[Senate Prints 113-22]
[From the U.S. Government Publishing Office]



113th Congress 
 1st Session          }     COMMITTEE PRINT        {           S. Prt.
                      }                            {           113-22
_______________________________________________________________________

 
     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

                              ----------                              
                                                                   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.

                                  
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