[Senate Prints 113-22]
[From the U.S. Government Publishing Office]
113th Congress
1st Session } COMMITTEE PRINT { S. Prt.
} { 113-22
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WORKER SAFETY AND LABOR RIGHTS IN BANGLADESH'S GARMENT SECTOR
__________
A MAJORITY STAFF REPORT
PREPARED FOR THE USE OF THE
COMMITTEE ON FOREIGN RELATIONS
UNITED STATES SENATE
One Hundred Thirteenth Congress
First Session
November 22, 2013
?
COMMITTEE ON FOREIGN RELATIONS
ROBERT MENENDEZ, New Jersey, Chairman
BARBARA BOXER, California BOB CORKER, Tennessee
BENJAMIN L. CARDIN, Maryland JAMES E. RISCH, Idaho
JEANNE SHAHEEN, New Hampshire MARCO RUBIO, Florida
CHRISTOPHER A. COONS, Delaware RON JOHNSON, Wisconsin
RICHARD J. DURBIN, Illinois JEFF FLAKE, Arizona
TOM UDALL, New Mexico JOHN McCAIN, Arizona
CHRISTOPHER MURPHY, Connecticut JOHN BARRASSO, Wyoming
TIM KAINE, Virginia RAND PAUL, Kentucky
EDWARD J. MARKEY, Massachusetts
Daniel E. O'Brien, Democratic Staff Director
Lester E. Munson III, Republican Staff Director
(ii)
C O N T E N T S
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Page
Letter of Transmittal............................................ v
Executive Summary................................................ 1
Key Recommendations.............................................. 1
Tazreen, Rana Plaza, and the Need for Organized Labor............ 2
The Past, Present, and Future of Bangladesh's RMG Industry....... 3
Fire and Building Safety in Bangladesh's RMG Industry............ 5
Bangladesh's National Action Plan.............................. 5
U.S., EU, ILO Plans............................................ 6
Apparel Companies and Worker Safety............................ 7
Labor Rights and Relations in Bangladesh's RMG Industry.......... 8
Labor Law Reform............................................... 8
Union Registration and Organization............................ 10
Apparel Companies and Labor Rights............................. 11
Labor-Related Foreign Assistance............................... 11
Conclusion....................................................... 12
Full List of Recommendations..................................... 13
(iii)
LETTER OF TRANSMITTAL
----------
United States Senate,
Committee on Foreign Relations,
Washington, DC, November 21, 2013.
Dear Colleagues: This report by the committee's majority
staff examines the progress made on worker safety and labor
rights in the Bangladesh garment industry since the Tazreen
Fashions factory fire in November 2012 and the Rana Plaza
factory collapse in April 2013. It is based on a field visit by
the committee's majority staff to Bangladesh in August 2013, as
well as extensive staff meetings with experts and stakeholders
in Washington, D.C.
Bangladesh is a country of strategic interest to the United
States. The continued growth of its garment sector is critical
to supporting the country's economic development, a goal our
country enthusiastically supports. While much attention has
been paid to improving fire and building safety in the garment
sector, more efforts are needed to improve labor rights and
empower workers to ensure their own safety.
This report provides practical and timely recommendations
for the U.S. Government and other stakeholders to safeguard and
advance recent gains in labor rights for Bangladesh's garment
workers.
Sincerely,
Robert Menendez,
Chairman.
(v)
WORKER SAFETY AND LABOR RIGHTS IN
BANGLADESH'S GARMENT SECTOR
Executive Summary
Two terrible tragedies occurring within 7 months of each
other in the Bangladesh garment sector killed over 1,200
workers and galvanized the world's attention around the issue
of worker safety in the country. Global retailers, foreign
governments, and international organizations were spurred to
action. These stakeholders launched several parallel
initiatives to improve fire and building safety and efforts are
underway to inspect every garment factory in Bangladesh. While
much remains to be done to ensure that all of Bangladesh's
factories are safe from fire or collapse, the mechanisms are in
place, the political will exists, and vigilant observers are
watching every step.
But ultimately, workers are best placed to oversee their
own safety, and their empowerment to do so is best achieved
through independent, representative labor unions.
Unfortunately, union presence is still nominal and collective
bargaining is virtually non-existent in Bangladesh's garment
industry. A few small programs are working to change that, but
far more will be required if Bangladesh's workers are to have
truly safe, healthy, and decent working conditions.
Principally, a fundamental shift in attitudes toward collective
bargaining and the right to organize is required among all
stakeholders, especially factory owners, global brands, and the
government of Bangladesh.
Expanding the role of organized labor in Bangladesh now is
imperative. An active labor movement is the best bulwark
against another tragic accident. Improved awareness among
American and European consumers is part of the push for better
working conditions in Bangladesh. But the country's garment
industry will increasingly produce for clients in markets that
are not as discerning as European and American retailers when
it comes to demanding compliance with health and safety
standards, so strong unions will be needed to ensure the
sustainability of current safety efforts. Most importantly,
what happens in Bangladesh could have a dramatic ripple effect
on the global apparel industry. Improving workers' rights in
Bangladesh can help end the ``race to the bottom'' and lift
labor standards in other growing economies like Burma and
Vietnam.
Key Recommendations
The United States Government should hold the government of
Bangladesh to the highest standards in implementing the
action plan to reinstate U.S. Generalized System of
Preferences (GSP) benefits, especially provisions
pertaining to labor law reform and protecting the
freedom of association and the rights to organize and
bargain collectively.
