Observation (CEACR) - adopted 1995, published 83rd ILC session (1996)

Right to Organise and Collective Bargaining Convention, 1949 (No. 98) - Bangladesh (Ratification: 1972)

The Committee notes the information supplied by the Government in its report, as well as the statement made by the Government representative at the Conference Committee in June 1994 and the discussion which took place thereafter.

Voluntary bargaining in the private sector

The Committee had observed previously that section 7(2) of the Industrial Relations Ordinance, 1969 (IRO), read with sections 22 and 22A, could serve to impair the development of effective bargaining in the small business sector by inhibiting the development of industry or sectoral unions.

In response to the Committee's request the previous year for information on the measures taken in practice to encourage and promote collective bargaining, particularly in the small business sector, the Government indicates that in 1993 for instance, 209 collective bargaining agreements were concluded. However, in the small business sector where collective bargaining is not adequately developed, the Minimum Wages Board (MWB) determines minimum wages and other fringe benefits. Thus, minimum wages have been fixed in 38 industries, and those in other small businesses are in the process of being revised.

The Committee would once again point out, however, that collective bargaining is not developed in small establishments because sections 7(2), 22 and 22A of the IRO, 1969, appear to inhibit the establishment of "sectoral" or "industry" unions. It therefore once again requests the Government to take the necessary steps to remove the requirement: (a) in section 7(2) that, in order to be registered under the IRO, a trade union must have a membership of at least 30 per cent of the total number of workers in the establishment or group of establishments in which it is formed; and (b) in sections 22 and 22A of the IRO that only unions which are registered in accordance with section 7 may become collective bargaining agents.

Voluntary bargaining in the public sector

For some years the Committee has been expressing its concern in relation to the development of collective bargaining in the public sector, and in particular the practice of determining wage rates and other conditions of employment by means of government-appointed Wages Commissions.

In its report, the Government replies that although wages and fringe benefits are determined by wages and pay Commissions, the management of public and semi-public enterprises do negotiate with plant-level collective bargaining agents and their federations on problems and anomalies arising from the implementation of the recommendations of the various commissions. The Government, on a higher level, also negotiates informally with trade union federations; hence collective bargaining principles are very much respected in Bangladesh.

In the light of this reply, the Committee can only reiterate that conformity with Article 4 of the Convention requires that the Government take steps to encourage and promote the development and utilization of machinery for the voluntary negotiation of collective agreements; in this respect, it draws the Government's attention to paragraphs 244 to 248 and 261 to 265 of its 1994 General Survey on freedom of association and collective bargaining.

Protection against interference

While sections 15 and 16 of the IRO of 1969 are designed to provide protection against acts of anti-union discrimination, the Committee had asked the Government to review its legislation with a view to adopting an appropriate measure of protection against "acts of interference" for purposes of Article 2 of the Convention, which seek to ensure that no employer or employee organizations may support any organization of workers by financial or other means with a view to placing such organization under the control of the employer organization.

The Government indicates that the tripartite National Labour Law Commission set up in 1992 has recommended that these provisions be amended for wider coverage; these recommendations are under the active consideration of the Government.

The Committee requests the Government to keep it informed of any developments in respect of such eventual amendments.

Denial of right to engage in collective bargaining for workers in export processing zones

The Committee had requested the Government to take steps to amend section 11A of the Bangladesh Export Processing Zones Authority Act 1980, since it denied workers in such zones (EPZs) the rights guaranteed by Articles 1, 2 and 4 of the Convention.

The Government, in its report, repeats its argument that the said provision is intended to promote investment and generate employment opportunities and to improve the balance of payment position with added foreign exchange earnings needed for the growth of the economy. It adds that EPZs are now an issue not only in Bangladesh but also in an increasing number of countries in Asia, and are therefore a reality which cannot be ignored.

While aware that reasons of national economic development are behind the setting up of these EPZs, the Committee would once again stress that a blanket denial to a whole category of workers of the protections and rights defined in the Convention constitute a violation of the Convention. It also draws the Government's attention to the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, adopted by the ILO Governing Body in 1977, which states in paragraph 45 that "where governments of host countries offer special incentives to attract foreign investment, these incentives should not include any limitation of the workers' freedom of association or the right to organize and bargain collectively". The Committee, therefore, would request the Government to take steps to amend the 1980 Act so as to bring it into conformity with the Convention.

Finally, the Committee understands from the statement of the Government representative at the Conference Committee in June 1994, that the recommendations of the National Labour Law Commission, which is tripartite in structure and includes eminent legal experts, deal with all the points mentioned in the Committee's previous report, and were submitted to the Prime Minister on 4 June 1994. In addition, the Tripartite Labour Committee headed by the Minister of Labour and Manpower, as well as the Parliamentary Standing Committee on Labour Matters (in which opposition parliamentary members are represented) would provide their input into the drafting of a comprehensive labour code.

The Committee would request the Government to keep it informed on any progress made in the preparation of this new labour code, including whether it contains all or some of the recommendations of the National Labour Law Commission. The Committee would further request the Government to provide it with a copy of this draft labour code once it has been fully drawn up.