The European Union (EU) has long been suggesting that Bangladesh introduce a single labour law for factories inside and outside the export processing zones.The EU recently sent a letter to the government threatening temporary suspension of the trade privileges for Bangladesh, if necessary amendments to the EPZ law are not completed by the middle of this year.EU Ambassador to Bangladesh Pierre Mayaudon sheds light on the issue while talking to The Daily Star.He spoke at a time when the preparations for the International Labour Conference (ILC) of the International Labour Organisation are going on that will be held in Geneva in June.The Daily Star (TDS): What kind of progress would the EU like to see in the amendments to the labour law of Bangladesh?Pierre Mayaudon (Mayaudon): In the immediate aftermath of the Rana Plaza tragedy four years ago, the EU and the Bangladesh government together with the ILO signed the Sustainability Compact. The deal was soon joined by the US and Canada as well.This was a collective and holistic response meant at avoiding such a horrendous human disaster ever again in Bangladesh.Over the first years of implementation of the deal, safety at the workplace has drawn much attention with really satisfactory outcomes.Other issues such as labour rights and social dialogue were discussed at each annual review meeting, the next being scheduled to take place in Dhaka on May 18. It is now gaining prominence.At the last ILC in Geneva in June 2016, Bangladesh was subject to a ‘Special Paragraph’, advocating alignment of the laws of the country with the UN core labour conventions that Bangladesh has signed and ratified.It is in that context that the garment unrest situation in Ashulia last December called additional attention on matters relating to freedom of association and activities of trade unions.Therefore, all partners of Bangladesh are supporting the demarche engaged locally to adjust the national legislation, be it already in existence (Bangladesh Labour Act) or in preparation (draft EPZ law), to Bangladesh’s international commitments.I must say that we feel encouraged by our latest interactions with multiple stakeholders, the government and the manufacturers, who are well aware that in a globalised economy, foreign brands and consumers have growing expectations regarding the respect for labour rights.Bangladesh is a prime actor on the apparel world scene. Therefore, what happens here gets immediate visibility in many foreign capitals.TDS: Do you think freedom of association in the EPZs will discourage foreign direct investment there?Mayaudon: When the EPZs were first established in Bangladesh in the 1980s, the socio-economic context was quite different from what it is today, and so were the expectations of local and foreign investors.In 2017, the merits of the EPZ are perceived under a new perspective. Quality of infrastructure, guaranteed access to energy supply and clarity of procedures are the driving factors that lead investors to select – or not – the EPZ option.On September 25, hearings organised by the standing committee on law, justice and parliamentary affairs gave an opportunity to gather opinions from all relevant stakeholders on the draft EPZ law.Foreign investors made it clear on that occasion that they favour a solution where the same law would regulate labour relations inside and outside the EPZs. This is actually what they already observe in other countries where they operate. It didn’t come as a surprise.Rather it is the alternate scenario that would be disconcerting. European investors in 2017 would not be inclined to invest in EPZs anywhere until and unless they have the assurance that the corresponding legislation is fully aligned with UN core labour conventions. For that reason, the current draft EPZ law has become quite a hot topic.The EU supports a more conducive climate for foreign investment and salutes the objective set by the prime minister to reach a double-digit position in the annual World Bank Ease of Doing Business ranking by 2021.Once adopted in parliament, the new EPZ law, provided that it is ILO-compliant, would be a real asset in that context.TDS: What is the outlook for Bangladesh’s garments sector, including exports to the EU?Mayaudon: The Bangladeshi apparel industry is the great discovery of my stay in your country. It is a matter of pride for the EU that the generalised system of preferences under the Everything but Arms (EBA) regime has been a driver for the enhancement of this economic sector.As you know, 65 percent of all the goods that enter the EU single market under this EBA regime are made in Bangladesh, garments essentially.In that way, the EU has contributed to the empowerment of millions of Bangladeshi women.This is an achievement that we have to collectively preserve and further promote. There is no shortage of success stories throughout the garment industry.I have personally visited a number of state-of-the-art factories that hardly have their equivalent, not just in the region but in the world. They are setting the reference in terms of excellence in the garment sector.In order to encourage this expansion, we know where the effort is needed, in line with the objectives of the Sustainability Compact.The attention now focuses on labour rights and time is of the essence. Should the issues pointed out in the ILO’s Special Paragraph be diligently addressed, the relationships not only between the Compact partners but also the manufacturers, buyers and labour representatives would be further strengthened, thus providing the industry with a solid ground to bring its development forward.In addition, solutions would have to be found related to key issues such as energy supply, infrastructure enhancement and training of labour. But on these various fronts, we are confident that work is already in progress.
