Observation (CEACR) - adopted 2015, published 105th ILC session (2016)

Equal Remuneration Convention, 1951 (No. 100) - Bangladesh (Ratification: 1998)

The Committee notes the observations of the Bangladesh Employers’ Federation (BEF) submitted by the Government with its report.

Article 1(a) of the Convention. Definition of remuneration. The Committee recalls that section 2(xlv) of the Labour Act, excludes particular aspects of remuneration from the definition of “wages”, including in-kind emoluments such as accommodation. The Committee also recalls that section 345 of the Labour Act provides that in determining wages or fixing minimum rates of wages the principle of equal wages for male and female workers for work of “equal nature or equal value” shall be followed. The Committee notes both the Government’s and the BEF’s indication that the principle of equal wages for work of equal value is realized through the establishment of relevant laws and the Minimum Wage Board, and that there is no discrimination on the ground of sex. The Committee notes, however, that neither the Government nor the BEF have addressed its request concerning the need to expand the definition of remuneration for the Government to be in full compliance with the principle of equal remuneration for work of equal value. The Convention sets out a broad definition of remuneration, which includes not only “the ordinary, basic or minimum wage or salary” but also “any additional emoluments whatsoever … whether in cash or in kind” (Article 1(a)). The use of “any additional emoluments whatsoever” requires that all elements that a worker may receive for his or her work, including accommodation, are taken into account in the comparison of remuneration. Such additional components are often of considerable value and need to be included in the calculation. Otherwise much of what can be given a monetary value arising out of the job would not be captured (see General Survey on fundamental Conventions, 2012, paragraphs 686–687 and 690–691). The Committee requests the Government once again to take steps to broaden the scope of application of section 345 of the Labour Act to include all aspects of remuneration, and to provide specific information in this regard. In the meantime, the Committee once again requests the Government to examine the extent to which the principle of equal remuneration for men and women for work of equal value is being applied in practice in relation to those aspects of remuneration which are excluded from the definition of “wages” under section 2(xlv) of the Labour Act, and to provide information on the steps taken in this regard.

Articles 1 and 2. Assessment of the gender pay gap. The Committee recalls the findings of the 2008 ILO study “The gender wage gap in Bangladesh” and the findings of the 2007 wage survey carried out by the Bangladesh Bureau of Statistics, both of which show a wide and persistent gender pay gap. The Committee notes that the Government repeats its previous indication that there is no gender pay gap in the formal sector, without providing any statistics or other information on the earnings of men and women in the public and private sectors. The Committee notes that the Government repeats its acknowledgement that pay gaps exist in the informal sector and in unorganized small enterprises, and that the Government and media have assumed a promotional role to reduce this gap. The Committee also notes the observation by the BEF that it acknowledges that there are gender pay gaps in the small and “irregular” economies that are not subject to labour inspection, and that enforcing labour laws to small and irregular employers may result in women losing their jobs. The Committee notes the 2012 Decent Work Country Programme report on Bangladesh, which indicates that as of 2010, the labour participation rate of women is 35.98 per cent as compared to 82.51 per cent of men, and that only 7.7 per cent of these women participated in the formal economy versus 14.6 per cent of men (Bangladesh Decent Work Country Programme 2012–15, November 2012, page 4). In light of the fact that 92.3 per cent of working women are in the informal economy, the Committee wishes to stress that the principle of the Convention applies to all workers, including workers in the informal economy. It also recalls that in order to develop and implement appropriate measures in countries that have large informal economies, more information regarding the extent of pay differentials in the informal economy, as well as underlying factors perpetuating such differentials are needed, as well as more proactive measures to raise awareness to promote the principle of the Convention (General Survey on the fundamental Conventions, 2012, paragraph 665). The Committee requests the Government to take the initial steps to address the gender pay gap in the informal economy, which is the collection, analysis and systematization of information such as statistical data disaggregated at least by sex, branch of activity, and occupation or occupational group, on the nature and extent of the gender pay gap in the informal economy. The Committee also requests the Government for more information on measures taken to identify and address underlying factors perpetuating the gender pay gap in the informal economy, including studies and other measures taken to reduce the gender pay gap in this sector. The Committee also requests the Government to continue providing specific information on measures taken with a view to the effective implementation of the principle of equal remuneration for men and women for work of equal value in the formal sector, including detailed information on the contents of any training and awareness-raising activities, as well as on any relevant judicial or administrative decisions.