The United States government should increase funding for
technical assistance programs in Bangladesh, such as
those run by the AFL-CIO's Solidarity Center, that
improve workers' capacity to organize and engage in
collective bargaining.
Apparel brands and retailers, especially those with very
large operations in Bangladesh like Wal-Mart, Gap, and
others in the Alliance for Bangladesh Worker Safety,
should, in coordination with the ILO, launch long-term,
well-resourced programs to educate their suppliers in
Bangladesh on their expectation for compliance with
laws allowing the right to organize unions and bargain
collectively. They should also collectively develop and
implement a policy of zero-tolerance for suppliers who
consistently engage in anti-union activity.
The government of Bangladesh and the Bangladesh Garment
Manufacturers and Exporters Association should
immediately develop and implement tough and effective
sanctions against factory owners who do not comply with
Bangladeshi laws by engaging in anti-union activity,
and advance progress in sanctioning owners who do not
comply with required safety standards.
The next government of Bangladesh should act quickly to
reform the existing legal framework, including labor
laws for Export Processing Zones, to bring them into
conformity with international labor standards.
Tazreen, Rana Plaza,
and the Need for Organized Labor
On November 24, 2012, a fire started on the ground floor of
the Tazreen Fashions factory in Bangladesh, where managers had
illegally stored large mounds of fabric and yarn. Fire alarms
went off on the factory's 8 floors, alerting the 1,150 workers
inside of the mortal danger below. Yet managers on some floors,
thinking it was a false alarm and worried about meeting
production quotas, ordered workers to ignore the alarms and
continue working. Workers who tried to escape down stairwells
found them locked or choked with toxic smoke and impassable.
Those workers could not demand safe working conditions from
their employers because they had no voice, they had no union
representation, and 112 lost their lives.\1\
Five months later and less than ten miles away, the workers
of Rana Plaza refused to enter the building that housed their
factories because they feared it would collapse. Managers
threatened to withhold their pay and the workers, desperate for
their meager average monthly income of $74 and lacking union
representation and a unified voice, reluctantly entered the
building. The building collapsed later that day, killing 1,131
and injuring hundreds. Simply put, had the workers of Tazreen
Fashions or Rana Plaza belonged to strong, independent unions,
they would not have perished in such tragic circumstances.
Since Rana Plaza, just 7 months ago, at least 27 garment
workers have been killed and nearly 760 injured in factory
fires across Bangladesh.
As a result of the Tazreen Fashions factory fire and the
collapse of Rana Plaza, several important initiatives are now
underway in Bangladesh to address fire and building safety in
garment factories. But Bangladesh's garment workers will never
have truly safe, healthy and decent working conditions until
they have the ability to speak with a unified voice that is
respected by their employers. Greater worker representation, in
the form of labor unions, will give Bangladesh's garment
workers the power to enforce their rights under the law.
Unfortunately, many barriers still exist to greater worker
representation in Bangladesh.
Chiefly, garment factory owners and managers have serious
misperceptions regarding the role of organized labor and the
potential of constructive labor relations. For their part,
workers are largely uninformed about their rights to associate,
organize, and bargain collectively. A sustained effort to
educate employers and workers about these rights will be
required before Bangladesh's garment factories can enjoy the
benefits of an empowered workforce.
This report is based on a trip to Dhaka made by committee
staff in late August 2013, where staff toured garment factories
and met with workers, owners, Bangladeshi government officials,
union organizers, labor activists, civil society groups, aid
workers, brand representatives and U.S. diplomats. Committee
staff also held many meetings in Washington, D.C. with retail
bodies, labor groups and international organizations, among
others. Senator Menendez also chaired a hearing on Bangladeshi
labor issues on June 6, 2013. This report will briefly review
the development and future potential of Bangladesh's ready-made
garment (RMG) sector, evaluate current initiatives underway to
improve fire and building safety in RMG factories, and assess
efforts and barriers to enhancing workers' rights in the RMG
industry.
The Past, Present, and Future of
Bangladesh's RMG Industry
Bangladesh's thriving RMG industry has grown from $12,000
in exports in 1978 to $21.5 billion in 2012-13, and now
accounts for about 80 percent of total exports.\2\ The
Multifiber Arrangement (MFA), which started in 1974 and set
quotas on garment exports to developed countries, spurred early
growth in Bangladesh's RMG industry by providing competitive
access to foreign markets. Bangladesh's low cost of labor and
high capacity fueled growth when the quota system expired. The
industry now directly employs some 4 million Bangladeshis, 80
percent of whom are women, mostly from poor rural households.
The sector is estimated to support an additional 8 million
tertiary jobs.\3\
With factories concentrated in and around the capital city
of Dhaka, the RMG sector has been a major driver of
urbanization in Bangladesh.\4\ But such rapid growth created
serious hazards: the demand for more capacity has led to
garment factories sprouting up in apartment buildings and other
multi-use structures not built to safely handle large numbers
of workers and machines. While fire and building safety
standards may have existed on the books, Bangladesh's
government had neither the capacity nor the political will to
enforce them.\5\
The major factor behind the lack of political will is the
enormous political clout wielded by RMG factory owners in
Bangladesh. According to one Bangladesh government official,
nearly every Member of Parliament has close ties to factory
owners and many are direct owners themselves. Many of
Bangladesh's RMG factory owners are members of the elite,
controlling significant media interests and exerting political
influence.\6\ Some are satisfied with the status quo, but
others recognize the need for change: following the two recent
tragedies, factory owners are reportedly now questioned by
friends at social gatherings about their factory's level of
safety compliance. Second- and third-generation factory owners
are reportedly much more focused on compliance than first-
generation entrepreneurs, but they only make up about 10-15
percent of owners.\7\
The garment sector is dominated by the Bangladesh Garment
Manufacturers and Exporters Association (BGMEA), an industry
group that was founded in 1983 and helped the government manage
the administrative aspects of the quota system.\8\ The BGMEA
now enjoys tremendous regulatory powers and in some cases holds
more sway over factory owners than the government: a factory
owner recently refused orders by the Ministry of Labor to
reinstate workers he had fired for union organizing and he
rehired them only after the BGMEA threatened to revoke his
ability to export.\9\ As an association of factory owners, the
BGMEA has historically opposed reforms that would give workers
more rights. And while BGMEA leaders have said they are
welcoming of unions in garment factories, they have yet to show
a serious commitment respecting Bangladeshi laws as they relate
to the right to bargain collectively and form unions.
