To be heard, workers need trade unions

In a fast-changing economy like Bangladesh, the manufacturing sectors, especially RMG, underpin growth and integration into global value chains, playing a pivotal role. They employ millions, support rural-to-urban migration, and anchor the nation in global markets. Yet, beneath the clang of machines and the glow of economic progress lies a sobering reality: the persistent struggle of workers to have their voices heard and their rights protected.

Amid rising productivity and industrial expansion, many factory workers continue to operate in environments where fair wages, basic benefits, and workplace safety remain aspirations rather than realities.

They need functional trade unions, which, at their core, are instruments of collective bargaining. A properly operating trade union empowers workers to negotiate collectively for fair pay, reasonable working hours, and safer working conditions. When active and functional, unions play a transformative role, not only by improving individual livelihoods but also by fostering a more equitable and accountable labour market.

More than just wage negotiators, unions can influence workplace policies and secure non-wage benefits such as occupational safety, paid leave, access to healthcare, and effective grievance mechanisms. At their best, they cultivate a culture of dialogue, ensuring that economic progress does not come at the cost of exploitation.

As a labour-abundant country that relies heavily on low-cost production, Bangladesh has specialised in labour-intensive manufactured exports, particularly RMG products. While globalisation and increased labour market flexibility have been expected to boost workers' agency, the reality has been more complex. Fragmented contracts, widespread subcontracting, and high rates of informal employment have diluted workers' ability to assert their rights. Informal employment, which dominates the Bangladeshi labour market, is typically linked with lower productivity, depressed wages, limited social protection, and heightened vulnerability to poverty.

The case for trade unions is not ideological, it is pragmatic. Global evidence shows that unionised workplaces not only deliver better economic outcomes but also create safer, more equitable environments by aligning practices with national and international labour standards. Unionised settings often offer fairer conditions—reasonable hours, anti-discrimination protections, and a voice in workplace decisions—ultimately benefiting both workers and firms.

In Bangladesh, unions often advocate for a living wage that supports a decent standard of living, including food, housing, education, healthcare, transport, and savings for emergencies. Importantly, the benefits of union activity often extend beyond union members. Spillover effects help raise labour standards across the board, as non-unionised workers in the same factory, or firms in the same supply chain, benefit from improvements initiated through collective bargaining.

Union presence is generally higher in export-oriented industries than in domestic-facing sectors. While other export industries, such as leather, show relatively high union coverage, these are mostly combined unions rather than factory-level basic unions. Historically, RMG factory owners have resisted unionisation, slowing growth despite industry expansion. However, the Rana Plaza tragedy in 2013 catalysed change: international pressure spurred a sharp increase in union registrations, supported by legal reforms and advocacy led by development partners like the EU.

Still, the mere presence of trade unions does not guarantee effectiveness. Their impact depends on their ability to engage in genuine collective bargaining, enforce workers' rights, and ensure meaningful improvements in working conditions. In this regard, RMG unions are relatively more active, thanks to the sector's visibility, size, and global scrutiny.

Yet, significant challenges persist in Bangladesh's labour environment. Despite having legal tools like the Labour Act and Labour Rules, union registration remains cumbersome and politicised. Workers organising unions frequently face intimidation, harassment, or even dismissal. In the informal sector, which encompasses the majority of employment, most workers are excluded from basic labour protection altogether.

Public discourse on labour rights often centres on the RMG sector—and understandably so, given its scale and international importance. But Bangladesh must now turn its attention to other rising industries: light engineering, electronics, plastic, furniture, food processing, and more. These sectors are expanding rapidly, yet labour representation remains weak or non-existent.

In these lesser-monitored sectors, workers are particularly vulnerable, subject to weaker enforcement, lower pay scales, and minimal protections. Without factory-level unions, most lack any structured mechanism to voice concerns or report exploitation. Stronger trade unions, paired with the enforcement of national and international labour standards, are vital for ensuring fair labour practices and sustainable industrial development.

As Bangladesh charts its path towards the upper-middle-income status, the voices of its workers must not be left unheard. Ensuring fair wages, safe working conditions, and meaningful representation is not only a question of rights, it is central to building a resilient, future-ready economy. Strengthening trade unionism across all manufacturing sectors requires decisive reforms, employer accountability, and international support. If Bangladesh is to achieve truly inclusive industrial progress, it must place workers' voice and dignity at the heart of its development agenda.

Mahmudul Hasan is research associate at Bangladesh Institute of Development Studies (BIDS).

Views expressed in this article are the author's own.

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