Improving industrial relations: The importance of social dialogue in Bangladesh

The International Labour Organization (ILO) Country Office in Dhaka is closely monitoring the labour unrest in Ready-Made Garment (RMG) and other sectors arising from a range of worker grievances, highlighting significant systemic issues that demand urgent attention and resolution.

The ILO acknowledges the complexities surrounding these challenges and underscores the importance of constructive dialogue among employers and factory owners, workers, and government representatives. It is  essential for all parties to engage in good faith, working collaboratively towards fair and equitable solutions that uphold workers' rights while ensuring the economic sustainability of the factories.

The ILO commends the RMG industry for the landmark agreement reached between workers and employers in Bangladesh’s Ashulia area, on the outskirts of Dhaka, reached on 24 September, after days of escalating labour unrest, that has raised hopes for harmonious industrial relations and long-term peace in the sector.

Social dialogue, which involves collaboration among different stakeholders to find solutions and resolve disputes, is a crucial tool for good governance. It not only supports sustainable business practices and better working conditions but also contributes to advancing social justice and decent work for all.

The ILO identifies several key areas where action is required:

1. Wage structure and policy reform: Developing an evidence-based, gender-responsive national wage policy is vital for regular and fair wage setting. Reforming the minimum wage mechanism and ensuring inclusive consultations between employers and workers will help address wage-related grievances including the move towards providing living wages. Sectoral wage boards and strong collective bargaining mechanisms must be established to prevent and de-escalate unrest related to wages and working conditions.
2. Labour law reform and strengthened legal protections: Amendments to the Bangladesh Labour Act, aligned with international labour standards, are needed to expand coverage to all workers, including those in the informal sector and export processing zones (EPZs). The reform should strengthen mechanisms for resolving labour disputes, enhance wage protections, and simplify the processes for trade union registration.
3. A strong national industrial relations system: A robust and transparent national industrial relations system is essential for addressing disputes early and preventing them from escalating into violence. This should include the introduction of an independent alternative dispute resolution institution and reforms to the labour court system to improve case management. Addressing anti-union discrimination cases is also a vital step toward promoting industrial peace.
4. Social protection: The Employment Injury Scheme, currently piloted for garment workers, should be institutionalized, legislated, and gradually extended to other sectors. Establishing a comprehensive social protection system, aligned with ILO conventions, will boost workers' safety and well-being while enhancing Bangladesh’s global competitiveness.
5. Occupational safety and health (OSH): The ILO encourages the Government of Bangladesh to ratify OSH conventions No. 155 and No. 187 and to develop a comprehensive national OSH system. This will promote a culture of safety across all sectors of the economy.

The ILO calls on all stakeholders to work for improvement of the industrial relations system through constructive social dialogue. This collaboration is essential not only for the stability of the RMG sector but also for the broader economic and social well-being of Bangladesh. Through shared effort and commitment, we are optimistic that peaceful and productive industrial relations can be achieved, benefiting all parties involved.

On the sidelines of the United Nations General Assembly in New York on September 26, 2024, ILO Director-General Gilbert F. Houngbo met with Dr. Mohammad Yunus, Honourable Chief Adviser, to discuss the interim Government's priorities. The discussions focused on employment creation and labour reforms, and the ILO's role in supporting these initiatives.

The ILO remains dedicated to supporting Bangladesh on its journey towards sustainable and inclusive economic growth, underpinned by the promotion of decent work, labour rights, and social justice.