Bangladesh Labor Laws are not efficient enough and it is an impediment to economic

productivity and growth

Introduction
Labor Law is the rules and customs of state by which the relationship of employer labor is
adjusted in order to secure harmony in the Industrial arena. The modern Labor law is
gathered by the state. In the eye of Labor law, the capital & the labor both are equally
important.
Garments sector is the main theme of Bangladesh. The agricultural land has been transformed
into a garments industrys country. Employment in the off-the-shelf garment sector in
Bangladesh provides workers with economic benefits and some empowerment. 3.2 million
people, or even higher, are working in this sector. Moreover, about 5000 garments factories
are spreaded across the country. 78% of our foreign earnings come from this sector. So it
cannot be an overstatement to say that, we earn our bread from garments industries (Bhuiyan,
2012).
Though the RMG industry has practiced a large growth, this has been alleviated on the
international market due to certain production inefficiencies and marginal issues. More
particularly, in terms of human resources, workers low levels of education have contributed
to certain inefficiencies in garment factories. It is projected that there is a 25% deficiency of
skilled workers in the industry (Berg, Hedrich, & Tochtermann, 2012). The mainstream of
workers receive basic, on the job, training or attend basic courses in regional sewing schools.
There is a lack of public or private professional training institutions and skill development
programs to teach students or skilled up employees. As a result, some companies suffer from
lower productivity. For that reason, the development of the productivity of the RMG industry
in Bangladesh needs to be deal with to ensure the sustainability of their production on the
international market. Usually, productivity is related to the efficiency of production, and is
calculated based on the ratio of total inputs compared with total outputs.
The limited laws regarding union association, rights of workers, condition of service and
employment, health and hygiene, safety and health, welfare, working hours and leave, wages
and payment, lack of proper grievance procedure and communication mechanism in the
factories, increasing prices of essential goods, salaries well below than living wage levels and
1

limited trade union action are some of the main reasons behind the increasing worker unrest
which intimidated the industry. Violent revolutions have been a common sight over the last
few years and they have seemed to become a part of the industry. The RMG sector in
Bangladesh has been facing sporadic violence recently (Mohiuddin, 2014).
According to Amin (2009), Coordinator of the Bangladesh Garment Workers Unity Council
(BGWUC), The garment workers of Bangladesh may be the majority disadvantaged labor
force in the world. Most are remunerated between US$14 and US$16 per month, the lowest
salary in the world. He also added Only a small number of factories here follow
international standards, and many of them do not execute any employee health and safety
measures. The Financial Express (2008), a daily English newspaper of Bangladesh, referred
to a recent study performed by a local think tank that has exposed that investors in the RMG
sector have more than double their earnings in the past seven years. Regardless of this
increase, however, it is a shame that many owners are not paying their laborers regularly and
all sorts of extraneous arguments are put forward for non-payment of their salaries. New Age
(2009), another well-known daily English newspaper, reported that the majority of garment
factories do not yet abide by many wage and workplace standards specified in the tripartite
agreement of 2006.
At the international level, campaigns have drawn concentration to mistreatment of
employees rights in global supply chains and put pressure on international corporations to
acquire better accountability for employees through corporate codes of conduct. Local
employers in the Bangladesh garment industry must now follow compliance with these codes
to succeed orders from international buyers (UNIFEM 2008). According to International
Labor Organization (2010), buyers construct sourcing result based on four factors: price,
quality, how long it takes to find produce to the marketplace and social compliance, including
compliance with labor standards. At present, many international buyers require compliance
with their code of conduct before placing any garment import order. The factory working
environment is not very satisfactory.
On the other hand, the RMG sector has recently faced some undesirable events that hinder its
growth and productivity. The topmost foreign exchange earning sector of the country is
experiencing severe anxiety. Instability and variance in this sector become a very common
phenomenon. Conflicts result typically first from within the factory, where workers and
2

management fight with each other. Then management asks for law imposing agencys
protection to expel the workers from the factory, which then take it to the streets to dispute
against the misuse of management and owners of the garments. Police then tries to diffuse
them. Workers try to oppose the police by throwing stones and bricks at them. Sometimes
workers damage and put up road blockades which cause severe traffic jams. Police then use
tear gas and other ways to once again diffuse the workers (Buiyan, 2013). Because of these
unrest and conflict it affects adversely in production and as a result it affects the economic
productivity and growth.

