Bangladesh – Labour Market Profile 2014

1

Bangladesh

Labour Market Profile

2014

This Labour Market Profile is a yearly updated report that provides a broad overview of the labour

market's situation and development. The report is based on the latest data available and following

trends. Each section has also accesses to the sources' links that can be used to go more in-depth on

selected themes.

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Bangladesh – Labour Market Profile 2014

Executive Summary

Bangladesh is a poor country, but is achieving a remarkable economic growth and a noteworthy decrease of working poor. The informal economy has been an important component of the growth dynamics, which has increased and reached 89% of the total number of jobs in the labour market. The trade union movement is split along party lines and political leanings. It has been estimated that trade union members share of labour force is 3%, while it is 22% among waged workers. Strikes and labour actions are common and frequently spontaneous. They often turn violent and policy crack-downs also happen.

The Labour Act was amended in July 2013. Several provisions to improve workplace safety have been included in the law. There have also been some improvements in terms of Freedom of Association and Collective Bargaining. However, both trade unions and the International Labour Organization (ILO) have raised concerns in issues that were excluded by the amendments. In addition, the labour laws are not fully enforced. It is to some extent not merely a question of a lack of capacity issues, but also reflects a deep-rooted anti-union bias. The latter is in part due to the influence that the garment industry has over the government. Recently, there has been some progress by the Government in registering enterprise-level trade unions, which did not require an amendment of the labour law. In July 2014, the government approved, in principle, the draft of the Bangladesh Export Processing Zone (EPZ) Labour Law to ensure the welfare of the EPZ workers by allowing them in constitution of organizations. Trade unions are concerned, though, that the law does not ensure the rights of trade union in EPZ while the Welfare Committee has authority to bargain. Bangladesh has a trend of rising wages. The combination of increasing job opportunities, higher

wages, and more remittances is likely a contributing force in Bangladesh’s remarkable record of poverty reduction. The country’s four million garment workers received a wage rise to US$68 in November 2013, an increase of 64%, after protests and strikes in the crisis-hit industry. Moreover, European retailers promised to sign an accord to improve safety conditions in factories after the Rana Plaza collapse on April 24, 2013. The government, the European Union (EU) and the ILO launched a Global Sustainability Compact to improve labour rights, working conditions and factor safety in the garment industry. Unlike in previous years, the Ministry of Labour and Employment (MoLE) has now formally investigated complaints of unfair union discrimination. Few contributory social protection schemes exist, and most forms of social protection are through non-contributory social assistance. The health social protection coverage is only 1.4% of the population while the proportion of pensionable age receiving an old age pension is 40%. Occupational safety and health standards in the mostly labour intensive jobs are appalling. Particular dangerous jobs are the construction, where workers often migrate around the country for jobs; tanning in toxic environments; ship-breaking done by hand and the readymade garment sector with high fire hazards.

The number of students in vocational training has steadily increased over the last decade. Bangladesh has a better educated population than many neighbouring countries and high enrolment rates for girls. The industries, however, mostly use unskilled labour, hampering knowledge spill over and entrepreneurship. Social mobility is still low and the poor children and teenagers’ do not have any access to the vocational training and even many of the child labours do not access primary schooling.

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Contents

Trade Unions (Updating by SRO) ............................................................................................................. 4

Trade Unions in Bangladesh .......................................................................................................................... 5

Employers’ Organisations ....................................................................................................................... 6

Central Tripartite Structures (Update by SRO) ......................................................................................... 6

National Labour Legislation (Update by SRO) .......................................................................................... 7

ILO Conventions ..................................................................................................................................... 8

Trade Union Rights Violations ................................................................................................................ 9

Working Conditions.............................................................................................................................. 10

Workforce ........................................................................................................................................... 12

Unemployment and underemployment ..................................................................................................... 12

Sectoral employment .................................................................................................................................. 13

Migration ..................................................................................................................................................... 14

Informal Economy ....................................................................................................................................... 14

Child Labour ................................................................................................................................................. 15

Gender ......................................................................................................................................................... 15

Youth ........................................................................................................................................................... 16

Characteristics of the Working Age Population ..................................................................................... 17

Social Protection .................................................................................................................................. 19

General Economic Performance ............................................................................................................ 20

Trade ................................................................................................................................................... 21

Trade agreements ....................................................................................................................................... 21

Export Processing Zones .............................................................................................................................. 21

References ........................................................................................................................................... 22

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Trade Unions

Trade unions in Bangladesh (2014)

Number of trade national union centres 32

Number of sectoral trade union federation 169

Number of basic unions 7,289

Dues (median) N/A

Members of trade unions 2.3 million

Trade union members share of labour force 3 %

Trade union members to waged workers 23 %

Female member share of trade unions 15 %

Affiliated trade unions from the informal economy

N/A

Number of CBAs N/A

Workers covered by CBAs1 (2006) (wage & salaried earners)

5.0 %

Share of workers covered by CBA (2006) 1.1 %

Labour force (2013)2 77,624,000

The trade union movement is fragmented into more than 32 trade national union centres or federations with links to the rivalling political parties.

3 Unions are

highly politicized, but independent of the government; and strongest in state-owned enterprises. Union density is estimated as 23% of waged workers. The rate is higher in the public sector of Bangladesh. Besides, there are numbers of trade unions in private formal sector. The reason for majority of the trade unions being in the public sector is because due to the negligence of private factory owners, most of the funding of the trade unions comes from regional branches of the political parties. Trade union rights are not adequately protected in law. While the Constitution provides for freedom of association, when registering, unions must represent an inordinate 30% of the workers in an enterprise and must obtain authorization from the government.

4

The prominent and labour intensive readymade garment industry has many industrial conflicts. The industry only has around 63,000 unionised workers out of 3.5 million, mostly young women.

5 ILO Country

Director stated in a meeting with the Department of Labour (DoL) in February 2014 that union registrations rise sharply in Bangladesh garment sector. The government denies domestic workers the right to form their own trade unions.

6

Legally registered unions are entitled to bargain collectively with employers; but, this rarely occurs. Labor organizations have reported that in some companies workers do not exercise their collective bargaining rights due to their unions’ ability to address grievances with management informally or due to fear of reprisal.

