LABOR LAW IMPLEMENTATION
IN THE RMG SECTOR
OF BANGLADESH
INTRODUCTION
• The British rulers in India didn’t develop our cloth industries at all. Rather they
destroyed them and imported cloths from England.
• RMG industry has successfully transformed Bangladesh into an export-oriented
economy. Garments exports from Bangladesh began in the late 1970s.
• The sector rapidly attained high importance in terms of employment, foreign
exchange earnings and its contribution to GDP.
• Most importantly, the growth of RMG sector produced a group of entrepreneurs
who have created a strong private sector.
RMG SECTOR IN BANGLADESH
• The readymade garments (RMG) industry is the most important manufacturer,
earning around $5 billion annually and accounting for about two thirds of all
exports.
• The largest industrial employer in the country with about 4,500 garment factories.
• About 85 percent of this workforce is dominated by women from rural background
which surely affect rural economy and can play a vital role in woman empowerment.
• Notorious for harsh working environments, and not being compliant with
established laws (e.g. child labor)
• Wake-up calls from several large-scale accidents (e.g. Rana Plaza)
CURRENT SCENARIO
• This industry directly employs two million workforces.
• Another one million in linkage industries.
• About 10 million livelihoods directly or indirectly dependent on it.
• However, labor law implementation is not proper here.
• According to BGMEA, more than 350,000 workers have lost their jobs, many of
whom laid off without proper compensation due to the COVID 19 pandemic.
• Overall 2.20 million garments workers have become affected during the pandemic
while 76 percent shipments and orders have become cancelled or postponed.
LABOR LAW
• Labor Law is legislation specifying responsibilities and rights in employment,
particularly the responsibilities of the employer and the rights of the employee.
• The goal of labor laws is to equalize the bargaining power between employers and
employees.
• Primarily deal with the relationship between employers and unions.
• Four fundamental policies for labor:
A right of workers to free association and collective bargaining;
A prohibition on forced or compulsory labor;
A prohibition on child labor;
A prohibition on unfair discrimination among workers.
BANGLADESH LABOR ACT, 2006
• 354 Clauses under 21 Chapters, after Amendment in 2018.
• Chapter 2 – Procedure of appointment and conditions of employment.
• Chapter 3 – Forbids employments of minors, unless only as a trainee
• Chapter 4 – Maternity benefits for female workers
• Chapter 5 & 7 – Describes about health related aspects for workers
• Chapter 6 – Security for Workers
• Chapter 8 – Welfare for workers and working conditions
• Chapter 9 – Describes work hours and leaves
• Chapter 10 & 11 – Procedure of reimbursement of wages and wage board
BANGLADESH LABOR ACT, 2006
• Chapter 12 – Payment of damages due to accident.
• Chapter 13 – Trade Union and Relationship with Industries.
• Chapter 14 – Settlement of Disputes, Legal Policy, Appeal Tribunal etc.
• Chapter 15– Participation of the worker in the profit of the organization.
• Chapter 16 – Recruitment, control and safety .
• Chapter 17 – System of provident fund
• Chapter 18 – Apprenticeship
• Chapter 19 – Crime, Sentence and Process.
• Chapter 20 - Administration and Inspection.
THE REALITY
• Despite of strict instructions of the law, we can find children working in most of the factories.
• Maternity benefits are not given properly. And the victim cannot utter a word for being
threatened to be fired.
• Most of the factories do not have healthy working condition, there is lack of proper
ventilation, temperature control and sanitation.
• Most buildings are vulnerable in condition. They may collapse by the slightest cause.
• No proper emergency exist. and lack of fire extinguishers.
• Almost no worker has training on how to act at the time of emergency.
• No existence of labor union, dispute settlement is a hard nut to crack.
• Workers are not paid properly.
• Rude behavior and sexual harassment with female workers is a common
RANA PLAZA INCIDENT AND AFTERMATH
• On 24th November 2012, a tragic accident happened during a fire breakout. At least
112 workers had lost their lives: trapped inside and burnt alive in Tazreen Fashions
factory.
• Just after five months, On 24th April 2013, Rana Plaza, a five storied building
collapsed in Savar. It housed five garment factories and killing at least 1,132 people
and injured more than 2,500 workers.
• These back to back catastrophes determined a turning point for Bangladeshi RMGs.
STEPS TAKEN BY GOVERNMENT AND STAKEHOLDERS
• Amendment of Labor Law to ensure workers safety, welfare and rights and promoting
trade unionism and collective bargaining.
• Number of new Trade Unions were registered. ILO has started training program for the
newly formed unions.
• The government declared an increment of 77% on minimum wages from the previous
one. It has been implemented since 01 December 2013. Now the minimum wage of
garments workers is TK 5300/- which is about US $68.
• A total amount of 231 Crore has been distributed to victims of Rana Plaza by the
government along with other stakeholders.
• Improved implementations on maternity and child care.
• Strengthen of Ministry and the Department of Labor
• Help Line has been established at Ashulia, Dhaka on 15th March 2015. The number is
0800-4455000
RECOMMENDATIONS
• Every single worker should receive formal appointment letters and IDs.
• Termination due to retrenchment must also provide compensation to the workers
• Dismissal of workers by employers must be allowed after sufficient and proper
warnings.
• Gratuity should be introduced for RMG workers
• Measures to be taken to enforce prevention of child labors
• Overtimes need to be appropriately paid for, otherwise discouraged for the sake of
health condition of workers
• Considering increasing living expenses, further increase for minimum wage should be
considered.
THANK YOU