Bangladesh Labor Law 2006

Labor in Bangladesh has a comprehensive and democratic labor law. Before, there 51 labor
laws, which 13 dates back to British period, 25 were created when Bangladesh was part of
Pakistan and 13 have been passes after independence. A thorough review of the labor laws
was required which included present realities.
Bangladesh Labor Act 2006 was created by the parliament with result from October 11, 2006.
This new labor law has canceled 27 existing labor laws including Factories Act 1965,
Payment of wages Act 1936, Shops and Establishments Act 1965, maternity benefit Act 1939,
Industrial Relations Ordinance, 1969, Employment of labor (S.O) Act 1965 etc (Kamal,
Billah and Hossain, 2010).
Bangladesh Labor Law (Amendment)-2013: Bangladesh Labor Law (Amendment) BillJuly 15, 2013 has passed in the parliament to create the presented law time befitting for
workers welfare.
The major amendments are:
Letting Trade Unionism in the factories.
Guarantee safety measures for workers at workplace.
Set up compulsory group insurance for workers.
Prevent children to be involved in hazardous works.
Brining labor contractor under labor laws.
Give compensation of a permanent labor at the time of his/her departure or accidental
death.

 The Legislation puts in place provision such as a central fund to get better living
standards of workers.
5% of Annual income to be set down in Employee Welfare Fund (Mohiuddin, 2014).
Considerable laws from Bangladesh Labor Law 2006:
The following main issue from Bangladesh Labor Act, 2006 is taken into consideration for
this study:
Conditions of service and employment
It contains conditions of employment, classification of workers, letters of appointment and
identity card, service book, form of service book, entries in the service book, register of
workers and supply of tickets and cards. (Section 3-9, Bangladesh labor Act 2006) (Kamal,
Billah and Hossain, 2010)
Health and Hygiene
The Act explains the terms and conditions of cleanliness, ventilation and temperature, dust
and fume, disposal of waste and effluents, overcrowding, lighting, drinking water, latrines
and urinals, etc. (Section 51-59, Bangladesh labor Act 2006) (Kamal, Billah and Hossain,
2010)
Safety and Health
It states safety of the building and machinery, precaution in case of fire, fencing of
machinery, work on or near machinery in motion, cranes and other lifting machinery, hoists
and lifts, floors, stairs and means of access, etc. (Section 61-78, Bangladesh labor Act, 2006)
(Kamal, Billah and Hossain, 2010)
Special provisions relating to health, hygiene and safety
It comprises dangerous operations, notice to be given of accidents, notice of certain
dangerous occurrences, notice of certain disease, power to direct enquiry into cases of
accident or disease, power to take samples, power of Inspector in case of certain danger,
information about dangerous building and machinery, restriction of employment of women in
certain work, power to make rules. (Section 79-88, Bangladesh labor Act, 2006)

 Welfare
It contains first aid appliances, maintenance of Safety Record Book, washing facilities,
canteens, shelters etc, and rooms for children, recreational and educational facilities, housing
facilities, facilities for daily necessities, medical care and compulsory group insurance.
(Section 89-99, Bangladesh labor Act, 2006)
Working hours and leave
It describes the rules and regulation of daily hours, interval for rest or meal, weekly hours,
weekly holiday, compensatory weekly holiday, spread over, night shift, extra allowances for
overtime, casual leave, sick leave, annual leave with wages, festival holidays, etc. (Section
100-118, Bangladesh labor Act 2006) (Kamal, Billah and Hossain, 2010)
Wages and payment
It contains special definition of wages, responsibility for payment of wages, fixation of wageperiods, time of payment of wages, wages to be paid in current coin or currency notes,
deductions for absence from duty, etc. (Section 120-126, Bangladesh labor Act 2006) (Kamal,
Billah and Hossain, 2010)
Trade unions and industrial relations, disputes
It reports the rules and regulation of special definition of worker, trade unions of workers and
employers, collective bargaining agent, participation committee, industrial disputes, lockout
and strike, etc. (Section 175-211, Bangladesh labor Act 2006) (Kamal, Billah and Hossain,
2010)
Penalty and procedure
It shows the penalty for non-compliance of labor courts order, penalty for employment of
child and adolescent, penalty for unfair labor practices, penalty for illegal strike or lockout,
penalty for taking part in or instigating go-slow, penalty for general offences by workers,
penalty for other offences, etc. (Section 283-307, Bangladesh labor Law 2006) (Kamal,
Billah and Hossain, 2010)
Registered medical practitioner
5

