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Home Business Human Resource Management Assignment on Contribution of Labor

Law in Garments Industries of Bangladesh

Assignment on Contribution of Labor Law in Garments

Industries of Bangladesh
Executive Summary
During the recent years the world of Business has changed vastly. We the people of different
walks of life cannot be able to imagine that what is going to be the future picture if these
changes continue rapidly like this speed.
This report attempts to show the emergence and implementation of labor law in the contents
of Bangladesh garments sector. It is expected that this report will help to gather knowledge
about labor law and realize their importance in modern business world. I tried my level best
to compile information as comprehensively as possible.
I have tried my level best to complete the paper more meaning fully but at the same time I
express my regret for our failure of mentioning many other important information due to very
limited space allotted for assignment. However I think this study will prove pragmatic to
those who feel interested in the subject.

Law

According to the oxford English Dictionary the word Law means rule made by authority
for the proper regulation of a community or society or for correct conduct in life. In the
words of Woodrow Wilson, Law is that portion and the established habit and thought of
mankind which has gained distinct and formal regulation in the shape of uniform rules
backed by the authority and power of the Government.
Business Law

The term Mercantile Law or Business Law may be defined as that branch of law which
comprises laws concerning trade, industry and commerce. It is an ever growing branch of law
with the changing circumstances of trade and commerce.
With the increasing complexities of the modern business world the scope of Mercantile Law
has enormously widened. It is generally understood to include the laws relating to contracts,
Sale of goods, Partnership, Companies, negotiable Instruments sale of goods, Sale of goods
and Arbitration.
Labor Law

The term Labor Law can be defined as that branch of law which comprises laws
concerning the working conditions, wage level, working environment, job securities of the
employees of any business organization. It is an ever growing branch of law with the
changing circumstances of business organization to facilitate the employees of any business
organization.
Labor Law in Bangladesh

In the question of law it is easily say able that we the people of Bangladesh are not too much
respected to the law. People do not as obedient to the law as they supposed to be. In the
question of labor law there are The Factory Act 1965, which one is the establish labor law of
our country. Beside this our country also obeys the rules and regulations of united nation
regarding the labor or these types of community.
There are labour laws pertinent to health issues of garment workers in Bangladesh. The laws
cover work hours, wages, sick leave, maternity leave and benefits, compensation and other
working environment related issues. Because of the lack of implementation and/or violation
of the laws, workers often suffer from health hazards both at work and at home. The problem
is compounded by the fact that workers are unaware of many of the laws and the benefits
they are entitled to because of lack of education and resources. The Bangladesh government,
garment employers and different international and national NGOs have important roles to

play in reducing the health hazards of workers. The paper discusses different types of
illnesses and through narratives of women garment workers explores health hazards
experienced by them. It also suggests solutions for policy-makers, NGO activists, employers
and workers.

The labor law of Bangladesh contains and formed on such factors which are mentioned
bellow-

Preliminary
Health and Hygiene
Safety
Welfare
Working hours of Adults
Child Labor
Leave and Holidays with Wages
Special Provisions
Penalties and Procedures

Since we are working with the garments industries and there are some specific Export
Processing Zone (EPZ) areas for the foreign investors in Bangladesh and there are some
specific laws, which refer the conditional relationship between the workers and the employers
of the Export Processing Zone (EPZ). The laws are covering some certain areas areAn Act to Make Provisions Relating to the EPZ Workers Association and Industrial Relations
whereas it is expedient and necessary to enact law in order to make provisions for
recognizing the right of the workers to form association, regulation of relations and
settlement of differences or disputes arising between employers and workers in the Export
Processing Zones and for matters connected therewith and ancillary thereto.
It is hereby enacted as follows:

Preliminary
Short Title, Extent and Commencement
Overriding Effect of the Act
Inability to Exempt From Any Provision of the Act

Workers Representation and Welfare Committee.

