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Impact analysis planned for trade unions in EPZ

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Staff Reporter :

In an effort to enhance the country’s labour conditions and attract more foreign buyers, Chief Adviser to the Interim Government, Professor Muhammad Yunus, announced on Monday that his administration is committed to implementing significant labour reforms.

During a meeting with a high-level delegation from the United States, which included senior officials from the US Department of Labor and representatives from top international brands that source garments from Bangladesh, the US representatives expressed their intent to engage more deeply with the Interim Government to improve the labour sector for the benefit of Bangladesh.

Addressing the delegation at his office in Tejgaon, Professor Yunus reaffirmed the government’s commitment to aligning Bangladesh’s labour laws with global standards, as reported by a spokesperson from his office.

“We want to ensure our labour laws are on par with global standards. This is my commitment,” he stated, emphasising the importance of labour rights reforms to enhance working conditions and create a more attractive business environment for foreign buyers.

The delegation, led by Thea Mei Lee, Deputy Undersecretary of the US Department of Labor, and Kelly Fay Rodriguez, Special Representative for International Labor Affairs, expressed strong support for the Interim Government’s initiatives to improve the labour sector.

They praised the steps taken by the government, including a recent 18-point agreement signed between the government and local trade unions.

The officials also called for further measures, such as strengthening union rights in factories and implementing annual wage reviews to protect garment workers from the effects of inflation.

“These reforms are not only beneficial for business but also for the economy,” said Thea Mei Lee, highlighting the importance of fair wages and decent working conditions.

She described worker unions as “a training ground for democracy,” emphasising the broader social benefits of empowering workers through collective bargaining.

Senior executives from three prominent US brands – PVH, Calvin Klein, and Gap Inc. – were also present at the meeting. Michael Bride, Senior Vice President of PVH Corp., expressed support for labour reforms in Bangladesh, noting that similar initiatives had been successful in other garment-producing countries like Cambodia.

In a key proposal, Professor Yunus urged international brands to announce price increases for their orders every January, allowing manufacturers in Bangladesh to adjust workers’ wages in response to rising inflation.

The US officials, including Meghan Boulden, the US Chargé d’Affaires, expressed their full support for the reforms, with Boulden emphasising that the US is eager to partner in the ongoing transformation of Bangladesh’s labour sector.

The meeting underscored the growing international support for Bangladesh’s labour reforms, with global brands and labour rights organisations rallying behind the Interim Government’s efforts to create worker-friendly conditions while maintaining the country’s competitiveness in the global garment industry.

Since the formation of the interim government following a mass uprising that led to the ousting of the Awami League government, the Yunus-led administration has focused on labour issues.

Meanwhile, the government has announced plans to conduct a comprehensive impact analysis regarding the potential introduction of trade unions in Export Processing Zones (EPZs). “We have had detailed discussions on this matter with the Chief Adviser. To assess the implications, we will commission an independent third-party analysis.

It is essential to fully understand the socio-economic impact of such a move,” Labour and Employment Secretary AHM Shafiquzzaman told journalists at the Secretariat on Monday.
He noted that workers in EPZs currently enjoy more benefits compared to their counterparts working outside these zones.

This disparity raises concerns about the challenges of harmonising labour laws for both groups under a single regulatory framework. Regarding a unified law for EPZs allowing workers to form independent unions, the Secretary stated, “We need an impact analysis before establishing a single law. We have sought technical support from the US for this initiative.”

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