It means any person registered as such under The Medical and Dental Council Act, 1980.
(Section: XVI of 1980).
Unfair labor practices on the part of employers
It says that no employer or trade union of employers and no person acting on their behalf
shall, dismiss, discharge, remove from employment, or threaten to dismiss, discharge, or
remove from employment a worker, or injure or threaten to injure him in respect of his
employment by reason that the worker is or proposes to become, or seeks to persuade any
other person to become, a member or officer of a trade union. (Section 195, Bangladesh
Labor Act, 2006, amended 2013)
Eligibility to benefits
It says that all workers shall be eligible to the benefits mentioned in the Bangladesh Labor
Act 2006 and to participate in the funds and a worker not competing six months of
employment with the company during a year of account shall not participate in the funds in
respect of that year. (Section 241, Bangladesh Labor Act, 2006)
Based on the above mentioned literature, we have identified that there are some lacking on
the said laws. Therefore, if those drawbacks can be identified and addressed accordingly, then
we can assume that we can get rid from most of the labor unrest occurred due to lack of
proper implementation of Bangladesh labor Act 2006; as labor unrest is a major problem for
the growth and sustain of Ready Garment Factories.
Criticisms on the above mentioned Bangladesh Labor Law 2006:
There have been several criticisms among workers and trade unions. Some of those are
included:
Article 211 states that laborers can not lock out in the new factories or foreign owned
or joint venture factories. Therefore, owners can ignore rational demands of
employees.
Earlier a fired worker could get his or her compensation within two days; the new law
amplified it within thirty days. The law suggests that the minimum wage bill will be
modifying every five years.
Article 100 shows that organization can set working time up to 10 hours. Although,
after 8 hours, laborers will get double payment for the rest 2 hours.
6

 If the factory owner doesnt give 16 weeks of maternity leave and benefits, the owner
will be fined for 5000 taka. Certainly, it is beneficial for the owners to compensate the
fine rather than numerous months of leave and benefits (Mohiuddin, 2014).

Inefficiency of above mentioned Bangladesh Labor Law 2006

Wages and Payment: Workers are not paid over time at double the rate of their pay as per
the provision of the law. Some Bangladesh workers get their salaries two months late.
Overtime is compulsory and it is not rewarded. Wage is not paid as per wage commission
declared pay. Wage is also not paid within the stipulated time that is within seven days of the
following month (Kamal, Billah and Hossain, 2010)
Welfare: Factory does not have any welfare fund for workers (Kamal, Billah, and Hossain,
2010). There is no regular basis of compulsory group insurance. There is no safety record
book or work related accidents record. If anybody misses a day due to illness, manager will
subtract two days pay and workers lose full attendance bonus (Mohiuddin, 2014).
Holidays and Leaves: Under Labor Law, workers working time of garment industry is a
maximum 10 hours per day. Most of workers are bound to work 14 to 16 hours a day
forcefully. Workers do not get weekly holiday or annual leave as per stated in Labor Law.
Some of the workers do the work on Friday which is holiday. The factory owners do not
recompense them with days off or overtime costs. Garment workers are not conscious about
the lawful requirements on annual leave and festival leave with pay. Forced
retirement/retrenchment is a general rule in Bangladesh (Mohiuudin, 2014).
Unfair labor practice of Employers: Most of the garment owners are doing unfair labor
practice; they do not follow rules and regulations. Garment workers are usually dismissed
without any particular cause (Mohiuddin, 2014).
Health and Safety: In the law, health and hygiene articulates purity; removal of wastes and
effluents; freshening and warmth; air pollution; overcrowding; lighting; drinking pure water;
latrine and urinal; fire safety; wellbeing. In many garment factories there is no written policy
or guidelines on safety and health, no health education program. Factory Owners do not
7

