Trade union debuts at 69 EPZ units

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For the first time in the country, 69 industrial units in Dhaka and Chittagong export processing zones (EPZ) have introduced workers’ associations on the basis of referendums by workers.

At the same time, workers of 22 industrial units have voted for not having any trade union body for themselves for yet another year.

The referendums on having workers’ associations were held from January to the middle of this month.

There are 124 more “eligible” industrial units in these two EPZs which will have to hold their referendums by 2010 as per a decision of Bangladesh Export Processing Zones Authority (Bepza) on the basis of a 2004 act on allowing trade union activities.

This is in stark contrast to the trade union scenario prevailing in the industrial units outside the EPZs.

Sources said there are 6,000 garment and textiles related factories outside the EPZs that employ over two million workers and only 122 of them have trade unions.

Although referendums are supposed to be held without any external influence and spontaneously by the workers, Bepza is putting pressure on the industry owners to hold them as soon as possible, they said.

“All of us–investors, workers and the Bepza–need to educate and prepare themselves for a healthy trade union practice. This needs gradual introduction of workers’ associations,” quipped a senior executive of an industry. “The mid-level management of each factory also needs vigorous understanding of the trade union issues. The Bepza is supposed to help us on these matters. But it has taken such a hard stance that makes the investors feel uncomfortable and friendless.”

Sources added that an American labour group that has been pushing hard for implementing trade union rights at the EPZs has mounted pressure on the government to have the associations as soon as possible.

Some of the investors are concerned by such pressure as they believe that introduction of workers’ associations should be gradual.

“We welcome trade unions. But we are concerned about undue outside and foreign influence on the trade unions. We do not want to see the typical violent face of trade union activities of Bangladesh,” said an investor, referring to last year’s violent labour unrest instigated by a section of trade unionists from outside the EPZ area.

“We urge the Bepza to make sure that the implementation of the workers’ associations strictly follows the Bepza 2004 act,” he said.

Another investor added that the Bepza management should be mature enough to handle the workers’ associations which will represent around 200,000 workers in the DEPZ and CEPZ.

Sources said some large companies at the two EPZs have been preparing themselves by holding training classes for workers and their management staff.

“Right now the workers’ situation at the EPZ seems under control. But we believe that once the country’s emergency order is lifted, things will begin to become volatile,” noted an executive.

The factories at the EPZs on an average pay 40 percent more than the factories outside the EPZs. Yet during last year’s unrest, some of the best paying factories in the EPZs came under attack by their own workers. Owners of these factories and law enforcement agencies have said this unrest was prompted by outsiders for their petty gains.

Sources said although the referendums are supposed to be held without any external influence and spontaneously by the workers, the Bepza is putting pressure on the industry owners to hold the referendums as soon as possible.

DEPZ General Manager Abdur Rashid, however, said no external pressure is there on the factories.

Bepza supplies forms to the workers and if 30 percent of them submit the forms, the Bepza organises referendum and a workers’ association is formed if 51 percent workers vote positively for it.

“The election is organised in a completely democratic way and there is no external pressure for the formation of the associations,” Rashid said.

CEPZ General Manager Ataul Haque said the main difference between Workers Representative Welfare Association and workers’ associations is that in the latter version workers get permission to talk with the management about their financial packages.

Ataul Haque said sometimes the owners tried to avoid arranging referendums claiming that the workers do not want them. But during field visits it was found that workers actually asked for referendum.

He said a few foreign companies are claiming that Bepza is forcing them to organise workers’ associations but actually the matter is in the existing rule of the country and Bepza is just asking these companies to follow the law.

“The managements of many foreign companies are worried about the workers’ associations because of a misunderstanding of the law,” Haque said.

Ashish Chakravarty, assistant general manager of Mamya-Op, a Japanese company at CEPZ producing golf shafts, said the trade unions are not a problem if the EPZ authority properly controls it. But if it turns as the traditional trade unionism like in many Bangladeshi factories, it will really create a problem for foreign investment.

Nazma Akther, president of Bangladesh Readymade Garments Labour Federation, said, “Lack of proper monitoring by the government, lack of sincerity of the owners and ignorance of workers of most factories are not complying with the law.”

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