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" ! COMMITTEE PRINT 113TH CONGRESS

1st Session 

S. PRT. 

2013

113–22 

WORKER SAFETY AND LABOR RIGHTS IN 

BANGLADESH’S GARMENT SECTOR 

A MAJORITY STAFF REPORT 

PREPARED FOR THE USE OF THE 

COMMITTEE ON FOREIGN RELATIONS 

UNITED STATES SENATE 

ONE HUNDRED THIRTEENTH CONGRESS

FIRST SESSION

NOVEMBER 22, 2013 

Printed for the use of the Committee on Foreign Relations 

Available via World Wide Web: 

http://www.gpoaccess.gov/congress/index.html 

COMMITTEE ON FOREIGN RELATIONS

ROBERT MENENDEZ, New Jersey, Chairman

BARBARA BOXER, California 

BENJAMIN L. CARDIN, Maryland 

JEANNE SHAHEEN, New Hampshire 

CHRISTOPHER A. COONS, Delaware 

RICHARD J. DURBIN, Illinois 

TOM UDALL, New Mexico 

CHRISTOPHER MURPHY, Connecticut 

TIM KAINE, Virginia 

EDWARD J. MARKEY, Massachusetts 

BOB CORKER, Tennessee 

JAMES E. RISCH, Idaho 

MARCO RUBIO, Florida 

RON JOHNSON, Wisconsin 

JEFF FLAKE, Arizona 

JOHN McCAIN, Arizona 

JOHN BARRASSO, Wyoming 

RAND PAUL, Kentucky 

DANIEL E. O’BRIEN, Democratic Staff Director

LESTER E. MUNSON III, Republican Staff Director

(II)

C O N T E N T S 

Page 

Letter of Transmittal ............................................................................................... v 

Executive Summary ................................................................................................. 1 

Key Recommendations ............................................................................................ 1 

Tazreen, Rana Plaza, and the Need for Organized Labor .................................... 2 

The Past, Present, and Future of Bangladesh’s RMG Industry .......................... 3 

Fire and Building Safety in Bangladesh’s RMG Industry ................................... 5 

Bangladesh’s National Action Plan .................................................................... 5 

U.S., EU, ILO Plans ............................................................................................. 6 

Apparel Companies and Worker Safety ............................................................. 7 

Labor Rights and Relations in Bangladesh’s RMG Industry ............................... 8 

Labor Law Reform ............................................................................................... 8 

Union Registration and Organization ................................................................ 10 

Apparel Companies and Labor Rights ............................................................... 11 

Labor-Related Foreign Assistance ...................................................................... 11 

Conclusion ................................................................................................................ 12 

Full List of Recommendations ................................................................................ 13 

(III)

LETTER OF TRANSMITTAL 

UNITED STATES SENATE, 

COMMITTEE ON FOREIGN RELATIONS, 

Washington, DC, November 21, 2013. 

DEAR COLLEAGUES: This report by the committee’s majority staff 

examines the progress made on worker safety and labor rights in 

the Bangladesh garment industry since the Tazreen Fashions factory fire in November 2012 and the Rana Plaza factory collapse in 

April 2013. It is based on a field visit by the committee’s majority 

staff to Bangladesh in August 2013, as well as extensive staff meetings with experts and stakeholders in Washington, D.C. 

Bangladesh is a country of strategic interest to the United 

States. The continued growth of its garment sector is critical to 

supporting the country’s economic development, a goal our country 

enthusiastically supports. While much attention has been paid to 

improving fire and building safety in the garment sector, more efforts are needed to improve labor rights and empower workers to 

ensure their own safety. 

This report provides practical and timely recommendations for 

the U.S. Government and other stakeholders to safeguard and 

advance recent gains in labor rights for Bangladesh’s garment 

workers. 

Sincerely, 

ROBERT MENENDEZ, 

Chairman. 

(V)

(1) 

WORKER SAFETY AND LABOR RIGHTS IN 

BANGLADESH’S GARMENT SECTOR 

EXECUTIVE SUMMARY

Two terrible tragedies occurring within 7 months of each other 

in the Bangladesh garment sector killed over 1,200 workers and 

galvanized the world’s attention around the issue of worker safety 

in the country. Global retailers, foreign governments, and international organizations were spurred to action. These stakeholders 

launched several parallel initiatives to improve fire and building 

safety and efforts are underway to inspect every garment factory 

in Bangladesh. While much remains to be done to ensure that all 

of Bangladesh’s factories are safe from fire or collapse, the mechanisms are in place, the political will exists, and vigilant observers 

are watching every step. 

