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Ignoring the Law

Labour rights violations in the garment industry in Bangladesh

Introduction
Employing 2.5 million workers in 4,500 garment factories, Bangladesh’s garment industry generates over three
quarters of the country’s total export revenue. In spite of the central role the sector plays in the nation’s
economy, Bangladeshi garment workers suffer from appalling conditions in the factories while earning well below
a living wage and having limited or no benefits. Female workers, who make up nearly 85% of the garment sector
workforce, are paid even less than their male counterparts, and are especially vulnerable to abuse.
War on Want works in partnership with the National Garment Workers’ Federation (NGWF), a Bangladeshi trade
union that promotes the rights of garment workers. This briefing paper outlines the results of research carried
out between June and September 2008 by the NGWF and the Alternative Movement for Resources and Freedom
Society (AMRF), a research group based in Bangladesh. As part of the study, a team of researchers interviewed
1,203 garment workers from 43 factories across Bangladesh. The full report of the study is being published in both
English and Bangla.

The 2006 Labour Law


The culmination of a process that began in 1992, “The situation on the ground for
the 2006 Bangladesh Labour Law was hailed as a the millions of Bangladeshi garment
landmark achievement for factory workers. The new workers is dire. In spite of new
law brought together 25 separate acts and ordinances
labour regulations, workers have
enacted over the three and a half decades since
Bangladesh gained independence, extending the scope seen few improvements in their pay
and applicability of labour regulations nationwide. or in the conditions of the factories
A range of stakeholders played a role in developing where they work. The reality for
the legislation, including workers’ rights groups, workers can only be improved if
human rights organisations, the UN International the right to a living wage and
Labour Organisation (ILO) and employers themselves.
freedom to form a trade union
The law promised to benefit workers by guaranteeing are respected and recognised as
rights that were being violated on a regular basis
essential to a worker’s dignity.”
by employers. For example, the law strengthened
maternity benefits by extending the period of Amirul Haque Amin
maternity leave from 12 to 16 weeks. It also required President, NGWF
companies to issue workers with an appointment
letter, a measure which helps prevent employers
cheating workers out of benefits. In addition, the
law set an employer deadline for payment of wages,
raised compensation pay in cases of accidents in the The failure of the law to bring about lasting change
workplace and established more robust health and in the lives of workers is due to lack of enforcement
safety codes for factories. of its key provisions. The Bangladesh Ministry of
Labour and Employment has primary responsibility
for monitoring enforcement of the Labour Law.
A failure of enforcement However, resources allocated to the Ministry are
While the passage of the Bangladesh Labour Law woefully inadequate: in 2006 there were only 20
marked an important step towards justice for garment inspectors responsible for monitoring the conditions
workers, factory conditions have not improved and of more than 20,000 factories, docks and other
workers continue to earn well below a living wage. businesses across Bangladesh.
2 IGNORING THE LAW

There are other voluntary associations that have been The minimum wage
set up by the factories themselves that purport to
While for the most part minimum wage laws are
play an important role in enforcing labour standards
being adhered to, the salaries are set at levels that
in the garment sector. The Bangladesh Garment
keep most workers in dire poverty. The minimum
Manufacturers and Exporters Association and the
wage is set by the Wage Board, which, according to
Bangladesh Knitwear Manufacturers and Exporters
the Labour Law, “shall take into consideration, while
Association were both established by the garment
framing any recommendation, the cost of living, standard
industry to monitor and report on the implementation
of living, production cost, production capacity, price of
of the Labour Law in factories. Such compliance
produced goods, inflation…and socio-economic condition
associations operate outside any enforceable legal
of the country.”
framework, and have proven unwilling to pursue any
cases of non-compliance in their member factories. The minimum wage in Bangladesh is determined by
each worker’s employment level. An entry-level worker,
In addition to the marked absence of domestic
for example, is guaranteed a minimum monthly wage
enforcement of the law, there is also no international
of Tk 1,663 – just under £14.2 Workers interviewed
mechanism that can be used to hold foreign companies
for this study spanned entry-level earners to higher
operating in Bangladesh to account for conditions in
paid labourers, and 88% of them received the minimum
their supply chains. Many multinational companies are
wage according to their grade as defined by the
supplied by Bangladeshi factories, including British
government. There were, however, numerous reports
retailers Tesco, Asda and Primark. These companies
of violations committed by sub-contractors. Over 60%
wield enormous influence over their foreign suppliers,
of garment workers interviewed received a monthly
and the pressure placed on these suppliers leads to
wage of less than Tk 3,000, which is roughly £25.
lower wages and deteriorating conditions for workers.1
The current minimum wage, established by the Wage
Board in 2006 after remaining fixed for over a decade,
Labour violations in the factories in fact has a lower value in real terms than the
Without effective enforcement of the Labour Law, previous minimum wage after the rising cost of food,
Bangladeshi workers continue to face dire conditions. fuel and other commodities are taken into account.
New research carried out by the AMRF and the NGWF, Factoring in this disparity between wage levels and
including interviews with over 1,200 garment workers, increases in the cost of living, the current minimum
has revealed a pattern of labour law violations in wage is in direct contravention of Bangladeshi law.
Bangladesh’s garment factories. Workers described
a series of issues, including unsafe factories, unpaid
overtime, lack of benefits, gender discrimination and The National Garment Workers’
paltry wages that do not cover basic expenses. The Federation (NGWF)
key findings of the research, summarised below, are
evidence of a failure to implement existing labour The NGWF was established in 1984
legislation and also to ensure a decent life for millions as an independent, democratic and
of workers and their families. progressive trade union federation in
Bangladesh. With a central office in
Proof of employment Dhaka, the capital, and regional branches
The 2006 Labour Law makes it compulsory for in industrial districts across the country,
employers to issue appointment letters to all workers. 31 registered factory-based unions are
An appointment letter serves as a de facto contract affiliated to the NGWF.The union’s
and enables workers to prove their status as employees network has expanded its presence into
who are entitled to the full range of rights. However, an additional 1,000 factories where non-
53% of the workers interviewed as part of the legally recognised factory committees
research did not receive an appointment letter, and operate on behalf of workers.This
thus had no legal standing vis-à-vis their employer. move is a crucial first step towards full
legal standing as a trade union.The
In many cases workers were given pieces of identification
NGWF currently has more than 22,000
with far less legal value, such as ID cards or attendance
members across Bangladesh.
cards. These documents offer limited protection against
fraudulent employer practices: many workers reported
that managers held on to their attendance cards 1. See Fashion Victims II: How UK clothing retailers are keeping
or reissued them on a monthly basis, in both cases workers in poverty, War on Want, December 2008
2. The exchange rate from sterling to Taka has been calculated
leaving them without a record of their hours worked. at £1 = Tk 119, the average rate for October 2008
IGNORING THE LAW 3