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Sramik Karmachari Oikya Parishad (SKOP)

The SKOP is an alliance of the National Federation of Trade Unions established in the early 1980s when the military government of Bangladesh banned all trade union activities in the country. SKOP is the platform of joint action on national issues concerning labour market and trade unions, in which 22 out of 32 national trade union centres are affiliated. It was established in 1983 as a joint forum for the mainstream trade union centres to coordinate demands for restoring workers’ rights during a time when the country was under martial law. SKOP launched several strikes in the following years. Today SKOP represents 16 national centres and functions as a national coordinator, issuing common trade union stances on specific topics. Although the government hardly prioritize workers’ rights issues over the issue of industrial peace and global competitiveness, the SKOP has given opportunities for its affiliated unions to force the government and the employers to listen the ‘voices’ of the workers—both organized and unorganized.

The Bangladesh Institute of Labour Studies (BILS)

BILS was established in 1995 with the support and active participation of 13 National Trade Union Federations. The organization is the only labour research institution of Bangladesh. It develops the capacity of the trade union movement and brings trade unions with different political views together in concrete co-operation for i.e. formulation of policy development, inputs and recommendations. As a joint institution for the labour movement BILS has as such no direct relation with the political parties in Bangladesh and has a democratic constitution with regularly free elections for offices at all levels. Policy recommendations based on BILS research are being brought forward to SKOP, which enters into negotiation with government and political parties.

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The national centres organize approximately 2.3 million workers out of a total workforce of 78 million people. They mainly organize workers within the formal sector, though some have started organizing workers from the informal economy like construction, rice processing, ship breaking, among others.

Aiming to achieve better result in employers-employees relationship, BILS plays an important role to strengthen the tripartite mechanism between the government, employers and employees, in association with a wide range of other national and international institutions, e.g. ILO.

BILS regularly organize meetings and dialogues amongst not only the member unions but beyond. BILS research inputs such as on minimum wage in garment, shrimp processing, construction and rice processing sectors, on labour law reform, decent work had been in widely use by the trade unions and SKOP in their policy advocacy and workers’ awareness programs.

The 14 major national trade union centres are the associate members of BILS. Beyond the associate organisation BILS has 435 individual support members. The 14 organisations are:

JSFB: Jatiya Sramik Federation Bangladesh

JSF: Jatiya Sramik Federation

BSSF: Bangladesh Sangjukta Sramik Federation

JSL: Jatiya Sramik League

BJSD: Bangladesh Jatiyatabadi Sramik Dal

BTUK: Bangladesh Trade Union Kendra

BFTUC: Bangladesh Free Trade Union Congress

BLF: Bangladesh Labour Federation

BMSF: Bangladesh Mukto Sramik Federation

JSJ: Jatiya Sramik Jote

BSF: Bangladesh Sramik Federation

BJSF: Bangladesh Jatiya Sramik Federation

BJSJ: Bangladesh Jatiya Sramik Jote

Trade Unions in Bangladesh8

Members, Dues, Collective Bargaining Agreements (CBA) and Occupational Safety and Health committees

Trade Union Centre National

affiliation

Total Members

(2012)

Female Members

Dues Number of CBAs

Workers covered by CBAs

Number of OSH com-mittees at workplaces

BFTUC Bangladesh Free Trade Union Congress

BILS 85,000 21.3 % - - - -

BJSD Bangladesh Jatyatabadi Sramik Dal BILS 180,000 14.5 % - - - -

BJSF Bangladesh Jatiya Sramik Federation BILS 10,050 12.4 % - - - -

BJSJ Bangladesh Jatiya Sramik Jote BILS 82,000 42.7 % - - - -

BLF Bangladesh Labour Federation BILS 102,000 19.6 % - - - - BMSF Bangladesh Mukto Sramik Federation

BILS 204,000 31.7 % - - - -

BSF Bangladesh Sramik Federation BILS 5,989 9.9 % - - - - BSSF Bangladesh Sanjukta Sramik Federation

BILS 155,000 2.0 % - - - -

BTUK Bangladesh Trade Union Kendra BILS 80,970 11.1 % - - - -

JSF Jatiya Sramik Federation BILS 38,000 32.9 % - - - - JSFB Jatiyo Sramik Federation Bangladesh BILS 15,881 5.0 % - - - - JSJ Jatiyo Sramik Jote BILS 2,260 4.4 % - - - -

JSL Jatiyo Sramik League BILS 150,000 4.7 % - - - - BTUF the Bangladesh Trade Union Federation

- 1,648 - - - - -

BTUS Bangladesh Trade Union Sangha - 150,000 0.2 % - - - - JSJB Jatiya Sramik Jote Bangladesh - 65,000 10.0 % - - - - JSP Jatiya Sramik Party - 110,000 22.7 % - - - - NTUF the National Trade Union Federation - 1,798 - - - - - NWF the National Workers' Federation - 10,467 - - - - - SSF Samajtantrik Sramik Front - 2,285 5.9 % - - - - TUK the Bangladesh Trade Union Kendra - 50,180 - - - - -

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Employers’ Organisations

Bangladesh Employers’ Federation (BEF) 9

BEF was founded in 1998 and is the national employer organization, representing 131 affiliates with around 90% of established employers in the private sector. BEF is represented in most national bi- or tripartite bodies. BEF is headed by Mr. Tapan Chowdhury during 2013-2014. BEF provides advisory services on industrial relations, productivity improvement assistance, training, labour court assistance, minimum wages board representation and inputs to national policy issues.

In the organization, the garment sector has two very active employers’ organisations, the Bangladesh Garment Manufacture and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufactures & Exporters Association (BKMEA) The Federation is also represented on the Council of International Organization of Employers and through it, maintains close touch with employers’ organizations in other countries and exchanges views and information on current issues.

Central Tripartite Structures

Mediation and Arbitration

Collective industrial disputes are governed by the Labour Law. First the parties have to go through a settlement overseen by a Conciliator. If settlement fails the parties may be refer the dispute to an Arbitrator, or either party may instead conduct strike or lockout or apply for the Labour Court to adjudicate the dispute. The Labour Court consists of a Chairman appointed by the Government and one member each representing employers and workers. According to ITUC,

10 the system of labour justice in

Bangladesh is slow, sometimes cases have to stay for years in the backlog, and courts usually fail to provide remedy for labour abuses. Minimum Wage Board

The Government must establish a wage board consisting of a Chairman, an independent member and a representative each from workers and employers, all

appointed by the Government. The Board gives recommendation to changes in the minimum wage, which the government can either accept or send back to review in the Board. The board must meet every five year. Wage board covering traditional unorganised sectors has been established in shrimp processing, metal and construction after pressure from trade union forums National Council for Industrial Health and Safety

The Government may establish the National Council for Industrial Health and Safety. It consists of seven ministers, seven representatives from industries and seven workers representatives. The Council prepares national policy on Occupational Safety and Health. Other bi/tripartite organs

- National Coordination Committee for Workers’ Education (NCCWE)

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National Labour Legislation

Constitution11

Bangladesh constitution is from 1972, and has been amended 15 times since then. The Constitution prohibits forced labour and gives the right to form associations or unions, to reasonable wages, to social security and equal opportunity in employment. Work is a right and duty, and local government are encouraged to institute representation of workers.

