Labour Market Profile - Ulandssekretariatet · The LO/FTF Council presents this Labour Market...
Transcript of Labour Market Profile - Ulandssekretariatet · The LO/FTF Council presents this Labour Market...
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$68), an increase of 74 percent, after protests and
strikes in the crisis-hit industry.
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
Bangladesh 2015 Page 6
Table 6: Wages and Earnings Monthly average, median and Legal Minimum Wages
Source Taka US$
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
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
Bangladesh 2015 Page 7
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.
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
Bangladesh 2015 Page 8
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)
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
Bangladesh 2015 Page 9
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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Bangladesh 2015 Page 10
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 %
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
Bangladesh 2015 Page 11
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
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
Bangladesh 2015 Page 12
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
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
Bangladesh 2015 Page 13
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
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
Bangladesh 2015 Page 14
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
Danish Trade Council for International Development and Cooperation
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Bangladesh 2015 Page 15
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
Danish Trade Council for International Development and Cooperation
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Bangladesh 2015 Page 16
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$227
million).
There are five major labour market programs and they
cover 35 percent of the total social protection
expenditure. They have 10.2 million beneficiaries,
which is a quite large number of total social protection
beneficiaries, i.e. 36 percent.100
In 2012 the government drafted a national social
protection strategy. It remains as a third draft from
January 2014, and awaits finalization. The United
Nations has now called for political leadership with a
sense of urgency for a comprehensive social protection
system.101
Although informal sector workers are not entitled for
any forms of social protection, in November 2013, the
government introduced a five-year group insurance
scheme for the construction workers. The annual
premium per worker has been set at Tk 1,300 out of
which each worker has to deposit Tk 450 and the
ministry Tk 850. BILS was actively involved in the whole
process of insurance.
5%
15%
25%
35%
45%
55%
65%
1995 2000 2005 2006 2007 2008 2009 2010 2011
Bangladesh Cambodia Myanmar
Nepal Pakistan Philippines
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
Bangladesh 2015 Page 17
GENERAL ECONOMIC PERFORMANCE
Bangladesh has a combined widespread of poverty
and economic backwardness but holds a social
progress. This progress has been caused by improved
status of women, increased rural incomes, maintained
social spending and influential non-governmental
organisations.
Table 22: Key Facts102 (2014 est.)
GDP (US$)
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)
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
Bangladesh 2015 Page 18
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
Danish Trade Council for International Development and Cooperation
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Bangladesh 2015 Page 19
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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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
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