Labour Market Profile - Ulandssekretariatet · The LO/FTF Council presents this Labour Market...

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LABOUR MARKET PROFILE 2015 Bangladesh LO/FTF Council’s Analytical Unit Copenhagen, Denmark

Transcript of Labour Market Profile - Ulandssekretariatet · The LO/FTF Council presents this Labour Market...

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LABOUR MARKET PROFILE

2015 Bangladesh

LO/FTF Council’s Analytical Unit

Copenhagen, Denmark

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PREFACE

The LO/FTF Council presents this Labour Market Profile as a yearly updated report that provides an overview of the labour market's situation.

This country profile presents the recent main

developments and is not an in-depth analysis.

Nevertheless, it shows a wide range of data in a

reader-friendly style. Certain key findings of this report

can be found on the Executive Summary.

The report is divided in 11 thematic sections, which

includes trade unions, employers’ organizations,

tripartite structures, national labour legislation,

violations of trade union rights, working conditions,

situation of the workforce (with subsections such as

unemployment, sectoral employment, migration,

informal economy, child labour, gender, and youth),

education (with subsection vocational training), social

protection, general economic performance, and trade.

Additionally, the reader may find, an appendix

including a list of the ratified ILO Conventions.

As indicated, the report is driven by statistical data

selection from international databanks, surveys and

reports (e.g. the International Labour Organization

(ILO), the International Trade Union Confederation

(ITUC), the World Bank, WageIndicator Foundation, the

Africa Labour Research & Educational Institute (ALREI),

etc.) as well as national statistical institutions and

ministries, and others. Moreover, narrative inputs are

collected from international news sources (e.g. The

Economist, the British Broadcasting Corporation (BBC),

LabourStart, The Guardian, etc.) together with local

sources such as trade unions centers, NGOs, local news,

the LO/FTF Council’s Sub-Regional Office, among

others.

This report also collects references from several

indexes, e.g. Global Rights Index, Doing Business Index,

the Governance Indicators, and the Human

Development Index. The indexes’ methodologies and

the data quality can be followed by the sources

websites.

All sources, indicators and/or narrative inputs that are

used are available by links through footnotes.

It is noteworthy to highlight that although most of the

statistical data is available, there were some problems

with availability and reliability of the data. In

particular, the data collection of trade union

membership, Collective Bargaining Agreements (CBAs),

women’s trade union membership and occupational

health and safety (OHS) committees are a challenge.

Therefore, used data from these abovementioned

indicators should be interpreted with some reservations.

ACKNOWLEDGMENT

This Labour Market Profile is prepared by the LO/FTF

Council’s Analytical Unit in Copenhagen with support

from our Sub-Region Office in the Philippines as well as

our local partners in terms of data collection of trade

union membership.

All other labour market profiles of the countries where

LO/FTF Council operates are available at our website:

http://www.ulandssekretariatet.dk/content/landeanaly

ser

Should you have questions about the profiles you can

contact Kasper Andersen ([email protected]), Manager of

the Analytical Unit.

Cover Photo: Carsten Snejbjerg

Editing, design and layout: Adriana Romero

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Bangladesh

Labour Market Profile

EXECUTIVE SUMMARY

or almost two decades, Bangladesh has

experienced a solid economic growth. A gradual

structural transformation is primarily stirring the

agricultural Gross Domestic Product (GDP) share, yet

this trigger is also making an impact to the service

sector and slightly to the industry sector. On one hand,

there is a middle-class on the rise, and on the other

hand, there is a working poor decline. This does not

mean they are ahead of the rest of the South Asia

region’s average. As they experience a weakness in

both their environment of doing business and

governance structures; in a similar stand, law

enforcements have not been strengthen. As a result,

Bangladesh faces a period of turmoil due to various

trade union right violations.

When it comes to the labour market, broad gender

gaps prevail in basically all levels. These levels include:

employment, wages, trade union membership, and

education. With this situation in mind, active steps have

been made by the government to reduce such gap.

Through legislation and policy implementation, they

have managed to make changes. For example, the

National Strategy for Promotion of Gender Equality in

Technical Vocational Education and Training (TVET) has

been strengthened for these new changes.

It is important to note that the workforce’s employment

and inactivity rates have been quite stable the last

decade; respectively reaching 68 percent for the

former and 29 percent for the latter in 2013. Even

though these percentages illustrate a more overall

stability, it still important to realize that Bangladeshis

youth population remains as vulnerable group on the

labour market that struggles with high inactivity rates.

In the case of salaried workers, they continue to

experience a steady rate of employment status of 12

percent to 14 percent respectively since 1996. It is

important to note that both self-employed and own-

account workers are on a fast increase mainly caused

by the labour market’s division between the formal

sector and the informal economy. It has been estimated

that the informal economy absorbs 87 percent of the

workforce. Clear indications also demonstrate the rising

employment rates within the informal economy of

Bangladesh; thus, a rising trend of precarious and

casual form of employment.

In the case of the supply of skills matches, the demand

for skills is hindered by a high incidence of under-

education. For labour productivity, it has experience a

sturdy increase. This is related to the higher enrolment

rates on higher education levels and the mentioned

slightly economic structural transformation. Actually, a

significant part of the relative high GDP growth per

capita is more related to the labour productivity (GDP

per worker) increases than the employment rate’s

advancement.

Workers in the formal sector have experienced

significant rising real wages. The combination of

increasing job opportunities, higher wages, and more

remittances is likely contributing to Bangladesh’s record

of poverty reduction.

Only a few contributory social protection schemes are

present, and most forms of social protection are through

non-contributory social assistance. The health social

protection coverage is only 1.4 percent of the

population while the proportion of pensionable age

receiving an old age pension is 40 percent.

The trade union movement is split along party lines and

political preferences. Estimates show a trade union

density in terms of the labour force of 3 percent, while

it is 22 percent among waged workers. Strikes and

labour actions are common and frequently spontaneous.

They often turn violent followed by policy crackdowns.

Collective Bargaining Agreements are contributing to

the improvement of the conditions for working

conditions, but it is estimated that only 5 percent of

salaried workers are covered. As a result, this system is

affected by the insufficient number of inadequate

labour courts available to cover the volume of cases.

Moreover, there is unawareness of CBAs as well as less

education of trade union leaders.

F

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COUNTRY MAP

Source: The CIA World Factbook

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TABLE OF CONTENTS

Preface........................................................................................................................................................................ ii

Acknowledgment ....................................................................................................................................................... ii

Executive Summary .................................................................................................................................................... 3

Table of Contents ........................................................................................................................................................ v

Trade Union ................................................................................................................................................................ 1

Employers’ Organisations .......................................................................................................................................... 2

Central Tripartite Structures ......................................................................................................................................... 3

Mediation and Arbitration ...................................................................................................................................................................... 3

National Labour Legislation ........................................................................................................................................ 3

Constitution ................................................................................................................................................................................................. 3

Labour Act .................................................................................................................................................................................................. 4

Trade Union Rights Violations .................................................................................................................................... 4

Working Conditions .................................................................................................................................................... 5

Workforce ................................................................................................................................................................... 7

Unemployment and Underemployment ................................................................................................................................................ 8

Sectoral Employment ................................................................................................................................................................................ 9

Migration ..................................................................................................................................................................................................11

Informal Economy ....................................................................................................................................................................................11

Child Labour .............................................................................................................................................................................................12

Gender ......................................................................................................................................................................................................12

Youth ..........................................................................................................................................................................................................13

Education .................................................................................................................................................................. 14

Vocational Training.................................................................................................................................................................................14

Social Protection ....................................................................................................................................................... 15

General Economic Performance ................................................................................................................................ 17

Trade Agreements ..................................................................................................................................................................................19

Export Processing Zones (EPZ) ..............................................................................................................................................................19

Appendix: Additional Data ....................................................................................................................................... 21

Ratified ILO Conventions .......................................................................................................................................................................21

References ................................................................................................................................................................ 22

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Tables Table 1: Trade Unions in Bangladesh ........................................................................................................................................................ 1 Table 2: Trade Union Federations in Bangladesh .................................................................................................................................. 1 Table 3: Labour Disputes & Dispute Settlement (2010-2014), Number of dispute cases ............................................................. 3 Table 4: Bangladesh: Global Rights Index (2015) ................................................................................................................................ 4 Table 5: ILO Complaints Procedure ........................................................................................................................................................... 5 Table 6: Wages and Earnings .................................................................................................................................................................... 6 Table 7: Working Conditions in Bangladesh ........................................................................................................................................... 7 Table 8: Employment Rates in Bangladesh (2013), Age and Sex distribution ................................................................................ 7 Table 9: Inactivity rate in Bangladesh (2013), % ................................................................................................................................. 8 Table 10: Skills Mismatches between Job Requirements & Qualifications in Bangladesh (2013) ............................................... 8 Table 11: Comparative Average Growth of GDP per Capita, Employment & Working Age Population (WAP, 15+) in

Bangladesh ...................................................................................................................................................................................................... 8 Table 12: Unemployment, Youth Unemployment Rate & Underemployment (2013), % ............................................................... 8 Table 13: Unemployment Trends in Bangladesh & South Asia (1991-2013), % ............................................................................ 9 Table 14: Employment (2005) & GDP share (2013)...........................................................................................................................10 Table 15: Migration Facts ..........................................................................................................................................................................11 Table 16: Working Children Proportion of all Children .....................................................................................................................12 Table 17: Youth Unemployment Rate Trend in Bangladesh ...............................................................................................................13 Table 18 : Highest Level Attained & Years of Schooling in the Population ....................................................................................14 Table 19: Vocational Training ..................................................................................................................................................................15 Table 20: Public Spending on Social Protection Schemes (2011) .....................................................................................................16 Table 21: Benefits, Coverage & Contributions to Pension Schemes (2011) ..................................................................................16 Table 22: Key Facts (2014 est.) ...............................................................................................................................................................17 Table 23: Working Poor (2005-2012)...................................................................................................................................................17 Table 24: Ease of Doing Business .............................................................................................................................................................18 Table 25: Bangladesh's Governance Indicators (2008-2013) ..........................................................................................................18 Table 26: Trade & Foreign Direct Investment (2014 est.) ..................................................................................................................19 Table 27: Ratified ILO Conventions .........................................................................................................................................................21