Labour Act

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The Labour Act of 2006 consolidated 25 separate acts into one labour code. It regulates employment relations, working hours, wages, trade unions and industrial relations. It sets maternity benefits, compensations for injury and accidents, Occupational Safety and Health Standards, the labour inspectorate and prohibits child labour. It also establishes the Wage Board, the Labour Court, the National Council for Industrial Health and Safety, the procedures for industrial disputes including strikes and lockouts. In response to the demand of national trade unions movement as well as international pressure, Bangladesh’s Government amended the Labour Act in July 2013.

13 Several provisions to improve workplace

safety have been included in the law. There has also been some improvements in terms of Freedom of Association and Collective Bargaining, e.g. allow workers to call on outside experts for advice during collective bargaining and there is no longer a requirement that the names of union leaders are

provided to employers. In the public industrial sector, workers are allowed to elect 10% of their enterprise officers from outside the workplace, although this right is not extended to workers in the private sector. However, both the Bangladesh's trade union movement and ILO have raised concerns in issues that were excluded by the amendments.

14 Among others,

30% of the enterprises workforce still must vote for the establishment of a union as well as it did not extend freedom of association and collective bargaining rights to workers in export processing zones. It has also been observed that some new provisions of the law, for example with respect of rights of workers who are contracted for services and new exclusions from coverage of the labor law of certain sectors, may raise additional concerns about conformity with ratified conventions.

Overseas Employment and Migration Act

15

The Overseas Employment and Migration Act from 2013 promotes opportunities for overseas employment and to establish a safe and fair system of migration, to ensure rights and welfare of migrant workers and members of their families.

The Labour Act is the most important labour legislation. Several other legislations exists which regulates and sets standards and restrictions for the labour market.

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ILO Conventions

Ratified ILO Conventions17

Subject and/or right Convention Ratification date

Fundamental Conventions

Freedom of association and collective bargaining

C087 - Freedom of Association and Protection of the Right to Organise, 1948 1972

C098 - Right to Organise and Collective Bargaining Convention, 1949 1972

Elimination of all forms of forced labour

C029 - Forced Labour Convention, 1930 1972

C105 - Abolition of Forced Labour Convention, 1957 1972

Effective abolition of child labour

C138 - Minimum Age Convention, 1973 Not ratified

C182 - Worst Forms of Child Labour Convention, 1999 2001

Elimination of discrimination in employment

C100 - Equal Remuneration Convention, 1951 1998

C111 - Discrimination (Employment and Occupation) Convention, 1958 1972

Governance Conventions

Labour inspection C081 - Labour Inspection Convention, 1947 1972

C129 - Labour Inspection (Agriculture) Convention, 1969 Not ratified

Employment policy C122 - Employment Policy Convention, 1964 Not ratified

Tripartism C144 - Tripartite Consultation (International Labour Standards) Convention, 1976 1979

Up-to-date Conventions

Working time C014 - Weekly Rest (Industry) Convention, 1921 1972

C106 - Weekly Rest (Commerce and Offices) Convention, 1957 1972

Social Security C118 - Equality of Treatment (Social Security) Convention, 1962 1972

Specific categories of workers C149 - Nursing Personnel Convention, 1977 1972

Seafarers C185 - Seafarers' Identity Documents Convention, 2003 2014

Fundamental Conventions are the eight most important ILO conventions that cover four fundamental principles and rights at work. Equivalent to basic human rights at work.

Governance Conventions are four conventions that the ILO has designated as important to building national institutions and capacities that serve to promote employment. In other words, conventions that promotes a well-regulated and well-functioning labour market.

In addition, there are 71 conventions, which ILO considers “up-to-date" and actively promotes.

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Trade Union Rights Violations

The International Trade Union Confederation (ITUC) has surveyed some cases of violations of trade union rights in the period 2013-2014 (October): i) There were police attacks against protesters in August 2014 and workers were hindered from getting to their factory where they had been on an indefinite hunger strike for 11 days demanding their overdue wages and Eid bonus. ii) There was policy brutality in November 2013 when workers protested against employers’ refusal to pay higher minimum wages and the rate announced by Minimum Wage Board. Police fired water cannon and rubber bullets to break protests injuring more than 50 people. About 250 factories were shut down in the Ashulia industrial zone on the outskirts of the capital Dhaka.

On 24 April, 2013, the Rana Plaza building in Dhaka burned down and more than 1,100 workers were killed and thousands more injured. It demonstrated not only the high risks of unacceptable working conditions workers operate in, but also the battle for full and fair compensation continues.

18

Generally the labour market has been marred by workers’ rights violation, e.g. police attack and injuring during demonstrations actions, anti-union campaigns by employers as well as violence and interferences in

collective bargaining.19

The U.S. Country Reports on Human Rights Practices also registered several cases:

20 i) Between January

and September 2013, employers terminated 1,405 garment workers for demanding increased wages; ii) it law enforcement officials confronted factory workers in the garment industry who held protests to demand increased wages; iii) labor organizers reported acts of intimidation and abuse, the firing of employees, and increased scrutiny by security forces and the NSI. Employers harassment and threaten union members with physical violence, forcing union members to sign

statements stating they would terminate their union were also noted. BILS registered 797 incidents of inhuman torture on domestic workers took place in the last 10 years. Of those, 398 died of torture, 299 were wounded and 100 others faced other forms of torture.

21

Compliance and enforcement of labour laws have been insufficient, and companies are often discouraging the formation of labour unions. Although the government has approved the Bangladesh Export Processing Zone (EPZ) Labour Law, 2014, with a claim that it will ensure the rights of trade union in EPZ, different labour rights groups have alleged that still no fundamental change have been brought to the law and it has not ensured freedom of association and the right to form trade union. ILO has no active case with Bangladesh in the Committee of Freedom of Association. The follow-up case is from 2010 by the Bangladesh Cha-Sramik Union (BCSU) alleging interference by the authorities in the election of officers to its Central Executive Committee, as well as the violent suppression of demonstrations organized to protest this interference. The election of the BCSU Central Executive Committee was implemented in August 2014 and the amended constitution has also been approved. ILO's Committee of Freedom of Association requested the Government and BCSU in June 2014 to be kept informed on the case.