The global outrage provoked by the tragedies of Tazreen and
Rana Plaza did not appear to have any negative impact on the
growth rate of Bangladesh's RMG exports, which saw a 24 percent
year-on-year increase in the third quarter of 2013.\10\
McKinsey & Company predicts that between the years 2010 and
2015 the sector will double, and then triple by 2020. While
recognizing the advantages of its cheap labor and high
capacity, the same McKinsey report also identifies several
challenges facing the industry, including compliance problems
with labor and environmental standards, poor transportation and
energy infrastructure, and political instability and labor
unrest due to oppressive work environments. Despite these
issues, a large plurality of surveyed buyers identified
Bangladesh as the future of RMG sourcing for their brands. In
addition, a majority of buyers hope to expand into more
sophisticated items like formal wear, requiring more skilled
workers (there is currently a 25 percent shortage) and moving
suppliers up the value chain, where there is less competition
and higher profits.\11\
Continued growth of the RMG sector is critical for
Bangladesh's development. Between the late 1970s and today,
Bangladesh's poverty rate went from 70 percent to less than 40
percent and the average Bangladeshi went from living on $1 a
day to more than $5 a day. It is no coincidence that the
improvement of those numbers coincides with the rise of the RMG
industry. RMG exports will continue to drive Bangladesh's GDP
growth and provide jobs for rural poor, especially women, who
are moving to the cities. Moving forward, the RMG sector
promises to significantly boost economic development in
Bangladesh and move it up the industrial value chain, just as
it has for other economies around the globe, including Japan,
South Korea and, more recently, China.
That is good news for the United States, for which
Bangladesh is a country of strategic interest. Geographically,
Bangladesh sits at the crossroads of South Asia and Southeast
Asia, and it has extensive relations with both India and China.
It has the world's seventh largest population and is the third-
largest Muslim-majority nation. The United States shares many
common strategic interests with Bangladesh, including global
peace and security (Bangladesh is a top contributor of UN
peacekeepers), counterterrorism, regional stability and global
food security. Clearly, the sustained and responsible growth of
Bangladesh's RMG sector is in the interests of the United
States and the broader international community. But that growth
is in danger if working conditions fail to improve. Consumers
will reject clothing they believe is stained with the blood of
Bangladeshi workers and global brands, anxious to protect their
reputations, will be compelled to abandon the ``Made in
Bangladesh'' label. This outcome can and must be avoided.
Fire and Building Safety
in Bangladesh's RMG Industry
When the Tazreen Fashions factory burned down, it was the
worst garment factory accident in Bangladesh's history. When
Rana Plaza collapsed, it was the worst garment factory accident
in world history. These tragedies spurred Bangladesh's
government, global brands, the United States, other foreign
governments, and international organizations into action. There
are now several safety initiatives underway to ensure that none
of the approximately 3,500 operating garment factories in
Bangladesh will become another Tazreen or Rana Plaza.
Nonetheless, the danger is still very real. A survey of
factories released in June 2013 by the Bangladesh University of
Engineering and Technology (BUET) found that 60 percent of
factories were structurally vulnerable.\12\ And again, abuses
are widespread, as evident by the 27 garment workers who have
died in factory fires since Rana Plaze collapsed.
bangladesh's national action plan
The National Tripartite Plan of Action on Fire Safety and
Structural Integrity (NAP), signed in July 2013 after Rana
Plaza, updated a previous fire safety plan signed after
Tazreen. The plan stipulates a series of commitments for the
government of Bangladesh to meet by certain deadlines. For
example, the government has upgraded its labor inspection
department to a full directorate with a larger budget and is
committed to create 800 positions, including 200 inspectors, by
the end of 2013. However, by late November 2013 only four new
labor inspectors had been hired since Tazreen, bringing the
total to just 56.\13\ The NAP also calls for inspection of all
garment factories by the end of 2014, the creation of a factory
information database, and establishment of a worker safety
hotline. In addition, the BGMEA committed to creating a
``transparent and accountable'' system for sub-contracting in
the industry.\14\
Unauthorized sub-contracting is a significant challenge in
Bangladesh's RMG industry. Factory owners will often take more
orders than they have capacity for and send the excess work to
subcontractors. This may not be a problem when those
subcontractors are known to the brand and have been properly
inspected for labor and safety compliance. But owners may also
subcontract to unknown factories that operate in the shadows of
Bangladesh's RMG industry. These factories are often the most
dangerous in terms of worker safety and the most egregious
violators of worker rights. Despite the efforts of the brands
to make clear to suppliers that they do not tolerate
unauthorized sub-contracting, the practice continues. The
situation provides a strong incentive for brands to facilitate
the formation and expansion of independent factory-level
unions, which would serve as a bulwark against unauthorized
sub-contracting.
