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Employers from various sectors of the country have expressed displeasure regarding several proposed amendments to Bangladesh’s labour act.

They also warned that some provisions could disrupt industrial harmony, discourage foreign investment and undermine competitiveness in the export sector.

They made these remarks at a discussion with journalists organised by the Bangladesh Employers’ Federation, umbrella body of factory owners, in the capital on Saturday.

Fazlee Shamim Ehsan, president of the BEF, said that they disagreed with nine of the 101 proposed changes.  

‘We argued that the government appears intent on pushing through amendments unilaterally, without sufficient dialogue,’ he added.

He said that one of the most debated proposals would allow workers to form a trade union with just 20 members.

Fazlee Shamim Ehsan, also executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that such a move could trigger proliferation of multiple small, ‘paper-based’ unions in small and medium-sized factories, creating frequent disputes and pressure on management.

‘This would increase divisions and reduce productivity, which is harmful for healthy industrial relations,’ he added,

Meanwhile, on August 26, a decision was taken at the Tripartite Consultative Committee meeting stating that at least 20 workers can form a trade union or TU, while as many as five such unions would be allowed in a factory to make formation of TUs easier for workers.

Ehsan, also managing director of Fatullah Apparel, said that oversimplifying the union registration process might deter foreign investors, who generally preferred a predictable and stable environment.

‘Without new investment, job creation and long-term growth could be at risk,’ he added.

Currently, forming a union in Bangladesh requires support of 20 per cent of  workers in an establishment.

‘The BEF is not against lowering the threshold, but we want the number to reflect the size of the factory. We have submitted a proposal to the government for a proportional system,’ he added.

Through proportional systems, the government can introduce some slabs or thresholds of forming trade unions based on the number of workers in the factories, like slabs for 3,000, 5,000, 10,000, he said.

‘Simply allowing 20 workers to form a union, regardless of context, is not acceptable,’ he added.

Replying to a question regarding provident fund in the factories, he said that they also opposed another provision that would make it mandatory to establish provident funds in any factory employing 100 workers or more.

‘The law already allows provident funds if 70 per cent of workers apply in writing. Workers themselves have not shown interest over the years because both employers and employees have to contribute,’ he added.

BKMEA president Mohammad Hatem said that if unions could be formed with just 20 workers, foreign investors would be discouraged.

In Vietnam, there is only one union under direct government oversight, yet workers’ rights are protected, he said.

‘Why should Bangladesh be pushed towards a Cambodia-like scenario?’ he questioned.

He said that they recorded a note of dissent on the proposal of the 89th TCC meeting regarding trade union formations.

‘Responsible trade union leaders are not even supporting this. Then whose interest is it serving? Is this being done only on the prescription of the EU or ILO? Should the government not have its own position?’ he asked.

Md Farooq Ahmed, secretary general of the BEF, said that they were not against workers or the government.

‘We want a fair and functioning labour market where workers’ rights must be ensured. However, it has to be balanced with business stability and competitiveness,’ he added.

He said that the government should focus on easing the trade union registration process, capacity building of DIFE, adequate training and other important issues.

‘We are not against amending the labour act, rather we want adequate capacity, training and confidence to implement the law,’ he added.

Regarding the suggestions of the International Labour Organisation, he said that the ILO’s suggestions were common, not country-specific, so Bangladesh should utilise the suggestions in compliance with its country’s position.

Businesses leaders from various sectors and BEF members were also present at the event.