Article 2(2)(b). Minimum wages. The Committee recalls its previous request to the Government regarding the undervaluation of the minimum wages in sectors predominately employing women, as well as regarding the use of gender-neutral terminology in defining jobs in wage orders. The Committee notes the Government’s indication that it is aware of the minimum wage situation of female-dominated industrial sectors, and that accordingly the minimum wage of the ready-made garments industry (RMG) has been revised more frequently than other industries, seeing the minimum rise from 3,000 Bangladeshi taka (BDT) to BDT5,300 in 2013. In this regard, the Committee reiterates its previous comment that, where minimum wage rates are set by occupation, it must be ensured not only that the same wage rates apply to men and women performing a specific occupation, but also that the wage rates for female-dominated occupations are not set at a lower level than the wage rates for male-dominated occupations where the work done is of equal value. The Committee further notes that the reach of comparison between jobs performed by men and women should be as wide as possible, in the context of the level at which wage policies, systems, and structures are coordinated (General Survey on the fundamental Conventions, 2012, paragraph 698). Finally, it notes that the Government recognizes that gender-neutral terminology should be used by the Minimum Wages Board to avoid gender bias in determining wages in female dominated sectors. The Committee requests the Government to continue to provide information on the developments with respect to the coverage and rates of minimum wages. Specifically, it requests the Government to provide more information regarding measures taken or envisaged to objectively compare wage rates that apply to female- and male-dominated occupations, ensuring that in determining minimum wage rates for sectors or occupations in which women are predominantly employed, the work being undertaken is not being undervalued. Regarding the use of gender-neutral terminology in defining jobs and occupations in wage orders, the Committee invites the Government to engage with ILO’s technical assistance so that any sex-specific terminology in minimum wage orders may be addressed in a comprehensive manner.

Enforcement of wage determination machinery. The Committee recalls asking the Government for information regarding measures taken for the effective implementation of section 345 of the Labour Act, which provides that in determining wages or fixing minimum rates of wages the principle of equal wages for male and female workers for work of “equal nature or equal value” shall be followed. It notes the Government’s indication that the Department of Inspection for Factories and Establishments (DIFE) possesses the mandate to enforce provisions related to payment of wages in the Labour Act, that the Department of Labour provides training about payment of wages to representatives of employers, workers, and the Government through its industrial relations institutes (IRI) and labour welfare centres, including through a fixed course entitled “Wages: Payment of wages”. It also notes the Government’s indication that awareness-raising seminars and workshops have been organized for lawyers, judges and high-level officials, as well as its invitation to the ILO to engage with the Government for future technical assistance regarding wage fixing and related areas. The Committee requests the Government to provide more information on the mandate of the DIFE to enforce provisions related to payment of wages, including detailed information regarding the inspectors themselves such as the scope of their individual mandates as well as any training programmes they may go through that would enable them to effectively enforce the principle of equal remuneration for work of equal value between men and women in factories and establishments. The Committee also requests the Government to provide a copy of the training material for the course “Wages: Payment of wages” that is taught in the IRIs and the labour welfare centres, highlighting sections in the course that promote the principles of the Convention. It requests the Government to provide the training material used for awareness-raising seminars for judicial and governmental officers as well. Welcoming the Government’s invitation to the ILO for the provision of technical assistance in this area, the Committee hopes that such assistance will be provided in the near future and will cover the principle of equal remuneration for men and women for work of equal value.

Article 4. Cooperation with workers’ and employers’ organizations. The Committee notes the Government’s indication that wage determination in Bangladesh is conducted through at least three systems: the Wage Commission for the officers and employees employed by the Government; the Wage and Productivity Commission for public sector enterprises; and the Minimum Wages Board for workers employed in the private sector. It also notes the Government’s indication that all three systems are tripartite in constitution. Regarding the wage-setting process of public sector employees, the Government indicates that workers are consulted via structured questionnaires and other data collection procedures, after which data is collected from selected workers, union members, and members of management. The Committee also notes the Government’s indication that the Department of Labour provides training to social partners regarding relevant provisions in the Labour Act. The Committee requests the Government to provide more detailed information regarding the wage setting process in the three entities mentioned above, such as for example, information solicited from workers’ and employers’ associations throughout the wage-setting process and how that information is used as wages are ultimately determined. The Committee also requests detailed information on how the principle of equal remuneration for work of equal value is promoted with the work of the tripartite committees and within the context of the training provided by the Department of Labour to social partners.