In the longer term, the government of Bangladesh also plans
to develop a new 535-acre industrial zone for the RMG sector.
The zone will feature all-new, up-to-code buildings where
factory owners currently operating in vulnerable buildings will
supposedly relocate. However, factory locations in the park
will be highly coveted and, according to one Bangladeshi
government official, may end up going to owners with political
connections and money--a very different group from owners that
cannot afford to fix their current factories and operate
outside the margins of Bangladeshi law.\15\
u.s., eu, ilo plans
Citing Bangladesh's failure to improve worker safety and
labor rights, in June 2013 the United States government (USG)
suspended Bangladesh's eligibility for tariff benefits under
the Generalized System of Preferences (GSP) program.\16\ Since
garments do not receive tariff benefits under the GSP program,
suspension of GSP did not impact Bangladesh's over $4 billion
worth of annual RMG exports to the United States, however it
did effect about $40 million worth of imports in ceramics,
tobacco, and other products. But garments receive benefits
under the EU's GSP program, and suspension of U.S. GSP raised
fears in Bangladesh that the EU might follow suit. In July 2013
the USG released its Bangladesh Action Plan 2013, which sets
out several safety and labor benchmarks for Bangladesh to
achieve before GSP benefits could be reinstated. Many of the
benchmarks match those in the NAP, such as vastly increasing
the number of inspectors, inspecting all factories, creating an
inspection database, and establishing an effective mechanism
for worker safety complaints.\17\ As of this report's
publication, none of those GSP action plan benchmarks had been
met. The GSP action plan also includes several measures on
labor rights, discussed below.
The ILO, along with the EU and the United States, supported
development of another worker safety and rights agreement
called the Sustainability Compact, which was signed by the
government of Bangladesh in July 2013. It shares many aspects
of the NAP and the GSP action plan, and an official review of
Bangladesh's progress will occur sometime in 2014.\18\ Progress
on implementation of the NAP, GSP action plan, and
Sustainability Compact is closely monitored by the
international community. Every few weeks a ``3+5'' assessment
meeting takes place, attended by Bangladesh's Secretaries of
Commerce, Labor, and Foreign Affairs on one side and
Ambassadors from the United States, EU, Netherlands, United
Kingdom and Canada on the other. The diplomats engage with the
Secretaries on next steps and flag deficiencies or problems in
implementation of the plans.\19\
To help Bangladesh with inspections and safety improvements
in factories, in October 2013 the International Labor
Organization (ILO) launched a $24 million, three-and-a-half
year initiative called ``Improving Working Conditions in the
Ready-Made Garment Sector'' (RMGP). The program will assist
with inspections of approximately half of Bangladesh's garment
factories by helping to stand up 30 structural assessment
teams. The program will also work to improve the government's
inspection mechanisms, build occupational health and safety
awareness in factories, and provide compensation and skills
training for victims of the Tazreen and Rana Plaza
accidents.\20\ The compensation mechanism will establish an
international trust fund into which retailers, governments, and
others can donate. Some 3,900 claimants have already had their
bio-data collected and bank accounts established in their
names, and full compensation of victims will require
approximately $40 million from donors.\21\
apparel companies and worker safety
Apparel brands launched two major worker safety initiatives
after Rana Plaza. Over 100 companies, mostly European but
joined by a few American firms such as PVH (parent company of
Calvin Klein, Tommy Hilfiger and Izod), American Eagle, and
Abercrombie & Fitch, signed on to an initiative called the
Accord on Fire and Building Safety in Bangladesh (``the
Accord''). Over 20 American retailers, including Wal-Mart, Gap,
Target and JC Penny, declined to join the Accord but formed a
similar initiative called the Alliance for Bangladesh Worker
Safety (``the Alliance''). Together, the apparel brands and
retailers in the Accord and the Alliance source from
approximately half of the active garment factories in
Bangladesh. The firms in the Accord source from about 1,500
factories and the Alliance's members source from nearly 700
factories; the two share about 350 factories.\22\
Both programs are developing inspection standards for fire
and building safety in supplier factories, and have harmonized
their standards with each other and the government of
Bangladesh.\23\ Both programs will last 5 years, require
membership fees, perform full inspections of all factories,
provide safety training for all workers and managers, and have
mechanisms, such as low-cost loans, for remediation of non-
compliant factories.\24\ Each of these initiatives will spend
millions of dollars pursuing improved safety objectives in
their supplier factories. Some observers are concerned that
factory owners may refuse remediation mandated by Alliance or
Accord members and source to a less scrupulous buyer. It will
be critical for the government of Bangladesh and BGMEA to
impose effective sanctions in these situations.
One key difference between the Accord and the Alliance is
the assignment of decision-making authority. The Accord
centralizes its decision-making authority in its executive
while the Alliance leaves most decisions up to individual
retailers. For example, the Accord's executive board is
responsible for hiring inspectors and deciding whether Accord
members can continue sourcing from a factory based on
inspection results (in at least one case so far, the Accord's
members have ceased doing business with a factory that refused
to address deficiencies found during inspection).\25\ The
Accord also gives an oversight role to trade union signatories,
who can initiate binding arbitration against another member of
the Accord for non-compliance with the terms of the
agreement.\26\
In the Alliance, individual members are responsible for
hiring Alliance-approved inspectors. Alliance members can
choose whether or not to continue doing business with a factory
based on inspection results, and only retailers can initiate
arbitration against other retailers, which at worst results in
expulsion from the Alliance.
