sub-contracting model will no longer remain the predominant mode Careful planning will be required so that the RMG sector is able to adjust to the changes that will occur both in production and marketing of apparels This will call for concerted efforts both at the enterprise and policy levelEighth the Rana Plaza incident has exposed serious contradictions that are emerging between the productive forces and the production relations in the sectorEnsuring workersrsquo welfare by giving living wages providing better work place safety allowing workers to pursue collective bargaining ought to receive priority and urgent attention on the part of entrepreneurs government institutions and other stakeholdersEntrepreneurs will need to look at the issues from the perspective of enlightened self-interest The government must be mindful of its responsibility as regards implementation and enforcement of provisions stipulated its own laws and regulations and the ILO conventions to which Bangladesh is a signatoryA coalition of the willing must recognise these as key components of a winning strategy for the future of Bangladeshrsquos apparels sectorBangladesh at present is delicately poised in view of the anticipated challenges and the emerging possibilities in a fast changing global apparels market Let us seize the opportunities by doing the needed homework and by being adequately equipped and ready

A case Rana plaza

The International Labour Organization response to the Rana Plaza tragedy and how ILO responded on this (link httpwwwiloorgglobalabout-the-iloactivitiesallWCMS_240343lang--enindexhtm )How has the ILO respondedThe ILO responded quickly to the tragedy on April 24 2013 with a high level mission to Dhaka at the start of May which agreed immediate and medium term actions with the Government of Bangladesh and employersrsquo and workersrsquo organizations These formed the basis of a National Tripartite Plan of Action on fire safety and structural integrity (NTPA) which

integrates measures already underway as part of an earlier NTPA following the Tazreen factory fire in 2012

The ILO has since launched a US$242 million three-and-a-half year programme to support implementation of the NTPA and improve working conditions in the ready-made garment (RMG) sector Key elements are already being implemented including building and fire safety assessments labour inspections and occupational safety and health rehabilitation and skills training

Is the ILO inspecting factoriesNo The Bangladesh University of Engineering and Technology (BUET) is responsible for inspecting factory buildings both for structural integrity and fire and electrical safety The ILO helps to coordinate inspections and has provided technical support including training and equipment A first batch of specialized equipment has been provided to BUET by the ILO with further equipment currently under procurement

BUET undertakes inspections of factories that are not covered by inspection programmes under the Accord for Building and Fire Safety in Bangladesh and the Alliance for Bangladesh Worker Safety By early April 2014 approximately 200 factories had been inspected by BUET with inspection of the remaining factories due to be completed by the end of the year All inspections are carried out using a uniform set of minimum inspection standards

How does the ILO work with the Accord and the AllianceThe ILO serves as the neutral chair of the Accord which brings together more than 150 international brands and retailers who have suppliers in Bangladesh and two global unions (IndustriALL UNI Global) In total the Accord covers 1639 of the 3498 Bangladesh factories making garments for export The Alliance is a group of 26 North American retailers and brands It covers a further estimated 770 factories

How are these and other initiatives coordinatedThe Government of Bangladesh (GoB) asked that the ILO to work with the National Tripartite Committee (GoB and workersrsquo and employersrsquo organizations) the Accord and Alliance to help ensure coordination

More broadly the ILO is part of the ldquo3+5+1rdquo group This brings together three Bangladesh Secretaries (Labour Commerce and Foreign Affairs) five Ambassadors (US EU Netherlands Canada and a 5th EU member state -- filled on rotation) and the ILO to follow progress made in commitments made under the National Tripartite Plan of Action and the EU Compact (see below)

What about compensation for victims and their familiesThe Government of Bangladesh BGMEA trade unions NGOs and garment brands have formed the Rana Plaza Coordination Committee (CC) The purpose is to ensure payments to the victims their families and dependents for losses and needs arising from the accident It is formalized in an agreement known as ldquothe Arrangementrdquo

How does the Arrangement workThe Arrangement has established a claims process based on ILO standards on employment injury Payments are funded by various sources and notably through the Rana Plaza Donors Trust Fund which is open to contributions from any organization

company or individual wishing to support the delivery of financial and medical support to the Rana Plaza families