Figures Figure 1: Wage Trends in Bangladesh ..................................................................................................................................................... 6 Figure 2: Participation and Inactivity in Bangladesh (1993-2013) .................................................................................................... 8 Figure 3: Labour Productivity in Bangladesh (1991-2012) ................................................................................................................. 8 Figure 4: Unemployment by Level of Educational Attainment in Bangladesh (2005) .................................................................... 9 Figure 5: Sector Share in Bangladesh (2000-2013), % of GDP ......................................................................................................10 Figure 6: Status of Employment in Bangladesh .....................................................................................................................................10 Figure 7: Employment in Formal & Informal Sector in Bangladesh (2002-2010), Million ...........................................................10 Figure 8: Personal Remittances, Received (2000-2014), % of GDP ...............................................................................................11 Figure 9: Trend of Employment in Informal Sector in Bangladesh (2002/03-2010), % .............................................................11 Figure 10: Females in Management & Ownership (2013) .................................................................................................................13 Figure 11: School Level and Enrolment in Bangladesh & South Asia................................................................................................14 Figure 12: Vocational Pupils in Secondary Education (2000-2012), % ..........................................................................................15 Figure 13: Health-care Expenditure Not Financed by Private Household's Out-of-pocket Payments (1995-2011) ............16 Figure 14: GDP per Capita (PPP) Trend & Forecast ...........................................................................................................................17 Figure 15: Middle-classes' Trends in Bangladesh and South Asia (1993-2010), % based on US$ PPP .................................17 Figure 16: Inflation Trends & Forecast ...................................................................................................................................................18 Figure 17: Gross Fixed Capital Formation .............................................................................................................................................18 Figure 18: Bangladesh's Products Share of Exports (2012) ...............................................................................................................19 Figure 19: Bangladesh's Main Export Markets (2013) .......................................................................................................................19 Figure 20: Mode of EPZ Investment in Bangladesh (2012), Number of operating EPZs and % ................................................19 Figure 21: Bangladesh Basic Wage in EPZs (2010-2013) ................................................................................................................20

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TRADE UNION

Trade union rights are not adequately protected in law.

Just as one example, while the Constitution provides for

freedom of association, when registering, unions must

represent an inordinate 30 percent of the workers in an

enterprise and must obtain authorization from the

government. The International Trade Union

Confederation (ITUC) has registered several other legal

flaws that affect negatively the trade union movement’s

environment.

The national centres organize approximately 2.3 million

workers out of a total workforce of 78 million workers.

They mainly concentrated in the formal sector, though

some have started organizing workers from the informal

economy like construction, rice processing, ship-

breaking, among others (Table 1).

Union density is estimated at 23 percent of waged

workers. The rate is higher in the public sector and most

of the funding of the trade unions comes from regional

branches of the political parties. There are numbers of

trade unions in the private formal sector, but with a

negligence of private factory owners.

Table 1: Trade Unions in Bangladesh

Number of trade national union centres 32

Number of sectoral trade union federation 169

Number of basic unions 7,289

Dues (median) N/A

Members of trade unions 2.3 million

Trade union members share of labour force 3 %

Trade union members to waged workers 23 %

Female member share of trade unions 15 %

Affiliated trade unions from the informal economy N/A

Number of CBAs N/A

Workers covered by CBAs 1 (2006) (wage & salaried earners)

5.0 %

Share of workers covered by CBA (2006) 1.1 %

Labour force (2013)2 77,624,000

The prominent and labour intensive readymade

garment industry has many industrial conflicts. The

industry only has around 63,000 unionised workers out

of at least 3.5 million, mostly young women.3 There has

been a high increase in new unions registering within the

ready-made garment (RMG) sector. In 2013, 96 new

trade unions in the RMG sector were registered with the

Bangladesh Department of Labour (DoL). In contrast,

only two trade unions in the RMG sector registered with

DoL during the previous two years. This is related to

amendments to the Labour Act in July 2013 (See also

pages 3 and 19). Presently, there are 222 unions in the

RMG sector are registered with DoL in Bangladesh.

The trade union movement is fragmented into more than

32 trade national union centres or federations with links

to the rivalling political parties. The Table 2 below

shows collected data of the main trade union centres /

federations membership in Bangladesh. Unions are

highly politicized, but independent of the government;

and strongest in state-owned enterprises.

Table 2: Trade Union Federations in Bangladesh4 2014, Total members and women in percent

Trade Union Centres / Federations

Total Members

Women Members

BFTUC Bangladesh Free Trade Union Congress *)

85,000 21 %

BJSD Bangladesh Jatyatabadi Sramik Dal *)

180,000 15 %

BJSF Bangladesh Jatiya Sramik Federation *)

10,050 12 %

BJSJ Bangladesh Jatiya Sramik Jote *)

82,000 43 %

BLF Bangladesh Labour Federation *)

102,000 20 %

BMSF Bangladesh Mukto Sramik Federation *)

204,000 32 %

BSF Bangladesh Sramik Federation *)

5,989 9.9 %

BSSF Bangladesh Sanjukta Sramik Federation *)

155,000 2.0 %

BTUK Bangladesh Trade Union Kendra *)

80,970 11 %

JSF Jatiya Sramik Federation 38,000 33 %

JSFB Jatiyo Sramik Federation Bangladesh *)

15,881 5.0 %

JSJ Jatiyo Sramik Jote *) 2,260 4.4 %

JSL Jatiyo Sramik League *) 150,000 4.7 %

BTUF the Bangladesh Trade Union Federation

1,648 -

BTUS Bangladesh Trade Union Sangha

150,000 0.2 %

JSJB Jatiya Sramik Jote Bangladesh

65,000 10 %

JSP Jatiya Sramik Party 110,000 23 %

NTUF the National Trade Union Federation

1,798 -

NWF the National Workers' Federation

10,467 -

SSF Samajtantrik Sramik Front 2,285 5.9 %

TUK the Bangladesh Trade Union Kendra

50,180 -

*) Members of BILS. Note: Beyond the associate organisation BILS has 435 individual support members.

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There are 6 trade union centres that are members of

the International Trade Union Confederation (ITUC): the

Bangladesh Free Trade Union Congress (BFTUC), the

Bangladesh Jatyatabadi Sramik Dal (BJSD), the

Bangladesh Labour Federation (BLF), the Bangladesh

Mukto Sramik Federation (BMSF), the Bangladesh

Sanjukta Sramik Federation (BSSF), and the Jatiyo

Sramik League (JSL).

The government denies domestic workers the right to

form their own trade unions.5 Legally registered unions

are entitled to bargain collectively with employers; but,

this rarely occurs. Labor organizations have reported

that in some companies workers do not exercise their

collective bargaining rights due to their unions’ ability to

address grievances with management informally or due

to fear of reprisal.6

Sramik Karmachari Oikya Parishad (SKOP)

The SKOP is an alliance of the National Federation of

Trade Unions established in the early 1980s when the

military government of Bangladesh banned all trade

union activities in the country. SKOP is the platform of

joint action on national issues concerning labour market

and trade unions, in which 22 out of 32 national trade

union centres are affiliated. It was established in 1983

as a joint forum for the mainstream trade union centres

to coordinate demands for restoring workers’ rights

during a time when the country was under martial law.

SKOP launched several strikes in the following years.

Today SKOP represents 16 national centres and

functions as a national coordinator, issuing common

trade union stances on specific topics.

Although the government hardly prioritize workers’

rights issues over the issue of industrial peace and

global competitiveness, the SKOP has given

opportunities for its affiliated unions to force the

government and the employers to listen the ‘voices’ of

the workers—both organized and unorganized.

The Bangladesh Institute of Labour Studies (BILS)

BILS was established in 1995 with the support and

active participation of 13 National Trade Union

Federations. The organization is the only labour

research institution of Bangladesh. It develops the

capacity of the trade union movement and brings trade

unions with different political views together in concrete

co-operation for i.e. formulation of policy development,

inputs and recommendations.

As a joint institution for the labour movement BILS has as

such no direct relation with the political parties in

Bangladesh and has a democratic constitution with

regularly free elections for offices at all levels. Policy

recommendations based on BILS research are being

brought forward to SKOP, which enters into negotiation

with government and political parties.

Aiming to achieve better result in employers-employees

relationship, BILS plays an important role to strengthen

the tripartite mechanism between the government,

employers and employees, in association with a wide

range of other national and international institutions,

e.g. ILO.

BILS regularly organize meetings and dialogues

amongst not only the member unions but beyond. BILS

research inputs such as on minimum wage in garment,

shrimp processing, construction and rice processing

sectors, on labour law reform, decent work had been in

a widely used by the trade unions and SKOP in their

policy advocacy and workers’ awareness programs.

EMPLOYERS’ ORGANISATIONS

Bangladesh Employers’ Federation (BEF)7

BEF was founded in 1998 and is the national employer

organization, representing 131 affiliates with around

90% of established employers in the private sector. BEF

is represented in most national bi- or tripartite bodies.

BEF provides advisory services on industrial relations,

productivity improvement assistance, training, labour

court assistance, minimum wages board representation

and inputs to national policy issues.

In the organization, the garment sector has two very

active employers’ organisations, the Bangladesh

Garment Manufacture and Exporters Association

(BGMEA) and the Bangladesh Knitwear Manufactures &

Exporters Association (BKMEA)

The Federation is a member of the International

Organization of Employers (IOE) and participates in

International Labour Organization (ILO) activities. BEF

maintains close contact with employers’ organizations in

other countries and exchanges views and information on

current issues.

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CENTRAL TRIPARTITE STRUCTURES

Mediation and Arbitration

Collective industrial disputes are governed by the

Labour Law. First the parties have to go through a

settlement overseen by a Conciliator. If settlement fails

the parties may be refer the dispute to an Arbitrator or

either party may instead conduct strike or lockout or

apply for the Labour Court to adjudicate the dispute.

The Labour Court consists of a Chairman appointed by

the Government and one member each representing

employers and workers.

The Labour Directorate under the Ministry of Labour &

Employment registers the Labour Court’s Labour

Disputes and Dispute settlements. Yearly more than 100

dispute cases are examined and most are settled. It is

noteworthy, though, that only 28 cases were registered

in 2014 (see Table 3). This is related to that many

disputes and its settlement are not recorded if it is

resolved bi-partite. And as an aftermath of the Rana

Plaza complex collapse in April 2013 there was a

period of higher attention of employers and organized

workers way of resolving disputes. So far, disputes

appear to have returned to a more common number of

registered cases in 2015.