While it is too early to tell whether the different
approaches being pursued by the Accord and the Alliance will
result in different outcomes regarding improvements in fire and
building safety at their supplier factories in Bangladesh,
other differences in governance structure and worker
empowerment are substantial.
Labor Rights and Relations
in Bangladesh's RMG Industry
Bangladesh has a troubled history of labor relations. In
the 1970s, the jute industry played a similar role as the RMG
industry does today, accounting for nearly 90 percent of all
exports and driving GDP growth.\27\ While a combination of
factors contributed to the jute industry's decline, RMG factory
owners and BGMEA officials will commonly cite a single reason:
labor unions. Decades ago, labor unions in jute factories were
highly politicized and controlled or influenced by political
forces; plant-level unions competed fiercely and would bring
production to a halt for reasons unrelated to working
conditions or labor rights.\28\
RMG factory owners and some government officials fear that
the past will repeat itself in the RMG industry. Some owners in
Dhaka claim workers do not need unions because working
conditions are so good.\29\ Others owners fear they will lose
control of their factories if workers unionize. The bottom line
is that freedom of association and collective bargaining are
not well understood and unions are generally maligned.
There is cause for hope. The RMG industry has made progress
in the past on moving to eliminate the use of child labor,
allowing workers to take bathroom breaks, and keeping gates
unlocked.\30\ But workers' rights to associate, organize, and
engage in collective bargaining have been largely ignored for
the last 25 years, and the current state of misunderstanding
and mistrust about the proper roles and responsibilities of
unions will require tremendous and sustained efforts to
overcome. While some small steps have been taken, much remains
to be done.
labor law reform
On July 15, 2013, Bangladesh's Parliament passed reforms to
the country's labor law, and the government is now writing the
implementing regulations. While the reforms changed 87 sections
of existing law--a number often cited by Bangladeshi
officials--it fell short of expectations, and most observers
agree that Bangladesh did just enough to allow the ILO to
approve a Better Work program (discussed below). The ILO's
initial review of the legislation found that, among other
things, the new labor law eliminates the requirement for the
government to send factory owners the names of union leaders
registering unions in their factories, allows union leaders to
call on outside experts for advice during collective
bargaining, and improves several provisions on workplace safety
and health. Overall, the ILO found that ``the amendments did
address some of the ILO's specific concerns, while falling
short of several important steps called for by the ILO.'' \31\
In its review, the AFL-CIO criticized the reform package
for several reasons: it does not make the union registration
process any easier (though the government has nominally
increased approvals of applications); it does not allow union
representatives fired from their jobs to keep their factory-
level union membership while they contest their termination;
trade unions are required to receive government permission to
affiliate with an international union or receive financial
assistance from foreign groups; and provisions relating to
severance payments were actually made more restrictive than
existing law.\32\
The GSP action plan also includes a provision requiring the
government of Bangladesh to bring the labor law in Export
Processing Zones (EPZs) into conformity with international
standards and, until that time, issue regulations to protect
freedom of association in the EPZs.\33\ The EPZs are special
industrial zones that were set up to attract foreign investors
in the early days of Bangladesh's RMG industry. Workers inside
the zones enjoy safer working conditions and slightly better
pay than those outside, but at the cost of their fundamental
labor rights.\34\ The USG's position is that there is no need
to continue to limit workers' rights in the EPZs, and
Bangladesh should remove these restrictions immediately.
Bangladesh still has a long way to go in reforming its
labor laws to meet international standards. The recently passed
amendments should not be considered sufficient as they do not
meet the labor law reform requirement in the GSP action plan.
Furthermore, this committee, the United States government and
the international community will be watching closely as
Bangladesh writes the implementing regulations for the labor
reforms. The committee welcomes ILO assistance for Bangladesh
in this effort.
The GSP action plan and the Sustainability Compact also
have several measures on labor rights in the RMG sector.
Benchmarks include: reforming the labor law to address concerns
related to freedom of association and collective bargaining;
expeditiously and transparently registering new unions and
protecting workers from anti-union activity; reporting anti-
union activity on a public database; implementing mechanisms to
prevent harassment of labor activists and leaders; and
advancing the investigation into the murder of labor activist
Aminul Islam.\35\
As of this report's publication, the government of
Bangladesh had made little progress on any of those benchmarks,
save for nominally increasing union registrations. However,
Bangladesh did make progress on some benchmarks, such as
registering non-governmental labor organizations that meet
administrative requirements and dropping criminal charges
against labor activists. If the U.S. Congress renews the GSP
program, which has expired, the U.S. Trade Representative is
expected to conduct an official review of Bangladesh's progress
on the GSP action plan and announce a determination on its
eligibility in mid-2014.\36\
union registration and organization
To its credit, the government of Bangladesh has made some
progress in registering new unions. Whereas only two new unions
were registered between 2011 and 2012, 59 new unions were
registered between January and October 2013, with 30
applications pending.\37\ The United States--through the AFL-
CIO's Solidarity Center--and other international donors, in
conjunction with the ILO, should take advantage of this opening
by increasing labor-related technical assistance that builds
organizing capacity. Factory-level union organizers have
expressed an urgent need for more training on organizing,
collective bargaining negotiations, and labor law.\38\
Though the registration of unions is a welcome development,
the USG and other international observers must continue to
pressure the government of Bangladesh on its commitment.
