How trade union became a win-win for workers, owners at Babylon Garments

Since the formation of the workers' trade union nine years ago at the country's oldest and well-known Babylon Garments, there has been no labour unrest at the factory, nor has production been disrupted by worker-related issues.

Through continuous dialogue with the union, the factory has introduced educational and medical support for workers' children—benefits that go beyond legal requirements.

Additionally, the factory has reported significantly lower dropout and absenteeism rates—about half the industry average—which has contributed to increased productivity.

These findings were observed during a visit to the Babylon Garments factory by group of journalists, part of the Babylon Group, located in Mirpur, Dhaka, on Thursday. Conversations with factory officials and union leaders provided further insights.

Employing around 2700 workers, the factory has implemented various initiatives under the International Labour Organization's (ILO) Better Work program, including training programs, a grievance mechanism, and an anti-harassment committee.

Nasrin Akhter, President of the Babylon Garment Workers' Union, told The Business Standard, "We successfully negotiated a 10-day holiday for the upcoming Eid al-Adha. Any production losses will be adjusted through earned leave sooner or later."

She added, "Previously, we used to receive our earned leave mid-year, but many workers need extra money in January. Now, after negotiations, we receive it in January. In some cases, the factory even supports school or medical expenses for our children."

Abdul Kadir, Head of Operations at Babylon Garments Ltd., said, "Our factory's dropout rate is 2.25% and absenteeism stands at 2.37%, compared to the industry average of 4%–5%. High absenteeism or dropouts make it difficult to maintain the production line, which ultimately hampers productivity."

He noted that the company is performing well but could not provide detailed figures on the financial gains.

The officials also noted that the union had successfully negotiated a 9% wage increase effective from December 2023. Additionally, Babylon Garments Ltd. disbursed Eid bonuses on 22 May, and declared the Eid holiday on 12 May—well ahead of the Bangladesh Garment Manufacturers and Exporters Association's (BGMEA) instruction issued on 26 May.

Arif Bhuiyan, Group CEO of Babylon Group, told TBS, "There's often fear surrounding the formation of trade unions, but we overcame that. Since then, our relationship with workers has improved—we usually hold meetings with them every two months, when top bosses of the management are also present."

Sonia Akhter, a 35-year-old supervisor who has worked at the factory for 16 years, said she has no plans to leave because of the factory's positive work environment.

Better Work, a joint initiative of the ILO and the International Finance Corporation (IFC), partners with governments, employers, workers, and global brands to improve both working conditions and competitiveness in the garment industry.

Engaging in the program has also led to a reduction in external audits of the Groups all factories. Rubaet Bin Aziz, General Manager of HR, Admin, and Compliance at Babylon Garments, said, "Previously, the company underwent around 12 social and compliance audits annually. Since joining Better Work, that number has dropped to 7 or 8."

According to Syed Fazle Niaz, Team Leader of Better Work Bangladesh, "The program was launched in 2015, and currently around 500 factories are enrolled, impacting over one million workers—51% of whom are women."

Better Work Bangladesh organized the media visit to showcase how effective social dialogue and grievance mechanisms can promote healthier industrial relations that benefit both the economy and workers' well-being.