Table 3: Labour Disputes & Dispute Settlement (2010-

2014), Number of dispute cases

Year No. of

disputes

No. of settle

dispute

No. of unsettle

dispute

2010 154 150 4

2011 100 93 7

2012 111 107 4

2013 116 113 3

2014 28 24 4

2015 (Jan-Aug)

53 47 6

Source: Labour Directorate under the Ministry of Labour & Employment

On the other hand, according to ITUC,8 the system of

labour justice in Bangladesh is slow, sometimes cases

have to stay for years in the backlog, and courts usually

fail to provide remedy for labour abuses.

The Ministry of Labor and Employment formally

investigated complaints of unfair union discrimination.

However, the Solidarity Center has reported that it only

investigated 11 of 32 cases of antiunion discrimination

filed. A labor court may order the reinstatement of

workers fired for union activities.

The Labor Act establishes mechanisms for conciliation,

arbitration, and dispute resolution by a labor court.

Civil servants and security forces are covered under

different terms and conditions of employment and file

cases in specified courts. Few strikes followed the

cumbersome legal requirements, though. Strikes or

walkouts often occur spontaneously, especially at

workplaces without unions. The Ministry of Labor and

Employment took some steps to increase its staff and

technical capacity. Penalties for violating the law were

increased in 2013, but absent implementing rules, the

new penalties were not applied. Administrative and

judicial appeals were subjected to lengthy delays.

Union federations reported that police often failed to

accept reports of violence or other crimes against

organizers and pro-union workers.9

Minimum Wage Board

The Government must establish a wage board consisting

of a Chairman, an independent member and a

representative each from workers and employers, all

appointed by the Government. The Board gives

recommendation to changes in the minimum wage, which

the government can either accept or send back to

review in the Board. The board must meet every five

year.

Wage board covering traditional unorganised sectors

has been established in shrimp processing, metal and

construction after pressure from trade union forums.

National Council for Industrial Health and Safety

The Government may establish the National Council for Industrial Health and Safety. It consists of seven ministers, seven representatives from industries and seven workers representatives. The Council prepares national policy on Occupational Safety and Health. Other bi/tripartite organs

o National Coordination Committee for Workers’ Education (NCCWE)

NATIONAL LABOUR LEGISLATION

Constitution10

The constitution of Bangladesh was established in 1972,

and has been amended 15 times since then. The

Constitution prohibits forced labour and gives the right

to form associations or unions, to reasonable wages, to

social security and equal opportunity in employment.

Work is a right and duty, and local government are

encouraged to institute representation of workers.

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Labour Act11

The Labour Act of 2006 consolidated 25 separate acts

into one labour code. It regulates employment relations,

working hours, wages, trade unions and industrial

relations. It sets maternity benefits, compensations for

injury and accidents, Occupational Safety and Health

Standards, the labour inspectorate and prohibits child

labour. It also establishes the Wage Board, the Labour

Court, the National Council for Industrial Health and

Safety, and the procedures for industrial disputes

including strikes and lockouts.

In response to the demand of national trade unions

movement as well as international pressure as part of

the disastrously Rana Plaza collapse in April 2013,

Bangladesh’s Government amended the Labour Act in

July 2013.12 Several provisions to improve workplace

safety have been included in the law. There has also

been some improvements in terms of Freedom of

Association and Collective Bargaining, e.g. allow

workers to call on outside experts for advice during

collective bargaining and there is no longer a

requirement that the names of union leaders are

provided to employers. In the public industrial sector,

workers are allowed to elect 10% of their enterprise

officers from outside the workplace, although this right

is not extended to workers in the private sector.

Moreover, amendments to the labor law effective

require every factory with more than 50 employees to

have an elected participation committee, but by 2014

the government had not issued the regulations

necessary to implement the requirement.13

However, both the Bangladesh's trade union movement

and ILO have raised concerns in issues that were

excluded by the amendments.14 Among others, 30% of

the enterprises workforce still must vote for the

establishment of a union as well as it did not extend

freedom of association and collective bargaining rights

to workers in export processing zones. It has also been

observed that some new provisions of the law, for

example with respect of rights of workers who are

contracted for services and new exclusions from

coverage of the labor law of certain sectors, may raise

additional concerns about conformity with ratified

conventions.

The International Trade Union Confederation (ITUC) has

registered several flaws of labour related legislations

in Bangladesh. Among others, restrictions with respect to

the level or scope of a strike, restrictions on the right to

elect representatives and self-administer in full

freedom, and Authorities’ or employers’ power to

unilaterally prohibit, limit, suspend or cease a strike

action. 15 Equally important, compliance and

enforcement of labour laws have been insufficient, and

companies are often discouraging the formation of

labour unions.

Overseas Employment and Migration Act16

This Act from 2013 promotes opportunities for overseas

employment and to establish a safe and fair system of

migration, to ensure rights and welfare of migrant

workers and members of their families.

Parent's Care Act17

This Act from 2013 ensures social security of the senior

citizens, compels the children to take good care of their

parents. The children will have to take necessary steps

to look after their parents and provide them with food

and shelter. Each of the children will have to pay 10%

of their total income regularly to their parents if they

do not live with their parents. Moreover, children will

have to meet their parents regularly if they live in

separate residences.

Non-Formal Education Act18

This Act from 2014 establishes the Non-Formal

Education Department. The department will provide

education for the children who are deprived of formal

education due to dropouts or older persons who could

not get formal education within their age of 14 with

vocational training opportunities

The Labour Act is the most important labour legislation.

Several other legislations exist that regulate and set

standards and restrictions for the labour market.19

TRADE UNION RIGHTS VIOLATIONS

The International Trade Union Confederation (ITUC) has

classified Bangladesh as a country with ‘no guarantee

of rights’, i.e. rating at 5 out of 5+ (see below).

Table 4: Bangladesh: Global Rights Index20 (2015)

5 out of 5+

o No guarantee of rights o Countries with the rating of 5 are

the worst countries in the world to work in. While the legislation may spell out certain rights workers have effectively no access to these rights and are therefore exposed to autocratic regimes and unfair labour practices.

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Note: Five clusters in total with ratings from 1 to 5. A country is assigned the rating 5+ by default, if the rule of law has completely broken down.

ITUC has surveyed several cases of violations of trade

union rights in the period 2014-2015 (July) and shows

as followed21:

Police blocked workers from entering a factory

where they had been on an indefinite hunger strike

of 11 days demanding their overdue wages and

Eid bonus. Police used rubber bullets, teargas

canisters and water canon to disperse the agitating

workers on the factory premises in the capital;

General Secretary of the Berger Paint Bangladesh

Employees’ Union was dismissed on 4 December

2013 for his trade union activities and the local

management pressured workers into a union

election in January 2014;

Several cases of unionists attacked and threatened,

beaten, and anti-union discrimination against union

leader;

Transport union leader hacked to death;

Several cases of government refuses to register

trade unions;

The dismissal, harassment and intimidation of

workers who have sought to establish or join a

trade union is widespread, and has been

particularly widely reported in the ready-made

garment industry and the shrimp processing

industry;

A strike broke up by tear gas and storming police

in August 2014;

One of the country’s largest and most influential

employers, consistently refused to recognize trade

unions at a factory throughout 2014 until

December 2014, after international pressure; and

Employer interference with trade union elections.

The U.S. Country Reports on Human Rights Practices also

registered some cases:22 For instance, in August 2014,

masked men beat with an iron rod a union organizer

and her husband outside the Global Trousers factory,

resulting in the organizer’s hospitalization for head

injuries. According to union organizers, police initially

refused to accept the couple’s complaint.

BILS registered 797 incidents of inhuman torture on

domestic workers took place in the last 10 years. Of

those, 398 died of torture, 299 were wounded and

100 others faced other forms of torture.23

Although the government has approved the draft

Bangladesh Export Processing Zone (EPZ) Labour Law in

2014, with a claim that it will ensure the rights of trade

union in EPZ, different labour rights groups have

alleged that still no fundamental change have been

brought to the law and it has not ensured freedom of

association and the right to form trade union.

Due to the infamous Rana Plaza building collapse in

2013, the authorities charged the building’s owner and

others with criminal negligence and violations of the

building code. Hundreds of former workers and

relatives of the deceased still await back pay and

compensation.

ILO has no active case with Bangladesh in the

Committee of Freedom of Association. The follow-up

case is from 2010 by the Bangladesh Cha-Sramik Union

(BCSU) alleging interference by the authorities in the

election of officers to its Central Executive Committee,

as well as the violent suppression of demonstrations

organized to protest this interference. The election of

the BCSU Central Executive Committee was

implemented in August 2014 and the amended

constitution has also been approved. ILO's Committee of

Freedom of Association requested the Government and

BCSU in June 2014 to be kept informed on the case.

Table 5: ILO Complaints Procedure24

Freedom of Association Cases, 2015

Active 0

Follow-up 1

Closed 14

WORKING CONDITIONS

In principle, the National Minimum Wage Board

(NMWB) must at least meet every five years in a

tripartite forum to set wage structures and benefits

industry by industry. The authorities established the

minimum monthly wage at 1,500 taka (US$18.75) for

all economic sectors not covered by industry-specific

wages. The government also agreed in November

2013 to raise the minimum monthly wage for the

country’s four million garment workers to 5,300 taka

(US$68), an increase of 74 percent, after protests and

strikes in the crisis-hit industry.

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Table 6: Wages and Earnings Monthly average, median and Legal Minimum Wages

Source Taka US$

Average wage (2013) Global

Wage Database25

7,388 95

Minimum wage (garment industry) (2013)

5,300 68

Minimum wage (lowest) (2013)

U.S. Human Rights

Report26 1,500 19

Minimum wage for a 19-year old worker or an apprentice (2014) Doing

Business27

2,596 34

Ratio of minimum wage to value added per worker (2014)

0.36

Real average wage growth (Average 2006-2013)

Global Wage

Database

11 %

Real minimum wage growth (Average 2006-2013)

19 %

Note: The average value added per worker is the ratio of an economy’s gross national income per capita to the working-age population as a percentage of the total population.

One can note from Figure 1 that there is an upward

trend in rising wages. The combination of increasing job

opportunities, higher wages, and more remittances is

likely a contributing force in Bangladesh’s record of

poverty reduction over the past decade.28

Figure 1: Wage Trends in Bangladesh29 2000-2013, Taka and %

It is estimated, though, that nearly 40 percent of

garment factories in Bangladesh’s capital are failing to

pay a new minimum wage. 30 The trade unions have

assessed that 7,000 taka (US$84) is a minimum that can

be considered as a living wage,31 while the national

poverty income level is measured at 1,487 taka

(US$18). 32 There was no mechanism to keep the

minimum wage in line with inflation.