Special Definition of Eligible Worker
Registration and Status of Workers Representation And
Welfare Committee

Rights and Functions of the Committee

Meeting of the Committee

Association
Unfair Practices, Agreements, Etc.
Conciliation And Arbitration
Penalties And Procedure
Epz Labour Tribunal, Appellate Tribunal, Etc.
Miscellaneous

Indemnity
Bar To Linkage with Political Parties
Transitional and Temporary Provisions
Reference to CBA and WA to Include Committee
Monitoring of Referendum and Elections
Garments Industries in Bangladesh

Globalization has hit the populations of the third world hard. Unemployment has risen as
established industries have been destroyed and poverty has deepened. Yet the organizations
that clear the way for Foreign Direct Investment do have something to be proud of in
Bangladesh the rapid expansion of the garments industry, which now employs
approximately 1.5 million people. However, for these workers the joy of having a job is
marred by the harsh conditions they endure in the workplace.
Bangladesh began creating Export Processing Zones (EPZs) in 1978 to attract foreign capital
and earn export dollars. In 1993 the Bangladesh Export Processing Zone Authority (BEPZA)
was set up and a blanket ban on trade union activity imposed. This is obviously the most
attractive feature for investors, on top of tax breaks and other incentives on offer. The EPZs
now employ 70,000 workers, mostly in the garment and shoe-making industries. National
labor laws do not apply in the EPZs, leaving BEPZA in full control over work conditions,
wages and benefits.
However, BEPZA ignores not only national standards but its own. The guaranteed minimum
monthly wages of $US70, $US 40 and $US 25 for skilled, unskilled and probationary
workers respectively is a laughable fiction. As is the entitlement of permanent workers to
annual festival bonuses, medical coverage, and accommodation and transportation allowance.
The body has consistently refused to give out letters confirming employment and does not
hire any workers on a permanent basis. In reality, earnings average about $20 per month
less than half the official rate and workers do forced overtime under threat of dismissal. The
withholding of pay for months at a time a practice common throughout the private sector
is also the norm.

The situation in the garment industry at large is even worse. The nations top export earner
employs 1.5 million workers under conditions of super-exploitation. The majority are young
women from rural areas who have migrated to the urban centers in search of work. The
sweatshops are more like prisons than factories, with no fixed hours, regular breaks or days
off. Workers earn between $7 and $10 a month, for an average of 13 hours a day, up to 27
days per month. This comes to an hourly rate of two or three cents! The bourgeois media
reports that the industry currently owes $ 300,000 in back pay, a staggering amount
considering the miserly wages.
Garment workers change jobs frequently because of wage arrears, lay-offs, ill health or
harassment from the bosses and their security guards. As the vast majority of employees
are girls and young women most living apart from their families there are many cases of
physical and sexual harassments.

Garments Industries in Bangladesh are a very prospecting industries in Bangladesh. The total
demand of our garments can be fulfilled by the domestic made garments and so also this
sector is doing very well in the sense of exporting. The major portions of our exports come
from the garments industry. Even though the major portion of the government revenue
comes from this sector but only few people are thinking about the present situation of the
workers of this sector.
As it is very significant issue of the country so intellectuals should watch about it. They have
reflected on it how the problem can eliminate on this sector.
Working environment and Law in Garments Industries in Bangladesh
There are some certain criteria in working condition. Every employer is bound to provide
sound working environments for their employees according to different section of the factor
is act 1965. In working environment the following criterias should be provide by the
environment for employees of his/her organization. This areHealth and Hygiene

Safety

Cleanliness *
Disposal of wastages and effluents**
Ventilation and temperature**
Dust and fume**
Artificial humidification***
Over crowding***
Lighting**
Drinking water**
Latrines and urinals**
Spittoons***

Precautions Incase of fire**

Fencing of machinery***
Working on or near machinery in motion***
Employment of childrens on dangerous machines***
Striking gear and devices for cutting of power***
Self acting machines***
Causing of new machineries**
Prohibition of employment of women and children near cotton openers***
Revolving machinery**
Floors stairs and means of access.*
Excessive weights.*
Production of eyes.*

Welfare

Washing facilities. *
Fast aid appliances. **
Shelters. **
Canteens.*
Rooms for childrens. **

Working hours

Weekly hours. ***

Weekly holiday. **
Compensatory weekly holiday. ***
Daily hours. ***
Intervals for rest or meals.*
Spread over. ***
Night shift. ***
Prohibition of overlapping shift. **
Extra allowance for over time. **
Restriction on double employment.