ILO Complaints Procedure22

Freedom of Association cases (2013)

Active 0

Follow-up 1

Closed 14

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Working Conditions

Wages and earnings Monthly average, median and legal minimum wages

Source Taka US$

Average wage (2010) Global Wage

Database23

2,553 42

Minimum wage Garment sector (2013)

5,128 66

Minimum wage Not covered by industry

U.S. Human Rights Report24

1,500 19

Minimum wage for a 19-year old worker or an apprentice (2014) Doing

Business25

2,596 34

Ratio of minimum wage to value added per worker (2014)

0.36

Real wage growth (Average 2006-2010)

Global Wage Database

3.1 %

Growth of real minimum wage (Average 2006-2011)

17 %

The average value added per worker is the ratio of an economy’s gross national income per capita to the working-age population as a percentage of the total population.

Formal and informal monthly wages and earnings From Wage Survey 2007

26

2007 Taka / 2011 US Dollar

Median Average

Formal wages

Male Tk 3,500 / US$ 55 Tk 3,906 / US$ 62

Female Tk 2,400 / US$ 38 Tk 2,781 / US$ 44

Both Tk 3,200 / US$ 50 Tk 3,766 / US$ 59

Informal earnings

Male Tk 3,390 / US$ 53 Tk 3,573 / US$ 56

Female Tk 1,826 / US$ 29 Tk 2,374 / US$ 37

Both Tk 3,130 / US$ 49 Tk 3,417 / US$ 54

Bangladesh has a trend of rising wages. The combination of increasing job opportunities, higher wages, and more remittances is likely a contributing force in Bangladesh’s remarkable record of poverty reduction over the past decade.

27

The authorities established the minimum monthly wage at 1,500 taka (US$18.75) for all economic sectors not covered by industry-specific wages. In principle, The National Minimum Wage Board (NMWB) must at least meet every five years in a tripartite forum to set wage structures and benefits industry by industry. The government agreed in November 2013 to raise the minimum monthly wage for the country’s four million garment workers to US$68, an increase of 64%, after protests and strikes in the crisis-hit industry. It is

estimated, though, that nearly 40% of garment factories in the Bangladesh capital are failing to pay a new minimum wage.

28 The trade unions have assessed

that 7,000 taka (US$84) is a minimum that can be considered as a living wage

29, while the national

poverty income level is measured to be 1,487 taka (US$18).

30 There was no mechanism to keep the

minimum wage in line with inflation. Minimum wages in the Export Processing Zones are between 2,700-7,600 taka (US$34-US$96),

31 slightly

higher than the national minimum wages. The average wage continues to be lower than the minimum wage for garment workers, and US$42 is a low monthly wage in international comparison. Minimum wages are also too low to meet the living cost. Since 2005 both males and females’ rural real wages have improved significantly with an annual growth rate of 10%. In this sector the rate of growth in female real wages has overtaken the rates of men; thus, narrowing the male-to-female wage gap from 1.57 in 2005 to 1.37 in 2010. In the urban areas men and females’ real wage growth rate increased from 2005 to 2010 on 10% and 3%, respectively.

32

On average, wages from the informal economy are 8% lower than wages in the formal sector; and in the former, women’s wages are only two-thirds of men’s earnings. By law, the average should not exceed 56 hours. Workers in factories receive one day off every week while shop workers have 1½ days off per week. These legal rules are often not followed, though; e.g. in the garment sector workers can be required to work 12 hours a day and not always receive compensation for their time. The rules of occupational health and safety standards are routinely not enforced. Although workers can invoke legal mechanisms to enforce the law, it has only registered few cases. The labour market is currently covered by only 91 inspectors nationwide, which is equivalent to 1 per 836,000 workers in the labour force. The ILO recommends 1 per 40,000 workers in less developed countries.

33

11

A technical team of the Accord on Fire and Building Safety in Bangladesh was signed between IndustriALL, UNI Global Union and more than 120 global garment companies in January 2014 and finalized the standards to be used for factory inspections. The Accord is committed to inspect 1,500 factories by September 2014 for fire, electrical, and building safety.

34

Bangladesh also has a rising trend of precarious and casual forms of employment. Wages of casual workers are around two-fifth of regular workers.

35 Working

hours are long for most workers, with 52% working more than 48 hours per week. Because of the competition of jobs due to high unemployment and inadequate enforcement of labour laws, workers who have complaint their working conditions risked losing their jobs.

36

ILO’s Decent Work Country Programme also recognises compliance with the labour law, the minimum wage and occupational safety and health standards as concerns. The construction, ready-made

garment, and ship recycling sectors are often singled out with respect to low occupational safety and health standards due the sectors growth and visibility, but it is a problem in all sectors. Human Rights Watch has documented toxic working conditions in tanneries, invalidating workers and polluting the environment.

37

Safety conditions at many workplaces are extremely poor. For example the prominent industry with appalling occupation safety and health standards is the ship breaking industry off the cost of Chittagong. About half the world’s ships put out of commission are stranded here and recycled. The process gives work to around 200,000 workers and provides recycled material. However, the work kills and injures disproportionately many, as the scrapping is done with simple hand tools and the ships often contains hazardous materials, making it one of the most dangerous industries in the world.

38

12

Workforce

Bangladesh has a total population of 157 million people out of which the labour force covers 78 million workers. Job creation is challenged by a steady labour force growth of 2.2% during the last decade, meaning 1.7 million more entered the labour market in 2012. In employment, women have lower employment rates than men, both young and adults. The latest data on working poor from 2010 showed a decrease of 4% in the moderately poor in employment living with less than US$2 a day. The share remains high on 77%, though. It remains much higher than the average in South Asia, which reduced the moderate working poor on 12% in the period 2005-2012.

Working Poor40

Share of workers

in total employment

1.25 US$ a day 2 US$ a day

Bangladesh 2005 51 % 80 %

2010 43 % 77 %

South Asia 2005 38 % 73 %

2012 24 % 61 %

Working poor measures employed people living for less than US$1.25 and US$2 a day, as proportion of total employment in that group.