perform their responsibilities of safety and health. There is no system in place to consult
workers on safety health issues so it is not communicated to the workers. There are often no
safety symbols, placards or notices in the workplace. Factory Owners do not maintain work
related accidents record. If anybody misses a day due to illness, manager will subtract two
days pay and workers lose full attendance bonus. Workers are told to do an extra eight hours
as unpaid work to fulfill organizational target (Mohiuddin, 2014). There is no registered
medical practitioner in factory.
Effectiveness of Industrial Inspector: If the factories have been made as per rules and it has
vital safety procedures, the governments factory inspection office under the directorate of
labor is accountable for supervision. Labor Ministrys industrial inspectors enforcement is
not strong due to both the insufficient labor inspectors and general corruption and
incompetence among inspectors. The Bangladesh Department of Labor and Inspectorate of
Factories state that inadequate resources, workers and logistical help to sufficiently carry out
the duty of monitoring labor laws. Garment owners give bribe labor ministry officer to
maintain free of laws inside their garment factories (Mohiuddin, 2014).
Trade Union Rights and Backward Nature in the Industry : There is lacking strong trade
union movement in RMG industry of Bangladesh where union does file applications for
registration is regularly not on time (Mohiuddin, 2014). There are 4 registered and at least 10
other unregistered trade unions and union federation in Bangladesh. In the rising official
private sector of RMG industries in Bangladesh, the owners solve industrial argument
throughout autocratic and unilateral decisions (Mohiuddin, 2014). Most of the garment
owners have negative attitude to unionization in the RMG industries but they are changing
their attitude for the force of government and globally (Mohiuddin, 2014). Most of the
workers feel that management does not listen to their complaints and problems (Kamal,
Billah and Hossain, 2010).
The right of freedom of association and to collective bargaining is not valued in the garment
sector (Mohiuddin, 2014). Most of the Collective Bargaining Agent leaders have an open
secret concerned with the owners of the establishments which lead them to the continuous
corruption (Mohiuddin, 2014). Labor unions do not properly carry out their responsibilities
effectively and efficiently. They fail to minimize the communication gap between laborers
and workers. Some factory owners do not have the confidence on labor union (Tamanna,
2010).
8

Implications on Economic Productivity and Growth

Bangladesh has been observed remarkable industrial development across its industrial area;
textile and apparel have mainly pulled the center of government bodies and investors.
Enormous accessibility of lowest manpower, one of the majority competitive energy
expenditure and established path documentation in apparel production and exports has placed
Bangladesh as a local apparel industry expansion center in the Asian continent. In
circumstance of rapid increase in labor wages and raw material cost in other major local
counterpart, such as China, India, Thailand etc, Bangladesh is well balanced to continue most
favored target for international apparel majors for sourcing world class fabric and completed
garments (Das, 2014).

Garments manufacturing labor costs (US$/hour) by countries

Asian Competitors
Bangladesh
Cambodia
Pakistan
Viet Nam
Sri Lanka
Indonesia
India
China(remote/inland
areas)
China (other coastal/core
areas)
China (Prime coastal
areas)
Malaysia
Thailand

US Regional Suppliers
0.22
0.33
0.37
0.38
0.43
0.44
0.51
0.55-0.80

Mexico
Honduras
Dominican Republic
Nicaragua
Haiti
EU Regional Suppliers
Turkey
Morocco
Russia

2.54
1.72-1.82
1.55-1.95
0.97-1.03
0.49-0.55

0.86-0.94

Tunisia

1.68

1.08

Bulgaria

1.53

1.18
1.29-1.36

Jorden
Egypt

1.01
0.83

Data Source: ILO Report, 2011 & NCM-April, 2013

2.44
2.24
1.97

Current Scenario of RMG Sector

Though as a whole our economic condition says that Bangladesh RMG sector had a very
successful run past several years boosting its economy but we cannot ignore the fact that it
does not improve the living condition of our people who has direct contribution to this
increasing economy (Bhattacharya, Rahman, Raihan, 2002). It is terror that the country may
be unable to find its solid earned standing and situation as a main basis destination for
overseas clothing and textiles purchaser. Our sustainability in the long run is in danger now if
we do not emphasize on the major issues right now. As a result, global crisis such as the subprime cooling of the US and European markets and of course, labor living standards will
seriously challenge Bangladesh garment industrys competitiveness and skewer its successful
run (Nithy, 2014).