Since 2005, wages in rural areas for both men and

women have significantly improved showing a 10

percent growth rate. In fact, rate of growth for females

in real wages has overpassed the men rate of growth,

thus closing that male-to-female wage gap from 1.57 in

2005 to 1.37 in 2010. Equally, men and females’ real

wage growth rate in the urban areas have increased

from 10 percent in 2005 to 3 percent in 2010,

respectively.33

On average, wages from the informal economy remain

at 8 percent lower than wages in the formal sector; and

in the former, women’s wages are only two-thirds of

men’s earnings.

By law, the average should not exceed 56 hours.

Workers in factories receive one day off every week

while shop workers have 1½ days off per week. These

legal rules are often not followed, though; e.g. in the

garment sector workers can be required to work 12

hours a day and not always receive compensation for

their time.

According to the U.S. Country Reports on Human Rights

Practices,34 the rules of occupational health and safety

standards are routinely not enforced.

As an exception, the garment industry has independent

inspections and worker education programs to increase

awareness of safety problems. This has also been a

result of the 2013 Rana Plaza building collapse, which

killed 1,138 workers and injured more than 2,500

people. While enforcement by the Ministry of Labor

and Employment’s industrial inspectors was weak due to

the low number of labor inspectors, the Inspection

Department reported that it recruited more than 200

inspectors during 2014 and increased its total staff

from 314 to 993, of whom 575 were inspectors.

However, many of these positions are still being filled.

The coverage by inspector has thus increased from 1

per 836,000 workers in the last report to the expected

1 per 135,000 workers. The ILO recommends 1 per

40,000 workers in less developed countries. 35

Inspections were supposed to be unannounced, but

inspectors sometimes notify factory owners of coming

inspections.

The 2013 Rana Plaza collapse brought extremely poor

safety conditions to many workplaces in front of the

political agenda. A technical team of the Accord on Fire

0%

-3%

0% 4%

75%

-3%

5%

74%

-20%

0%

20%

40%

60%

80%

0

2000

4000

6000

8000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Real minimm wage (% change) Minimum wageReal minimum wage Average wageReal average wage

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and Building Safety in Bangladesh was signed between

IndustriALL, UNI Global Union and more than 120

global garment companies in January 2014. It finalized

the standards to be used for factory inspections.36 The

Solidarity Center and others reported significant safety

improvements in the garment sector in recent years.

However, instead of losing their jobs, or due to

inadequate law enforcement, many workers continue

operating in dangerous working conditions.

Factory fires continued throughout the 2014. The

Solidarity Center reported 10 incidents through

September 2014, compared with 32 in all of 2013.

Also in the aftermath of the 2013 Rana Plaza collapse,

private companies, foreign governments, and

international organizations worked with the government

to inspect more than 2,000 garment factories as of

September 2014, leading to 29 closures for imminent

danger to human life. Many factories began to take

action to improve safety conditions.

ILO’s Decent Work Country Program also recognizes

that the compliance with the labour law, the minimum

wage and occupational safety and health standards

have concerns. The construction, ready-made garment,

and ship-recycling sectors are often singled out with

respect to low occupational safety and health

standards due the sectors growth and visibility, but it is

a problem in all sectors.

The mentioned ship-breaking industry, which is off the

coast of Chittagong, is a prominent industry with

appalling occupation safety and health standards.

About half the world’s ships put out of commission are

stranded here and recycled. The process gives work to

around 200,000 workers and provides recycled

material. However, the work kills and injures

disproportionately many, as the scrapping is done with

simple hand tools and the ships often contains

hazardous materials, making it one of the most

dangerous industries in the world.37

Bangladesh has a rising trend of precarious and casual

forms of employment. Wages of casual workers are

around two-fifth of regular workers.38 Working hours

are long for most workers, with 52 percent working

more than 48 hours per week. Because of the

competition of jobs due to high unemployment and

inadequate enforcement of labour laws, workers who

have complaint their working conditions risked losing

their jobs.39

Human Rights Watch has documented toxic working

conditions in tanneries, invalidating workers and

polluting the environment.40

The Table 7 provides a quick view of the working

conditions in Bangladesh in terms of: 1) the regulations

of working weekly hours, 2) overtime and maximum

limits, 3) overtime, 4) minimum annual leave and 5)

maternity leave benefits.

Table 7: Working Conditions in Bangladesh41

Normal Weekly Hour Limit 48

Overtime Limit 2 hours per day and 12

hours per week

Max. Weekly Hours Limit 60

Min. Mandatory Overtime premium/time off in Lieu of Overtime Wages

Overtime work must be paid at twice a worker’s

ordinary basic wage

Min. Annual Leave 10 Days

Duration of Maternity Leave Benefits

16 Weeks

Amount of Maternity Leave Benefits

100%

Source of Maternity Leave Benefits

Employer

WORKFORCE

Bangladesh has a total population of 157 million

people out of which the labour force covers 78 million

workers. Job creation is challenged by a steady labour

force growth of 2.2 percent during the last decade,

meaning 1.7 million more entered the labour market.

Table 8: Employment Rates in Bangladesh42 (2013), Age

and Sex distribution

Men & Women

Total 15+ 68%

Youth 15-24 53%

Adult 25+ 74%

Men

Total 15+ 81%

Youth 15-24 61%

Adult 25+ 89%

Women

Total 15+ 55%

Youth 15-24 46%

Adult 25+ 58%

In employment, women have significant lower

employment rates than men, both young and adults. In

the last decade the participation and inactivity rates

have been stable.

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In the light of the trends, it is noteworthy the

employment rate experienced a declining phase during

the 1990s, but it stayed flat since the 2000s. The youth

had some more markedly changes (Figure 2).

Figure 2: Participation and Inactivity in Bangladesh43 (1993-2013)

Total & youth, %

A close to 1 out of 3 (29%) of the working age

population (WAP, 15+) and 2 out of 5 (41%) of the

youth population (15-24 years old) remains inactive on

the labour market; and with a significant gap between

men and women.

Table 9: Inactivity rate in Bangladesh44 (2013), %

Total Male Wome

n

Inactivity Rate 29 % 16 % 43 %

Inactivity Rate, youth 41 % 34 % 49 %

The skill matches are mainly affected by under-

education (60%) and women have a higher incidence

(57%). At the moment, over-education is not considered

a critical issue in Bangladesh.

Table 10: Skills Mismatches between Job Requirements & Qualifications in Bangladesh45 (2013)

by Sexes & Age Group 15-29 years old, %

Total Male Women

Incidence of over-education

2.4 % 2.8 % 0.9 %

Incidence of under-education

60 % 61 % 57 %

Labour productivity in Bangladesh has increased

steadily (Figure 3). This is related to the increasing

capital formation in recent years and skills enhancement

through higher enrolment in secondary, tertiary and

vocational training levels. It is also observed that the

industry and service sectors have slowly increasing

sector GDP shares on behalf of the agricultural sector.

However, the labour productivity remains lower than

the South Asia region’s average and a gap in

increasing.

Figure 3: Labour Productivity in Bangladesh46 (1991-2012) GDP per Person & index with base year 2000 (=100),

Note: GDP per person is estimated as constant 2005 international US$.

Based on estimations, the employment rate grew on

average at exactly the same growth as the WAP.

Stated differently, the employment rate stayed flat at

0% in the period 2004-2013 (Table 11). This suggests

that growth in GDP per capita is due exclusively to

changes in the labor productivity (GDP per worker)

over this period.

Table 11: Comparative Average Growth of GDP per Capita, Employment & Working Age Population (WAP, 15+) in

Bangladesh47 2004-2013, % Change on Average

Years GDP/

Employment GDP/ WAP

Employment/ WAP

2004-08 3.0 % 3.0 % 0.0 %

2009-13 2.7 % 2.7 % 0.0 %

2004-13 2.9 % 2.9 % 0.0 %

Note: The columns above reflect: i) GDP per capita/employment equals GDP per worker (i.e. labour productivity); ii) GDP/WAP equals GDP per capita; and iii) employment/WAP equals the employment rate (ratio of workers to working-age population (15+).

Unemployment and Underemployment

Youth unemployment rate is double as high at 9.2

percent and the total unemployment rate is 4.3 percent

in 2013. With an unemployment gap that favours men

over women, it is nevertheless marginally low among

youth.

Table 12: Unemployment, Youth Unemployment Rate & Underemployment48 (2013), %

Un-

employment (2013)

Youth Unemployment

(2013)

Under-employment

(2010)49

Total 4.3 % 9.2 % 20 %

Men 3.9 % 9.0 % 14 %

Women 5.0 % 9.5 % 34 %

0%

20%

40%

60%

80%

1993 1998 2003 2008 2013

Participation rate - 15+ Participation rate - 15-24

Inactivity rate - 15+ Inactivity rate - 15-24

81 84 88 93 100 105

113 122

133 144

157

0

50

100

150

200

0

5,000

10,000

15,000

20,000

25,000

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Bangladesh South Asia

World Bengladesh (2000=100)

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Strikingly the share of youth unemployment in total

unemployment reduced fast in the beginning of 2000s.

This is related to the higher school enrolment increases;

reaching a somewhat fluctuating trend. Currently this

rate is estimated at 50% in 2013.

Table 13: Unemployment Trends in Bangladesh & South Asia50 (1991-2013), %

One reason is that educational stipend and other

initiatives taken by the government to improve the

condition of women’s education, have not only increased

the rate of enrolment and primary education of

females, but also created opportunities for them to

enter into the employment market. However, the

education system is still not fully adjusted to the needs

of the labour market and many fresh graduates are not

getting suitable jobs in the market.

Figure 4: Unemployment by Level of Educational Attainment in Bangladesh51 (2005)

by Sex & Age, %

Government planned to create 10 million jobs under the

five-year plan up to 2015, due to growth in

manufacturing, construction and the service sectors.

There have been some reductions since 2009. It was

estimated that 4.3 percent of the labour force were in

unemployment in 2013. The unemployment rate gap

between male (3.9%) and female (5.0%) has been

somewhat stable since 1991.

The main causes of unemployment in Bangladesh are

related to first, the rapidly increasing population

growth and the capacity to increase the resources for

capital formation; Second, the backward method of

agriculture; Third, land is very limited and with a heavy

pressure of large population; and lastly, the

educational system is not job-oriented, but rather a

more degree-oriented.