Asia has seen a strong growth in the middle class during the last decade. Bangladesh has a smaller middle class than the average for South Asia, but it has grown faster: In South Asia 18% lived for US$2-4 a day and 3.9% for US$4-20 in 1999, while in 2008 23% lived for US$2-4 a day and 5.7% for US$4-20. In Bangladesh

13% lived for US$2-4 a day and 3% for US$4-20 in 2000. In 2010 19% lived for US$2-4 a day and 4.2% for US$4-20. The dollars are in purchasing power parity.

41 Unemployment and underemployment Unemployment, youth unemployment rate, and underemployment42

Un-

employment (2013)

Youth Unemployment

(2013)

Under-employment

(2010)43

Total 4.3 % 9.2 % 20.3 %

Male 3.9 % 9.0 % 14.4 %

Female 5.0 % 9.5 % 34.2 %

Underemployment is widespread. The labour force survey from 2010 indicates that 20% are underemployed, whereas other sources estimate as many as 40%. It is estimated that 4.3% of the labour force is in unemployment, which is higher among youth with a 9.2% rate. There is a slight unemployment gap favouring men in comparison with females. The unemployment rate indicates the proportion of the labour force that does not have a job and is actively looking and available for work. Main causes of unemployment in Bangladesh are related to the rapidly increasing population growth and the capacity to increase the resources for capital formation; the backward method of agriculture; land is very limited and with a heavy pressure of large population; and the educational system is not job oriented, but more degree oriented.

Employment rates39

(2012), Age and Sex distribution

Sex Age Employment

rate

Male & female

Total 15+ 68%

Youth 15-24 54%

Adult 25+ 73%

Male Total 15+ 81%

Youth 15-24 61%

Adult 25+ 89%

Female Total 15+ 54%

Youth 15-24 46%

Adult 25+ 58%

68

54

73

81

61

89

54

46

58

00 20 40 60 80 100

15+

15-24

25+

Female Male Male & female

13

Sectoral employment

Agriculture is a sector with a declining GDP share from 23% in 2002 to 17% in 2012. It is estimated that 48% of the employed still work in agriculture, i.e. 15 million men and 7.7 million women. It is noteworthy that the informal economy is dominating agriculture, mining, construction, and private households.

46 Increasingly

random floods have decreased agricultural production, affecting the many already impoverished farmers, while at the same time food prices are increasing.

47

Outside the agriculture sector, women largely find work in other services and in the manufacturing sector, which is almost only readymade garment production. The garment exports are actually the backbone of Bangladesh’s industrial sector. The sector has remained resilient in recent years amidst the previously mentioned series of factory accidents The employment in the formal sector is to a large degree covering the sectors: business & finance and the public administration. The size of the public administration employees is close to 2% of the worker force.

Due to the rising labor costs in China and India, Bangladesh’s comparative advantage in labor-intensive industries has seen a growth in industrialisation. But, as previously mentioned, the wages are also on a rise in Bangladesh. The Government has adopted the National Labour Policy 2012. BILS was an active member of the Labour

Policy Drafting Committee formed by the Ministry of Labour and Employment. The policy has recognized informal sector workers and aims to create ample opportunity for the social protection and other rights of them. The majority of formal jobs are in semi- to high skilled professions, whereas informal jobs are concentrated among the 62% of jobs with low skills and low productivity in common places of informal work such as in farms, markets, bazaar stalls, and trade fairs.

48

Sector Share (% of GDP)

49

0

10

20

30

40

50

60

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Agriculture Services Industry

Employment (2005)44

& GDP share (2012)45

Sector & Sex distribution – (Graph without Agriculture)

Sector Male

employment Female

employment GDP share per sector

Mining and quarrying 44,000 7,000 1.1 %

ufacturing 3,926,000 1,298,000 17.0 %

Electricity, gas and water 73,000 3,000 1.0 %

Construction 1,421,000 104,000 8.3 %

Trade, restaurants and hotels

6,705,000 403,000 14.2 %

Transport and communication

3,910,000 66,000 11.1 %

Finance, real estate and business services

392,000 115,000 1.9 %

Public administration, education & health

778,000 104,000 2.8 %

Other services 3,747,000 1,495,000 22.0 %

Agriculture 15,084,000 7,683,000 17.1 %

0% 4% 8% 12% 16%

0 1.900.000 3.800.000 5.700.000 7.600.000Male Female GDP share by Sector

14

Migration

Migration50

Net migration (2008-2012)

Bangladesh -2,040,559

Net migration to average population per year (2008-2012)

Bangladesh - 1 : 371

inhabitants

South Asia - 1 : 1,135

Inhabitants

Personal transfers i.e. remittances received, % of GDP (2012)

Bangladesh 12.1 %

South Asia 4.7 %

Net migration is the net total of migrants during the period, that is, the total number of immigrants less the annual number of emigrants, including both citizens and noncitizens.

Bangladesh is one of the world’s countries with the highest emigrants, with between 5–7 million migrants abroad. The net migration rate is decreasing and has reached 1 out 371 inhabitants in the period 2008-2012 comparison with 1 out of 250 in 2006-2010. It remains much higher than in South Asia's average. Bangladeshis migrate to very different countries, with the top three destinations being India, Saudi Arabia, and the United Kingdom.

51

Remittances play a very important role in the Bangladesh's economy: Around 12% of GDP is coming from remittances. These are mainly used to purchase consumptions goods, with few making it into investment. The Government have therefore set up a financial institution, the Probashi Kallyan Bank to address this issue. Factors leading to this large migration are overpopulation, a large overseas diaspora, an agricultural sector that is often unable to sustain the livelihood. Diverse factors, which also lead to large labour migration inside Bangladesh, give an almost limitless supply of unskilled labour. The construction sector in particular has many workers who migrate from site to site. Though remittances play a very important role for the economy, unskilled women was banned from migrating abroad until 2006, increasing unregulated migration. Migration of unguarded women is still frowned upon.

52 Unregulated migrants are also at

higher risks of exploitation.53

Informal Economy

The latest Economic Census 2013 shows that the informal economy has been an important component of the growth dynamics in Bangladesh. Findings reveal that household based economic activities have expanded tremendously over the last decade.

54

The informal sector has been growing from 79% in 2002 which reached 89% of the total number of jobs in the labour market, and accounts for 43% of GDP. It is more prevalent in the rural areas than in the urban areas. Women’s employment in the informal economy has a higher incidence at 93% compared to males’ at 87%.

