Owners, rights activists debate over proposed trade union threshold

Major trade bodies and private employers have voiced concern over proposed changes to labour law that would allow a trade union to form with a minimum of 20 workers, instead of the current requirement of 20 percent of the factory workforce.

In a statement yesterday, the Bangladesh Employers' Federation (BEF) said the move to allow just 20 individuals to form an enterprise-level union, regardless of factory size, "poses serious risks".

Key trade bodies such as the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA) and Bangladesh Tea Association have expressed support for the employers.

However, the government has described the criticism as a mis-understanding. It argues that numbers are not the main issue, as union leaders would still need to secure 51 percent of votes in a factory election to take charge.

Meanwhile, labour rights activists point to international practice. They say owners have little to fear if unions are allowed with as few as 20 workers, noting similar models have worked in other countries.

Amid advocacies by the European Union (EU) and the United States, the government has begun amending the labour law to comply with International Labour Organisation (ILO) standards. Officials expect the process to be completed by October this year.

In late August, the draft amendments were discussed at a meeting of the tripartite consultative council, which was attended by representatives of government, industry and workers. The meeting agreed to ease the process of labour union formation.

Soon after, employers' federation raised alarm, saying that the lower bar could eventually deter investment, trigger labour disputes, dent productivity and give rise to multiple paper-based unions in a single factory.

Other trade bodies supporting the employers' federation include the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh, Bangladesh Jute Spinners Association, Bangladesh Jute Mills Association, Bangladesh Association of Pharmaceutical Industries, Bangladesh Association of Contact Centre and Outsourcing, and Bangladesh Agro-processors Association.

They said shifting from 20 percent to 20 persons would discourage both domestic and foreign investment and risk widespread unrest.

Mohammad Hatem, president of the BKMEA, said the new proposal follows the Cambodian model.

"In fact, the original proposal from the union leaders was keeping a 10 percent threshold instead of 20 percent, and the factory owners were proposing reducing the threshold to 15 percent from 20 percent. But, even the 20-person option was not known even by the factory owners, as it came all of a sudden," he said.

He said the amendments would allow up to five unions in a single factory. Such a change could open the door for outside influence in factory unions and "create chaos in the industrial sector".

Mahmud Hasan Khan, president of the BGMEA, said leaders from major industries are preparing to submit a protest letter to the government on Sunday or Monday.

"Already, the leaders of different sectors have met five advisers of the interim government on Wednesday and protested the new proposal of 20-person union registration," he said.

Khan said factory owners have accepted 118 of 124 amendment proposals, but six remained unresolved, with the "20 persons option" among them.

Labour and Employment Adviser Brig Gen (Retd) M Sakhawat Hussain said the issue has been caused by misperceptions.

"It is a matter of 20 workers or more, it is true. But if they want to be elected, they need 51 percent votes of the workers in a factory," said the adviser.

He added that the draft would be placed at an inter-ministerial meeting on Tuesday, then forwarded to the advisers' council and eventually to the law ministry for vetting before being enacted by ordinance.

Moreover, Bangladesh will ratify three more ILO conventions soon, becoming the first country in Asia to ratify all required ILO standards, Hussain said.

He noted that such initiatives would give exporters leverage to demand higher prices from buyers.

The government, he added, has already withdrawn about 48,000 police cases against workers from earlier incidents.

Fazlee Shamim Ehsan, president of the BEF, argued the proposed threshold is far too low.

"It should be at least 100 workers, as the number of workers in local factories is very high in many cases. The number of required workers may be lowered gradually from 100 workers, because the previous trade union experience is not good," he said.

Md Towhidur Rahman, president of the Bangladesh Apparels Workers Federation that advocates for the rights of garment workers in Bangladesh, disagreed.

Rahman said owners will not be harmed if unions are allowed to form with 20 members.

"Cambodia is a good example," he said. Union registration, according to him, would become easier, and owners could show they had permitted factory-level unions.

Nazma Akter, president of labour rights platform Sommilito Garments Sramik Federation, echoed a similar view.

She said she too supports the 20-worker threshold.

Selim Raihan, an economics professor at Dhaka University and executive director of the South Asian Network on Economic Modelling (Sanem), said there should be a balance between global standards and national realities.

"The rights of our workers should be maintained as they are deprived of the proper wage," he said.

The economist urged talks among owners, workers, union leaders, the government and the international community to settle the issue and build healthy industrial relations.