Govt forms body to look into labour issues

114 RMG factories halt production amid unrest, warehouse set afire

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FE REPORT | Published: September 11, 2024 23:17:21

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The government has formed a committee to look into the labour issues amid the persisting workers' unrest in the country's important ready-made garment (RMG) belts at Savar, Ashulia and in Gazipur.
Asif Mahmud Shojib Bhuiyan, adviser to the Ministry of Labour and Employment made the announcement on formation of the committee on Wednesday.
Around 114 readymade garment (RMG) factories in Savar, Ashulia and Gazipur industrial belts suspended operation on Wednesday as workers continued demonstrations when they set fire to a factory warehouse.
Out of the 114 units, some 54 factories announced lay off on the day in line with the labour law provision of 13 (1), 'no work no pay', according to BGMEA count.
The remaining 60 announced holiday with pay to avert further trouble as the labour unrest had lingered for more than a week, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said.
According to witnesses, workers of the Beximco factory started a demonstration demanding wages and blocked the road. At one point, a group of 'workers' set fire to an adjacent factory warehouse, Big Boss, located at Kashimpur in Gazipur.
Exporters and industry people said the ongoing labour unrest would put the sector in a trouble already been affected by multiple factors including energy crisis, dollar issue and low work orders following a decline in global demand.
They fear a shift in work orders to competitor countries as global apparel buyers are expressing concern over the current labour situation and suspension of production.
Talking to the FE, Abdullah Hil Rakib, senior vice president of BGMEA, said currently what was happing was solely 'political'.
He said they were sitting with local influential political groups to resolve the issue.
Regarding the factory closure in line with the labour law provision 13 (1), he said factories announced closure under the provision as last resort as none wanted to keep their factories closed and workers without pay.
Five to seven big factories earlier kept their units closed according to the provision and reopened, as according to him it offered an opportunity to negotiate and understand the workers and communicate better.
Responding to a question, he said buyers were concerned and wanted to sit with the BGMEA.
He, however, expressed hope that the problems would come to an end and the situation would improve by Saturday and later on, they would sit with buyers.
He further said they formed a zonal committee to discuss the latest hike in attendance allowance and tiffin allowances in Ashulia zone after discussion with the owners of that particular area.
If they agree, the trade body might announce the enhancement as a whole, he noted.
Earlier, the law enforcing agencies, labour leaders and factory owners in Ashulia area on Monday night agreed to increase attendance allowance by Tk 225 and tiffin allowance by Tk 10 irrespective of the amount the workers in Ashulia are currently receiving.
Workers in the industrial zones, mostly in Ashulia, have been protesting for more than a week demanding increase in attendance allowance and tiffin allowance, providing full attendance allowance despite leave, recruitment of male workers and reducing the male-female ratio and change in managements in some of the units with the change in government.
When asked, Shovon Islam, managing director of Sparrow Apparels Ltd, said the suspension of production was affecting the industry badly as buyers were not satisfied with the ongoing situation.
A good share of work orders had already shifted to other competitors including neighbouring ones, he said, adding that work orders worth US$2.0 billion to $4.0 billion might have shifted.
Speaking at a meeting at the commerce ministry's conference room on Wednesday, the Adviser Asif Mahmud announced formation of the committee, which aims to evaluate and recommend measures to resolve ongoing labour disputes in these sectors.
Chaired by Asif, the meeting included key advisers such as Finance Adviser Salehuddin Ahmed, Home Affairs Adviser Lt. Gen. (Retd.) Jahangir Alam Chowdhury, Power and Energy Adviser Muhammad Fouzul Kabir Khan, Fisheries and Livestock Adviser Farida Akhtar, and Industry Adviser Adilur Rahman Khan, along with relevant ministry secretaries.
Asif explained that the committee was formed in response to a previous cabinet decision to create a body for monitoring labour-related complaints. "During the previous government's tenure, workers lost confidence in the Labour Department and Labour Court due to various reasons. We need to restore that trust through structural reforms, though that will be a long-term process," he said.
In the interim, the newly formed committee will allow workers to submit their grievances directly to the appropriate authorities. The committee, headed by an Additional Secretary from the Labour Division, includes three labour leaders, two Supreme Court lawyers, and two representatives from employers. The Director of Trade Unions and Arbitration at the Department of Labour will serve as the member-secretary.
He emphasised that workers can present their demands at the labour office in Dhaka's Bijoy Nagar. The committee will review these demands and provide recommendations to the relevant ministry or agency.
"We will take immediate steps to resolve any grievances that can be addressed in the short term," he added.
Key decisions made during the emergency meeting include ensuring the immediate payment of outstanding wages and benefits to workers, increasing field-level engagement by ministry and labour department officials, and restructuring existing committees, including the Tripartite Consultative Council, to update and enhance their effectiveness.
The monitoring committee is expected to begin its work promptly, including arranging hearings related to labour unrest. Regular updates from the field will be collected to ensure timely interventions. Local-level committees will also be formed to quickly address issues as they arise.
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