55

Data from the Informal Sector Survey (ISS) 2010 demonstrated a linkage between education level and informal work, i.e. as the level of education of a worker improved, the worker is more likely to hold a formal job.

Workers from the informal economy receive on average at least 35% lower wages than in the formal

sector. With reference to the social protection coverage, workers from the informal economy receive less than formal workers. The ISS has also shown that the labour productivity of a typical worker in the informal enterprises is only one-sixth (17%) of the productivity of their counterpart in the formal sector. The main reasons for engagement in informal activities are family traditional (39%) and due to knowledge of the activity (37%).

56

As the informal ‘sector’ is not covered by the Labour Law, a very few unions operate in the informal economy. However, a number of non-traditional groups have started activities, including women in the informal sector, within the WCL national affiliate, Bangladesh Sanjukta Sramik Federation (BSSF). Women’s organizations have set up cooperative structures for their members and have taken a series of initiatives, including in the areas of adult education, mother and child care and productive work.

15

Child Labour

Working children Proportion of all children in age group

Region Year Type Proportion

Bangladesh (age 5-17)57

2006 Child labourers 13 %

Asia and the Pacific58 (age 5-17)

2008

Children in employment

20.4 %

Child labourers 13.3 %

Hazardous work 5.6 %

Children in employment includes all children who conduct some kind of work, whereas child labourers is a narrower term without mild forms of work. Hazardous work is the worst from of child labour as defined in ILO C182.

Bangladesh is notorious for its child labour and more than 5 million (13%) are child labourers, but in fact it is about the same level as the average for Asia and the Pacific average. Other estimations are around 7 million child labourers (18%) with around 1.3 million in hazard work (3.3%).

59

The child labour is common in services and the large export textile industry. It is also more incompatible with schooling.

60

According to the Labour Law 2006 no children below the age of 14 are allowed to work and the types of work adolescents between 14 and 18 can be engaged in are specified. This group is not allowed to work with anything dangerous or damaging. Certain types of employment in certain industries such as heavy industries are prohibited. Even then, a massive 86% of all children aged 15-17 work in hazardous industries. In 2005, 98% of recorded child labour was found to be hazardous..

Child labour is basically similar in rural (13%) and urban areas (12%), whereas boys (20%) are much more likely to be engaged in child labour than girls (5%).

61 Child labour is more common among the

poorest quintile of households (16%) than the richest (8.2%). Poverty is the main reason for child labour in Bangladesh, with poor households having to make their children work, to sustain themselves. This, in turn, increases the labour supply and likely keeps the wages lower in the industries. It also decreases the children’s future earnings due to lack of education and their increased risk of occupational disability. Child labour is popular among employers because children are docile and submissive and above all either not paid at all or very low paid. They can be tasked with duties that adults would not undertake and as they are free or very cheap labour they can perform job functions with a very low margin of return on the employer’s investment. On the other hand, children often join small businesses as apprentices. They learn a trade e.g. auto mechanic or electricians. It is often the only option to get an education since the country only has around 100 vocational training schools. The apprentice system does on a positive note secure that the children receive some kind of education but it also keep them illiterate and poor as they get no salary for years. Based on the Parents Care Act from 2013 each of the children will have to pay 10% of their total income regularly to their parents if they do not live with their parents. Overall, legal protections of child labour are still insufficient and the capacity to enforce child labor laws remains weak.

62

Gender

Bangladesh has made some progress on gender equality. New legislation has been introduced, including laws on violence against women, equal pay, maternity leave, and parliamentary quotas. It is also observed that the female literacy rate has increased. But, the gender gaps remain in employment as well as enforcement of the law is weak.

63

As previously mentioned only about 15% of trade union members are women. Women have considerably lower rates of employment than men, and have around double the rate of unemployment, youth unemployment, and underemployment. Fewer women are working poor, though. Wages are also

much lower for women, especially in the informal sector. More girls also enrol in primary and secondary education than boys; the latter is also four times more likely to be engaged in child labour. The readymade garment industry employs at around 80% women, and is the main employment option for women outside agriculture. These women, at an average age of 19, usually unmarried, and with little education, are prone to exploitation, sexual harassment, and discrimination. They earn 60% of their male colleagues, and low occupational safety and health standards.

64 Around only 1.8% are members of

union.

16

On the other hand, the industry has provided millions of jobs, increased the women’s real earnings and more economic freedom. It has also decreased fertility rate and a study suggests that opening of a garment factory within a village’s commuting distance, increases schooling of girls in the village.

65

A recent Enterprise Survey from 2013 reported that 13% of firms had female participation in firm ownership compared to the South Asia’s average of 17%; and that 16% of full time employees were women, more than South Asia's 13%.

66 It shows that

women in Bangladesh have a both lower ownership participation and full time employment in comparison with the Enterprise Survey from 2007.

Females in management and ownership, 201367

Youth

The youth constitute one third of total population in Bangladesh. The labour force on the age group 15-24 years old is 18.3 million youth with an unemployment rate of 9.2%. The share of youth unemployment in total unemployment is 50%. The unemployment rate gap between male (3.9%) and female (5.0%) youth is more or less equal and has been somewhat stable since 1991. The youths of Bangladesh are confronting multifarious problems that are rooted in social structure and economic conditions, which fosters frustration among youth. Generally the government has not had a systematic attempt to focus on youth. The tendency has been to

subsume the youth into the general adult population or to ignore their efforts to forge a livelihood through enterprise activities. The potential benefits of youth entrepreneurship as a means of improving youth livelihoods remain unreached.

68

The Government published a National Youth Policy in 2003. The government suggested revisiting the youth policy in 2010 to link it up with the political manifesto of the Bangladesh Awami League party's Vision 2021.

69

It appears that the government has placed higher attention on youth empowerment and increasing finance on this area. On the other hand, the policy has lacked concrete steps for achieving goals and its implementation has been uncertain. Also a review and revising of the policy have not been clear.

70

0%

10%

20%

30%

40%

Firms with female top manager Firms with female participation inownership

Bangladesh South Asia Low income

17

Characteristics of the Working Age Population

Bangladesh has a high average years of schooling per capita for South Asia, nevertheless over 40% of the population have never been to school. Of those that have education almost all have completed primary school and many have progressed to secondary and tertiary school.

Though women are underrepresented in almost all types of education the gender difference in education is rather small. The graph above shows the educational attainment of all Bangladeshis above 25 years, therefore gives a glance of the human capital of the labour force.

