Economic, Social and Political Environment in Bangladesh Significant growth of women in the labour force (specially in RMG) :changing social and economic pattern of Bangladesh Transformation in economic sector: from an agricultural-based economy to manufacturing and export-oriented economy in the last two decades Political environment: democracy and trade liberalisation

Labour Force in EPZ & RMG Bangladesh Export Processing Zone (BEPZA) came into existence in 1980 EPZ Act in 1996 was passed to promote foreign and local investors for setting up private EPZs in Bangladesh Labour force increased rapidly in EPZs in last two decades RMG employs directly 2.5 millions workers and 80% of those are women Low-cost labour

Legal Framework of IR system in Bangladesh (1) Bangladesh Labour Act 2006  brought about a number of reforms including health and safety issues terms and condition in employment uniformity in definition of workers, child labour wages, overtime allowance and compensation enhanced social security of workers

Legal Framework of IR system in Bangladesh (2) IR and Labour Act 2006 Increased the protection of Trade Union Simplified process to form collective bargaining agent Strengthened the role of participation committee to minimise conflict and retain harmonious relations

Bangladesh Labour Code 2006: a critical review The act applies to the whole of Bangladesh. Source: Section 1(3) Bangladesh Labour Act 2006 The act is Applicable for commercial and industrial establishments, factories, docks, tea plantations and so on The act is not applicable for domestic workers The act excludes managerial and administrative employees from their right to establish workers’ organisation

Loopholes of Bangladesh Labour Code 2006 (continued) No significant change in trade unionism, collective bargaining and strike Restrictions on membership of trade unions: A trade union of workers shall not be entitled to registration….unless it has a minimum membership of thirty percent of total number of workers employed in the establishment in which it is formed In case of more than one establishment under the same employer…irrespective of place of situation, shall be deemed to be one establishment.. Source: (Section 179, Bangladesh Labour Code 2006)

Loopholes of Bangladesh Labour Code 2006 (continued) Restriction on establishment and participation of trade union No more than three trade unions shall be registered in any establishment or group of establishments Only one trade union of seamen shall be registered Source: section 183(3) of Bangladesh Labour Code 2006

Loopholes of Bangladesh Labour Code 2006 (continued) Restrictions on the right to strike Requirements of three-quarters of the members of a worker’s organisation to consent to a strike ( sec. 211(1) and 227(c) of the Code) Prohibition of strikes for three years from the date of commencement of production in a new establishment, or an establishment owned by foreigners (sec 211(8) and 227 (c) of the Code) Possibility to prohibit strike or lock-out at any time if a strike involves a public utility service including gas and oil service, railways, airways, road and river transport, ports and banking (sec 211 (4) and 227 (c) of the Code)

Amendment of Labour Law (2013) Requirements of two-third of the members of a worker’s organisation to consent to a strike ( sec. 211(1) and 227(c) of the Code) that safety and health committees including members of the workforce must be established in every factory with over 50 workers.

Amendment of Labour Law (2013) “In an establishment, where there is a minimum of 10 workers, the employer shall introduce and implement accident-insurance scheme for workers under group insurance. The benefits or money received from such an accident-insurance scheme shall be utilized for the purpose of the treatment of workers.” (Section 160; sub section 11)

Amendment of Labour Law (2013) “Wherever a trade union is formed in an establishment, if there is 20 percent of the total workforce are female at least 10% of female members shall be included in the executive committee to the union. Provided that those unions, which are registered under this Act, shall be guided by the same.” ( Section 176)