Underemployment is widespread. For instance, a labour

force survey from 2010 indicates that 20 percent are

underemployed, whereas other sources estimate as

many as 40 percent who work less than 35 hours per

week. Again, women are more than double as high in

underemployment in comparison with men, at 34

percent versus 14 percent, respectively. Also rural

areas are more affected at 23 percent compared with

12 percent in the urban areas.

The percentage distribution of a country's total

unemployed according to four levels of schooling - less

than one year, primary level, secondary level, and

tertiary level – show that women have lower

unemployment rates than men on the higher levels of

education (secondary and tertiary) while it is in contrast

on the lower education levels (less than one year and

primary). On the primary education level the gender

gap is quite low.

Sectoral Employment

The Agricultural sector’s GDP share faces a decline

from 26 percent in 2000 to 16 percent in 2013. It is

estimated that 48 percent of the employed still work in

agriculture, yes its decreasing. Notably, the informal

economy is dominating agriculture, mining, construction,

and private household. 52 Increasingly random floods

have decreased agricultural production, affecting the

many already impoverished farmers, while at the same

time food prices are increasing.53

Outside the agriculture sector, women largely find work

in ‘other services’ and in the manufacturing sector, which

is almost only readymade garment production. The

garment exports are the backbone of Bangladesh’s

industrial sector.

0

2

4

6

8

10

12

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

Unemployment rate

Youth unemployment rate

Unemployment rate (South Asia)

Youth unemployment rate (South Asia)

0

5

10

15

20

25

30

35

40

Less than oneyear

Primary Secondary Tertiary

Men & women Men Women

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Table 14: Employment (2005) & GDP share (2013)54 Sector & Sex distribution

According to Figure 5, Bangladesh has been through an

economic transition during the 2000s. Both the industry

and the service sectors’ share of GDP grew while the

agriculture sector declined. The rising labor costs in

China and India moved labor-intensive industries

towards a country like Bangladesh, which has some

comparative advantage, such as lower wages. But, as

previously mentioned, the wages are also on a rise in

Bangladesh.

Figure 5: Sector Share in Bangladesh55 (2000-2013), % of GDP

The labour market is divided into a formal sector and

an informal economy. The former is a marginalized

sector and to a large extent covers business, finance

and public administration. The size of employees within

public administration is roughly 2 percent of the worker

force, thus, a reason for a low rate of wage and

salaried workers. Nonetheless, it has experienced a

slow increase from 14 percent in 2002 to 24 percent in

2009, while self-employment and own-account workers

have been on declines (Figure 6).

Figure 6: Status of Employment in Bangladesh56 1996-2005, %

Note: Own-account workers and contributing family workers is included in the calculations of the total self-employment rate.

Remarkably, men have experienced a substantial

decrease of employment in the formal sector while

women’s employment has stayed flat. Despite this, both

have a fast increase in employment in the informal

economy. This is most likely related to the urbanization

where workers are looking for better paid jobs than in

rural areas.

Figure 7: Employment in Formal & Informal Sector in Bangladesh57 (2002-2010), Million

0

10

20

30

40

50

60

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Agriculture Industry Services

12% 13% 14% 14%

70% 69%

84% 85%

29%

35%

65% 63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1996 2000 2003 2005

Salaried workers Self-employed

Own-account workers Contributing family workers

0

5

10

15

20

25

30

35

2002-03 2005-06 2010

Employment in formal sector - Men

Employment in formal sector - Women

Employment in informal sector - Male

Employment in informal sector - Women

Sector Male

employment Female

employment GDP share per sector

Mining & Quarrying

44,000 7,000 1.6 %

Manufacturing 3,926,000 1,298,000 16 %

Electricity, Gas & water

73,000 3,000 1.4 %

Construction 1,421,000 104,000 6.9 %

Trade, restaurants & Hotels

6,705,000 403,000 13 %

Transport & Communication

3,910,000 66,000 10 %

Finance, Real Estate Business Services

392,000 115,000 3.5 %

Public Administration, Education & health

778,000 104,000 3.1 %

Other services 3,747,000 1,495,000 24 %

Agriculture 15,084,000 7,683,000 16 %

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Migration

Bangladesh is among one of the countries in the world

with the highest amount of emigrants with an estimated

5-7 million migrants abroad.

Table 15: Migration Facts58

Net migration (2008-2012)

Bangladesh -2,040,559

Net migration to average population per year (2008-2012)

Bangladesh - 1 : 371

inhabitants

South Asia - 1 : 1,135 Inhabitants

Personal transfers i.e. remittances received, % of GDP (2013)

Bangladesh 9.2 %

South Asia 4.7 %

Note: Net migration is the net total of migrants during the period, that is, the total number of immigrants less the annual number of emigrants, including both citizens and noncitizens.

Though the net migration rate is decreasing, it has

reached 1 out 371 inhabitants in the period 2008-

2012 in comparison with 1 out of 250 in 2006-2010.

Thus, remains much higher than in South Asia region's

average. Bangladeshis migrate to very different

countries, with the top three destinations being India,

Saudi Arabia and the United Kingdom.59

Among the migrant workers from Bangladesh, 2.2

percent are professional; 32 percent are skilled; 14

percent are semi-skilled; and 52% are less-skilled.

Short-term labour migration is one of the core foreign

currency earning sectors in Bangladesh with personal

remittances of 9.2 percent of GDP in 2013. These are

mainly used to purchase consumptions goods, with few

making it into investment. The Government has set up a

financial institution, the Probashi Kallyan Bank, to

address this issue.

Figure 8: Personal Remittances, Received60 (2000-2014), % of GDP

Though remittances play a very important role for the

economy, unskilled women were banned from migrating

abroad until 2006, increasing unregulated migration.

Migration of unguarded women is still frowned upon.61

But, the number of female labour migration is rising.

Unregulated migrants are also at higher risks of

exploitation.62

Factors leading to this large migration are

overpopulation, a large overseas diaspora, an

agricultural sector that is often unable to sustain the

livelihood. Diverse factors, which also lead to large

labour migration inside Bangladesh, give an almost

limitless supply of unskilled labour. The construction

sector, in particular, has many workers who migrate

from site to site.

Informal Economy

The latest Economic Census 2013 shows that the

informal economy has been an important component of

the growth dynamics in Bangladesh. Findings reveal that

household based economic activities have expanded

tremendously over the last decade.63

Employment in the informal economy has been growing

from 79 percent in 2002 to 87 percent of the total

number of jobs in the labour market in 2010, and

accounts for 43 percent of GDP. It is more prevalent in

the rural areas than in the urban areas. Women’s

employment in the informal economy has a higher

incidence at 92 percent compared to males’ at 85

percent.64 Data from the Informal Sector Survey (ISS)

2010 also demonstrated a linkage between education

level and informal work, i.e. as the level of education of

a worker improved, the worker is more likely to hold a

formal job.

Figure 9: Trend of Employment in Informal Sector in Bangladesh65 (2002/03-2010), %

Workers from the informal economy receive on

average at least 35 percent lower wages than in the

formal sector. With reference to the social protection

0

2

4

6

8

10

12

Bangladesh South Asia

79% 78%

87%

79%

76%

85%

81%

86%

92%

60%

65%

70%

75%

80%

85%

90%

95%

2002-03 2005-06 2010Total Male Female

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coverage, workers from the informal economy receive

less than formal workers.

The ISS has also shown that the labour productivity of a

typical worker in the informal enterprises is only one-

sixth (17%) of the productivity of their counterpart in

the formal sector. The main reasons for engagement in

informal activities are family traditional (39%) and due

to knowledge of the activity (37%).66

As the informal economy is not covered by the Labour

Law, a very few trade unions operate in this zone.

However, a number of non-traditional groups have

started activities. For example women’s organizations

have set up cooperative structures for their members

and have taken a series of initiatives, including in the

areas of adult education, mother and child care and

productive work.

In addition, the Labour at Informal Economy (LIE) is a

membership-based organization that represents 2,865

workers who work as street vendors, waste pickers,

home-based workers and agricultural workers in

Bangladesh. 67 LIE is nationally affiliated with the

Bangladesh Free Trade Union Congress (BFTUC).

Child Labour

Bangladesh is notorious for its child labour. Around 7.4

million (18%) are working (Table 16), which is slightly

higher than the Asia and the Pacific region’s average.

These estimations are in line with a report from ITUC

from 2012.68

Table 16: Working Children Proportion of all Children

Region Year Type Proportio

n

Bangladesh (age 5-17)69

2006

Working children 18 %

Child labourers 7.6 %

Hazardous work 3.1 %

Asia & the Pacific70 (age 5-17)

2012

Children in employment

16 %

Child labourers 9.3 %

Hazardous work 4.1 %

The estimations of working children proportions in Bangladesh are based on child population (5-17 years) of 42.2 million (2002-2003).71

Children in employment include all children who conduct some kind of work, whereas child labourers are a narrower term without mild forms of work. Hazardous work is the worst from of child labour as defined in ILO C182.

The Government issued a Statutory Regulatory Order in

2013 identifying 38 occupations considered hazardous

for children ages 14 to 18 and adopted the new

Children's Act, which harmonizes national law with

international standards on child protection. This includes

extending the legal definition of a child to 18 years. 72

The child labour is common in agriculture and services.

The latter is part of the large export textile industry,

which is more incompatible with schooling.73

According to the Labour Law, no children below the age

of 14 are allowed to work and the types of work

adolescents between 14 and 18 can be engaged in

are thus specified. This group is not allowed to work

with anything dangerous or damaging. Certain types of

employment in certain industries such as heavy industries

are prohibited. Even then, a massive 86 percent of all

children aged 15-17 worked in hazardous industries.

Child labour is basically similar in rural (13%) and

urban areas (12%), whereas boys (20%) are much

more likely to be engaged in child labour than girls

(5%).74 Child labour is more common among the poorest

quintile of households (16%) than the richest (8.2%).

Poverty is the main reason for child labour in

Bangladesh, with poor households having to make their

children work to sustain themselves. This, in turn,

increases the labour supply and likely keeps the wages

lower in the industries. It also decreases the children’s

future earnings due to lack of education and their

increased risk of occupational disability.

Child labour is popular among employers because

children are docile and submissive and above all either

not paid at all or very low paid. They can be tasked

with duties that adults would not undertake and as they

are free or very cheap labour they can perform job

functions with a very low margin of return on the

employer’s investment. Children often join small

businesses as apprentices. It is often the only option to

get an education since the country only has around 100

vocational training schools. The apprentice system does

on a positive note secure that the children receive some

kind of education but it also keep them illiterate and

poor as they get no salary for years.

