Observation (CEACR) - adopted 2014, published 104th ILC session (2015)

Labour Inspection Convention, 1947 (No. 81) - Bangladesh (Ratification: 1972)

Follow-up to the discussion of the Committee on the Application of Standards (International Labour Conference, 103rd Session, May–June 2014)

The Committee notes the discussion in the Committee on the Application of Standards (CAS) on the application of this Convention, as well as the Government’s report received on 18 September 2014 and the joint observations of the International Organisation of Employers (IOE) and the Bangladesh Employers’ Federation (BEF), received on 28 August 2014, and the observations of the International Trade Union Confederation (ITUC), received on 31 August 2014.

The Committee notes that the discussion in the CAS concerned the need to strengthen the labour inspection system, in the light of recent serious events, such as the Rana Plaza building collapse, and in particular: (1) the technical assistance activities to improve occupational safety and health (OSH) standards in the ready-made garment (RMG) sector; (2) the strengthening of the human capital and resources available to the labour inspectorate, including transport facilities; (3) the adoption of regulations implementing the revised Labour Act and the promulgation of additional amendments to the Labour Act; (4) sufficiently dissuasive sanctions and effective enforcement mechanisms; (5) the protection of workers in export processing zones (EPZs); and (6) the publication and communication to the ILO of an annual labour inspection report.

The Committee notes that, following the invitation by the CAS to accept a direct contacts mission, the Government indicated its willingness to extend the necessary support and cooperation for such a mission, to be scheduled in the first half of 2015.

1. Technical assistance activities concerning the RMG sector

Articles 2, 3(1)(a) and (b), 5(a), 13, 17 and 18 of the Convention. Inspection activities in the RMG sector. Cooperation of the labour inspectorate and other public or private institutions engaged in similar activities. The Committee notes the reference made, during the discussions in the CAS, to the various activities and programmes undertaken by the Government and the social partners with ILO support, as well as those being implemented with other actors to improve OSH standards in factories in the RMG sector. They include: the National Tripartite Plan of Action on Fire Safety and Structural Integrity (NTPA); a major ILO initiative (including a Better Work Programme); the European Union Global Sustainability Compact for Continuous Improvements in Labour Rights; the Accord on Fire and Building Safety, an agreement between global unions and a European-dominated group of retailers and apparel brands (Accord); and the Alliance for Bangladesh Worker Safety, an alliance of predominantly American retailers and apparel brands (Alliance).

The Committee notes the information from the website of the Department of Inspection for Factories and Establishments (DIFE) on the progress made (as of 15 September 2014) with the assessment initiatives of the NTPA, the Accord and the Alliance, concerning the structural integrity, as well as the fire and electrical safety of RMG factories. In this regard, it notes that the public building assessment initiative of the NTPA, carried out by the Bangladesh University of Engineering and Technology under the supervision of the National Tripartite Committee, inspected 380 of the targeted 1,500 RMG factories. It further notes that the private assessment initiatives, namely the Accord and the Alliance inspected 1,094 (of the 1,400 targeted RMG factories) and 587 (of the 587 targeted RMG factories), respectively. The Committee further notes from the information available on the Accord’s website that the Accord inspections have identified more than 80,000 safety issues and that more than 400 corrective action plans were finalized by the factories and companies and signatories, and approved by the Chief Labour Inspector.

The Committee notes that the ITUC deplores the lack of progress made by the NTPA concerning the achievement of the abovementioned assessment target of 1,500 inspections by the end of 2014. The Committee recalls that discussions in the CAS also concerned the serious lack of coordination and cooperation among relevant government agencies and private institutions on building and fire safety and labour inspection. The Committee requests the Government to continue to provide detailed information on the activities undertaken to improve OSH conditions in the RMG sector in the framework of the various activities and programmes for this purpose and urges the Government to take the necessary measures to strengthen and expedite inspections on structural integrity. The Committee also invites the Government to provide information on any measures taken or envisaged to promote coordination and cooperation among the labour inspection services, and the other public and private initiatives concerned with the structural integrity, fire and electrical safety of factory buildings (such as joint inspection visits, the exchange of relevant information, etc.).

Please also provide information on the results of the abovementioned assessment initiatives (for example, number of inspections carried out, number and nature of cases of non-compliance with the legal obligations detected, and number of penalties imposed as well as the preventive measures taken with a view to remedying defects observed which might constitute a threat to the health or safety of the workers, including measures with immediate executory force).

2. Strengthening of the resources available to the labour inspectorate, including transport facilities

Articles 7, 10 and 11. Strengthening of the human and material resources of the labour inspectorate. Training of labour inspectors. The Committee notes the indications of the Government and the IOE on the progress made in the strengthening and restructuring of the labour inspectorate, including the upgrading of the Inspection Directorate to the level of an Inspection Department, its enlargement to encompass offices in 23 districts, and the proposed threefold increase of the Department’s human and budgetary resources. In this regard, the Committee notes the proposed increase in the number of labour inspectors from 183 to 575 and the proposed increase in the budget from 60.29 billion Bangladesh taka (BDT) in 2013–14 (approximately US$781,310) to BDT150.55 billion in 2014–15 (approximately US$1,953,925). It notes that of the 392 additional labour inspection posts that were approved, 88 new labour inspectors have been recruited and provided with basic training. The Committee also notes the Government’s reference to four-week training courses for labour inspectors at the Industrial Relations Institutes at the Department of Labour on a regular basis. It notes that further training will be provided with ILO technical assistance.