Specifically, at least five of the newly registered unions are
management-sponsored and meant to compete with and crowd out
independent, representative unions. In one case, the management
tried to apply for the factory's full quota of three unions,
which would have left no space for a genuine union.\39\
National union federations in Bangladesh are moving quickly
to expand and organize new factory-level unions. Previously,
they cultivated union leaders by identifying workers respected
by their peers, began training them, and tested them with
increasing responsibilities while assessing their leadership
abilities. But now factory workers are increasingly self-
selecting leaders, who approach the federations for assistance
with organizing and capacity building. And whereas before union
organizers had to go door-to-door in workers' neighborhoods to
organize, in many cases the workers now proactively seek out
the union representatives.\40\
But barriers still exist, and many employers are actively
suppressing unions in their factories. There have been several
documented cases of anti-union activity in different factories
and untold numbers of undocumented cases. Anti-union tactics
range from harassment and termination of unionized workers to
the beating of union leaders. In one case, a female union
leader was taken to a hospital bleeding and semi-conscious
after thugs attacked her with a pair of cutting shears. Other
factory-level union leaders, many just in their 20s, say that
they would never have tried to organize a union had they known
managers would make life so difficult for them. Some have been
intimidated by goons, harassed by managers, isolated from other
workers and threatened with termination. But other organizers
have success stories: management has ended physical
punishments, stopped cursing at employees, and dispensed
holiday bonuses for the first time.\41\
apparel companies and labor rights
The Alliance and Accord plans, while sharing similarities
in their approach to fire and building safety inspection, have
a few important differences when it comes to worker
participation and empowerment. For example, while the Accord's
executive committee has equal representation between trade
union signatories and corporate signatories (three seats each),
the Alliance's executive committee has no representation by
worker rights organizations. Furthermore, the Accord's safety
training teams include union representatives that educate
workers about their right to refuse work in a dangerous
building, which could lead to broader discussions on worker's
rights. At present, the Alliance's training teams do not
include union representatives; neither initiative explicitly
includes training on freedom of association, collective
bargaining, and the role of unions.
The Alliance plans to engage with workers principally
through Worker Participation Committees (WPCs). WPCs are
platforms for worker-management dialogue and are required by
Bangladeshi law. Workers elect their representatives to the
WPC, which then meets with management once every month or two
to discuss worker concerns. While WPCs give workers some voice,
they are essentially powerless and have no leverage when
dealing with management. There are also instances of management
influencing the selection of worker representatives to WPCs.
WPCs are clearly no substitute for genuine representation of
workers' interests through unions and collective bargaining
agreements.
Both the Accord and the Alliance should include education
on freedom of association, organization, and collective
bargaining in their training curriculum and ensure that the
workers in their factories are aware of their rights and the
differences between WPCs and genuine unions. They should also
educate owners and managers on how to maintain constructive and
cooperative relations with independent labor unions in their
factories. Improved worker-management dialogue will be critical
to ensuring safe, healthy, and decent working conditions in
Bangladesh's expanding RMG sector.
labor-related foreign assistance
While funding for labor-related technical assistance
programming in Bangladesh's RMG sector has increased recently,
the overall sums remain small. The USG's main implementing
partner for RMG labor-related programming in Bangladesh is the
AFL-CIO's Solidarity Center. The Solidary Center is currently
implementing two multi-year programs, with a combined $4
million, which seek to strengthen workers' rights of freedom of
association by enabling union organization and collective
bargaining. These objectives are being pursued by the
Solidarity Center primarily through training, capacity
building, and legal assistance.\42\ As of November 2013 these
programs had trained over 50 full-time organizers and held
dozens of organizational capacity trainings for new unions.\43\
The program has financially supported 20 organizers and hopes
to support 65 more. Training of organizers was previously
constrained by the inability to register new factory-level
unions. Now that the government of Bangladesh is allowing
unions to register, the Solidarity Center expects to scale up
its operations and train more organizers, with the goal of
registering 500 new unions over the next 5 years.
In addition, in June 2013 the Department of Labor announced
a $2.5 million program to strengthen enforcement of fire of
building safety standards by building the capacity of worker
organizations to monitor safety violations. The funding will be
split between grants to the Solidarity Center ($1 million) and
the ILO ($1.5 million).\44\
Few other countries and international organizations have
programs promoting workers' rights in Bangladesh. The Dutch
trade union Federatie Nederlandse Vakbeweging (FNV) has a four-
year program to support training of Bangladeshi partner unions.
The Clean Clothes Campaign, which is part of the Accord, also
has a four-year program to support worker organization in
Bangladesh's RMG industry.\45\ Clearly, there is a need for
more foreign governments and international organizations to
finance and implement programs supporting freedom of
association and collective bargaining.
As a result of the passage of the labor law reforms and the
registration of new unions, the ILO, in partnership with the
International Finance Corporation (IFC), launched a Better Work
Bangladesh program in October 2013. The Better Work program
will focus on industrial relations and worker concerns like
hours and wages.\46\ The program will work with participating
retail brands to select factories, clustered in a few
geographic areas, which are deemed qualified for the program
after undergoing inspections. Many retailers are anxious for
their factories to participate in the program, and some may
even compel their suppliers to join. The committee encourages
American brands and retailers, especially members of the
Alliance, to urge their suppliers to join Better Work.
After selection, Better Work teams will enter the factories
and provide advisory services and training to management and
workers while ensuring compliance with labor standards and
facilitating strong social dialogue. For example, Better Work
teams will help factories implement the new labor law by
educating workers on how WPCs function and the difference
between WPCs and labor unions.\47\ As WPCs have been used to
crowd out unions in the past, this will be an important
distinction for workers to learn.
