BATB may face legal action over labour law violations 

Highlights:

• Labour ministry reports 45 violations at BATB's Kushtia factory
• Company accused of depriving workers of benefits and weekly holiday,
• Forced workers to work beyond hours, lacks safety measures
• Ministry seeks explanation from BATB after labour law violations
• Factory operates year-round despite seasonal registration
• Health and safety violations found at the factory
  

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The Ministry of Labour has detected around 45 violations of labour laws and safety regulations at British American Tobacco Bangladesh (BATB)'s tobacco processing plant in Kushtia, including irregularities in factory registration, denial of worker benefits such as profit sharing and leave, unsafe working conditions, and the absence of appointment letter records.

According to a labour ministry report, although the multinational company registered it as a seasonal factory, it operates year-round and is BATB's key processing units. Additionally, the factory forces workers to work beyond their normal hours and does not give them weekly holidays.

Furthermore, the factory lacks necessary measures to protect workers' health and fails to provide compensation for occupational diseases and accidents, as required by law, the report says.

Although the company was given a deadline to address 22 of these issues by the ministry, it failed to comply. Following this, on 4 March, the ministry directed the Department of Inspection for Factories and Establishments (DIFE) to seek an explanation from the company.

In a letter sent to BATB, on 9 March, signed by the deputy inspector general of DIFE's Kushtia office, Forhad Wahab, a response has been requested from the company.

Confirming the issue, Labour Ministry Secretary AHM Shafiquzzaman told TBS, "We will take the next legal steps. Being a large company does not mean British American Tobacco can get away with this."

However, he declined to specify what legal actions might be taken.

A senior DIFE official, speaking to TBS on condition of anonymity, said, "If the company fails to address the issues it was asked to rectify, cases could be filed against it."

TBS contacted the company regarding the allegations. A spokesperson of the company sent a written statement, stating, "As a responsible company, BATB is committed to full compliance with local laws and regulations. We have noted all the regulatory observations by DIFE and are engaging with the relevant authorities as appropriate."

"We have outlined the measures we have undertaken, as well as those currently in progress, and have engaged with DIFE on these matters," it stated.

Earlier, in a letter sent to DIFE on 30 October, M Alam Khan, former plant manager of BATB Kushtia factory, stated, "BATB is committed to complying with the 22 issues identified. To achieve this, a cross-functional team has been formed. However, since the season has ended, implementation is only possible before the next season begins."

The letter requested an extension until the next season.

In response, DIFE stated in a letter that requesting time until the next season is essentially a ploy to delay the enforcement of the law.

How BATB's labour law violations came to light

According to sources, the tobacco processing plant of British American Tobacco Bangladesh in Kushtia is several decades old. The plant was registered in 2007 as a seasonal tobacco processing factory, meaning it was expected to operate for 125 days or four months each year.

In July last year, a section of seasonal workers at the factory, who were not rehired, raised various irregularities and filed complaints with the local district administration and DIFE.

Based on the complaints, the district administration in Kushtia requested the local DIFE office and the Department of Labour to investigate on 29 August. In response, a 10-member team conducted an investigation and discovered 22 types of labour law violations at the facility.

Following the investigation, in September DIFE carried out a detailed inspection at the factory, focusing on both labour rights and safety. The inspection revealed 45 types of irregularities at the facility.

Major irregularities found

According to the labour ministry report, BATB's Kushtia factory did not provide appointment letters with relevant information regarding the workers' job roles, nor were ID cards with photos issued.

Additionally, necessary measures for protecting workers' health were not taken at the factory, which deals with health hazards such as tobacco. The internal pathways of the factory are not free of obstacles, and many areas have iron-made stairs and platforms, the report says.

Furthermore, the factory does not have an adequate number of fire extinguishers and equipment in designated areas, and there are no records of their usage, the ministry found.

The investigation revealed several violations, including the failure to provide free medical treatment to workers injured on the job until full recovery. Additionally, workers were not compensated for occupational diseases and accidents as required by law.

The report says the factory also lacked a daycare facility and forced workers to work beyond their normal hours. Weekly holidays were not provided to the workers either.

The factory, although registered as a seasonal factory, has violated such provisions, according to the report.

The report also highlighted the fact that, of the seven BATB factories in Kushtia, Meherpur and Chuadanga, all but one have not obtained licenses.

Depriving workers of benefits

The report states that seasonal workers hired at the factory since 2012 were not terminated annually. However, this practice began in 2015.

According to the country's existing labour laws, seasonal workers cannot be terminated.

Former factory workers and DIFE officials say that of around 1,700 workers employed at the BAT factory in Kushtia, only 41 are part of the management team, and 28 are permanent workers, totaling 69 permanent employees.

Among the remaining workers, 146 are seasonal employees, while the rest are hired through contractors. Except for permanent workers, others do not receive benefits such as a provident fund, gratuity or dividends as per labour law.

A senior DIFE official, on condition of anonymity, said, "This practice was mainly carried out to deprive the workers of their dividends."

Shamim Ul Alim, a seasonal worker who has been working at the factory for over 11 years since 2013, told TBS, "I have not received any financial benefits beyond wages in my 11 years of work."

Currently, only permanent workers of the company receive other financial benefits as per labour laws, including provident fund, gratuity and profit share.

According to the company's financial report, BATB's business has doubled over the past six years. After deducting all expenses, the company made a profit of over Tk1,750 crore in 2024.