Gender

Bangladesh has made some progress on gender

equality. New legislation has been introduced, including

laws on violence against women, equal pay, maternity

leave, and parliamentary quotas. It is also observed

that the female literacy rate has increased. But, the

gender gaps remain in employment as well as

enforcement of the law is weak.75

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The readymade garment industry employs roughly 80

percent of women, and is the main employment option

for women outside agriculture. These women, at an

average are 19 years of age, usually unmarried, and

with little education, hence prone to exploitation, sexual

harassment, and discrimination. They earn 60 percent

less of what their male colleagues earn, and are

exposed to low occupational safety and health

standards.76 Only a 1.8 percent of them are members

of union in this sector. Notwithstanding, this industry has

provided millions of jobs, increased the women’s real

earnings and more economic freedom. It has also shown

that fertility rate has decreased and a study suggests

that opening of a garment factory within a village’s

commuting distance, increases schooling of girls in the

village.77

A recent Enterprise Survey from 2013 reported that 13

percent of firms had women participation in firm

ownership compared to the South Asia’s average of 17

percent; and that 16 percent of full time employees

were women, more than South Asia's 13 percent (Figure

10).78 It shows that women in Bangladesh have a both

lower ownership participation and full time employment

in comparison with the Enterprise Survey from 2007.

Figure 10: Females in Management & Ownership79 (2013)

Overall only about 15 percent of trade union members

are women. Women have considerably lower rates of

employment than men, and have around double the

rate of unemployment and underemployment. Wages

are also much lower for women in the informal sector.

More girls enrol in primary and secondary education

than boys; the latter is also four times more likely to be

engaged in child labour.

Youth

The youth population constitutes one third of total

population in Bangladesh. The workforce on the age

group 15-24 years old is 18.3 million youth. This

segment is confronting multifarious challenges mainly

rooted from social structure and economic conditions.

Due to the rapid growth in population, the country fails

to create adequate opportunities for the youth in

accordance with their educational qualifications. For

example, educated youth are facing problems entering

the job market, primarily because of the lack in access

to information related to job and training. Stated

differently, the education system is not adjusted to the

needs of the labour market (see also next page). In

practice many fresh graduates are not getting suitable

jobs in the labour market. Youths here are doing well in

their studies and passing out with good grades but

often their qualifications do not fit with the existing

market demand and it causes the youth’s unemployment

rate to increase.80

The Government published a National Youth Policy in

2003. The government suggested revisiting the youth

policy in 2010 to link it up with the political manifesto

of the Bangladesh Awami League party's Vision

2021. 81 It appears that the government has placed

higher attention on youth empowerment and increasing

finance on this area. On the other hand, the policy has

lacked concrete steps for achieving goals and its

implementation has been uncertain. Also a review and

revising of the policy have not been clear.82

Table 17: Youth Unemployment Rate Trend in Bangladesh83 (1991-2013)

gender and %

0%

5%

10%

15%

20%

25%

30%

35%

Firms with female top manager Firms with female participationin ownership

Bangladesh South Asia Low income

72%

82% 79% 80% 81%

77%

41%

55% 57%

55%

45%

50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0%

2%

4%

6%

8%

10%

12%

14%

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

Men

Women

Share of youth unemployed in total unemployed

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EDUCATION

The graph below shows the educational attainment of

all Bangladeshis above 25 years, therefore gives a

glance of the human capital of the labour force.

Table 18 : Highest Level Attained & Years of Schooling in

the Population84

2010, Population 25+, Total and Female

Highest Level Attained Total Female

No Schooling 42.0 % 46.6 %

Primary Begun 1.4 % 1.5 %

Completed 21.4 % 21.0 %

Secondary Begun 12.2 % 10.9 %

Completed 18.5 % 16.1 %

Tertiary Begun 1.6 % 1.3 %

Completed 2.8 % 2.5 %

Average year of total schooling 4.8 years 4.3 years

Note: Primary, secondary and tertiary is the internationally defined distinction of education. In Denmark these corresponds to grundskole, gymnasium & university.

Bangladesh has a high average years of schooling per

capita, nevertheless over 40 percent of the population

have never been to school. Of those that have

education almost all have completed primary school

and many have progressed to secondary and tertiary

school. Women are slightly underrepresented in almost

all types of education, except in primary education.

Figure 11: School Level and Enrolment in Bangladesh & South Asia85

2000-2012, Total and Female, %

Net enrolment is the ratio of children of official school age, who are enrolled in school to the population of the corresponding official school age. Gross enrolment is the ratio of total enrolment, regardless of age, to the population of the corresponding official school age. Gross primary enrolment is therefore sometimes higher than 100%.

The net enrolment in primary education is higher than

the South Asia’s average rates. Data from UNICEF

suggests a marginally lower net primary school

enrolment for boys at 83 percent and 93 percent for

girls, which is about the same for South Asia. Primary

education is free and compulsory until the age of 10,

but many children are drop out of school and work as

child labourers to help support the household.

Secondary school enrolment is also about the same level

as for South Asia, though it fell somewhat after 2003

but rebounded. Bangladesh follows the regional gap

between genders enrolment, in which women has slightly

less participation. Enrolment into tertiary school is a little

smaller than the average for South Asia but in

expansion.

Vocational Training

The number of vocational students has steadily

increased from 105,000 in 2000 to 429,000 in 2012.

The ratio of pupils in vocational training to all pupils in

secondary education is 3.4 percent, while the South

Asia's average is 1.4 percent (Table 19). Thus,

Bangladesh has a considerable higher vocational

training rate than the South Asia region’s average.

0% 20% 40% 60% 80% 100%

Total

Female

No Schooling Primary - Begun

Primary - Completed Secondary - Begun

60

65

70

75

80

85

90

95

100

200

02

001

200

22

003

200

42

005

200

62

007

200

82

009

201

02

011

201

2

Net Enrolment in Primary School

Bangladesh,

Femaleenrolment

Bangladesh,

Totalenrolment

South Asia,

Femaleenrolment

South Asia,

Totalenrolment

30

35

40

45

50

55

20

00

20

01

20

02

20

03

20

04

20

05

20

06

200

7

20

08

20

09

20

10

20

11

20

12

Net Enrolment in Secondary School

Bangladesh,

Femaleenrolment

Bangladesh,

Totalenrolment

South Asia,

Femaleenrolment

South Asia,

Totalenrolment

0

5

10

15

20

25

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

Gross Enrolment in Tertiary School

Bangladesh,

Femaleenrolment

Bangladesh,

Totalenrolment

South Asia,

Femaleenrolment

South Asia,

Totalenrolment

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Table 19: Vocational Training86

Pupils in Vocational Training (2012)

Bangladesh 428,459

Secondary Education, vocational pupils (% female)

Bangladesh (2012)

24* %

South Asia (2009)

31 %

Ratio of Pupils in vocational training to all pupils in secondary education (Average 2008-2012)

Bangladesh 3.4 %

South Asia 1.2 %

Ratio of Pupils in vocational training out of 15-24 year olds.

Bangladesh 1.2 %

South Asia 0.5 %

Ratio of pupils in vocational training to all pupils in secondary education in South Asia is based on an average during 2008-2009. The ratio of the 15-24 year olds covers the period 2005-2015, while in South Asia presents an average from 2005-2010. * This per cent is based on women’s average TVET participation between private institutions’ 33% and public institutions ranging from 9% to 13%.87

Figure 12: Vocational Pupils in Secondary Education88

(2000-2012), %

The government’s Technical Vocational Education and

Training (TVET) went through an overhaul in 2006. It

produced a National Skill Development Policy and a

National Technical Vocational Qualification Framework

(NTVQF). Traditionally vocational training has not had

a strong links to industry.

Still the country has only around 100 vocational training

schools, which make it difficult for most of the poorer

younger people to get vocational training.

It is worth mentioning that women’s participation in TVET

in Bangladesh is quite low from 9% to 13% in public

institutions while it is 33 percent in private institutions. As

already mentioned, these relatively low percentages

are directed at stereotypical occupations irrespective of

market demand. The current draft National Skills

Development Policy (NSDF) from 2011 recognized the

low participation rates of women in the public sector

and aims to correct the gender imbalances, especially

in the formal training system.89 On this background, the

government formed a National Strategy for Promotion

of Gender Equality in TVET along with a National Skills

Development Council (NSDC) Action Plan.

The Skills Development Policy aims at a future growth

of skills development with clear, ambitious targets,

including:

o TVET students shall comprise 20% of all secondary

students (currently 3.5%).

o Total enrolment in TVET should increase by 50

percent.

o Women’s enrolment should increase by 60

percent.90

Moreover, the Informal Gender Working Group was

proposed to be formalized as an Advisory Committee

and attached to the NSDC Secretariat. Results of these

above-mentioned aims are not yet published.

Collected data from a survey of 2012 highlighted that

approximately 80% percent of the workforce had not

received any training and among the 20 percent that

had, only 11 percent had received training which was

classifiable under the NTVQF.91 It was also registered

that TVET institutions under the Directorate of Technical

Education (DTE) are in crisis in terms of teachers, not

only in numbers but also in terms of their competence

for delivering skills.