Better Work teams will begin inspecting factories in the
second quarter of 2014. The program plans to scale up to 500
factories by its third year. The ILO has created a ``Framework
for Continuous Improvement'' that has targets Bangladesh must
meet in order for the Better Work program to continue. The
commitments associated with the framework are derived from the
NAP, the GSP action plan, and the Sustainability Compact.\48\
The establishment of a Better Work program in Bangladesh is a
positive development that promises to pay serious dividends in
improving working conditions in RMG factories, especially where
there are active unions in place.
Conclusion
The various worker safety programs initiated in the wake of
Tazreen and Rana Plaza have the potential to considerably
improve the safety of Bangladesh's garment factories in the
short term. But these gains may be lost without strong worker
oversight in the form of independent unions.
Some progress has been made recently by Bangladesh's
fledgling unions, but much more remains to be done. The biggest
obstacles to the future development of unions are the current
anti-union mindset of factory owners and a fear and lack of
awareness among factory workers. These barriers will take some
time to overcome. Progress is clearly possible, though, with
sustained and genuine efforts by the governments of the United
States, Bangladesh, and other countries, as well as apparel
brands and retailers.
International pressure is growing against the government of
Bangladesh, apparel brands and factory owners in Bangladesh.
Bangladesh's garment sector may not be able to withstand
another tragedy on the scale of Tazreen and Rana Plaza. The
surest way to guarantee the success of the apparel industry is
to avoid another disaster by promoting and protecting labor
rights now, while the world's attention is on Bangladesh. The
present opportunity to improve working conditions in Bangladesh
cannot be squandered.
Full List of Recommendations
For the United States Government
The USG should hold the government of Bangladesh to the
highest standards in implementing the GSP action plan,
especially provisions pertaining to labor law reform
and protecting the freedom of association and the
rights to organize and bargain collectively.
The USG should increase funding for technical assistance
programs in Bangladesh, such as those run by the AFL-
CIO's Solidarity Center, that improve workers' capacity
to organize and engage in collective bargaining.
The U.S. Department of State should place a full-time labor
attache from the U.S. Department of Labor at its
mission in Dhaka.
For Apparel Brands and Retailers
Apparel brands and retailers should aggressively continue
implementing inspection and remediation programs
focused on fire and building safety in their suppliers
factories in Bangladesh.
Apparel brands and retailers, especially those with very
large operations in Bangladesh like Wal-Mart, Gap, and
others in the Alliance for Bangladesh Worker Safety,
should, in coordination with the ILO, launch long-term,
well-resourced programs to educate their suppliers of
their expectation for compliance with laws allowing the
right to organize unions and bargain collectively.
Apparel brands and retailers, in coordination with the ILO
and representative unions, should launch a program to
educate garment factory workers about their rights and
responsibilities with respect to freedom of
association, organization, and collective bargaining.
Apparel brands and retailers should also collectively
develop and implement a policy of zero-tolerance for
suppliers who consistently engage in anti-union
activity.
For the Government of Bangladesh and BGMEA
The government of Bangladesh and the BGMEA should
immediately develop and implement tough and effective
sanctions against factory owners who engage in anti-
union activity, and advance progress in sanctioning
owners who do not comply with required safety
standards.
The government of Bangladesh and the BGMEA, in coordination
with the ILO, should undertake a program to educate
garment factory owners on the constructive role of
labor unions in garment factories and endeavor to
ensure that anti-union activity is eradicated.
The government of Bangladesh and the BGMEA, in coordination
with the ILO and representative unions, should sponsor
a program to educate garment factory workers about
their rights and responsibilities with respect to
freedom of association, organization, and collective
bargaining.
The next government of Bangladesh should act quickly to
reform existing labor laws, including EPZ labor laws,
to bring them into conformity with international labor
standards.
Notes
\1\ Julfikar Ali Manik and Jim Yardley, ``Bangladesh Finds Gross
Negligence in Factory Fire,'' New York Times, December 17,
2012, accessed November 20, 2013, http://www.nytimes.com/2012/
12/18/world/asia/bangladesh-factory-fire-caused-by-gross-
negligence.html
\2\ ``RMG: The Mainstay of Bangladesh Economy.'' Bangladesh Garment
Manufacturers and Exporters Association, accessed November 20,
2013, http://www.bgmea.com.bd/home/pages/Strengths#.Uoz348ReZLA
\3\ SFRC staff discussion, Dhaka, August 2013.
\4\ AMRF Society, ``Workers' Voice Report 2013: Insight into Life
and Livelihood of Bangladesh's RMG Workers.'' Paper presented
to SFRC staff, September 25, 2013.
\5\ SFRC staff discussion, Dhaka, August 2013.
\6\ Yardley, Jim. ``Garment Trade Wields Power in Bangladesh.'' New
York Times, July 24, 2013, accessed November 21, 2013,
http://www.nytimes.com/2013/07/25/world/asia/garment-trade-wields-
power-in-
bangladesh.html
\7\ SFRC staff discussion, Dhaka, August 2013.
\8\ Yardley, Jim. ``Garment Trade Wields Power in Bangladesh.'' New
York Times, July 24, 2013, accessed November 21, 2013,
http://www.nytimes.com/2013/07/25/world/asia/garment-trade-wields-
power-in-
bangladesh.html
\9\ SFRC staff discussion, Dhaka, August 2013.