What is the ILOrsquos roleThe ILO is the neutral chair of the Coordination Committee (CC) and provides technical expertise and advice on ILO labour standards to its members

What about Primark havenrsquot they decided to provide compensation directlyPrimark expressed preference to directly take care of the cases relating to the 580 workers of its local supplier New Wave Bottoms in a well-coordinated manner with the CC Primark has also contributed to the common Fund

What kind of support is being provided to injured survivorsRehabilitation programmes are under way including for the approximately 550 survivors considered permanently or temporarily disabled Skills development and re-employment support has been provided to an initial 50 injured survivors in collaboration with BRAC a prominent local non-governmental organization A further 250 survivors are receiving similar support in collaboration with Action Aid an international non-governmental organization

What is the ILO doing to promote improved workersrsquo rights and working conditionsThe ILO has been working for some time with the Government of Bangladesh on improving working conditions through its Fundamental Principle and Rights at Work (FPRW) project and establishing a Better Work programme in partnership with the International Finance Corporation

In July 2013 the ILO the EU and the Bangladesh government adopted a new compact on garment factory safety designed to help improve health and safety labour rights and responsible business conduct in Bangladeshrsquos ready-made garment industry

The ILO is working with the Bangladesh Government employers and workers to strengthen dialogue between them It also continues to support the Government in improving labour legislation -- work that has already led to some labour law reforms

What results have there been so farAmendments were made to the Bangladesh Labour Act in July 2013 including provisions on workplace rights safety and health Significant changes can be seen from that time particularly on new trade union registrations with 127 new unions registered from beginning 2013 to date ndash compared to only two unions registered in the preceding three years

The ILO also advises the Governmentrsquos Minimum Wages Board Its recommendations have already led to a substantial rise in the minimum wage in the garment sector

What about labour inspectionsThe ILO has been working with the Government of Bangladesh to improve labour inspection capacity in the country So far 392 new labour inspector positions have been established upgrading the countryrsquos Directorate of Labour Inspections to a fully-fledged department and increasing the number of inspectors from 183 to 575 The ILO has also developed a comprehensive training plan for labour inspectors

What are the challenges ahead for the response

Action is needed in three priority areas The target for the Rana Plaza Trust Fund needs to be reached and compensation provided to claimants The amendments made to the Bangladesh labour law should be put into effect and made a reality in all workplaces And structural and fire safety inspections must continue apace and remedial measures implemented as deemed necessary

Journals

httpwwwnytimescom20130717worldasiaunder-pressure-bangladesh-adopts-new-labor-lawhtml_r=0

Under Pressure Bangladesh Adopts New Labor LawFacing intense international pressure to improve conditions for garment workers Bangladeshi lawmakers amended the countryrsquos labor law this week But while the officials called the new law a landmark strengthening of workersrsquo protections rights groups said the law made only modest changes and took numerous steps backward that undercut unions

paraBangladeshi lawmakers adopted the new law three weeks after the United States suspended Bangladeshrsquos trade preferences saying that labor rights and safety violations were far

too prevalent in that countryrsquos factories Moreover the European Union has threatened to revoke Bangladeshrsquos trade privileges for similar reasons

paraSpeaking about the new law Khandaker Mosharraf Hossain the chairman of the parliamentary subcommittee on labor reforms told Reuters ldquoThe aim was to ensure workersrsquo rights are strengthened and we have done that I am hoping this will assuage global fears around this issuerdquo

The Bangladeshi government has faced fierce pressure to improve conditions for the nationrsquos four million

garment workers since the Rana Plaza factory building collapsed in April killing 1129 workers

paraUnder the new law factories will be required to set aside 5 percent of profits for a welfare fund for employees although the law exempts export-oriented factories Apparel is Bangladeshrsquos dominant industry with $18 billion in annual exports making it the worldrsquos second-largest garment exporter after China

paraAs under the old law workers hoping to form a union must gather signatures of 30 percent of a companyrsquos workers mdash a level that was onerous labor leaders said because many apparel manufacturers have thousands of workers To make unionizing easier labor leaders were urging lawmakers to adopt a 10 percent threshold In Bangladesh several unions might represent employees in a single factory