China is a the major participant in the garment market, with stakeholders stating low cost
and high output, maintain strong government aid, accessibility of unprocessed resources, and
high-quality infrastructure. Table shows that China has the major U.S. market share between
Bangladeshs participant. Vietnam was often mentioned as the genuine contestant to
Bangladesh, because of most of that ingredient as China. Vietnam tends to go after by Sri
Lanka, Cambodia, Indonesia, Myanmar and India.

10

Economic Productivity and Growth: Comparison with Labor Intensive Countries

Bangladesh China
GDP
Growth
Rate
Populatio
n
(Million)
Inflation
Rate in %

6.01%

2%

5.25%

Sri
Lanka
8.20%

154.7

1360.
72

89.71

20.48

15.14

247.43

53.26

1233

6.97

-0.1

4.94

2.80

4.9

6.7

5.96

7.31

Consumer
Price
Index
(Index
point)
Food
Inflation
in %
Personal
Savings
Poverty
Line
Productivi
ty
Practice of
Countrys
Efficient
Law

196.86

102.3

158.22

181.40

55.18

112.01

1038.66

141

8.96%

3.7%

4.65%

3.13%

5.6%

6.89%

5.96%

9.4
%

17.71%

0.35
%
N/A

30.72%

20%

N/A

32.6%

N/A

14.5%

8.9%

34.1%

11.7%

37.2%

13.9
%
High

6%

10.1%

5.7%

4.1%

4.3%

Medium

High

Medium

Low

Low

22.1
2%
29.5
%
4.8
%
Low

26%
7.4%
Low

Vietnam

Cambodia

Indonesia Myanmar India

7.2%

5.21%

6.5%

2.1
%

Data Source: Trend Economics, 2014; World Economic Forum, 2014

Analysis of Economic Comparison:

Based on the above economics data, we can see overall our economy is growing. But, GDP
depends on many factors such as Consumption, Investment, Government Expenditure, and
Net Exports. Therefore, based on this, we cannot consider our cost of living adjustments
(COLA). By considering the increasing inflation, population growth and Consumer Price
11

Index we are seeing that food inflation, personal saving, social security is not increasing.
Also, our productivity is low compare to those countries that are very systematic and strictly
follow the respective countrys law, rules and regulation. It proves that our inefficient labor
law is hampering our economic development and growth in the long run.

Effect of inefficient Labor Law 2006 in Bangladesh

Foreign exchange: The RMG sector has recently faced some undesirable events that sets
down its growth and productivity. The utmost foreign exchange earning sector of the country
is experiencing severe anxiety. The world set the public eye on Bangladesh and strongly
canvassed the probity of the garment industry after one of the most shocking tragedies of this
countrys happened on April 24. Fear of Generalized System of Preferences (GSP)
termination this year by the EU made the business spirit dark and concern increased as the
countrys industrial backbone and fearsome support of foreign exchange came under threat
(Trade Information, 2007-2012).
Average wage rate: The ongoing average wage rate in such sector is one of the lowest in the
world. Though base wages were raised in November 2010, a study by the Fair Wear (a nonprofit lobby group) established that few workers were accepting less than the new minimum;
nearly a quarter were reallocated to lower pay grades. Recipients of the new minimum wage
salaries were not certainly better off, since inflation drifted as high as 12% the following year.
Annually weighed-up of wage rates which help neutralize the effects of rising inflation are
absent in the sector (Ferdous, 2013).
Work safety: Low levels of work safety also create a massive problem. Between 2000 and
2013, more than 1,500 lives corroded in garment industrial disasters reason by fire, building
collapses or stampedes. Fire breakouts are the majority general, with two out of three
accidents recounting to faulty fire extinguishers and electrical short circuits. Though
industrial accidents are a frequent occurrence, the tendency is not exclusive to Bangladesh
(Tasin, 2013).
Energy and infrastructure: According to BGMEA, RMG sector faced biggest challenge in
energy and infrastructure constraints. The increasing energy cost and the below-par
12