\10\ Al-Mahmood, Syed Zain. ``Bangladesh Exports Undeterred.'' The
Wall Street Journal, October 10, 2013, accessed November 21,
2013,
http://online.wsj.com/news/articles/
SB300014240527023045004045791273142136
23956
http://online.wsj.com/news/articles/
SB300014240527023045004045791273142136
23956
\11\ Achim Berg, Saskia Hedrich, and Thomas Tochtermann,
``Bangladesh: The next hot spot in apparel sourcing?,''
Mckinsey & Company, March 2012, accessed November 21, 2012,
\12\ Burke, Jason. ``Majority of Bangladesh garment factories
'vulnerable to collapse.'' The Guardian, June 03, 2015,
accessed November 21, 2013,
http://www.theguardian.com/world/2013/jun/03/bangladesh-garment-
factories-vulnerable-collapse
\13\ SFRC staff discussion, Washington, D.C. November 2013.
\14\ ``National Tripartite Plan of Action on Fire Safety and
Structural Integrity in the Ready-Made Garment Sector in
Bangladesh.'' Accessed November 21, 2013, http://www.ilo.org/
wcmsp5/groups/public/_asia/_ro-bangkok/_
ilo-dhaka/documents/genericdocument/wcms--221543.pdf
\15\ SFRC staff discussion, Dhaka, August 2013.
\16\ Froman, Michael. U.S. Trade Representative , ``ustr.gov.'' June
2013, accessed November 21, 2013,
http://www.ustr.gov/about-us/press-office/press-releases/2013/june/
michael-froman-gsp-bangladesh.
\17\ Della, Gloria. U.S. Department of Labor News Release, ``ILAB,''
July 29, 2013, accessed November 21, 2013,
http://www.dol.gov/opa/media/press/ilab/ILAB20131494.htm.
\18\ European Union Joint Statement, ``Staying engaged: A
Sustainability Compact for continuous improvements in labour
rights and factory safety in the Ready-Made Garment and
Knitwear Industry in Bangladesh.'' Accessed November 21, 2013.
http://trade.ec.europa.eu/doclib/docs/2013/july/tradoc--151601.pdf
\19\ Staff discussion in Washington, D.C. November 2013
\20\ International Labor Organization. ``Towards a safer garment
industry in Bangladesh.'' October 22, 2013, 2013.
http://www.ilo.org/global/about-the-ilo/activities/all/safer-
garment-industry-in-
bangladesh/lang--en/index.htm
\21\ Staff discussion in Washington, D.C. November 2013
\22\ Staff discussion in Washington, D.C. November 2013
\23\ Al-Mahmood, Syed Zain. ``Safety Groups Agree on Common Standards
for Bangladesh Garment Factories,'' Wall Street Journal,
November 20, 2013, accessed November 21, 2012
http://online.wsj.com/news/articles/
SB1000142405270230433740457920995427
3740442
\24\ ``Accord on Fire and Building Safety in Bangladesh.''
http://www.bangladeshaccord.org/; ``Members Agreement of Alliance
on Bangladesh Worker Safety.''
http://www.bangladeshworkersafety.org
\25\ Accord on Fire and Building Safety in Bangladesh. Press release.
October 14, 2013.
http://www.bangladeshaccord.org
\26\ ``Accord on Fire and Building Safety in Bangladesh.''
http://www.bangladeshaccord.org
\27\ SFRC staff discussion, Dhaka, August 2013.
\28\ SFRC staff discussion, Dhaka, August 2013.
\29\ SFRC staff discussion, Dhaka, August 2013.
\30\ SFRC staff discussion, Dhaka, August 2013.
\31\ International Labor Organization. ``ILO statement on reform of
Bangladesh labour law.'' July 22, 2013, 2013.
http://www.ilo.org/global/about-the-ilo/media-centre/statements-
and-speeches/WCMS--218067/lang--en/index.htm
\32\ Drake, Celeste. ``The AFL-CIO Reacts to Recently Passed
Amendments to the Bangladesh Labor Law of 2006.'' AFL-CIO NOW
July 23, 2013, 2013, accessed 21 Nov 2013, The-AFL-CIO-Reacts-
to-Recently-Passed-Amendments-to-the-Bangladesh-Labor-Law-of-
2006
\33\ Della, Gloria. U.S. Department of Labor [News Release],
``ILAB,'' July 29, 2013, accessed November 21, 2013,
http://www.dol.gov/opa/media/press/ilab/ILAB20131494.htm. http://
www.dol.gov/opa/media/press/ilab/ILAB20131494.htm
\34\ SFRC staff discussion, Dhaka, August 2013.
\35\ Della, Gloria. U.S. Department of Labor [News Release],
``ILAB,'' July 29, 2013, accessed November 21, 2013,
http://www.dol.gov/opa/media/press/ilab/ILAB20131494.htm.http://
www.dol.gov/opa/media/press/ilab/ILAB20131494.htm
\36\ SFRC staff discussion, Washington, D.C. November 2013.
\37\ SFRC staff discussion, Washington, D.C. November 2013.
\38\ SFRC staff discussion, Dhaka, August 2013.
\39\ SFRC staff discussion, Dhaka, August 2013.
\40\ SFRC staff discussion, Dhaka, August 2013.
\41\ SFRC staff discussion, Dhaka, August 2013.
\42\ United States Agency for International Development. ``USG
Programs to Improve Labor Conditions in Bangladesh.'' July 15,
2013.
\43\ SFRC staff discussion, Washington, D.C. November 2013.
\44\ SFRC staff discussion, Washington, D.C. November 2013.
\45\ SFRC staff discussion, Washington, D.C. November 2013.
\46\ ``Q&A on the Better Work Programme in Bangladesh.'' October 22,
2013.
http://betterwork.org/global/?p=3712
\47\ SFRC staff discussion, Washington, D.C. November 2013.
\48\ SFRC staff discussion, Washington, D.C. November 2013.