Trade unions now Possible with 20 workers’ consent under new law
Business Report :
The government has approved a significant amendment to the country’s labor laws, aiming to make it easier for workers to form trade unions and strengthen labor rights across industries.
Under the new legislation, the minimum number of workers needed to establish a union has been lowered considerably.
Factories employing 20 to 300 workers can now form a union with the consent of just 20 workers, those with 301 to 500 workers require 40 workers’ approval, and factories with 1,501 to 3,000 workers need the agreement of 300 workers.
Previously, the law required the consent of 20 percent of the workforce, making it more difficult for smaller groups of employees to organise.
The amendment was approved in a meeting of the Advisory Council chaired by Chief Advisor Professor Muhammad Yunus.
According to Labor and Employment Advisor Brigadier General (Retd.) M. Sakhawat Hossain, the changes were developed over more than a year with input from workers, factory owners, and government officials, ensuring the reforms are in line with international labor standards.
Among other key changes, the law now allows up to five trade unions in a single factory.
If multiple unions are formed, a joint bargaining council can be established through elections to ensure fair negotiations.
Employers are also prohibited from blacklisting workers who have been terminated, helping employees find new jobs without discrimination.
The definition of “worker” has been expanded to include domestic workers, such as those employed in households, dormitories, and messes, giving them legal recognition and protection for the first time.
The amendment also introduces provisions for financial security and social protection.
Factories with 100 or more permanent workers must establish a provident fund or participate in the government’s universal pension scheme, the Progotir Scheme, with equal contributions from employers and employees.
Maternity benefits for female workers have been extended to 120 days, up from 112, and a new compensation fund will support workers injured in workplace accidents.
Experts and labor advocates have welcomed the reforms, saying they could significantly improve labor relations and workplace standards in Bangladesh.
By simplifying the process for forming trade unions, expanding workers’ rights, and ensuring social protections, the government hopes to align the country’s labor laws with international best practices, enhance productivity, and foster a fairer and safer working environment for millions of workers across the nation.