The draft of Bangladesh EPZ Labour Act 2016, which aims to allow trade unions to fully function under each factory’s respective workers welfare associations, is set to be placed before the cabinet today. According to provisions of the new draft act, factory owners would not be able to fire any workers or file any case against them without prior approval from EPZ authority. State Minister of Labour and Employment Mujibul Haque Chunnu confirmed about the development of the draft, which has provisions for full implementation of labour union in Export Processing Zones. “Workers will negotiate with factory owners under the new law as per the demand of trade union activists and foreign buyers,” he said. However, the state minister said the issue of trade unions at local EPZs was not one of the 13 conditions set by the US trade representative for retaining the US Generalised System of Preference (GSP) for local exportable items. Workers of EPZ factories would practice labour rights activities within the factories under their respective workers welfare associations. Sources said foreign buyers of local garment items have long been demanding full-fledged labour unions in EPZ factories. Under the existing EPZ labour Act 2015, workers of export processing zones receive higher salaries compared to private sector, earn leave encashment, two bonuses, food allowance, and free medication from factory owners. The existing act also means a workers welfare association cannot be formed unless 30% of a factory’s workers apply for it. Workers welfare associations in EPZs were first introduced by the government during the late 80s, following pressure from the trade representative of the US – where a major portion of the country’s readymade garment products are exported.