Enrolment in Secondary and Tertiary schools (2000-2011)

73

Total and Female, Bangladesh and South Asia

Net enrolment is the ratio of children of official school age, who are enrolled in school to the population of the corresponding official school age. Gross enrolment is the ratio of total enrolment, regardless of age, to the population of the corresponding official school age. Gross primary enrolment is therefore sometimes higher than 100%.

Data from UNICEF suggests a net primary school enrolment for boys at 83% and 93% for girls, which is about the same for South Asia where total enrolment is about 88%. Between 67% and 80% manage to complete primary education. Primary education and compulsory is free and compulsory until the age of 10, but many children are drop out of school and work as child labourers to help support the household.

Secondary school enrolment is also about the same level as for South Asia, though it fell somewhat after 2003. Bangladesh also has a higher enrolment for girls, which is uncommon. Enrolment into tertiary schools is a little smaller than the average for South Asia, but in expansion.

20%

30%

40%

50%

60%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

Net secondary school enrolment

0%

5%

10%

15%

20%

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

Gross tertiary school enrolment

Bangladesh , Totalenrolment

Bangladesh , Femaleenrolment

South Asia , Totalenrolment

South Asia , Femaleenrolment

Highest level attained and years of schooling in the population71

(2010), Population 25+, Total and Female

Highest Level Attained Total Female

No Schooling 42.0 % 46.6 %

Primary Begun 1.4 % 1.5 %

Completed 21.4 % 21.0 %

Secondary Begun 12.2 % 10.9 %

Completed 18.5 % 16.1 %

Tertiary Begun 1.6 % 1.3 %

Completed 2.8 % 2.5 %

Average year of total schooling 4.8 years 4.3 years

Educational Gini Coefficient 0.52 0.56

Primary, secondary and tertiary is the internationally defined distinction of education. In Denmark these corresponds to grundskole, gymnasium & university.

The educational Gini Coefficient is similar to the Gini Coefficient, but instead of measuring the distribution of income in a population, it measures the distribution of education measured as years of schooling among the population.72

0% 20% 40% 60% 80% 100%

Total

Female

No Schooling Primary - Begun Primary - CompletedSecondary - Begun Secondary - Completed Tertiary - BegunTertiary - Completed

18

Vocational training

Vocational Training74

Pupils in vocational training (2012)

Bangladesh 428,459

Ratio of pupils in vocational training to all pupils in secondary education (Average 2008-2012)

Bangladesh

3.4 %

South Asia 1.2 %

Ratio of pupils in vocational training out of 15-24 year olds.

Bangladesh 1.2 %

South Asia 0.5 %

Ratio of pupils in vocational training to all pupils in secondary education in South Asia is based on an average during 2008-2009. The ratio of the 15-24 year olds covers the period 2005-2015, while in South Asia presents an average from 2005-2010.

Secondary education, vocational pupils

75

The government’s Technical Vocational Education and Training (TVET) went through an overhaul in 2006. It produced a National Skill Development Policy and a National Technical Vocational Qualification Framework (NTVQF). Traditionally vocational training has not had a strong links to industry.

The number of vocational students has steadily increased from 105,000 in 2000 to 429,000 in 2012. The ratio of pupils in vocational training to all pupils in secondary education is 3.4%, while the South Asia's average is 1.2%. Overall, Bangladesh has a considerable higher vocational training rate than the average for South Asia. Still the country has only around 100 vocational training schools, which make it difficult for most of the poorer younger people to get vocational training. Data from a survey from 2012 estimated that approximately 80% of the workforce had not received any training and among the 20% that had, only 11% had received training which was classifiable under the NTVQF.

76 It was also registered that TVET institutions

under the Directorate of Technical Education (DTE) are in crisis in terms of teachers, not only in numbers but also in terms of their competence for delivering skills.

0

500000

1000000

1500000

2000000

2000 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Bangladesh South Asia

19

Social Protection

Public spending on social protection schemes77 (2011)

Public social protection expenditure, excl. health

Bangladesh Taka 131 billion

US$ 1.8 billion

% of GDP 1.6 %

per capita 11.6 US$

% of government expenditure

26 %

Public health care % of GDP 1.1 %

Health social protection coverage

% of population 1.4 %

Trends in government expenditure in health

% changes per year (2007-2011)

8.6 %

Benefits, coverage and contributions to pension schemes

78 (2011)

Social benefits for the active age % of GDP 0.5 %

Labour market programs % of GDP 0.5 %

Pensionable (65+; 62+ for OA allowances for women) age receiving an old age pension

Proportion of total

40 %

Active contributors to an old age pension scheme

15-64 years 0 %

Few contributory social protection schemes exist in Bangladesh, and most forms of social protection are through non-contributory social assistance. The health social protection coverage is only 1.4% of the population while the proportion of pensionable age receiving an old age pension is 40%. Employers are required to provide a termination benefit. Permanent employees receive half their average wage for 120 days, causal workers for 60 days and temporary workers for 60 days.

79

Employees in the formal sector are entitled to disability and survivor benefits, for accidents in employment. Employers bear the full cost. Disagreements on compensation can be settled at the Labour Court.

80

There are national policies, which aim to provide social security for all workers and employees in the form of provident funds, gratuity and retirement pensions, for the private and public sector. Formal sector workers currently enjoy some social protection, but informal sector workers and casual workers do not have access to such benefits.

81

There are several non-contributory social assistance programmes exists, mainly for women and girls, and many are donor funded. These include payment of school fees for girls, food programmes providing wheat or rice to destitute women, income transfer for public works, a poverty reduction programme through training and transfers, a cash transfer programme conditional on children’s school attendance and marks.

82

In addition, a publicly paid Old Age Allowance programme exists for persons who had an annual income less 3,000 taka per year (US$40), providing a 250 taka per month (US$3.4).

83It has 2 million

beneficiaries and covers 7% (US$81 million) of the total social protection programs expenditures. The system is valuable for the country’s vulnerable older people, but also has weaknesses in the form of means testing, low benefits and not effectively reaching its target population due to abuse of power and corruption.

84

The retirement pensions or benefits for government employees and family members of retired persons have currently 325,000 beneficiaries. It is less than 1% of the total social protection beneficiaries. On the other hand, it is the single largest expenditure of all social protection programs covering 19% (US$227 million). There are five major labour market programs and they cover 35% of the total social protection expenditure. They have 10.2 million beneficiaries, which is a quite large number of total social protection beneficiaries, i.e. 36%.

