EU for uniform labour law in EPZ

To ensure trade unionism and labour rights at factories located in the county’s Export Processing Zones, the European Union emphasises implementation of the existing Bangladesh Labour Law 2013 in EPZs.

As part of the follow-up mission on EBA (Everything but Arms), the National Action Plan on the labour law of Bangladesh’s progress, a EU delegation arranged several meetings with the major stakeholders and the government officials from March 13.

The government has passed Bangladesh EPZ Labour Act, 2019 while issuing directives on matters concerning fixation of minimum wages and other related benefits of workers/employees within the export processing zones of Bangladesh.

The business insiders said the EU is not satisfied about the labour rights in the EPZ areas and about the restriction of formation of trade union.

Faruque Hassan, president, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said they also want an amendment to the EPZ labour act and the government is also committed to changing it within 2025.

“The EU demands change and amendment to the old act and bring it anew and afresh, but it is difficult to change everything overnight,” he added.

Faruque stated that their main concern is formation of trade union which is restricted under the existing law. But to change it, the EU should give time to the government.

It should be noted that the EU is the major export destination for Bangladesh’s clothing products that are now enjoying duty-free everything but arms (EBA) facility as part of the Least Developed Country (LDC) status which will expire in 2029 including a grace period.

The Export Promotion Bureau data shows that Bangladesh exported $ 17.46 billion to the EU in FY21, around 45 per cent of the total export of $ 38.76 billion. On the other hand, the country exported $ 13.03 billion to the EU in July-January of FY22, which was 44.09 per cent of the country’s total export of $29.55 billion.

The European Commission’s (EC) proposed that new GSP will be available for 2023-2034. It imposed some safeguard measures and conditions for the GSP+ eligibility. Implementation of labour law is one of the conditions for being eligible of GSP+ facility.

If Bangladesh is able to meet the proposed conditions, it will be able to enjoy the duty-free market access after LDC graduation under the GSP+ facility.

Industry insiders said if the EU parliament passes the EC proposal, apparel and home textile exporters will not be eligible for duty-free market access. Its importers have to pay minimum 12 per cent duty under the standard GSP facility.