The parliament is set to pass a landmark amendment to the labour law today, a move that will bring in major changes in the way trade unions function in the country.
The amendment comes in a bid to appease the Obama administration to regain the duty benefits suspended by the US on June 27 on grounds of poor labour rights and unsafe working conditions.
A total of 87 sections of the 2006 labour law have been amended to make it time-befitting.
Firstly, the lack of freedom to associate, one of the sticking issues for Western countries and advocacy groups, has been dealt away with the amendment.
The modification to Section 178 means employees would no longer need approval from factory owners to form trade unions. From now, workers would just need to apply to the labour directorate for authorisation.
But AKM Nasim, senior legal counsellor at Bangladesh Centre for Worker Solidarity, is sceptical if it would have much success.
“Workers will still face difficulties in registration of trade unions as the director of labour will enjoy discretionary power.”
If the factory's workforce is 80 percent male, a female worker must sit on the trade union's executive committee, according to a change in the law.
No member of a trade union's executive committee can be transferred to another factory of the same owner in the wake of any labour unrest.
Moreover, up to five trade unions can now be formed in one factory instead of just two, thanks to another change in the labour law.
The amendment also allows trade unions to be formed in the different administrative wings of a factory, something not permitted under the existing law.
To improve the living standards of workers, the government, buyers and owners will have to form a central fund for the employed beneficiaries of 100 percent export-oriented industries and wholly foreign-owned companies.
The law also stipulates that 5 percent of annual profit be deposited in provident and welfare funds.
No change can be made in the factory layout plan without the permission of factory inspectors, the amended law states.
If any worker dies after two years' in service, the management of the industries will have to pay compensation equivalent to one month's salary. And, if a worker dies in an accident during service, his relatives will be given a compensation equivalent to 45 days' salary.
If an owner sacks a worker who has served for more than a year at the factory, he/she is entitled to 15 days' salary for every year of service.
But if the worker is sacked for misconduct, he/she is not owed any compensation. Theft, embezzlement, vandalism, arson and disruptive behaviour constitute as misconduct under the amended law.
“If the new law is passed, rather, some important financial benefit will be curtailed,” Nasim said, adding that it might not be able to effectively protect the interests of workers for different loopholes.
But Shahidullah Azim, vice-president of Bangladesh Garment Manufacturers and Exporters Association, is more optimistic about the amendments, particularly the full freedom for workers to participate in trade unionism.
“It would be as a win-win situation for both the workers and owners. It will make both the parties more responsible, and the productivity, too, will get a boost.”