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Combined push for labour reform to end unrest

CPD places minimum national wage package with labour reform commission


FE REPORT | January 13, 2025 00:00:00


Developing a national minimum wage for all, incorporating children's education in the wage structure and introducing a wage-guarantee insurance scheme are among recommendations placed in a labour-welfare package framed by a noted think-tank to prevent sporadic industrial unrest.

Regarding wage and its appropriate remunerations for the workers, the Centre for Policy Dialogue (CPD) suggests introducing a transparent and democratic procedure for selecting employers and workers' representatives on the wage board, mandatory alternative dispute- resolution mechanism and substantially raising the penalty for not paying minimum wage.

"On a national level, gradually move towards announcing a national minimum wage that will be temporarily applicable to all industries, including those of the informal sector and are still to be covered under minimum wage board (MWB) regulations," CPD senior research associate Tamim Ahmed said rolling out their plan, at a time when industrial unrest is a concern.

The insurance scheme should be formed with employers' contributions, which would ensure wage payment for the workers in case of failure to do so.

The recommendations were unveiled while he was presenting keynotes at a discussion titled 'Reform in workers' livelihood, workplace safety and rights-related issues: An agenda for the interim government,' organised Sunday at the CPD office in collaboration with Christian Aid.

The other proposals include creating a sector-wise guideline on how a worker will be promoted against a certain grade.

Speaking there, CPD research director Dr Khondaker Golam Moazzem said there are 42 formal sectors while four more are under process of formalization by setting minimum wage while they identify a total of 140 sectors and sub-sectors.

"So our proposal is to develop national minimum wage in two phases so that those who remained outside the purview could be brought gradually."

He, however, recommends declaring the current calendar year as labour- reform year so that these reforms are expedited. The ministries and organisations which deal with labour must work in a coordinated manner with having individual reform cell.

In the short term, the think- tank thinks minimum wages should be guaranteed for all types of contract-based workers, including those temporarily hired through third parties with legal provisions.

In the long term, all industries should be under the MWB coverage, prioritising sectors with a lower presence of trade unions.

Its other recommendations include introducing a new legal provision requiring an additional amount to pay for each day's delay in wage payment, substantially raising the penalty for not paying the minimum wage, especially deliberately, repeatedly.

Also, the CPD suggests making non-payment of overtime a punishable offence by law and brands/buyers accountable in complying with national rules and regulations, including those related to minimum wage and wage- related payments.

DIFE should publish a wage- implementation assessment report within four months of setting a new minimum wage mandatorily, publicly disclosing non-compliant establishments' names.

Regarding the payment method of salaries, the CPD suggests making it mandatory to pay wage and other financial benefits through formal and banking channel and/or MFS/DFS and enabling night banking services for workers near industrial zones.

Regarding right to organize, participation and collective bargaining, the CPD says there cannot be separate labour laws inside and outside the export- processing zones (EPZs) and suggests abolishing the EPZ Labour Act 2019 and enforcing the Bangladesh Labour Act 2015 in the EPZ areas.

Speaking at the event, Syed Sultan Uddin Ahmed, chairman of the Labour Reform Commission, said about 85 per cent or some 60 million workers are outside the purview of labour- law protection as they work in informal sectors. That is why they are working with the workers from the informal sectors "to ensure recognition of their labour with respect", he noted.

Taslima Akhter Lima, member of the Labour Reform Commission, stressed enhancing the capacity of the Department of Labour and the Department of Inspection for Factories and Establishments.

She also emphasized increasing the basic payment of workers, ensuring right to organize and collective bargaining.

Farooq Ahmed, secretary- general and CEO of Bangladesh Employers' Federation, identified an absence of efforts for social dialogue and collective bargaining that might have resulted in last labour protests in the streets.

Stressing the necessity of improving the worker-employer relation further, he said they are working to bring qualitative reform as regards right to organize and collective bargaining to ensure workers' rights.

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