But ultimately, workers are best placed to oversee their own 

safety, and their empowerment to do so is best achieved through 

independent, representative labor unions. Unfortunately, union 

presence is still nominal and collective bargaining is virtually nonexistent in Bangladesh’s garment industry. A few small programs 

are working to change that, but far more will be required if Bangladesh’s workers are to have truly safe, healthy, and decent working conditions. Principally, a fundamental shift in attitudes toward 

collective bargaining and the right to organize is required among 

all stakeholders, especially factory owners, global brands, and the 

government of Bangladesh. 

Expanding the role of organized labor in Bangladesh now is imperative. An active labor movement is the best bulwark against another tragic accident. Improved awareness among American and 

European consumers is part of the push for better working conditions in Bangladesh. But the country’s garment industry will increasingly produce for clients in markets that are not as discerning 

as European and American retailers when it comes to demanding 

compliance with health and safety standards, so strong unions will 

be needed to ensure the sustainability of current safety efforts. 

Most importantly, what happens in Bangladesh could have a dramatic ripple effect on the global apparel industry. Improving workers’ rights in Bangladesh can help end the ‘‘race to the bottom’’ and 

lift labor standards in other growing economies like Burma and 

Vietnam. 

KEY RECOMMENDATIONS

• The United States Government should hold the government of 

Bangladesh to the highest standards in implementing the action plan to reinstate U.S. Generalized System of Preferences 

(GSP) benefits, especially provisions pertaining to labor law reVerDate Nov 24 2008 14:19 Nov 22, 2013 Jkt 000000 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 S:\FULL COMMITTEE\HEARING FILES\113TH CONGRESS, 1ST SESSION\TOPIC REPOR
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form and protecting the freedom of association and the rights 

to organize and bargain collectively. 

• The United States government should increase funding for 

technical assistance programs in Bangladesh, such as those 

run by the AFL–CIO’s Solidarity Center, that improve workers’ 

capacity to organize and engage in collective bargaining. 

• Apparel brands and retailers, especially those with very large 

operations in Bangladesh like Wal-Mart, Gap, and others in 

the Alliance for Bangladesh Worker Safety, should, in coordination with the ILO, launch long-term, well-resourced programs to educate their suppliers in Bangladesh on their expectation for compliance with laws allowing the right to organize 

unions and bargain collectively. They should also collectively 

develop and implement a policy of zero-tolerance for suppliers 

who consistently engage in anti-union activity. 

• The government of Bangladesh and the Bangladesh Garment 

Manufacturers and Exporters Association should immediately 

develop and implement tough and effective sanctions against 

factory owners who do not comply with Bangladeshi laws by 

engaging in anti-union activity, and advance progress in sanctioning owners who do not comply with required safety standards. 

• The next government of Bangladesh should act quickly to reform the existing legal framework, including labor laws for Export Processing Zones, to bring them into conformity with 

international labor standards. 

TAZREEN, RANA PLAZA, 

AND THE NEED FOR ORGANIZED LABOR

On November 24, 2012, a fire started on the ground floor of the 

Tazreen Fashions factory in Bangladesh, where managers had illegally stored large mounds of fabric and yarn. Fire alarms went off 

on the factory’s 8 floors, alerting the 1,150 workers inside of the 

mortal danger below. Yet managers on some floors, thinking it was 

a false alarm and worried about meeting production quotas, ordered workers to ignore the alarms and continue working. Workers 

who tried to escape down stairwells found them locked or choked 

with toxic smoke and impassable. Those workers could not demand 

safe working conditions from their employers because they had no 

voice, they had no union representation, and 112 lost their lives.1

Five months later and less than ten miles away, the workers of 

Rana Plaza refused to enter the building that housed their factories because they feared it would collapse. Managers threatened 

to withhold their pay and the workers, desperate for their meager 

average monthly income of $74 and lacking union representation 

and a unified voice, reluctantly entered the building. The building 

collapsed later that day, killing 1,131 and injuring hundreds. Simply put, had the workers of Tazreen Fashions or Rana Plaza belonged to strong, independent unions, they would not have perished 

in such tragic circumstances. 