G.M.B. Akash/Panos Pictures


Bangladeshi sweatshop workers earn barely enough to feed
and support their families. “I earn Tk 2,200 per month, with
overtime, but rent, health expenses and
food for my family costs me around
Gruelling hours and unpaid leave Tk 5,000. My older brother sends
In spite of legislation limiting working time to no money from abroad to help make up
more than eight hours per day and 48 hours in a the difference, but what will happen if
week, excessive working hours are still the norm
rather than the exception. Nearly half of the workers
he can no longer afford to help us?”
interviewed as part of the study worked between 13 – Arifa3
and 16 hours a day; 67% stated that they regularly Factory worker
worked more than eight hours a day. In addition,
78% of workers were put on the night shift, at times
remaining at the factory until 3am and returning at
7am that same morning for another day of work.
Forced overtime and unpaid wages
Bangladeshi law also stipulates that workers must
receive 10 days of paid holiday plus a further 11 days In order to fulfil production quotas, many workers
leave for the Eid festival. However, out of the 1,203 are forced to put in far more hours per day than
workers interviewed more than half responded that is allowed under the law, in what amounts to
they are granted 10 days or less of the total 21 days compulsory overtime. Nearly 70% of respondents
of annual leave. Only 9% received their full allotment reported that they are forced to meet daily targets
of paid holiday including time off for Eid. Although that are set unrealistically high. Over half the workers
workers are entitled to 14 days’ paid sick leave, many interviewed stated that they worked seven days a
of them explained that their employers pressure them week to meet these targets and earn enough to
into working through illness. No worker reported live on. Those workers that do take a day off during
ever receiving paid sick leave. the week keep hours that are equivalent to a full
seven-day working week in order to make up for lost
earnings. Under Bangladeshi law all employers must
“Falling sick during work is not an grant workers at least one day off a week.
excuse, they force us to work.”
– Hazera 3. The names of all factory workers have been changed in order to
protect their identity
4 IGNORING THE LAW

The arduous hours and unpaid overtime are made health and safety violations are rife in Bangladesh’s
all the more shocking by the frequency with which garment factories. Over 70% of workers said that
workers are cheated out of payment for hours their workplace lacked safe drinking water, even
worked. Over two thirds of workers interviewed though many factories are poorly ventilated and
received no wage slip or other documentation of often reach blistering temperatures. An even higher
their earnings, making it impossible for workers to percentage of workers (87%) reported that the
verify that they are being paid the proper amount. factory where they worked did not have a functioning
Many factories that do issue wage slips present the fire escape. Moreover, only 23% of those interviewed
information in a way that is deliberately misleading. said they had access to toilet facilities.
For example, on many wage slips the total amount is
divided across several columns, making the final figure
difficult to ascertain for workers, the vast majority “We women workers are forced to do
of whom are poorly educated. Around 45% of the more work for less wages compared
workers interviewed said that their final wages do
to men.” – Nazma
not reflect the full number of hours worked.
Garment workers must also contend with late
payment of wages. Less than 10% of workers
interviewed for this research received their wages Gender discrimination
within the legal timeframe established under the The 2006 Labour Law contains a provision
2006 Labour Law. Over a third of the workers guaranteeing equal rate of pay for men and women.
interviewed reported that they typically receive However, according to the research conducted by the
their pay towards the end of the month following AMRF and the NGWF, women earn far less than their
that which they worked, which is three weeks later male colleagues. Over 70% of the women spoken to
than the legally mandated payment deadline. over the course of the study received less than
Tk 3,000 per month; by comparison, less than half of
Unsafe conditions the men interviewed earn below that mark.
Bangladeshi labour law states that employers must
ensure that basic standards for health and safety in
the workplace are complied with. Despite this law, Despite the passage of the 2006 Labour Law, factory
conditions in Bangladesh remain dire.