paraBusiness leaders complain that Bangladeshi unions are highly political and sometimes stage disruptive strikes as a complementary tactic to political blocsrsquo lobbying and infighting

paraIn a step that could help unionization the new law bars the countryrsquos labor ministry from giving factory owners the list of the 30 percent of workers who want to form a union Labor leaders said that after receiving those lists owners often fired union supporters or pressed many to withdraw their names from the petition bringing the number below the requisite 30 percent mark for a union to be recognized

paraSome labor leaders expressed concern that government officials would still give the names to factory owners perhaps because of collusion or bribes

paraldquoThe government says this will make it easier for workers to organizerdquo said Babul Akhter the president of the Bangladesh Garment and Industrial Workers Federation ldquoThatrsquos not truerdquo

paraMr Akhter praised the legislation for adding some protections on fire and building safety it strengthens requirements for permits when a factory adds floors

paraHuman Rights Watch said however that the new law would make unionizing harder It criticized the legislation for adding more industrial sectors including hospitals where workers would not be permitted to form unions The group noted that workers in Bangladeshrsquos important export processing zones would remain legally unable to unionize

paraIn addition the government would be empowered to stop a strike if it would cause ldquoserious hardship to the communityrdquo or be ldquoprejudicial to the national interestrdquo And workers at any factory owned by foreigners or established in collaboration with foreigners would be barred from striking during the operationrsquos first three years

paraldquoThe Bangladesh government desperately wants to move the spotlight away from the Rana Plaza disaster so itrsquos not surprising it is now trying to show that it belatedly cares about workersrsquo rightsrdquo said Phil Robertson deputy Asia director for Human Rights Watch ldquoThis would be good news if the new law fully met international standards but the sad reality is that the government has consciously limited basic workersrsquo rights while exposing workers to continued risks and exploitationrdquo

paraUnder the new law unions would need government approval before they could receive technical health safety or financial support from other countries

paraAn Obama administration official said various agencies were seeking to obtain the exact language of the new law in order to study it

paraRoy Ramesh Chandra a powerful Bangladeshi labor leader said the legislation might not have done enough to persuade Europe not to suspend trade preferences or to get Washington to reinstate such preferences

Journals comparing with india how is now our labour conditionsThe labour unrest in the readymade garments sector in Bangladesh has put Indian apparel exporters in an advantageous position

The US and EU are diverting orders from Bangladesh to India to meet their apparel requirements for the upcoming summer season Indian apparel exporters are making most of the situation They are scaling up operations and negotiating deals with foreign buyers so that they can enjoy a bigger pie of the overseas markets

Talking to ET DK Nair general secretary Confederation of Indian Textile Industry (CITI) said Though we do not want to take advantage of any countrys problem it is true that orders are being diverted to India from US and EU and this is helping our apparel exportsExport in dollar terms for April-October of the current fiscal has increased by 155 over the same period of the previous financial year and reached $8259 million In rupee terms apparel exports from India have increased by 2618 in the same period to touch Rs 49096 crore compared to Rs 38911 crore in the same period of the previous year

Exporters from Tirupur the largest knitwear hub of the country have bagged good export orders due to the labour unrest in Bangladeshs garment sector The order position has improved compared to the previous year Bangladesh is not the sole reason for this upswing Both the US and Europe are slowly recovering from the economic slowdown which is getting reflected in the order position Units in Tirupur remained underutilised due to the recession that had gripped the US and Europe But now the situation has improved and the units are flooded with orders said Sanjay Kumar Gupta CEO Tirupur Exporters Association

K Selvaraju secretary general Southern India Mills Association added Not only the US and Europe even China is picking up good volumes of yarn textiles and fabrics from India So the textile industry in the country is in a good position right nowBangladesh has just revised wages of its garment workers which has put Bangladesh roughly in the same league with apparel exporters from India Sri Lanka and Cambodia This will make Bangladesh less competitive in the world markets

