Home RMG News Sustainability Compact

Sustainability Compact

Labour rules delay may affect Nov review

File Photo

Delay in formulation of rules on labour law may emerge as a crucial issue when top officials of the Sustainability Compact reviews progress in workplace safety in Bangladesh apparel sector, officials feared. The second review meeting is scheduled to be held in Dhaka in November next, where top officials and representatives from the European Union (EU), US, Canada, the Netherlands, the UK and ILO will be present. People involved with the process said Bangladesh has failed to comply with some important conditions of the Compact, including formulation of rules to implement the labour law and extend those to the export processing zones (EPZ) or making necessary changes in the existing EPZ law and completion of factory inspection. After the devastating Rana Plaza building collapse that killed more than 1,100 workers, the EU and the government signed the Compact in July 2013, and later the US joined the initiative. The first review meeting, attended by 120 participants, held in October last year in Brussels that asked the speedy formulation of the rules for implementing the labour law and making necessary changes in the existing EPZ law, completion of factory inspection and publishing the inspection results and advancement of recruitment of labour inspectors. The government, however, met some requirements, including appointing 200 additional inspectors and launched publicly accessible database but failed to formulate the rules even two years after the law was amended and finalise the new EPZ law till date, according to the people involved with the process. The rules were one of the key requirements for the revival of the GSP (generalised system of preferences) in the US market and retention of the duty-free facility in the EU countries. The US and the EU are the major destinations for Bangladeshi exports. On April 24 last, the EU published a technical status report on the Compact that termed the adoption of the rules as a matter of “highest priority”. “These implementing rules are essential if the reform process to improve labour rights and safe work conditions are to continue.” The government of Bangladesh must prioritise the effective investigation and prosecution of unfair labour practices, including anti-union discrimination and reprisals, but also reported as well as documented violence against trade unions and workers’ representatives, it added. The report also called upon the government to further amend the labour law, adopt legislation to ensure workers’ rights in EPZs in line with the labour law, continue factory inspection and necessary repairs and other remedial actions. It also called for strengthening the capacity of authorities responsible for taking full ownership of the entire inspection process that is currently done by Accord and Alliance. Regarding the EPZ, the report said, “Worker Welfare Associations (WWAs) may be established in the EPZs. They do not, however, have the same rights as trade unions.” The officials repeatedly said trade unions (TU) are allowed in the form of WWA and there is no provision of TUs when EPZs were established. The investors might quit the zones if TUs are allowed in the special zones as done in the factories outside the EPZs, they added. When asked a senior government official said, “The government has so far met all the requirements except the formulation of the rules, which might be the ‘hot’ issue in the upcoming review meeting of Compact.” The rules will be finalised before the meeting while garment factory assessment under the national initiative will also be completed by the time, he said. The two western retailers groups have completed their initial inspection and remediation work is going on for fixing the flaws and it will take some time, he noted. “There is no condition that has remained unmet. Work is going on,” another senior official at the labour ministry said. Some 3,000 out of 3,500 garment factories have been assessed by Accord, Alliance and national initiative and some 32 factories were closed over safety issues, he added.   Since January 2013, more than 300 trade unions have been registered, he noted. But sources said the new EPZ law sent for the law ministry’s vetting last year is yet to see the light. The sources added any further delay in meeting the conditions might lead to an adverse impact on the efforts to revive the GSP in the US market and continue enjoying the same benefit in the EU market.