The Bangladesh Government has now allowed the workers of Export Processing Zone (EPZ) factories to form trade unions. The decision came in the aftermath of frequent warnings that the country has been receiving from the European Union (EU) with regard to making some progress in the implementation of workers’ rights. At present, the EU is the single largest export destination for the ready-made garments (RMG) manufactured in Bangladesh.
Bangladesh, currently, enjoys duty-free market access to the EU countries for all products under the Everything But Arms (EBA) preferential tariff scheme. It is worth noting here that a suspension of this facility may lead up to 12% tariff on imports from Bangladesh.
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Tofail Ahmed, Commerce Minister of the country, raised the issue in a Cabinet meeting wherein he requested that the amendment of the existing labour law be withdrawn from parliament so that further amendment of the law could be made. He also further added that if half of the members of the Workers Welfare Association (WWA) of the EPZ factories agreed to registering as a trade union, then the WWA would be allowed to register as a trade union under Ministry of Labour and Employment.
This year, on March 18, three European Commission bodies sent a joint communiqué which said it was necessary that the Bangladesh Government implement the four recommendations made by an International Labour Organisation (ILO) committee last year, or risk being shut out from the GSP that it enjoyed. A week later, the EU had repeated this warning to the Government.