SOCIAL PROTECTION

Few contributory social protection schemes exist in

Bangladesh, and most forms of social protection are

through non-contributory social assistance. The health

social protection coverage is only 1.4 percent of the

population (Table 20) while the proportion of

pensionable age receiving an old age pension is 40

percent. Formal sector workers currently enjoy some

social protection, but informal sector workers and casual

workers do not have access to such benefits.92

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Bangladesh South Asia

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Table 20: Public Spending on Social Protection Schemes93 (2011)

Public social protection expenditure, excl. health

Bangladesh Taka

131 billion

US$ 1.8 billion

% of GDP 1.6 %

per capita 11.6 US$

% of government expenditure

26 %

Public health care % of GDP 1.1 %

Health social protection coverage

% of population

1.4 %

Trends in government expenditure in health

% changes per year (2007-2011)

8.6 %

Table 21: Benefits, Coverage & Contributions to Pension

Schemes 94 (2011)

Social benefits for the active age

% of GDP 0.5 %

Labour market programs % of GDP 0.5 %

Pensionable (65+; 62+ for OA allowances for women) age receiving an old age pension

Proportion of total

40 %

Active contributors to an old age pension scheme

15-64 years 0 %

Figure 13: Health-care Expenditure Not Financed by Private

Household's Out-of-pocket Payments (1995-2011) Selected Asian countries, %

Employers are required to provide a termination

benefit. Permanent employees receive half their

average wage for 120 days, causal workers and

temporary workers for 60 days. 95 Employees in the

formal sector are entitled to disability and survivor

benefits, for accidents in employment. Employers bear

the full cost. Disagreements on compensation can be

settled at the Labour Court.96

There are several non-contributory social assistance

programs exists, mainly for women and girls, and many

are donor funded.97 In addition, a publicly paid Old

Age Allowance programme exists for persons who had

an annual income less 3,000 taka per year (US$40),

providing a 250 taka per month (US$3.4).98 It has 2

million beneficiaries and covers 7 percent (US$81

million) of the total social protection programs

expenditures. The system is valuable for the country’s

vulnerable older people, yet holds a weakness in the

form of means testing, low benefits and not effectively

reaching its target population because of power abuse

and corruption.99

The retirement pensions or benefits for government

employees and family members of retired persons have

currently 325,000 beneficiaries. It is less than 1 percent

of the total social protection beneficiaries. On the other

hand, it is the single largest expenditure of all social

protection programs covering 19 percent (US$227

million).

There are five major labour market programs and they

cover 35 percent of the total social protection

expenditure. They have 10.2 million beneficiaries,

which is a quite large number of total social protection

beneficiaries, i.e. 36 percent.100

In 2012 the government drafted a national social

protection strategy. It remains as a third draft from

January 2014, and awaits finalization. The United

Nations has now called for political leadership with a

sense of urgency for a comprehensive social protection

system.101

Although informal sector workers are not entitled for

any forms of social protection, in November 2013, the

government introduced a five-year group insurance

scheme for the construction workers. The annual

premium per worker has been set at Tk 1,300 out of

which each worker has to deposit Tk 450 and the

ministry Tk 850. BILS was actively involved in the whole

process of insurance.

5%

15%

25%

35%

45%

55%

65%

1995 2000 2005 2006 2007 2008 2009 2010 2011

Bangladesh Cambodia Myanmar

Nepal Pakistan Philippines

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GENERAL ECONOMIC PERFORMANCE

Bangladesh has a combined widespread of poverty

and economic backwardness but holds a social

progress. This progress has been caused by improved

status of women, increased rural incomes, maintained

social spending and influential non-governmental

organisations.

Table 22: Key Facts102 (2014 est.)

GDP (US$)

GDP real

growth

Doing Business (2015)

HDI103 (2013)

Gini Index (2010)

187 billion

6.2 % 173 of

189 countries

0.558 32.1

142 of 187

countries

107 of 141

countries

A high ranking on the Ease of Doing Business Index means the regulatory environment is more conducive to the start-up and operation of a local firm.104 The Human Development Index (HDI) measures the average of a long and healthy life, access to knowledge, and a decent standard of living. A Gini Index of 0 represents perfect equality, while an index of 100 implies perfect inequality. In terms of the ranking, the first country has the highest inequality, while the number 141 has the highest equality.

Bangladesh has experienced growth rates of

approximately 6 percent over the last 17 years.

Compared to the rest of developing countries in Asia,

with the regional economic powerhouses India and

China, Bangladesh has fallen behind on GDP per capita

measured in Purchasing Power Parity (PPP) and the gap

is projected to widen (Figure 14). Here, Bangladesh is

more comparable to a Sub-Saharan African country.

Figure 14: GDP per Capita (PPP) Trend & Forecast105 2002-2018

With a Gini Index at 32.1, the income equality is

relatively high medium level. It indicates that the

economic growth is spread more evenly in Bangladesh.

Labour intensive textile manufacturing plays an

important part of the country’s economy and workers

receive better paid jobs than the informal economy.

Table 23 shows economic growth has reduced working

poo but rates remain high and with a slower trend than

South Asia region’s average.

Table 23: Working Poor106 (2005-2012)

Share of Workers

in Total Employment

1.25 US$ a day 2 US$ a day

Bangladesh 2005 51 % 80 %

2010 43 % 77 %

South Asia 2005 38 % 73 %

2012 24 % 61 %

Note: Working poor measures employed people living for less than US$1.25 and US$2 a day, as proportion of total employment in that group.

Asia has seen a strong growth in the middle-class during

the last decade. Bangladesh has a smaller middle-class

than the South Asia region’s average: In South Asia 15

percent lived for US$2-4 a day and 2 percent for

US$4-20 in 1993. In later years (2010), this has

reached at 28 percent that live for US$2-4 a day and

7 percent living for US$4-20. In Bangladesh 12 percent

lived for US$2-4 a day and 3 percent for US$4-20 in

1993. In 2010, 19 percent lived for US$2-4 a day and

4 percent for US$4-20. This indicates that the higher

middle-class in Bangladesh has not yet expanded

significantly and the lower middle-class has an inferior

expansion in recent years in comparison with the South

Asia region’s average.

Figure 15: Middle-classes' Trends in Bangladesh and South Asia107 (1993-2010), % based on US$ PPP

The consumer price Inflation has been growing for years

but it is curbed below 10 percent after 2011. The

inflation remains higher in comparison with the

emerging and developing countries in Asia. This could to

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

201

4

201

5

20

16

20

17

20

18

Bangladesh Emerging and developing Asia

0%

5%

10%

15%

20%

25%

30%

1993/95 1999/2000 2005 2010

Middle class US$2-4 (Bangladesh) Middle class US$4-20 (Bangladesh)

Middle class US$2-4 (South Asia) Middle class US$4-20 (South Asia)

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some extent explain why Bangladesh’s progress of the

middle-class segments is lower than the South Asia

region’s average. Stated differently, consumers,

particularly those from low income groups, suffered

tangible real income erosion as a consequence of the

rising prices. Both fixed and flexible income earners

have suffered as a consequence.

Figure 16: Inflation Trends & Forecast108 2002-2018

The capital formation has been on a slow and stable

increase. To some degree it explains the labour

productivity and its rise. Additionally, since 2012,

Bangladesh has superseded the South Asia region’s

capital formation rate that actually has been on a

decline since 2007.

Figure 17: Gross Fixed Capital Formation109 2000-2013, % of GDP

Based on the Doing Business Index Bangladesh was

ranked as number 173 out of 189 countries, which are

declining positions since 2014. Protecting Minority

Investors has the highest ranking (43 of 189 countries),

followed by Paying Taxes (83 of 189). On the other

hand, indicators like: Getting Electricity, Enforcing

Contracts and Registering Property are moving around

the rock-bottom of the index. Based on this Index

indicators’ rankings could be interpreted that doing

business in Bangladesh is not easy and with many

deficiencies to move towards a more formalized labour

market.

Table 24: Ease of Doing Business110

Topics 2015 2014 Change

Starting a Business 115 111 -4

Dealing with Construction Permits 144 142 -2

Getting Electricity 188 189 1

Registering Property 184 183 -1

Getting Credit 131 125 -6

Protecting Minority Investors 43 43 No change

Paying Taxes 83 78 -5

Trading Across Borders 140 140 No change

Enforcing Contracts 188 188 No change

Resolving Insolvency 147 146 -1

Doing Business 2014 indicators are ranking from 1(top) to 189 (bottom) among other countries. The rankings do not measure all aspects of the business surroundings that matter to firms and investors or that affects the competitiveness of the economy. A high ranking does mean that the government has created a regulatory environment conducive to operating a business.

Bangladesh has low, declining scores on the

Governance Indicators on the Political Stability,

Government Effectiveness, and Rule of Law. Although

Control of Corruption has improved slightly, it remains

on a quite low ranking, and as one of the most

problematic factors for doing business. The highest

ranking is present on the Voice and Accountability

(Table 25). In general, these indicators have also a

signal that the labour market is facing huge challenges

to improving a sound environment for workers, central

tripartite structures and curb the rampant rights

violations.

Table 25: Bangladesh's Governance Indicators111 (2008-2013)

Year Voice and

Accountability Political Stability

Government Effectiveness

2008 -0.47 / 33%

-1.48 / 10%

-0.71/ 28%

2013

-0.42 / 35%

-1.61 / 8%

-0.82 / 22%

Year Regulatory

Quality Rule of Law

Control of Corruption

2008 -0.89 / 17%

-0.76/ 24%

-1.02 / 14%

2013

-0.93 / 21%

-0.83 / 23%

-0.89/ 21%

Note: The Governance Indicators score from ‐2.5 to 2.5 while the percentiles rank from 0 (lowest) to 100 (highest).112

0%

2%

4%

6%

8%

10%

12%

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

Bangladesh Emerging and developing Asia

20

22

24

26

28

30

32

Bangladesh South Asia

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Bangladesh’s export sector is dominated by labour

intensive textile production, mostly going to the EU. This

sector has often attracted international attention for its

poor working conditions and use of child labour.

Garment exports accounted for more than 80 percent

of total exports and surpassed US$18 billion in 2014.

Overall, exports play an important role covering 17

percent of GDP. The foreign direct investment (FDI) flow

and stock are low relative to GDP, though.

Table 26: Trade & Foreign Direct Investment (2014 est.)

Exports Import FDI flow FDI Stock

31 billion US$

39 billion US$

1.2 billion US$

8.6 billion US$

17 % of GDP

21 % of GDP

0.6 % of GDP

4.6% of GDP

Under the international textile quota system, i.e. the

Multi Fibre Agreement, Bangladesh was exempt from

quotas to the EU and the sector grew large. After

2004, when the agreement was phased out,

Bangladesh has retained a large share of international

textile trade.

Due to increased labour costs in China, the world’s

textile production is still moving South to countries like

Pakistan, India, and Indonesia; and especially where

labour cost remains very low.113

Figure 18: Bangladesh's Products Share of Exports (2012)114

Figure 19: Bangladesh's Main Export Markets (2013)115

Trade Agreements

Bangladesh has some bilateral Trade Agreements

(especially with Pakistan, India and Sri Lanka) in offing.

Moreover, the country also associated with several

Regional Trade Agreements, including:116

Bangladesh benefits from the United States’

Generalised System of Preferences (GSP). These are

unilateral trade benefits from the U.S. government,

allowing duty and quota free access for some products.

The American Federation of Labour and Congress of

Industrial Organizations called since 2007 the United

States' government to suspend trade preferences to

Bangladesh under the GSP, unless the government took

steps to ensure respect for the rights of workers. A

disaster in Rana Plaza in 2013 triggered the decision

and the United States imposed trade sanctions in June

2013 due to the recurring failure to respect

fundamental workers’ rights.

