Not labour issues, but political problems might be excuse

Business leaders speak on trade sanctions hearsay


FE REPORT | Published: December 11, 2023 23:15:25


Not labour issues, but political problems might be excuse


Apparel owners rule out any grounds for US trade and economic sanctions centering labour issues in Bangladesh's garment industry rather apprehend political repercussions over the coming polls.
According to them, no such labour situation has arisen in Bangladesh's readymade garment sector for which the United States-their single-largest market--could impose sanctions.
Speaking amidst wild speculations about US actions in the context of concurrent politico-industrial troubles, the dollar-earning-industry stakeholders, however, didn't play down political reasons, and suggested that the government take measures to get out such situation, if any, through diplomatic channel.
"There is nothing related to labour standards in the country's RMG sector to impose economic sanctions by the US," said Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), at a seminar in Dhaka on Monday.
Economic Reporters' Forum (ERF) organised the talk on 'The current labour issues and international trade scenario' at its office.
Mr Hatem said labour standards in Bangladesh's apparel industry might lag behind compared to international standards but they are in far better-improved position compared to China and other manufacturing countries.
"Despite that, if any sanction is imposed, it would be for political reasons or they (US) have their own interests," he told the economic journalists, steering clear of any liability on their part.
On November 16, US President Joe Biden signed in a memorandum pledging to uphold advancing worker empowerment, rights, and high labour standards globally.
Elaborating on the memorandum, US Secretary of State Antony Blinken warned that sanctions, trade embargoes and visa bans would be imposed on individuals who threaten, intimidate or attack labour-union leaders, labour-rights activists and labour organisations.
Later on November 20, the Bangladesh embassy in Washington in a letter sent in to the commerce secretary interpreted the US presidential memorandum as a "signal" of potential action from the economic superpower that could touch Bangladesh, too.
The diplomatic mission forewarned that the government should take the memorandum into cognizance to avert any possible consequence on the country's RMG sector, setting off flurries of talk on a fertile ground largely prompted by the political standoff over the forthcoming general election.
Speaking on the latest amendment to the labour law that the President did not consent, Mr Hatem said they (owners and worker representatives) agreed to remove the condition in trade-union- registration threshold requirement.
The threshold is fixed at 15 per cent for factories having more than 3,000 workers and 20 per cent for units of less than 3,000.
Echoing Mr Hatem's remarks, BKMEA vice-president Fazlee Ehsan Shamim termed the situation political and said the government should address it diplomatically.
"If there is anything behind the scenes, it is for the government to take measure," he noted at the function, where BGMEA representative ANM Saifuddin also spoke in the same vein.
Both the trade leaders said they were not fearing for any sanctions, but worried.
National Garment Workers Federation president Amirul Haque Amin said there are still many lapses in the labour-rights situation, including unfair labour practices, low wages, issues linked to trade-union registration and compensation, but the condition in not such as can invite extreme action like sanctions.
He questioned the status of ratification of ILO conventions by those advocating for sanctions.
Bangladesh has ratified eight ILO core conventions while the US signed only two while they don't sign the two core conventions related to right to organise and right to bargaining.
"If they impose any sanctions, they might have hidden agenda," he told the meet.
Industriall Bangladesh Council former secretary Towhidur Rahman, however, said four people died during the recent labour-wage protests and there were no investigations. "Justice could not be ensured without any proper investigation."
Terming wage implementation a challenge, he alleged that there are many workers who will not get the approved Tk 12,500 as minimum wage.
He said they want no threshold for trade-union registration, equal six- month maternity leave for all working women as enjoyed by government officials.
Speaking there, trade-economist Mostafa Abid Khan said the possibility of any trade sanctions is low thanks to WTO regulations governing global trade.
"The possibility of increasing tariffs is also not so high but individual penalties, however, might be possible," he added.
He, however, suggests proactive role to be played rather than reacting over the situation.
BGMEA representative ANM Saifuddin also spoke there.

Munni_fe@yahoo.com

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