infrastructure are counteracting Bangladeshs cheap labor advantage, leaving a compressed

margin for the producers. Sadly, the dead weight loss emerging from the governments poor
service transport is mostly shared by the workers (Prothom Alo, 2014).
Unrest and conflict: Unrest and conflict in this sector become a very common phenomenon.
Conflicts ensue typically first from within the factory, where workers and management fight
with each other. Then management asks for law enforcing agencies protection to oust the
workers from the factory, which then take it to the streets to protest against the exploitation of
management and owners of the garments. Police then tries to disperse them. Workers try to
resist the police by lobbing stones and bricks at them. Sometimes workers destroy and put up
road barricades which cause severe traffic jams. Police then use tear gas and other ways to
once again scatter the workers. This storyline is continuing in our garments industries due to
several factors, low wages or demand for raising salary is the top most and crucial factor,
wage intolerance among garments employees, lack of agreement (no weekly day off, no
festival bonus, compulsory over-time, but fraction payment or no payment, retrenchment
without prior notice), closure of factory for unspecified time without prior notice are other
important sources of chaos (Khan, 2011).

Living Standard: Most garment jobs are available without having high qualifications or
skills. A very destitute group of people coming many times from extreme poverty-stricken
rural areas come to the cities looking for jobs. Many poor women are employed in the RMG
sector to support their families with their earnings. The percentage of women employed in
Bangladeshs RMG section is above 90 percent. They subscribe to the main working force in
garment factories as they are comparatively cheaper than men and basically also have lower
educational qualifications than men (Ahmed, 2010).
Harassment: Several times, women experience verbal abuse and the physical abuse as well.
Despite this harassment, women workers continue their job considering other miserable faces
of their families. Furthermore, if frequent unrest and conflicts in garments factories keep the
women workers from earning money, having no alternative way, women workers begin to
involve themselves in some illegal affairs (especially prostitution and drug trafficking) to
survive the faces of their families.

13

Violations of labor rights: As resurrection the unrest Bangladeshs RMG sector blurs and
demotes its positive reputation to the domestic and international investors. The United States
Trade Representative (USTR) has recently conducted some complaints against the
Bangladesh RMG sector, including various new violations of labor rights, forced labor, child
labor, and no payment for overtime work (The Daily Ittefaq, 2012).
All major players including the Workers Association, the owners/managers and the
Government must join to attempt settle prevail conflicts to avoid further chaos in the RMG
sector. There should be a significant change in the mindset of the owners. Slogans like
owners-workers are brothers will not change the scenario. The owners should meet the
justified demands of the workers and instrument the agreed points as early as possible and
with meeting and following an agreed time plan. In fact, none of the owner of any factory
will continue with her/his business if it incurs loss, but the usual situation i.e RMG owners
make huge profits. Low wage factory workers and a highly biased distribution of profits are
the main cause of such unrest, which are unfortunate and unfavorable for the overall situation
of our country.

After Bangladesh Labor Law (Amendment)-2013:

Bangladesh revised its labor law in July 2013 after extensive criticism following the collapse
of the Rana Plaza building, which killed more than 1,100 garment workers. The labor
ministry had refused earlier to register all but a small number of unions, but the alterations
have made it easier for unions to be formed.
Establishment of Union: More than 50 factory-level unions have been recognized, but since
the law still needs union organizers to get the aid of 30% of the factorys workers before
registering a union, employer pressure and threats create it a difficult task, especially in
factories employing thousands of people.
Independency of trade unions: The best method to evade future Rana Plaza-type disasters
and end the utilization of Bangladeshi workers is to support the organization of independent
trade unions to check and defend workers rights, said Brad Adams, Asia director. The
government has slowly begun to register unions, which is a significant first step, but it
14

nowadays needs to make sure that factory owners discontinue pursue their leaders and
actually allow them to function. (Human Rights Watch, 2014)
Improvements in labor rights and workplace safety: In Bangladesh, there are more than
5,000 garment industries. The US and European Union (EU) have both connected
Bangladeshs constant access to trade favorite to modifying vital development in labor human
rights and workplace safety.

