Allowing trade union registration with 20 workers may trigger industrial instability: BEA

The proposed provision to the labour law allowing trade union registration with just 20 workers of a factory could trigger instability within the country's industrial sector, Bangladesh Employers' Association (BEA) President Fazle Shamim Ehsan has warned.

Currently, a trade union require at least 20% of a factory's total workforce.

"The move may lead to reduced productivity, increased workplace conflicts, and divisions, posing a serious threat to Bangladesh's vital export sector," Ehsan said at a networking meeting with reporters at Police Plaza Concord in the capital's Gulshan today (30 August).

Ehsan further said the proposed provision could result in the formation of multiple nominal unions within small and medium enterprises. "This would place repeated pressure on factory management, disrupt production, and create uncertainty. Such an environment encourages opportunistic behaviour, which undermines healthy industrial relations."

Highlighting the sensitivity of the issue, he emphasised that certain clauses in the proposed labour law amendments risk destabilising the industrial sector. "The readymade garment industry, a cornerstone of our economy, is under strict scrutiny from international buyers. Any unrest stemming from legal changes could delay timely order deliveries. Consequently, buyers might shift their orders elsewhere, putting Bangladesh's export markets at risk."

He further noted that export opportunities are already narrowing due to the United States' new reciprocal tariff policies. "Given this context, any labour market instability would pose an even greater challenge to the export sector."

Ehsan also warned that overly simplifying the trade union registration process could deter foreign direct investment (FDI). "Investors seek stable, predictable environments. If they perceive frequent labour disputes, they may divert their investments to other countries, which would hamper job creation and long-term economic growth."

While acknowledging workers' right to unionise, he stressed the need to balance this with a business-friendly environment and industrial stability. "Protecting workers' rights must go hand in hand with ensuring a stable industrial climate. Failure to do so will hurt both the economy and exports."

On the topic of labour law reform, Ehsan said it must align with international standards while reflecting Bangladesh's unique socio-economic realities. He underscored that the success of such reforms depends on coordinated input from the government, workers, and employers alike.

Urging journalists to play a constructive role, he appealed, "Please highlight positive developments to the public, while also presenting real challenges in a balanced way. Your constructive criticism will help strengthen our efforts."

Also attending the event were ANM Saifuddin, Chairman of the BGMEA's Permanent Committee on ILO and Labour Affairs, BKMEA President Mohammad Hatem, and members of the BEF committee.