BGMEA wants EPZ labour act amendment

To ensure trade union and other workers’ rights, as has been frequently demanded by the US and the European Union (EU), the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) says it wants an amendment to the Bangladesh EPZ Labour Act 2019.

The apparel sector’s apex body thinks workers’ rights should be equal in all sectors. It is committed to ensuring due diligence and human rights for garment workers.

However, the government is yet to amend the act due to foreign investors’ interference.

BGMEA President Faruque Hassan made the comments at a press conference at the association’s office in the capital on Saturday. Its Vice-President Md Nasir Uddin, Sparrow Group Managing Director Shovon Isalm, and JFK Fashion Managing Director Kafil Uddin Ahmed were present there, among others.

Faruque said, “We believe workers have the right to form trade unions everywhere, but foreign investors investing in export processing zones (EPZs) are the problem.”

He said the government set up EPZs as per foreigners’ plans and is also providing some extra facilities to investors to attract foreign direct investment (FDI).

“We have urged the government to amend the act and ensure workers’ rights to form trade unions. But foreign investors, including entrepreneurs from the US and the European Union, are interfering.”

He said the BGMEA believes the act must be amended soon to ensure workers’ rights. The business leader also said they are ready to fix a new minimum wage for garment workers.

The BGMEA had already suggested three names as members of the new wage board responding to a labour and employment ministry request, Faruque said, adding apparel manufacturers would willingly accept the new wage set by the ministry.

Replying to a question, he said Bangladesh would enjoy the Generalised System of Preferences (GSP) in the EU, the United Kingdom, and other countries till 2029 even after its graduation from the least developed country (LDC) status. But the BGMEA is working on extending the facility till at least 2032 and the government is also collaborating in this regard, he added.

The BGMEA has already held several meetings with the World Trade Organisation director general, the EU, and the UK about the extension of the GSP. It will continue to discuss the matter with the authorities concerned until getting the desired result.

“Our goal is clear. We do not want to accept penalties, which would be imposed in the form of duty, after the LDC graduation, which could be a development trap. If we are able to retain GSP till 2032, we could easily compete with the global market,” Faruque said.

He continued, “We have two major reasons to seek a GSP extension. First, we are going through an economic crisis due to the ongoing Russia-Ukraine war, which is their [the US and the EU] problem. Second, Bangladesh is hosting nearly 1.3 million Rohingyas, one of the world’s largest displaced communities.”

The international community should extend the GSP for Bangladesh considering these matters, said Faruque.

Replying to another question, the BGMEA chief said business is not good considering performance.

“Our exports to the US have fallen, but we have tremendous growth in new markets, such as India, Japan, and South Korea. We [the apparel sector] retained export growth in the first eight months of FY23 by manufacturing high-value goods. But in terms of volume, our exports have dropped.”

He said Bangladesh has huge potential in the circular economy, especially recycling textile waste. “The BGMEA is looking for foreign investors in this area, and that is why they are seeking policy support from the government.”