Recommendation
The owners of RMG industries should strictly follow the nationwide and worldwide labor
law. Other recommendations are:
1. Labor Force in Decision Making Process:
Representatives of labor-force should participate in usual meetings within the factory
as well as decision making process at nationwide. They should be included in a
variety of board with the factory owners and managers (Khan, 2011).
2. Good relationship between the Workers and Owners:
It is essential for the production as well as boost of the industry. Tripartite committee
is preferred to bridge the gap between the owners and workers (Khan, 2011).
3. Cooperative:
Level of shared trust, communication and collaboration between staff and
management of a garment factory as well as public and private division should be
strengthened (Khan, 2011).
4. Appoint a Grievance Officer:
A Grievance Officer can be selected to solve the complaints in the factory (Khan,
2011).
5. Appoint Registered Medical Practitioner:
There should have registered medical practitioner in factory.
6. Intelligence Organization Leads Good Working Environment:
Intelligence organization may work in garment industry part to avoid additional
disturbances and obtain precautionary measure (Khan, 2011).
15

7. Balancing Minimum wages with minimum Cost of living:

Minimum Wage should be improved accordingly with minimum cost of living so a
variety of payment should be improved for the betterment of personnel life
(Mohiuddin, 2014).
8. Having Labor Welfare Program :
Labor welfare program should be taken according to the law (Mohiuddin, 2014).Five
percent of Annual profit to be deposited in Employee Welfare Fund (Mohiuddin,
2014).
9. Having Freedom on Trade Union Policy :
Trade union policy is not strong in Bangladesh. So, there should be given Trade
Union freedom (Mohiuddin, 2014). Organization should have trade union and discuss
with collective bargaining agent to solve the industrial disagreement (Mohiuddin,
2014).
10. Maintaining Law about Health and Safety:
There is a rule that properly maintaining the law about health and safety. Government
should think jointly about the minimum wages and implement of other health and
safety facilities which should be fulfilled accordingly law (Mohiuddin, 2014).
11. Executing Useful Policies:
RMG authorities in Bangladesh should apply helpful rule on housekeeping, material
storage and handling, work station design, fair wage, fair disciplinary action, and
workplace violence.
12. Understanding the importance of the Labor Laws:
Owners of RMG factories must give importance to on employment conditions,
working conditions and occupational safety and health management to be additional
competitive in the worldwide trade of textile and garments business era.

16

13. Following Codes of Conduct:

Moreover, RMG Owners should follow regular practice of compliance codes of
conduct because it bring higher price of products, poorer labor unrest, less worker
turnover rate, highest worker morality, highest productivity and product quality,
smooth industrial relation as well as worldwide image and reputation ( Rahman and
Hossain, 2010) .
14. Starting Vocational Training Institutions:
Garment sector does not have vocational training institutions; most of workers get
training on the job or in local essential sewing schools. Since it has been announced
that minimum wages will be modified in two-year rhythms, the manufacturers need
major competence raises to balance the increasing expenditure in the future. These
need investments in vocational training institutions. If not, the manufacturers will
carry on determining loopholes in order to reduce expenses.
15. Developing a System on Tax Holiday:
The garment division could triple by 2020 which occupying six million people
(McKinsey & Co report, 2014). This shows that the output of the industry may
increase as it shift towards high worth exports. To address the present problems the
government can expand a system where tax holidays are involved to factory
compliance.
16. Ensuring Compliance with the Labor Law:
The government and the Bangladesh Garment Manufacturers and Exporters
Association (BGMEA) should guarantee compliance with the labor law, and permit
companies which provide employee rights. Bangladesh has approved International
Labour Organization (ILO) conventions 87 and 98 on freedom of association and
collective bargaining, and is necessary to defend the rights enclosed in them.