Employment of young person

Prohibition of employment of children. ***

Certificate of fitness. ***
Working hours for childrens. ***
Register of child workers. ***
Power to require medical examination. ***

Leave and holidays with wages

Annual leave with wages. ***

Festival holidays. *
Casual leave and seek leave.*
Maternity leave. ***

Wages during leave or holiday periods. ***

Payment in advance in certain case. **

Miscellaneous

Penalties.
Accident offences by workers.

Those are the specific criteria which are mention in the factories act 1965. Each and every
section of the law is not mentioned and describe here due to the shortage of space and those
are not subject related. Those laws must be followed by the employer of garments worker.
Though it is painful but it is true that most of these sections of law are violated by the most
garment manufacturer of the country. These laws are violated flowingly*
**
***

Marked
Marked
Marked

Partially violated
Partially violated
Totally violated

The Percentages of violating law in garments factories are given bellowViolation of Law
Totally violated
Mostly violated
Partially violated
Not violated

Percentages
31.37 %
43.13 %
19.61 %
05.89 %

Above chart is describing the present scenario of the garments industries of Bangladesh. Most
of the labor laws are violated by the most of the factories of the country.

Employer Obligation
The employers obligation is to correct all hazards identified by the consultant within
reasonable period. This commitment is made in advance. The employer must also agree to
post the list of hazards that accompanies the consultants report. If an employer refuses
to correct or verify correction of a serious hazard, the inspector may refer the matter to
compliance, a violence of law.

Wage level and Law

Garments workers are not well paid and so also there are no possibilities to be the future
bright. Though the garments industries are paying ill but still people are interested enough to
get a job in a garments factory. The main reason behind it is the high unemployment rate of
the country. People are completing there degree but they are not being able to get appropriate
job according to there demand. This is why people are taking job in garments factories. The
employers are taking these chances. Since people dont have any other opportunities so they
are performing the job though they are ill paid.
Leave and holidays and wages

Annual leave with wages.

Festival holidays.
Casual leave and seek leave.
Maternity leave.
Wages during leave or holiday periods.
Payment in advance in certain case.

Those criteria should be followed by the garments manufacturer of our country but most of
them are violated.

Sex disparity in wage level is another common phenomenon in the garments factories. Some
cases manufacturers are paying ill to women workers though lady workers are giving same
services as like men workers.

Labor organization

Labor organizations are existed partially in garments manufacturing industry. Though

partially it is existed but these organizations do not have much more freedom to do any thing
for the labor people. Garments workers should given the opportunity to build a union for their
better opportunity. Though the union should not be supported in any short of productive
organization but in the case of garments workers it should be established. Otherwise the
government should take all the necessary initiative to make their good.
Garments workers are all alone their employer will not help them to improve their luck. So it
is themselves or the government who should take initiatives for them.
Future prospect and Law

Though the garments sectors are very prospective one for the Bangladeshs economy but the
people who are making this sector prospective they are not well entertained by the
manufacturer and government. There are different types movements are running for them.
Different communist parties, NGOs are working for their better prospect. But their condition
will not improve until the economy of Bangladesh shines.
Recommendations

As the situations are changing so it can be expected by us that the present condition of our
garments workers should be changed. Government of Bangladesh has to take each and every
proper initiative to make there present situation better.
There are three different parties who can do some good job for a little bit food for the
garments workers and these three different parties are

The Government
The Employers and
The workers themselves

Here government has some duties to performs which are mentioned bellow

Build a monitory commission to evaluate the performance of the garments

manufacturing organizations.
Make an institute for the garments workers so that they can improve their skills.
Crete pressure on the garments organization to make sure that they are following the
rule and regulations of the labor or industrial law of the country.
Provide tax discount on their income to make them lead a better life.
Ensure the industries that they are providing the standard working environment.
Make influenced the NGOs to be interested to work with the garments workers to
improve their life style.
Provide the night schooling facilities to make the garments workers educated which
will help to improve their life.
Make a specific area for the garments factories and arrange some housing facility so
that they can live their life in a secure environment.