HKL Magu senior vice-chairman Apparel Export Promotion Council said Earlier there was a gap of 20 in cost component between Bangladeshi and Indian apparel exporters But with rising wages that gap is expected to narrow down Indian apparel exporters are now overbooked with orders for the upcoming summer season We are also negotiating deals with foreign buyers as rupee is now hovering around the 61 -62 level against the dollar When the rupee had touched the 68 level foreign buyers had renegotiated their deals Now that rupee has strengthened we have to revisit the deals



A case Rana plaza

The International Labour Organization response to the Rana Plaza tragedy and how ILO responded on this (link httpwwwiloorgglobalabout-the-iloactivitiesallWCMS_240343lang--enindexhtm )

How has the ILO responded

Is the ILO inspecting factories

How does the ILO work with the Accord and the Alliance

How are these and other initiatives coordinated

What about compensation for victims and their families

How does the Arrangement work

What is the ILOrsquos role

What about Primark havenrsquot they decided to provide compensation directly

What kind of support is being provided to injured survivors

What is the ILO doing to promote improved workersrsquo rights and working conditions

What results have there been so far

What about labour inspections



Under Pressure Bangladesh Adopts New Labor Law

Journals comparing with india how is now our labour conditions

them for helping me by providing primary data Again I would like to offer my warm thanks to all of them for helping me a lot in construction of this dissertation report

Executive Summery

The Readymade Garment Industry of Bangladesh has become the largest foreign exchange earning sector exporting apparel of all sorts to the USA Europe and other developed countries The Readymade Garment (RMG) industry of Bangladesh tells an impressive story about the leadership of private enterprise and the countryrsquos successful transition to a major export-oriented economy The country registered its first apparel export in 1978 but the progress since the early 1980s has been simply phenomenal It has by now become a colossal industry earning the lions share of the countrys foreign exchange and providing the nations women with the largest formal employment

With the first garment exporting unit Reaz Garments in 1978 and along with that initiative Desh Garments led by the visionary entrepreneur Mr Noorul Quader Bangladesh stepped into a new promised land of prosperity The success story of the Readymade Garments sector of Bangladesh is based on employment generation and increasingly high value addition thus smoothening the path for growth and development of the country The apparel and garment industry propels sectors such as banking finance and insurance cargo shipping and transport entertainment and hospitality research and education and a lot more The mentioned performance of the industry has been possible due to A The cheap but disciplined and regimented workforce has been key for the success of this industry B The entrepreneur class has been dedicated and motivated to the countrys economic prosperity C The quality of the manufactured apparel which has been increasingly recognized by our international buyers and end users all over the world

D Buyers response has been encouraging through repeat orders The industry has been producing all sorts of apparels for all seasons and has managed to get repeat orders for every season E The import policy of Bangladesh has been flexible and friendly for import of accessories

This vital and vibrant export oriented industry has been facing some problems from local forces which may be termed weaknesses (or the Nations weakness) and some problems caused by forces beyond our geographicalpolitical boundary which may be termed as threats to our industry The Readymade Garment Industry is already 20 years old but during the last two decades no planned fruitful policy to build up a backward linkage textile industry to feed the RMG industry has been taken by the authorities Even the existing textile industries are not capable of producing high standard fabrics to offset the foreign ones from the market Shortage of capital necessary to develop local sources for quality fabricsyam is a major weakness The reason behind the shortage of capital however can be attributed to the socioeconomic condition of the country enabling foreign direct investment could however compensate for this Furthermore although the Government has responded to the RMG industrys requests for devaluation of the local currency ndash the Taka ndash from time to time it has failed to decrease the current rate of interest At the same time our financial policy measures are not sufficient to








Literature Review
















































































Enforcement




Research findings






































Enforcement











































A case Rana plaza























Journals





























A case Rana plaza

























Literature Review
















































































Enforcement




Research findings






































Enforcement











































A case Rana plaza























Journals





























A case Rana plaza

























































































Enforcement




Research findings






































Enforcement











































A case Rana plaza























Journals





























A case Rana plaza






















































Enforcement











































A case Rana plaza























Journals





























A case Rana plaza




























































A case Rana plaza























Journals





























A case Rana plaza







































Journals





























A case Rana plaza












































A case Rana plaza


















report on labor law bangladesh garments sector

Documents