Conclusion

17

The situation of RMG sector in Bangladesh not only depends on accessibility of inexpensive
labor and governments liberal rule but also depend on compliance with the labor law.
Compliance means to comply with something or give way to the wishes of another. RMG
sector of Bangladesh needs to improve the factory working environment, rights of workers,
condition of service and employment, health and hygiene, safety and health, welfare, working
hours and leave, wages and payment, and various social issues related to the industry.
When International buyers give any import order, they are very particular concern about
compliance with code of conduct. Insufficient housekeeping, storage system, useless
observing and controlling system, unsystematic production layout, insufficient of teambased
work, recanted factory premises, narrow staircases, closed environment, inadequate light and
air, clean drinking water, separate wash room for male and female, etc. are general practice in
most of the RMG factories in Bangladesh.
Bangladesh needs to get better the factory working situation and a variety of social matter
connected to the RMG industry to sustain in the long run. Familiar recruitment, low literacy
level, wage discrimination, irregular payment and short contracts of service are very general
practice in the RMG factories in Bangladesh. German Embassy (2010) stated that
PROGRESS, a joint project of the Bangladesh Ministry of Commerce and the German
Federal Ministry, has accordingly turned its full attention to the area of social compliance and
supporting the government in the next areas: executing of the new labor law, media
campaigns, training and retraining measures for compliance inspectors, advisors, and the
beginning of a new monitoring and evaluation system. According to Hameeda Hossain,
Convener of the Shromik Nirapotta Forum, newspaper reports and statements by business
leaders recommend that they may identify authentic labor problems which are revealed by the
fact that BGMEA and BKMEA are accounted to have approved the requirement to modify
pay scales, subject employment letters, and non-enforcement of overtime. The inquiry of
safety conditions was also increased.
In the circumstance of rising rivalry among RMG exporting countries and consumer favorite
for goods that gather internationally recognized standards, it is essential for Bangladeshs
RMG dealer to get better compliance in their factories. RMG authorities in Bangladesh
should execute effectual rule on condition of service and employment, health and hygiene,
safety and health, welfare, working hours and leave, wages and payment, fair wage, fair
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disciplinary action, and workplace violence, and also the housekeeping material storage and
handling, work station design, etc. RMG is, the most prosperous division in Bangladesh and
it would be fundamental that each and every matter linked to development of output as well
as quality is firmly followed to survive in the global market. Owners of RMG factories must
highlight on employment conditions, working conditions and occupational safety and health
management to be additional competitive in the international trade of textile and garments
trade era. So, Bangladesh RMG firms require dealing with talk about compliance matter
severely in order to have continued competitive in the global market (Rahman and Hossain
2010).
Frequent unrest in Bangladeshs RMG sector smudges and downgrades its positive reputation
to the domestic and international sponsors. The United States Trade Representative (USTR)
has received several complaints against the Bangladeshi RMG sector, including severe
violation of labor rights, child labor, forced labor, and no payment for overtime work. The
Bangladesh Embassy in Washington has taken a note from the U.S. Government warning that
if USTRs judgment will go against Bangladesh, then the Bangladesh export division will
likely be excluded of receiving access to the United States under its Generalized System of
Preferences (GSP) program. That would be a great propel for our RMG sector and terrible for
the whole Bangladeshi economy (Bhuiyan, 2013).
Despite of the excellent success of the RMG sector, poor working situation in the factories
and a lack of social compliance are severe focused since 2006, led to labour conflict and
harm to institutions and assets. As a result, there is a growing terror in Bangladesh that the
readymade garments division may face turn down in demand. It guarantees labour rights,
labour standards, fair labour practices and a Code of Conduct.
Above all, the labors are opting for a high living standard but to support that standard their
wages are not increasing accordingly. As a result it is affecting on the economic productivity
and growth because they will not be motivated enough to work and also they need to do
overtime to match with the living standard. So the labor law needs to be more efficient to
serve the labors effectively so that the RMG sector can achieve a sustainable growth in the
long run.

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