Some key labour reform proposals implemented, while many remain pending

Highlights:

• Labour Act amended as key reform steps begin
• Wage review shortened, ILO Convention 190 ratified
• Domestic workers covered, union rules eased
• CBA reform and six-month maternity leave are still pending
• Minimum wage framework yet to be adopted
• Labour courts, penalties for forced labour, and welfare reforms lag

Some major recommendations of the Labour Reform Commission have been implemented over the past eight months since the commission submitted its report, but several proposals are yet to be acted upon.

According to those concerned, amendments to the Labour Act, a shorter wage review cycle, measures to improve workplace safety, and steps to simplify the formation of trade unions have already been introduced.

The government has also ratified three international conventions, including the ILO Convention 190 on preventing violence and sexual harassment at the workplace.

In addition, some informal sectors, such as domestic workers, have been brought under the Labour Act, 2006, and factory workers are also expected to receive benefits under the law.

However, many key recommendations remain unimplemented.

These include reforming the minimum wage structure, fixing a national minimum wage based on the concept of a "living wage", extending maternity leave to six months, and quickly reviewing and withdrawing criminal cases filed against participants in labour movements.

Recommendations to increase the capacity of Labour Courts, introduce penal provisions against forced labour, align working hours and overtime with international standards, and abolish the practice of hiring workers on an outsourcing basis for permanent jobs have also not been implemented.

Some proposals, stakeholders said, have only been partially carried out.

Syed Sultan Uddin Ahmed, chairman of the Labour Reform Commission, said much more could have been achieved since the commission submitted its recommendations on April 21.

"The recommendations we made are implementable. They have not been implemented to the desired extent. Whatever has been achieved is due to our persistence and international push. Along with this, there were also efforts from the officials of the Ministry of Labour," he told The Business Standard.

"If [all of] our recommendations were implemented, it would have been a milestone for the country's labour sector," he said.

He added that the implementation of pending and partially implemented recommendations would depend on the goodwill of the next government and the continued pressure from labour rights activists.

Those concerned said international pressure and goodwill within the government were among the main reasons behind the emphasis on labour reform.

One of the major recommendations was to simplify the process of forming trade unions in factories, an issue for which Bangladesh has faced criticism internationally, particularly at ILO meetings.

Under the amended Labour Act, a trade union can now be formed with the consent of at least 20 workers, instead of 20% of the workforce as required earlier.

The amendment also allows up to five unions in a single factory. 

However, the commission's recommendation on the appointment of collective bargaining agents was not accepted.

Factory owners, meanwhile, have expressed dissatisfaction over the changes to union formation.

Labour experts said that while progress has been made, ensuring effective enforcement of the law remains the biggest challenge in meeting international labour standards.

Although the commission recommended increasing the capacity of Labour Courts, no steps have been taken to raise their number or introduce circuit courts.

There has also been no progress in strengthening the Department of Inspection for Factories and Establishments.

Maternity leave has been fixed at 120 days, instead of the recommended six months.

Proposals on labour force registration and databases, digital registration systems, skill development and training, protection of migrant workers, and labour reform oversight mechanisms have not been implemented.

The amendment ordinance has defined forced labour and added Section 348C prohibiting it, but no penal provisions have been included.

Some provisions have been added to promote quicker labour dispute resolution and alternative dispute resolution mechanisms.

However, there has been no progress on introducing a universal national minimum wage based on the concept of a living wage.

The government has ratified three international conventions and amended provisions to require safety committees in establishments employing 50 or more workers.

Recommendations to introduce digital application systems for the Workers' Welfare Fund and Central Fund, establish tripartite audit and monitoring for transparency, expand welfare coverage to workers of all sectors, and amend the Workers' Welfare Foundation Act to widen support for workers' families remain unimplemented.