Bangladesh also benefits from the EU’s unilateral

Generalised System of Preferences, Everything but

Arms (EBA), which allows duty and quota free access for

all products except arms. The EU is also in the process

of reviewing to suspend trade preferences to

Bangladesh.

Export Processing Zones (EPZ)

Bangladesh has had eight EPZs since the 1980s, run by

the Bangladesh Export Processing Zone Authority

(BEPZA). According to BEPZA, the EPZs are rising and

have even reached 406 enterprises in 2012. Around

340,000 are in employment, out of which 64 percent

are women.

Figure 20: Mode of EPZ Investment in Bangladesh117 (2012), Number of operating EPZs and %

Overall, there are almost 4.5 million garment workers in

Bangladesh at the moment, working in more than 5,000

Non-knit men's suits;

16%

Knit T-shirts; 16%

Knit Sweaters;

13%

Non-knit women's

suits; 10%

Non-knit men's

shirts; 7%

Others; 38%

EU; 45%

US; 16%

Canada; 3.8%

Turkey; 2.4%

Japan; 2.4%

Others; 30%

Foreign ownership ; 229; 56%

Joint venture ; 63; 16%

Bangladesh ownership; 114; 28%

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factories across the country, and many more workers

remain in factories which are still unregistered.

BEPZA raised Basic Wage 2013 for Garment Workers

within EPZs in December 2013 by 10 percent. Apart

from this yearly increment against the 5 percent yearly

increment on basic wage for non-EPZ factories, the EPZ

Basic Wage 2013 increased actually relatively higher

in comparison with the wage increase of those in non-

EPZ garment factories (Figure 21).

Figure 21: Bangladesh Basic Wage in EPZs118 (2010-2013) Taka and % of relative Basic Wage Increases

Collective bargaining is virtually non-existent in the

EPZs. BEPZA is not promoting CBAs in these zones.119

Special legislation prohibits workers from joining unions

in EPZs. They can also form Workers’ Welfare

Associations. Legislation, which the ILO monitoring

system has observed, violates freedom of association

and collective bargaining.

In July 2014 the government approved, in principle, the

draft of the Bangladesh Export Processing Zone (EPZ)

Labour Law to ensure the welfare of the EPZ workers

by allowing them in constitution of organizations. Trade

unions are concerned, though, that the law does not

ensure the rights of trade union in EPZs as the Welfare

Committee has authority to bargain.

According to the U.S. Country Reports on Human Rights

Practices, EPZ factory officials interpret EPZ regulations

and applicable law narrowly and claim they are

exempted from broader labor law. EPZ law specifies

certain limited associational and bargaining rights for

elected worker welfare associations, such as the rights

to bargain collectively and represent their members in

disputes.

While the EPZ law provision banning all strikes under

penalty of imprisonment expired in 2013, the law

continues to provide for strict limits on the right to strike,

such as the discretion of the BEPZA's chairman to ban

any strike he views as prejudicial to the public interest.

The law provides for EPZ labor tribunals, appellate

tribunals, and conciliators, but those institutions are not

yet established. EPZ worker associations are also

banned from establishing any connection to outside

political parties, unions, or NGOs.120

33%

32%

31%

30%

29%

27%

28%

29%

30%

31%

32%

33%

34%

0

1000

2000

3000

4000

5000

6000

7000

8000

Apprentice Helper JuniorOperator

Operator SeniorOperator

High SkilledWorker

Basic Wage 2010 Basic Wage 2013 Increases Basic Wage 2013 vs Minimum Wage

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APPENDIX: ADDITIONAL DATA

Table 27: Ratified ILO Conventions121

Subject and/or right Convention Ratification date

Fundamental Conventions

Freedom of association and collective bargaining

C087 - Freedom of Association and Protection of the Right to Organise, 1948 1972

C098 - Right to Organise and Collective Bargaining Convention, 1949 1972

Elimination of all forms of forced labour

C029 - Forced Labour Convention, 1930 1972

C105 - Abolition of Forced Labour Convention, 1957 1972

Effective abolition of child labour

C138 - Minimum Age Convention, 1973 Not ratified

C182 - Worst Forms of Child Labour Convention, 1999 2001

Elimination of discrimination in employment

C100 - Equal Remuneration Convention, 1951 1998

C111 - Discrimination (Employment and Occupation) Convention, 1958 1972

Governance Conventions

Labour inspection C081 - Labour Inspection Convention, 1947 1972

C129 - Labour Inspection (Agriculture) Convention, 1969 Not ratified

Employment policy C122 - Employment Policy Convention, 1964 Not ratified

Tripartism C144 - Tripartite Consultation (International Labour Standards) Convention, 1976 1979

Up-to-date Conventions

Working time C014 - Weekly Rest (Industry) Convention, 1921 1972

C106 - Weekly Rest (Commerce and Offices) Convention, 1957 1972

Social Security C118 - Equality of Treatment (Social Security) Convention, 1962 1972

Specific categories of workers C149 - Nursing Personnel Convention, 1977 1972

Seafarers C185 - Seafarers' Identity Documents Convention, 2003 2014

MLC - Maritime Labour Convention, 2006 2014

Fundamental Conventions are the eight most important ILO conventions that cover four fundamental principles and rights at work. Equivalent to basic human rights at work.

Governance Conventions are four conventions that the ILO has designated as important to building national institutions and capacities that serve to promote employment. In other words, conventions that promotes a well-regulated and well-functioning labour market.

In addition, there are 71 conventions, which ILO considers “up-to-date" and actively promotes.

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REFERENCES

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Practices, Bangladesh, 2014 14 THE NEW YORK TIMES, UNDER PRESSURE, BANGLADESH ADOPTS NEW LABOR LAW, JULY 16, 2013 15 ITUC, Survey of violations of trade union rights, Bangladesh 16 Overseas Employment and Migrants Act 2013, (Act No. VLVIII of 2013) - official translation 17 ILO, NATLEX, Parent's Care Act, 2013, Bangladesh 18 ILO, NATLEX, Non-Formal Education Act, 2014, Bangladesh 19 ILO, NATLEX, Country Profile Bangladesh, Basic Laws 20 ITUC, Global Rights Index, The World’s Worst Countries for Workers, 2015 21 ITUC, Countries at Risk, Violations of trade union rights, 2014, Bangladesh 22 U.S. Department of State, Annual Country Reports on Human Rights Practices, Bangladesh, 2014 23 IDWN, BILS: 797 incidents of inhuman torture on domestic workers took place in the last 10 years, March 23, 2013 24 ILO, NORMLEX, International Labour Standards country profile, Bangladesh 25 ILO, Global Wage Database 2012/13 26 U.S. Department of State, Annual Country Reports on Human Rights Practices, Bangladesh, 2014 27 IFC & World Bank, Doing Business 2014, Bangladesh 28 IFPRI, Rising Wages in Bangladesh, Discussion Paper 01249, March 2013 29 Calculations based on: ILO Global Wage Report 2014/15 & IMF World Economic Outlook Database, October 2014 30International New York Times, Bangladesh garment factories to pay minimum wage, January 24, 2014 31 ITGLWF, Union Leaders Held Captive by Factory Managers in Bangladesh, 17 February 2012 32U.S. Department of State, Annual Country Reports on Human Rights Practices, Bangladesh, 2012 33 IFPRI, Rising Wages in Bangladesh, Discussion Paper 01249, March 2013 34 U.S. Department of State, Annual Country Reports on Human Rights Practices, Bangladesh, 2014 35 ILO, Press Release, ILO calls for strengthening labour inspection worldwide, 16 November 2006 36 IndustryAll, Bangladesh Accord announces establishment of factory safety inspection standards, 15 January, 2014 37 The Economist, Ship breaking in Bangladesh: Hard to break up, Oct 27th 2012 38 ILO, Decent Work Country Profile, Bangladesh, Executive Summary, 2012

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88 World Bank, World Development Indicators DataBank 89 NSDC, National Strategy for Promotion of Gender Equality in Technical and Vocational Education and Training (TVET) 2012 90 NSDC, FUTURE GROWTH OF THE SECTOR

91 National Skills Development Council Secretariat, Bangladesh Skill Snapshot 2012: The National Skills Survey - Phase 1, 2012 92ILO, Decent Work Country Programme, Bangladesh (2012-2015) 93 ILO, Social Protection, Statistics and indicators 94 ILO, Social Protection, Statistics and indicators 95 International Social Security Association, Country Profiles, Bangladesh 96ILO, NATLEX, Labour Act, 2006 (XLII of 2006) 97Brooks World Poverty Institute, Barrientos et al., Social Assistance in Developing Countries Database, Version 5.0 July 2010 98 International Social Security Association, Country Profiles, Bangladesh 99ADB, Social Protection for Older Persons: Social Pensions in Asia, 2012 100Asian Development Bank, Bangladesh: Updating and Improving the Social Protection Index, August 2012 101 ILO, UN for immediate social protection in Bangladesh, May 22, 2014 102 CIA, World Factbook, Bangladesh 103 UNDP, Human Development Report 2013 104 World Bank & IFC, Doing Business, Methodology 105 IMF, World Economic Outlook Databases 106 ILO, Key Indicators of the Labour Market Database 107 World Bank, PovcalNet 108 IMF, World Economic Outlook Databases 109 World Bank, Worldwide Governance Indicators 110 IFC & World Bank, Ease of Doing Business 2014, Tanzania 111 World Bank, Worldwide Governance Indicators, 2013 112 World Bank, The Worldwide Governance Indicators, Methodology and Analytical Issues, Policy Research Working Paper 5430, 2010 113 McKinsey&Company, Bangladesh’s ready-made garments landscape: The challenge of growth, 2011 114 MIT, Alexander Simoes, The Observatory of Economic complexity, What does Bangladesh export? 115 European Commission, DG TRADE, Bilateral Relations, Statistics 116 Ministry of Commerce, Regional & Multilateral Trade Agreement 117 BEPZA. Annual Report 2011-12 118 RISE Society, Minimum Wage 2013 for Bangladesh Export Processiing Zones, December 26, 2013 119 ITUC, Report for the WTO General Council review of Trade policies of Republic of Bangladesh, 2012 120 U.S. Department of State, Annual Country Reports on Human Rights Practices, Bangladesh, 2014 121 ILO, NORMLEX, Country Profiles