Bangladeshi Government Promises Labor Reforms

The government has made a vow to implement labor reforms in partnership with the United Nation’s ILO or International Labour Organization. In a statement released by the ILO, the series of reforms include (1) repair of existing problematic factories, (2) a review of garment producers, and (3) hiring of 200 more building inspectors in six months’ time. There are around 4,500 garment factories in the country today. The economy of Bangladesh is largely dependent on the garment industry.

The Bangladeshi government has taken action after international attention was focused on the work conditions of factory employees in the country. In the meantime, retailers are contemplating the cost of business in Bangladesh after a factory collapsed without warning and killed 657 workers.

Tragedy

A few months ago in November 2012, more than 100 workers perished in two separate fires that consumed factories. Two weeks ago, a factory producing garments suddenly collapsed in Dhaka, the capital of Bangladesh causing the death of more than 600 people. In the wake of this tragic accident, protests were held on the streets of the city. At this time, an unknown number of dead factory workers are still buried in the rubble. Family members have camped near the site of the collapse awaiting news of their loved ones and other developments.

Legislative reform package

Come June when parliament convenes again in Bangladesh, a legislative reform package will be submitted. Two of the major reforms that the legislation will institute include securing of union representation and the right for collective bargaining for all workers in the country. But Bangladesh has a history of political volatility and characterized by a “culture of lax regulations.”

Stern warning

The European Union has sent Bangladesh a warning to take action in making the garment factories in the country safe. If they do not respond with concrete reforms soon, the EU says that Bangladesh will lose privileged access to its biggest market. Through the Generalized System of Preferences program, they have duty free and quota free access to markets within the EU. The program allows 48 of the poorest countries in the world unlimited exports for most products except for weapons.

According to the Trade Commissioner of the EU Karel De Gucht referred to the labor conditions in Bangladesh as “modern slavery.” De Gucht warns that if Bangladesh would not change things he will initiate an investigation. In the past Myanmar and Sri Lanka lost their privileges due to human rights issues.

The garment industry in Bangladesh

Production prices are much lower in Bangladesh. Companies who want to cut costs and increase profits while meeting high demand for cheap clothing worldwide choose to put up companies in the country and hire local workers.

Consequently, workers receive low wages from around 10-30 cents per hour. And the working conditions are often unsafe. The buildings where workers do their daily activities do not have emergency exits and fire escapes and even no windows. Labor activists have been pointing these out saying conditions are unsatisfactory and inadequate. On the other hand those who support the garment industry remind the detractors that the industry has given Bangladeshi women jobs that are acceptable in their very conservative society.