The Committee notes that the ITUC emphasizes the critical need for additional labour inspectors and that the numerous delays in their recruitment call into question the Government’s sense of urgency, and ultimately its commitment to build up a proper labour inspection service. The ITUC expresses the view that the recruitment of 200 additional labour inspectors, which the Government had committed to do by the end of 2013, has not yet been achieved, and falls short of the supervisory requirements for the RMG sector with 4 million workers and does not address issues outside of this sector where the majority of workers are employed.

The Committee further notes the information provided by the ITUC that transportation for inspectors is extremely limited or non-existent and that most inspectors rely on public transportation to get to factories in the absence of dedicated agency vehicles. According to the ITUC, this may prevent the timely inspection of a factory and opens the door for employers to corrupt the inspectors, who are in fact paying for transportation and other costs. In this regard, the Committee notes that the Government indicates that factory inspectors are being provided with vehicles for the discharge of their duties. The Government states in its report that the ILO has undertaken to provide motorcycles for labour inspectors, which will increase labour inspector’s mobility. The Committee once again urges the Government to strengthen its efforts to furnish the labour inspectorate with the resources that it needs to operate effectively. Welcoming the initial steps already taken by the Government, the Committee expresses the firm hope that the Government will, without further delay, fill the labour inspection posts that have already been approved, and recruit an adequate number of qualified labour inspectors in relation to the number of workplaces liable to inspection. The Committee requests the Government to continue to provide information on the improvement in the resources, and the material and transport facilities available to the labour inspection services, and detailed information on the training provided to labour inspectors (including on the frequency, subjects and duration of training, as well as the number of participants).

3. Legislative reforms

Article 28. Information on laws and regulations. Regulations implementing the revised Labour Act. The Committee notes the Government’s indications that, through consultation with different stakeholders, draft rules implementing the revised Labour Act have been prepared and are in the process of being finalized. It notes that following a request made by the Government, the Office examined these draft rules, including with regard to labour inspection and OSH, and transmitted its comments to the Government. However, the observations of the ITUC indicate that the key ILO comments on the draft have not been fully implemented, including with regard to OSH. It further notes the indications made by the ITUC that no efforts are being taken to further amend the Labour Act, as previously announced by the Government, so as to bring it into conformity with international labour standards. The Committee encourages the Government to take into account the comments of the Office in the finalization of the implementing rules. It asks the Government to provide information on the progress made with the adoption of these rules, and supply a copy of them, once they have been adopted. The Government is also asked to provide information on any action taken for the further review of the Labour Act.

4. Sufficiently dissuasive sanctions and effective enforcement mechanisms

Articles 17 and 18. Legal proceedings and effective enforcement of adequate penalties. The Committee notes that the Government has not provided the requested information on the number of violations detected, the number of cases filed with the labour courts and their outcome. It also notes that following the 2013 amendments to the Labour Code, the level of penalties to be imposed for general violation of the Labour Code increased from BDT5,000 to BDT25,000 (approximately US$65 to US$325). Further, under the 2013 amendments, fines for obstructing labour inspectors from carrying out their duties rose from BDT5,000 to BDT25,000, approximately US$325.

In this regard, it notes the indications of the ITUC, according to which the enforcement of the law remains a serious challenge. The ITUC recalls that labour inspectors do not have the power to issue fines, and can only report cases of non-compliance to the courts. Neither the Directorate of Labour nor the DIFE has legal staff, and factory owners often hire experienced lawyers to fight the charges brought to the courts, quickly overwhelming the under-resourced labour inspectors and investigators and preventing penalties from being enforced. According to the ITUC, fines for violations generally still remain far too low to be dissuasive and are not enforced due to lengthy legal processes and corruption. The ITUC indicates that fines under the Labour Act remain negligible. The Committee also notes the indications of the IOE that the maximum period of imprisonment for obstruction of inspectors had increased to six months of imprisonment. The ITUC further indicates that it is unaware of any criminal proceedings pending for any violation of the Labour Act, except for those relating to the Rana Plaza case. As the data is not available, it is also unaware of the extent to which any fines or penalties are imposed and collected.

The Committee also notes the observations of the IOE, according to which three additional labour courts need to be established in three additional administrative divisions. The Committee requests that the Government provide information on the measures taken to ensure that the level of fines introduced is sufficiently dissuasive and that these fines are effectively enforced. The Committee once again requests that the Government provide information on the number of violations detected (including the number of violations relating to OSH), the number of cases filed with the labour courts and their outcome (including the number of convictions in relation to the infringements reported, amount of fines imposed, etc.).

