Can government protect both worker and employer interests through labour reforms?

"There shouldn't be any problems for any parties if the government ensures everyone's interests," says a business leader

The Labour Reform Commission has called for recognition and legal protection for over 80 million both institutional and informal workers in Bangladesh while recommending safer work environments, job security, and fair wages.

The commission also proposed reforms to allow workers to form trade unions and advocated the establishment of a National Wage Commission to ensure minimum wages.

To ease industrial unrest, the commission’s report suggests setting up a fund capable of paying two months’ wages to workers in export-oriented sectors.

The recommendations include extending legal recognition to migrant workers, along with rickshaw pullers, day labourers, fishermen, street vendors and domestic workers.

One of the stakeholders believes a gradual implementation of the recommendations, with participation from all sides, could improve the country’s labour environment.

But he also advises the interim government to ensure the interests of both workers and employers in the process.

A major concern, however, is whether the government will have enough time to implement these reforms—or even pass new laws, if necessary—to establish workers’ rights.

The Labour Reform Commission submitted its 458-page report on Monday to Chief Advisor Muhammad Yunus, following consultations with over 200 categories of workers and representatives of small and medium-sized enterprises.

Titled “Transforming the World of Labour: Workers’ Rights, Harmonised Industrial Relations and Inclusive Development”, the report puts forward 25 core proposals under four broad areas to ensure workers’ rights, legal protection, and a minimum wage.

Key areas include the recognition of work and occupation, rights to employment, opportunities, skill development, job security, fair wages and profit sharing, safe and healthy work environments, healthcare, social protection, the right to form welfare organisations, representation and collective bargaining, industrial unrest and dispute resolution, justice, equality, inclusion, child and adolescent labour, as well as forced labour.

Among 11 reform commissions, formed by the government as part of a broader effort to restructure the state following the fall of the Awami League government on Aug 5, 2024, the labour-focused commission has the largest membership—18 in total.

Its report says out of 80 million workers in Bangladesh, 95 percent are in the informal sector.

For the first time, all labourers across sectors have been included under a universal legal framework.

“This is the first time recommendations have been made to provide legal recognition and protection to all workers, including those in the service sector,” said commission member Fazlee Shamim Ehsan, also managing director of Fatullah Apparels, speaking to bdnews24.com.

“In previous laws and rules, service sector workers were completely left out,” he added. “But this time, entrepreneurs, workers, academics, journalists, and legal experts have come together to agree on all proposals, which is a relief for us.

“Usually, it’s rare to get consensus when 10 people sit together on labour issues.

“Our proposals could serve as a guideline for long-term labour market policy in Bangladesh.”

Following the fall of the Sheikh Hasina government, the Yunus-led caretaker administration undertook state reform initiatives to lead the country through a democratic transition.

The Labour Reform Commission, formed on Nov 18, is headed by Syed Sultan Uddin Ahmed, executive director of the Bangladesh Institute of Labour Studies (BILS).

It also includes industrial entrepreneur Syed Nasim Manzur; Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry (MCCI); along with representatives from different workers' organisations.

Ganosamhati Andolon’s Chief Coordinator Zonayed Saki, who also works on labour rights, believes that the interim government may not have time to fully implement the reforms.

Speaking to bdnews24.com, he said: “The government can issue a gazette notification on recommendations that have consensus on ensuring workers’ rights.

“It can announce a July Charter and issue administrative orders. The next government may then proceed with the legal aspects. But making a law will require the parliament.”

“Also, not all proposals can be implemented at once,” Saki added.

Welcoming the proposals, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said: “If these are implemented in phases with input from all stakeholders, our labour environment will improve.

“If the government ensures everyone’s interests, no side should have a problem.”

FIRST MEETING WITH SANITATION WORKERS

The Labour Law Reform Commission held its first consultation with sweepers employed by Dhaka’s city corporations and the private sector.

Reflecting on the experience, commission member and MCCI President Kamran told bdnews24.com: “We have spoken with more than 200 groups in total.

“Our first discussion was with the sweepers of Dhaka city, who are known as cleaners.

“I don’t think their views were ever considered before. We found that they have many problems.”

Claiming the reform commission’s proposals are meant for workers of all categories, he said: “This is a roadmap for long-term reform.

“Implementation cannot happen overnight. We have put forward a strong proposal.

