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Fresh law empowering EPZ authorities drafted

Monira Munni | April 19, 2014 00:00:00


The government has drafted a fresh law for the country's export processing zones (EPZs) in accordance with the US Action Plan, delegating some power to the authorities of the special industrial zones, officials close to the process say.

The proposed law titled 'Bangladesh EPZ Labour Act 2014' is to replace the existing law - EPZ Workers' Welfare Association (WWA) and Industrial Relation Act 2010 in conformity with Bangladesh Labour Act.

Following the US Action Plan, a committee headed by a Senior Secretary of the Prime Minister's Office was formed in September 2013 to draft a new time-befitting law for the EPZs.

"The draft on the proposed law has already been prepared and sent to the Prime Minister's Office for next course of action," General Manager (Public Relations) of Bangladesh Export Processing Zones Authority (BEPZA) Nazma Binte Alamgir told the FE Friday.

The draft law has been finalised after consultation with major stakeholders including EPZ investors and leaders of WWAs, ministries and agencies concerned, she mentioned.

"Among other things, the draft law has incorporated a provision for delegating some of the responsibilities to the head of each EPZ to reduce the authority of the BEPZA Executive Chairman," said an official.

Labour Secretary Mikail Shipar, who is also a member of the high-level committee, said the enactment of the new EPZ law would be completed by October next.

Earlier, the US Action Plan suggested repealing or overhauling of the EPZ law to protect the rights of EPZ workers' freedom of association and collective bargaining like those of other workers in the country.

In line with it, BEPZA has abolished the practice of blacklisting workers in EPZs and there has been no report of any blacklisting since early 2013, according to reports sent recently by the government to the US.

"An aggrieved worker has full freedom to go to EPZ Labour Tribunals and EPZ Labour Appellate Tribunal," it said adding that the WWAs in EPZs enjoy rights to collective bargaining and will continue to do so in future.

Since January 01, 2014, workers have been allowed the right to strike in EPZs, it added.

BEPZA officials said there are 429 enterprises in the EPZs while 385 are eligible to form WWAs and as of April 2014, WWAs have been formed in 208 enterprises with the right to collective bargaining while formation of the rest is in process.

The US Action Plan also recommended ensuring transparency in the enforcement of the existing EPZ law, which requires following the same inspections standards and procedures as the rest of the readymade garment sector do.

In line with it, BEPZA Chairman's authority has been reduced by handing over some of the responsibilities to the head of each EPZ, the officials added.

BEPZA has created a fund to implement "Constitution and Operation Procedure of EPZ Workers' Welfare Fund-2012" in accordance with the EPZ Workers' Welfare Association and Industrial Relation Act 2010.

The authority has appointed three conciliators while appointment of arbitrators is under process, the officials said adding that the government has designated eight laobur courts for eight EPZs and one appellate tribunal for settling labour related disputes.

Some 114 labour cases have been filed in those courts till date while 42 have been settled, they added.


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