5. The protection of workers in export processing zones (EPZs)

Articles 2, 4 and 23. Labour inspection in EPZs. The Committee notes the Government’s indications given during the discussions in the CAS that the Bangladesh Export Processing Zones Authority (BEPZA) remains responsible for ensuring the rights and privileges of the workers of enterprises operating in EPZs. The Committee further notes the conclusions of the CAS, according to which the Government should prioritize the amendments to the legislation governing EPZs, so as to bring the EPZs within the purview of the labour inspectorate. In this regard, the Committee notes the Government’s indications in its report that a separate draft Labour Act for EPZs was prepared, and is waiting for placement in Parliament for adoption. It notes that following a request made by the Government, the Office examined the draft Labour Act for EPZs, including with regard to labour inspection, and transmitted its comments to the Government.

The Committee notes that, according to the information contained on the BEPZA’s website, “the BEPZA is the official organ of the government to promote, attract and facilitate foreign investment in the EPZs. The primary objective of an EPZ is to provide special areas where potential investors would find a congenial investment climate, free from cumbersome procedures”. The Committee notes the repeated indications of the Government that the 60 counsellors working in EPZs are responsible for ensuring the rights of workers and safe and healthy working conditions.

The Committee notes that the ITUC expresses particular concern at the fact that EPZs, employing roughly 400,000 workers are still excluded from the scope of the Labour Act, and that labour inspectors therefore have no mandate to conduct labour inspections in EPZs. Counsellors undertake limited grievance handling, but there is no labour inspection in EPZs. It further notes the indications of the ITUC that the draft Labour Act for EPZs raises a number of concerns and in particular that: (i) labour inspection and enforcement in EPZs remain vested with the BEPZA without any responsibility given to labour inspectors; (ii) the powers and functions of the EPZ Labour Courts and the EPZ Labour Appellate Tribunal established under the draft Labour Act for EPZs are severely restricted in comparison with courts under the Bangladesh Labour Act (for example, workers have to seek authorization of the executive chairman of the BEPZA to bring a criminal case against an employer); and (iii) the enforcement of a number of provisions will depend on the implementing rules and regulations elaborated by the Government and the BEPZA, to which workers are not expected to be given the opportunity to contribute.

The Committee notes that the Government has not provided the requested information on the activities of the bodies responsible for inspections in EPZs; in particular it has not provided relevant statistical data, the number of industrial accidents and cases of occupational diseases. The Committee asks the Government to provide information on the measures taken so as to bring the EPZs within the purview of the labour inspectorate. In this respect, it encourages the Government to take into account the comments of the Office on the draft Labour Act for EPZs. It further requests the Government to provide information on the activities of the staff responsible for the enforcement of the legal provisions relating to conditions of work and the protection of workers in EPZs (including the number of violations detected and the penalties imposed), and statistics on the number and nature of industrial accidents and cases of occupational diseases that occurred in EPZs.

6. Publication and communication to the ILO of an annual labour inspection report

Articles 20 and 21. Publication of an annual labour inspection report. The Committee notes that once again no annual report on the work of the labour inspection services has been received by the Office. In addition, no statistical information was provided by the Government on the number of labour inspections carried out, the number of violations detected, the penalties imposed and the registered industrial accidents and cases of occupational disease. The Committee previously noted that the Government expressed the need for technical assistance for the development of improved data management systems. In this regard, the Committee notes with interest the Government’s indications that a publicly accessible database system for labour inspections in the RMG sector was launched in March 2014 with ILO technical assistance, and is now available on the website of the DIFE. The Committee notes that the website contains a list of RMG factories, the number of workers employed therein, the number of inspections carried out by the Alliance, Accord and NTPA, as well as electronic copies of inspection reports of the Alliance, Accord and NTPA in individual RMG factories (including the shortcomings identified and relevant measures recommended). It also notes the information on the total number of factories that were closed or partially closed, as a result of the inspections by the Alliance, Accord and NTPA.

The Committee notes the indications of the ITUC that reporting on labour inspection is infrequent and incomplete, and that transparency on the public and private inspection initiatives leaves much to be desired. The ITUC states the RMG sector database of the DIFE contains no information on the penalty procedures initiated, in the event of non-compliance with the legal observations detected. Noting the measures already taken in relation to the collection of inspection data in the RMG sector, the Committee asks the Government to indicate the measures taken with a view to setting up a register of all workplaces liable to inspection and the workers employed therein, as well as the collection of inspection data in other sectors. It also asks the Government to provide information on measures taken with a view to the fulfilment by the central inspection authority of its obligation to publish and transmit to the ILO an annual report in accordance with Articles 20 and 21 of the Convention. The Committee asks the Government to continue avail itself of technical assistance of the Office for this purpose.

The Committee is raising other matters in a request addressed directly to the Government.

[The Government is asked to report in detail in 2015.]