He added, “The advisory council will now review which parts can be implemented. Some elements will be adopted now, others will take time.

“There will be scrutiny and debate, and then steps may be taken to formulate laws.”

Kamran noted that legal protection was given the highest priority. “Our focus has been to ensure legal safeguards for workers. We have 80 million workers in the country, and about 95 percent of them are in the informal sector—rickshaw pullers, day labourers, fishers, hawkers, domestic workers, or carers.

“We want to provide them with legal protection. We have also proposed legal recognition for migrant workers.

He added, “Implementation will come gradually, considering the socio-economic context.

“Informal sector workers currently have no legal protection. Formal sector workers, such as those in factories, do have some protections, which we have recommended strengthening.”

The reform commission began its work with the goal of making recommendations on a national minimum wage structure, easing trade union regulations, creating a comprehensive worker database, setting new compensation standards for workplace injuries and deaths, as well as extending maternity leave to six months for female workers.

After five months of consultations with workers, entrepreneurs, and small and medium enterprise owners across the country, the commission submitted a 458-page report divided into four parts.

It includes 25 core recommendations.

PROPOSAL FOR A FUND TO ENSURE TIMELY WAGE PAYMENT

After submitting the report on Monday, a summary was presented to journalists.

The commission chief said at the briefing, “Most workers in the country are unrecognised.

“That is why we have proposed universal labour rights. The identity of workers in every sector must be ensured.”

News of workers' exploitation in both the country's export sector and local industries often makes headlines.

The apparel sector, in particular, frequently sees protests, strikes, blockades, and vandalism, primarily due to dissatisfaction over unpaid wages.

The commission placed a strong emphasis on timely wage payments as a means to prevent labour unrest.

It has suggested imposing daily fines on factory owners who fail to pay wages on time.

In order to ensure wage payments during emergencies such as natural disasters, export disruptions, or factory closures, the panel proposed setting up a dedicated fund.

Entrepreneurs will be required to deposit the equivalent of two months’ wages for their workers into the fund.

The fund will be managed jointly by the entrepreneurs, the Department of Labour, and government representatives.

In times of need, either the entrepreneurs or the government can use the funds to pay workers.

In response to a question, Sultan said: "Here [in the export sector], the issue of workers' outstanding salaries and allowances arises. There is a risk of sudden export cessation or delays in receiving payments.

It proposes that even workers hired for a single day must receive a contract or identification document.

The commission has also advocated for the creation of a central database encompassing all workers nationwide.

Sultan said: “Workers in the service sector who are self-employed will be able to register themselves on the database website.

“This registration will serve as their worker identification."

The reform commission believes this method can help identify independent workers such as fishermen, rickshaw-pullers, day labourers, and street vendors.

The report also recommends reclassifying industrial entrepreneurs as “employers” instead of “owners” in labour laws.

COMMISSION’S RECOMMENDATIONS

>> Legal protection and recognition for all workers, covering formal, informal, agricultural, home-based, migrant, and self-employed labourers under labour law safeguards

>> Ensuring a safe working environment

>> Registration of workers and creation of a comprehensive labour database

>> Guaranteeing rights to organise and collective bargaining

>> Ensuring accountability, transparency, and access to information

>> Formation of a permanent labour commission

>> Initiatives to boost employment and skill development

>> Ensuring social protection

>> Guaranteeing equal rights, eliminating violence and discrimination

>> Prevention of sexual harassment and all forms of abuse and violence

>> Universal maternity protection

>> Eradication of child, adolescent, and forced labour with safety measures

>> Promotion of harmonious industrial relations and social dialogue

>> Efficient labour courts, fair justice, and alternative dispute resolution mechanisms

>> Dignified and harassment-free workplace, introduction of Bengali language in courts

>> Ensuring participation of both male and female workers in decision-making and representation

>>Establishment of emergency funds and ensuring transparency of existing funds

>> Preservation of labour history and historical sites, and construction of memorials

>> Recognition of martyrs, rehabilitation, medical care, and fair justice

>> Sustainable industrialisation, productivity, and inclusive development

>> Ensuring civic amenities in industrial zones and labour-dense areas

>> Working environment considerations in light of climate change and global warming

>> Ensuring the safety and rights of migrant workers

>> Conducting and publishing labour-related research and surveys

[Writing in English by Sheikh Fariha Bristy]