Industrial registration of trade unions with just 20 workers could potentially spark industrial unrest, according to the BEA.
In a recent event, Fazle Shamim Ehsan, President of the Bangladesh Employers' Association (BEA), voiced concerns over proposed amendments to the country's labour law. Ehsan urged journalists to present both positive developments and real challenges in a balanced manner, emphasising the importance of constructive criticism in strengthening efforts.
The centre of contention is a provision that allows trade union registration with just 20 workers in a factory. Ehsan warned that this could lead to the formation of multiple nominal unions within small and medium enterprises, potentially triggering industrial instability.
Protecting workers' rights is crucial, but Ehsan stressed the need for a balance with a business-friendly environment and industrial stability. He argued that overly simplifying the trade union registration process could deter foreign direct investment (FDI), which is essential for job creation and long-term economic growth.
The BEA president also expressed concerns about certain clauses in the proposed amendments, stating that they could result in unrest, reduced productivity, increased workplace conflicts, and divisions. Any such unrest could delay timely order deliveries, putting Bangladesh's export markets at risk.
The readymade garment industry, a cornerstone of Bangladesh's economy, is under strict scrutiny from international buyers. Ehsan emphasised the need for labour law reforms to align with international standards while reflecting Bangladesh's unique socio-economic realities.
Members of the BEF committee, BKMEA President Mohammad Hatem, and ANM Saifuddin, Chairman of the BGMEA's Permanent Committee on ILO and Labour Affairs, were also present at the event. They all agreed that the success of such reforms depends on coordinated input from the government, workers, and employers alike.
Investors, Ehsan said, seek stable, predictable environments. If they perceive frequent labour disputes, they may divert their investments to other countries, hampering job creation and long-term economic growth. Buyers might shift their orders elsewhere if there are delays, posing a risk to Bangladesh's export markets.
Ehsan further explained that this could place repeated pressure on factory management, disrupt production, and create uncertainty. Any disruption in the industrial sector could potentially harm the economy and exports, as the country strives to maintain its competitive edge in the global market.
Amirul Haque Amin, who also criticised the labour legislation in Bangladesh, echoed Ehsan's sentiments, stating that the provision requiring only 20 workers to form a union in a factory could trigger industrial instability.
In conclusion, the Bangladesh Employers' Association's concerns highlight the need for careful consideration and balanced discussions when amending labour laws. Striking a balance between workers' rights and a stable industrial climate is crucial for the country's economic prosperity and global competitiveness.