85

In 2012, the government has drafted a national social protection strategy, which is yet to be finalized. Although Informal sectors workers are not entitled for any forms of social protection, in November 2013, the government introduced a five-year group insurance scheme for the construction workers. The annual premium per worker has been set at Tk 1,300 out of which each worker has to deposit Tk 450 and the ministry Tk 850. BILS was actively involved in the whole process of insurance. The government has supported occupational victim workers from Labour Welfare Foundation. BILS had an active involvement in the whole process.

20

General Economic Performance

Key Facts86

(2013 est.)

GDP (US$)

GDP per capita (PPP, US$)

GDP real

growth

Human Development

Index87

Gini Index (2010)88

140 billion

2,100 5.8 %

0.515 32.1

194 of 228 countries

146 of 187 countries

106 of 141 countries

The Human Development Index (HDI) measures the average of a long and healthy life, access to knowledge, and a decent standard of living. A Gini Index of 0 represents perfect equality, while an index of 100 implies perfect inequality. In terms of the ranking, the first country has the highest inequality, while the number 141 has the highest equality.

Doing business89

Control of corruption

Government effectiveness

Rule of Law

173 of 189 countries

-1.05 (2007) -0.68 (2007) -0.83 (2007)

-0.87 (2012) -0.83 (2012) -0.91 (2012)

A high Doing Business ranking means the regulatory environment is more conducive to the start-up and operation of a local firm. The selected Governance Indicators cover the years 2007 and 2012 and ranging from ‐2.5 to 2.5; i.e. negative tendencies below the zero mean and unit standard deviation, score negative measurements.90

Bangladesh has experienced growth rates at around 6% for over 15 years. Although millions are lifted out of poverty, the country remains poor. Compared to the rest of developing countries in Asia, with the regional economic powerhouses India and China, Bangladesh has fallen behind on GDP per capita measured in Purchasing Power Parity (PPP) and the gap is projected to widen. Here, Bangladesh is more comparable to a Sub-Saharan African country. Bangladesh combines widespread poverty and economic backwardness with remarkable social progress. The progress has been caused by improved status of women, increased rural incomes, maintained social spending and influential non-governmental organisations, in particular BRAC.

91

Inflation has been growing for years but is curbed below 10%. Capital formation has been on a slow and stable increase. With a Gini Index at 32.1, the income equality is relatively high medium level. It indicates that the economic growth is spread more evenly in Bangladesh. Likely because labour intensive textile manufacturing plays such an important part of Bangladesh’s economy.

The Doing Business indicator ranks Bangladesh as 173 out of 189 countries, which are three steps down since

2014. Protecting Minority Investors has the highest ranking at 43 out of 198 countries, while both Getting Electricity and Enforcing Contracts are extremely low at 188 out of 189 countries. Bangladesh has declining low scores on the Governance Indicators of Government Effectiveness and Rule of Law. Although Control of Corruption has improved, it remains a low ranking, and one of the most problematic factors for doing business.

GDP per Capita (PPP), trend and forecast92

Inflation, trend and forecast92

Gross fixed capital formation (% of GDP)93

0

2000

4000

6000

8000

10000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Cu

rren

t U

SD

India Bangladesh Developing Asia

0%

2%

4%

6%

8%

10%

12%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Bangladesh Developing Asia

23 23 23 23 24 25 25 24 24 24 24 25

27 27

22

24 23

23

27 28

29 30 30

29 28 29

28 27

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Bangladesh South Asia

21

Trade

Trade and Foreign Direct Investment (2013 est.)

Exports Import FDI flow FDI Stock

27 billion US$

33 billion US$

1.2 billion US$

7.0 billion US$

19 % of GDP 24 % of GDP 0.8 % of GDP 5.0 % of GDP

Bangladesh’s export sector is dominated by labour intensive textile production, mostly going to the EU. The production of textiles for export has often attracted international attention for its poor working conditions and use of child labour. Exports play an important role covering 19% of GDP. The foreign direct investment (FDI) flow and stock are low relative to GDP. Under the international textile quota system, i.e. the Multi Fibre Agreement, Bangladesh was exempt from quotas to the EU and the sector grew large. After 2004 when the agreement was phased out, Bangladesh has retained a large share of international textile trade. Due to increased labour costs in China, the world’s textile production is still moving South to countries like Pakistan, India, and Indonesia; and especially where labour cost remains very low.

94

Trade agreements

Bangladesh benefits from the United States’ Generalised System of Preferences (GSP). These are unilateral trade benefits from the U.S. government, allowing duty and quota free access for some products. The American Federation of Labor and Congress of Industrial Organizations called since 2007 the United States' government to suspend trade preferences to Bangladesh under the GSP, unless the government took steps to ensure respect for the rights of workers. The disaster in Rana Plaza triggered the decision and the United States imposed trade sanctions in June 2013 due to the recurring failure to respect fundamental workers’ rights. Bangladesh also benefits from the EU’s unilateral Generalised System of Preferences, Everything But Arms (EBA), which allows duty and quota free access for all products except arms. The EU is also in the process of reviewing to suspend trade preferences to Bangladesh.

Products share of exports (2012)95

Bangladesh's main export markets (2013)96

Export Processing Zones (EPZ)

Bangladesh has had eight EPZs since the 1980s, run by the Bangladesh Export Processing Zone Authority (BEPZA). According to an ILO survey from 2007, the EPZs had 188,000 employees. In addition, there are 5,341 bonded warehouses, which are similar to EPZs, and have over 3.2 million employees. Collective bargaining is virtually non-existent in the EPZ because the BEPZA discourages it.

97 Special

legislation prohibits workers from joining unions in EPZs. On the other hand, they can form Workers’ Welfare Associations. Legislation, which the ILO monitoring system has observed, violates freedom of association and collective bargaining. In July 2014, the government approved in principle the draft of the Bangladesh Export Processing Zone (EPZ) Labour Law to ensure the welfare of the EPZ workers by allowing them in constitution of organizations. Trade unions are concerned, though, that the law does not ensure the rights of trade union in EPZ as the Welfare Committee has authority to bargain.

T-shirts; 17%

Sweathers, pullovers,

sweatshirts, etc.; 16%

Men's suits, not knit; 15% Women's suits,

not knit; 8,4%

Men's shirts, not knit; 6,4%

Women's suits; 3,2%

Men's shirts; 3,1%

Others; 31%

EU; 45%

US; 16%

Canada; 3,8%

Turkey; 2,4% Japan; 2,4%

Others; 30%

22

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23

53

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