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Trade unionism and Export Processing Zones

Maswood Alam Khan from Maryland, USA | Thursday, 4 September 2014


A few days back, as has been reported in the news media, a Japanese investor in Chittagong Export Processing Zone (CEPZ), preferring to remain anonymous, said: "We are worried about protecting our investment as Bangladesh government has agreed to amend the EPZ law, which will allow unionism in the EPZs."
Amendment to the EPZ law allowing unionism inside export processing zones had to be made, as was reported, under pressure from the US government.
There is a belief among some western observers that the tragedy of Rana Plaza building collapse at Savar in April last year that caused deaths of hundreds of readymade garments workers could be averted if the workers had been affiliated with a strong 'Trade Union' that could ensure the workers' safety in their workplace. Such is the well-founded belief of anyone who has read the history of trade unionism and its contribution to the welfare of workers around the world.
It was the United Mine Workers of America (UMWA) established in 1890 that compelled the US government to guarantee safety for all the mineworkers who earlier would frequently die in great numbers due to their exposure to different hazards.
It is the trade unions that organised the labour forces to raise their voices against discriminations. It is the pressure of the trade unions that guaranteed laws favourable to workers, safety in their workplaces, higher wages commensurate with labour, shorter working hours and mandatory weekend and other holidays.
But the present trade union scenario in Bangladesh is a bit atypical. Trade union bodies are elected with a hope that they would ensure welfare of the workers and also uphold the interest of the organisations they work in. But, here in our country, unfortunately, just the reverse is true.
Many trade unionists in Bangladesh perpetuate their leadership through their unholy ties with political parties, mainly with the ruling party of the day. They don't hesitate to flout the laws and management policies that stand in their way of illicit gains. Hardly any trade union in any business organisation in Bangladesh is known to have credibility to protect and promote the workers' or the employers' interests. Trade unionists in Bangladesh are well known for gratifying their personal needs rather than attaining the organizational goals.
The concept of Export Processing Zone (EPZ) in Bangladesh was introduced to attract foreign investments with an assurance from the government that trade unionism would never be allowed inside EPZ so that production and export of goods are not hampered.
However, in spite political disturbances and strikes of different kinds only a handful of foreign investors have opened their factories in different EPZs in Bangladesh, investing a meagre total of about only USD 400 million, assuming that there would at least be some kind of protection inside EPZs from the onslaught of strikers. But a breach of government promise, though unintentional, may discourage foreign investments in Bangladesh.
Trade unions will soon make their presence felt inside all the EPZ factories in Bangladesh on the strength of a new amendment of the EPZ law that the government was apparently bound to make under pressure from the US government.
The US government suspended the Generalised System of Preferences (GSP) status for Bangladesh last year, citing serious shortcomings in labour rights and working conditions in the country. With the suspension, the trade negotiation body of the American government has imposed 16 conditions on Bangladesh, including amendment to the EPZ law, to gain back the GSP status.
The abduction of the labour rights activist Aminul Islam and the tragic deaths of more than 1200 garments workers from the collapse of Rana Plaza prompted the US government to impose strictures and conditions. Any condition that would ensure safety of workers is most welcome and we must abide by the conditions as long as those conditions do not stand in the way of our export businesses and do not scare away the present and potential foreign investors.
Existing laws and regulations in Bangladesh are more than sufficient to prevent both the tragic incidents of abduction and building collapse, if only the government and related public and private bodies were sincere.
The US government may justifiably slap any number of conditions that would ensure safety of workers and compliance of the existing laws and regulations. But the US government is not supposed to impose a condition that may ultimately kill our exports industry.  
Trade union's purpose is to protect and improve the workers' pay, safety, welfare and conditions of employment. They are supposed to campaign for laws and policies that should benefit the working people. Trade unions are essential because an individual worker has very little power to influence decisions that are made about his or her job. A strong trade union is supposed to be a guarantee of industrial peace.
But then we find it is always the trade unions which, intoxicated with their strength, launch strikes on flimsy grounds and do incalculable harms to the workers, employers, and the nation in general.
Workers of every organisation have a right to form and join an association that would safeguard their interests. But unionisation of military personnel, police, fire brigades or, for that matter, workers who are engaged in export businesses should be viewed as conflicting with the unique nature of their role in maintaining national interests and security.
Such employees and workers may form their welfare associations, but not trade unions that may disrupt their jobs. A clear distinction should be made between different models of association, e.g., professional associations, trade unions, and other informal mechanisms of consultation.
A mechanism is already there for EPZ workers to form their welfare associations. There are committees known as "Workers' Welfare Committee" (WWC) at all the factories inside EPZs in Bangladesh. These committees, as has been opined by some foreign investors, are enough to protect the interests of the workers. The rights and obligations of WWC were formulated in consultation and collaboration with the government, World Bank, AFL-CIO (American Federation of Labour-Congress of Industrial Organisations), US Embassy in Dhaka, International Labour Organisation, and Bangladesh Export Processing Zones Authority (BEPZA), back in 2009. Why then trade unionism is now necessary?
"Workers' Welfare Committees" are perfectly okay to ensure the welfare of the workers inside EPZs. Introduction of any new body in the name of trade union may not serve the interest of the industries in EPZs. Trade unionism inside EPZs does not augur well at all.  
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