Businesses urge review of labour law over investment and industry concerns

Leaders of trade bodies have urged the government to reconsider the recent amendment to the labour law, saying that the changes could impact domestic and foreign investment, as well as stability in the industrial sector, if implemented.

The appeal comes less than a week after the advisory council approved a revision to the draft ordinance on labour law, significantly lowering the entry barrier for forming a trade union in any establishment.

The revised draft ordinance permits groups of as few as 20 workers to apply to form a trade union-- a major regulatory shift in worker representation, particularly within smaller industrial units.

Previously, the interim government ratified three ILO Conventions aimed at guaranteeing workers' rights, safety, and protection from violence and harassment in the workplace, amid renewed pressure from trade unions and international partners -- notably the EU and the US -- for Bangladesh to improve labour conditions.

At a press conference at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) office in Dhaka today, businesses called for the labour law to be made more practical for industrial units.

They also criticised the government's decision to increase tariffs at Chattogram port and demanded a reduction, arguing that higher costs are undermining competitiveness.

"We are not ready for graduation from the Least Developed Country category, and we need at least a three-year extension to prepare for the challenges ahead," said BGMEA President Mahmud Hasan Khan.