Laia Blanch/War on Want


IGNORING THE LAW 5

Liba Taylor/Panos Pictures


More likely to experience abuse in the factories, women sweatshop
“They say: if you are pregnant, leave workers face even worse conditions than their male colleagues.
the job. If you say no they kick you
out without paying your wages.”
– Amenda Overall, only 43% of women workers said they had
been granted paid maternity leave. Bangladeshi law
guarantees a total of 16 weeks’ paid maternity leave:
eight weeks prior to the birth of the child followed by
The wage disparity is the result of two interrelated eight weeks after delivery. Only 20% of the workers
factors. Male garment workers are far more likely than interviewed reported that their employers provided
women to hold jobs that traditionally pay more, such childcare, even though the 2006 Labour Law requires
as quality control and floor supervisor, and men also them to do so.
earn more than women who perform the same work.
Trade unions
While all garment workers face poor conditions and
poverty wages in factories, the research revealed that Although Bangladeshi law guarantees freedom of
women workers suffer in particular. The study also association, efforts by garment workers to form trade
found widespread instances of physical and verbal unions have been suppressed. Many workers active in
abuse in factories at the hands of management, with the trade union movement spoke of harassment and
women workers as the main target. The abuse can abuse from factory managers. In total, trade unions had
take the form of obscene language and humiliation, as been established in only three out of the 43 factories
well as corporal punishment, beatings and molestation. examined in the study. Participation committees had
Some workers reported that young women are offered been established in three additional factories, but
work privileges in return for sex, and that those who these groups are facilitated by management and rarely
refuse are beaten or fired. In total, 90% of all workers speak out against factory abuses.
reported being subjected to abuse of some kind.
Most women are deprived of maternity leave, which
is guaranteed under law. In many cases women have “Hooligans in the pay of the owners
to negotiate individually with management for time off threaten that they will kick us out
before and after childbirth. Some women are granted of the factory if we talk about trade
a few weeks of paid leave, while others must accept a unions.” – Rabeya
reduced wage or take unpaid leave.
6 IGNORING THE LAW

G.M.B. Akash/Panos Pictures


Members of the NGWF protesting against factory conditions at a rally in Dhaka.

Workers fighting back What you can do


The NGWF has taken a leading role in the struggle UK citizens can take the following actions to end
for garment workers’ rights in Bangladesh to ensure abuses inside garment factories in Bangladesh:
decent working conditions, fair wages and freedom of Demand that the government regulate UK
association. To improve the lives of garment factory companies and adopt legislation enabling overseas
workers, the NGWF and its thousands of members workers to seek justice in the UK when they suffer
have been demanding that the Bangladeshi government from exploitative buying practices.You can write to:
take the following actions: Rt Hon Lord Mandelson, First Secretary of State,
Reconvene the Wage Board and conduct a review Department for Business, Enterprise and Regulatory
of the minimum wage structure, allowing for Reform, 1Victoria Street, London SW1H 0ET.
meaningful participation by trade unions and civil Call on UK companies such as Tesco, Asda and
society organisations to ensure that the minimum Primark that are supplied by Bangladeshi factories
wage represents a living wage. to ensure that the workers producing their clothes
Develop a national reporting framework and conduct are paid a living wage and that their rights are
an annual review into the status of implementation of respected.You can learn how to contact these
the 2006 Labour Law in the garment sector. Such a factories by visiting www.waronwant.org/
review must include participation from trade unions campaigns/supermarkets/fashion-victims
and civil society organisations representing workers. Join War on Want and become part of a global
Ensure maximum participation of women in all movement for workers’ rights.You can become a
consultation bodies and review mechanisms, aiming member by signing up at www.waronwant.org/joinus
for levels comparable to their representation in or by calling us on 020 7549 0555.
the garment sector itself.
July 2009
Revise the law so that the rights of trade unions
are strengthened, especially with respect to: War on Want, Development House, 56-64 Leonard Street,
London EC2A 4LT tel: 020 7549 0555 fax: 020 7549 0556
Their ability to appeal against Labour Court mailroom@waronwant.org
decisions rejecting union applications for
official recognition.
The right of employees who choose to serve
as trade union officers to have their identities
kept confidential.

This report has been produced with the financial assistance of Irish Aid. The contents of the report are the sole
responsibility of War on Want and can under no circumstances be regarded as reflecting the position of Irish Aid. www.waronwant.org
War on Want registered charity no. 208724

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