US trade bodies reiterate call for better labour rights

American Apparel & Footwear Association (AAFA), the US's largest trade body in the apparel and footwear sector, and the Fair Labour Association (FLA) tied Bangladesh's efforts to improve labour rights to ensure successful tariff negotiation with the Trump administration.

On May 20, the AAFA and FLA wrote to Chief Adviser Prof Muhammad Yunus requesting for improvement of labour rights, which is vital for a long-term business relationship with the US.

The AAFA represents more than 1,100 prominent brands that employ more than 3.5 million American workers and contribute more than $509 billion in annual US retail sales.

"We believe improving worker rights goes hand in glove with promoting a successful Bangladesh garment, footwear and travel goods industry now and in the years to come," said Steve Lamar, AAFA president and chief executive officer, and Jeff Vockrodt, FLA president, in the joint statement.

The two American trade bodies had brought up the issues in a letter to Yunus in September last year and brand delegation visits to Bangladesh in November last year and January.

Resolving the issues will help move negotiations towards a successful conclusion on President Trump's tariffs, it said.

"The time for discussion has passed," the letter said, adding that real progress on resolving the issues must become visible as soon as possible for better trade with the USA.

The issues include immediate release of those arrested from the Fall 2023 protests over the minimum wage, removal of all criminal charges against them and cancelling the first information reports filed in connection with the protests.

Both the AAFA and the FLA also called on the interim government to drop and resolve criminal charges brought against labour organisers such as Babul Akhter, the general secretary of the Bangladesh Garments and Industrial Workers Federation, and Jewel Miya, a labour organiser with the Bangladesh Independent Garment Workers Union Federation.

The two were arrested in 2023 for advocating for higher wages.

The interim government must move swiftly to a transparent and regular annual minimum wage review mechanism for the garment, footwear and travel goods industries this year by bringing all stakeholders -- employers, the government, and workers (independent unions, worker groups/representatives) -- to the table.

Thirdly, the government should work to promote harmonious industrial relations and prevent future unrest, quickly conclude tripartite discussions on the Bangladesh Labour Act and bring the law into line with international labour standards.

Those reforms should simplify the creation and registration of independent trade unions, including a significant reduction of the registration threshold.

The penalties for unfair labour practices must be increased and full labour rights must be extended to workers in the export processing zones.

"As you continue to shepherd Bangladesh through this transition and into a new era, we want to continue to work closely with you to ensure that both the protection of workers' rights and growth of the industry are paramount."

This is even more important in the midst of the ongoing negotiations with the US over President Trump's proposed tariffs, which could have a major adverse impact on Bangladesh.