Re-arrange some special bus service for garments workers which was practiced by
BRTC.
Regulate the law and make the law established and followed by the garments
manufacturer organization.
Try to build up a good relationship between the employer and the worker of garments
factories.

The fact is not that to improve the present scenario it is not that the only duty to perform by
the government and the employer. There are some specific duties which should be performed
by the workers themselves. Because they are the real force who can improve their
situation. It is for sure that nobody can help them to improve their situation until they help
themselves to improve their condition.
What are the duties that the garments workers should perform to improve their present
scenario? Those duties or recommendations are given bellow

Build up some associations to make their present situation.

Encourage themselves to be cooperative minded and try to make some savings to
make future productive investment.
Build cooperative society to influence people to save some of their money for future.
Encourage themselves to work together and so also live together.
Try to make their child educated so that their children can get some better job and
lead a better life.
Be active and cheerful to improve their present situation.

The initiative which should be taken by the garments factories of our country are mentioned
bellow

Not to over or under valued the capabilities of the workers.

Give fair chance of the workers in recruitments of new workers.
Give fair chance of the workers in the terms of sex disparity.
Provide the proper working environment so that workers can work properly.
Provide the clean and hygiene working environment.
Provide maternity leave to the lady workers with their basic salaries.
Provide job securities to theirs workers.
Provide after retirement facilities like pension, provident fund and so also.
Promotional and carrier improvement facilities so that it can make them motivated.
Opportunities to express free opinion and freedom in performing duties.
Opportunity to form a combined union which should be free from political influence.
Every factory should set a standard wage level for the employees and make sure to
follow that standard.
Pay the salaries and bonus to the employees on due time.
Fix the standard working hour for the employees and pay over time for extra work.
Training facility for the new workers so that they can improve their skills.
Pay the extra money for extra work with their basic salary in due time.
Arrange some recreation for the employees as a routine work.

Limitations of the Study

The shortage of time was the main obstacles to gain the actual result. What ever the situation
was I have tried my best to accomplish the given job and I do believe that people will
appreciate this tiresome effort.

It was not an easy task to accomplish. The main obstacles were the short time and the lack of
secondary data for the assignment. It takes a huge time to find out the real condition of law in
the garments industries cause it is tough to find out that who is breaking the law and how?
I have tried my level best to complete the paper more meaning fully but at the same time I
express my regret for our failure of mentioning many other important information due to very
limited space allotted for assignment. However I think this study will prove pragmatic to
those who feel interested in the subject.

Conclusions

In comparison the salary with the first world country the salary level of our workers are not
only poor but also horrible. This is a good reason that people are investing in our country, and
the main reason behind is the low labor cost. And it for sure that every people will try to
make the highest output from his \ her investments. But one thing should always remember
that it will not take huge amount (in compression of the investment of the employer) if the
employer try to provide some standard facility to their employees and it is sure that it will not
hamper their profit amount cause it will help to increase output.
Garments worker in Bangladesh are leading a very poor lives. Most of the garments working
leading a life bellow the poverty line. It can be told about them that they are living hand to
mouth. Salary of garments starts from only taka four hundreds and most of the cases its finish
in the amount taka fifteen thousands only. These are the very poor amount to survive in
current market where it takes taka twenty to purchase one kilogram rice.
The workers of garments are same as us and there is no difference in between them and we
people. So people should be sympathetic about their problems and government of our country
should take proper initiatives to solve their problems so that they can live a moderate life. As
a citizen of this country these are their basic rights.

References

Commercial Law by M. Ahmed.

Mercantile Law by MC Kuchhal.

Newspapers.

http://www.bgmea.com.html