The barriers to unionization in the garment industry

According to the World Trade Organization (WTO), Bangladesh holds the title of being the second largest exporter of RMG in the world. The garment sector has contributed to the transformation of the local economy into a lower-middle-income economy, from one that was worryingly below the poverty line. Although the sector’s infrastructure is worth as much as $55 billion per year, it is far from perfect. Whether it is political unrest in the country, concerns about the sustainability of pressure groups or dissatisfaction among workers, the country is full of issues that need to be urgently addressed. Not to mention that workers are paid less than a living wage, which is not inflation adjusted for rising costs.

Bangladesh has a class problem that deters effective conversations about the many barriers to operational unionization in the garment industry. Without unions, it is difficult to address safety issues and provide workers with fair wages and better working conditions. The Labor Act 2006 governs industrial relations and workers’ rights in numerous sectors of Bangladesh, with an entire chapter devoted to trade unions and industrial relations. Following the terrible collapse of Rana Plaza, several changes were made to legislation to ensure workplace safety, maintain health standards and improve workers’ rights and representation. In addition, to ensure that the formation and registration of trade unions is facilitated, the provisions have been strengthened.

Although this law explicitly authorizes the formation of trade unions, a minimum of employees within the same establishment are required to register one. The registration process is extremely bureaucratic and involves a lot of paperwork. Under this legislation, registered trade unions have the right to represent their members and can engage in collective bargaining on behalf of their members and bargain for better wages, working conditions and other benefits. Interference by employers by imposing contractual obligations on employees not to join a trade union, dismissal or discrimination against employees who are members of a trade union, and refusal of work on such grounds is considered unlawful by the 2006 Labor Act.

It is certain that on paper there is a comprehensive manual for how this works in an ideal world, but the reality is far from that. The implementation is dangerously flawed. The lack of awareness among workers themselves prevents them from recognizing the benefits of collective bargaining. It doesn’t help that the legislation is riddled with legal jargons that a layman cannot understand. Garment workers also fear repercussions from employers because they see themselves as low-skilled and highly replaceable. There is ample priority in this regard for fear-mongering by employers, with reports of harassment, intimidation and reprisals against union organizers and participating workers. Historically, the government has been complicit in the mistreatment of workers, as they often prioritize increasing the country’s GDP rather than emphasizing better living standards.

Earlier this year, after mass protests by workers in the garment industry, the minimum wage was increased Tk 8,300 to Tk 12,500while employees and unions say so Tk 23,500 is the living wage. Even this unsatisfactory increase came at a cost the lives of four workerswhile many others were injured. Many workers were arrested without any possibility of bail. During this time, letters have been issued by buyers from major brands, such as ASOS, Hugo Boss and H&M, asking suppliers to complete negotiations peacefully and provide workers with an adequate living wage. Buyers conveniently neglected to include the amount requested by the workers in those letters. They therefore indirectly collude with employers in the mistreatment of these workers by not covering the costs of raising the minimum wage.

Although legal frameworks exist, it could be useful to simplify the trade union registration process. Many NGOs and grassroots organizations are running awareness campaigns to ensure that workers are aware of their right to join a trade union. However, it is important that the government is also involved in the process and challenges the unfair power dynamics between employees and employers. Employers should be punished for engaging in intimidation or other unfair practices to prevent workers from forming unions. International pressure from buyers on employers in the garment industry should be more than just condemnations on paper, it should be more than empty promises to support a minimum wage, and they should include the exact amount paid by the unions and workers is required to reconfirm.

The barriers to effective unionization by workers in Bangladesh remain a critical issue and addressing them is the first step toward creating a long-awaited fair and equitable working environment for the workers on whose backs this country runs.

Raina Sabanta is a lawyer.

The opinions expressed in this article are those of the author.

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