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Workers

Easier Trade Union Formation and Collective Bargaining Rules for Bangladeshi Workers

Strategic Insights

— 2 min read

A critical meeting of the Tripartite Consultative Committee (TCC) has aimed to amend the labour law to make it easier for workers to form trade unions and engage in collective bargaining. The meeting brought together representatives from the government, owners, and workers to fine-tune proposals for amending the labour law in line with international standards. Key decisions include allowing 20 workers to form a trade union and permitting up to five unions in a factory, in addition to requiring representation from the majority of workers for collective bargaining.

Key Takeaways:

  • 20 workers in a factory can now form a trade union, with a requirement of 20% of the total workforce.
  • The number of trade unions in a factory has been increased from three to five.
  • Representation from the majority of workers is necessary for collective bargaining on labour rights issues.
  • Amendments to the labour law will aim to make the formation of trade unions easier and time-befitting.
  • 20% of a factory's total workforce is now required for a trade union to be formed, a decrease from the previous percentage-based system.
  • The government will incorporate the necessary amendments to the labour law, including those related to trade unions.
  • Fazlee Shamim Ehsan, President of the Bangladesh Employers' Federation, expressed concerns over the TU formation process, arguing that the proposed number of workers is too low, considering Bangladesh's labour situation.
  • An owner representative alleged that the government failed to bring required reforms in curbing corruption, ease of doing business, and reducing operations costs in the labour sector.
  • Nazma Akter, President of the Sammility Garment Sramik Federation, welcomed the decision but noted that the proposed requirement of majority workforce representation in collective bargaining may be challenging for workers.

Statistics:

  • 20% of a factory's total workforce is required for a trade union to be formed (Labour Secretary A H M Shafiquzzaman).
  • The number of trade unions in a factory has been increased from three to five.
  • 120 days maternity leave will be increased from the existing 112 days (meeting sources).
  • Tk 50,000 (approximately USD 600) will be imposed as a penalty in case of violations of provisions related to maternity leave and other related benefits (meeting sources).
  • The meeting discussed the definition of workers, association for mid-level management staff, sexual harassment, and violence against workers (meeting sources).
  • Bangladesh can apply for GSP-plus benefits after LDC graduation, but readymade garments will not get duty-free market access due to the safeguard clauses (industry people).

Sources:

  • The Financial Express (FE)
  • Labour Secretary A H M Shafiquzzaman
  • Fazlee Shamim Ehsan, President of the Bangladesh Employers' Federation
  • Nazma Akter, President of the Sammility Garment Sramik Federation
  • Meeting sources
  • The European Union to Bangladesh (on August 24)

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