Since Rana Plaza, just 7 months ago, at least 27 garment workers have been killed and nearly 760 injured in factory fires across 

Bangladesh. 

3 

As a result of the Tazreen Fashions factory fire and the collapse 

of Rana Plaza, several important initiatives are now underway in 

Bangladesh to address fire and building safety in garment factories. But Bangladesh’s garment workers will never have truly 

safe, healthy and decent working conditions until they have the 

ability to speak with a unified voice that is respected by their employers. Greater worker representation, in the form of labor unions, 

will give Bangladesh’s garment workers the power to enforce their 

rights under the law. Unfortunately, many barriers still exist to 

greater worker representation in Bangladesh. 

Chiefly, garment factory owners and managers have serious 

misperceptions regarding the role of organized labor and the potential of constructive labor relations. For their part, workers are 

largely uninformed about their rights to associate, organize, and 

bargain collectively. A sustained effort to educate employers and 

workers about these rights will be required before Bangladesh’s 

garment factories can enjoy the benefits of an empowered workforce. 

This report is based on a trip to Dhaka made by committee staff 

in late August 2013, where staff toured garment factories and met 

with workers, owners, Bangladeshi government officials, union organizers, labor activists, civil society groups, aid workers, brand 

representatives and U.S. diplomats. Committee staff also held 

many meetings in Washington, D.C. with retail bodies, labor 

groups and international organizations, among others. Senator 

Menendez also chaired a hearing on Bangladeshi labor issues on 

June 6, 2013. This report will briefly review the development and 

future potential of Bangladesh’s ready-made garment (RMG) sector, evaluate current initiatives underway to improve fire and 

building safety in RMG factories, and assess efforts and barriers to 

enhancing workers’ rights in the RMG industry. 

THE PAST, PRESENT, AND FUTURE OF

BANGLADESH’S RMG INDUSTRY

Bangladesh’s thriving RMG industry has grown from $12,000 in exports in 1978 to $21.5 billion in 2012-13, and now accounts for 

about 80 percent of total exports.2 The Multifiber Arrangement 

(MFA), which started in 1974 and set quotas on garment exports 

to developed countries, spurred early growth in Bangladesh’s RMG 

industry by providing competitive access to foreign markets. Bangladesh’s low cost of labor and high capacity fueled growth when 

the quota system expired. The industry now directly employs some 

4 million Bangladeshis, 80 percent of whom are women, mostly 

from poor rural households. The sector is estimated to support an 

additional 8 million tertiary jobs.3

With factories concentrated in and around the capital city of 

Dhaka, the RMG sector has been a major driver of urbanization in 

Bangladesh.4 But such rapid growth created serious hazards: the 

demand for more capacity has led to garment factories sprouting 

up in apartment buildings and other multi-use structures not built 

to safely handle large numbers of workers and machines. While fire 

and building safety standards may have existed on the books, Bangladesh’s government had neither the capacity nor the political will 

to enforce them.5

4 

The major factor behind the lack of political will is the enormous 

political clout wielded by RMG factory owners in Bangladesh. According to one Bangladesh government official, nearly every Member of Parliament has close ties to factory owners and many are direct owners themselves. Many of Bangladesh’s RMG factory owners 

are members of the elite, controlling significant media interests 

and exerting political influence.6 Some are satisfied with the status 

quo, but others recognize the need for change: following the two recent tragedies, factory owners are reportedly now questioned by 

friends at social gatherings about their factory’s level of safety compliance. Second- and third-generation factory owners are reportedly 

much more focused on compliance than first-generation entrepreneurs, but they only make up about 10-15 percent of owners.7

The garment sector is dominated by the Bangladesh Garment 

Manufacturers and Exporters Association (BGMEA), an industry 

group that was founded in 1983 and helped the government manage the administrative aspects of the quota system.8 The BGMEA 

now enjoys tremendous regulatory powers and in some cases holds 

more sway over factory owners than the government: a factory 

owner recently refused orders by the Ministry of Labor to reinstate 

workers he had fired for union organizing and he rehired them only 

after the BGMEA threatened to revoke his ability to export.9 As an 

association of factory owners, the BGMEA has historically opposed 

reforms that would give workers more rights. And while BGMEA 

leaders have said they are welcoming of unions in garment factories, they have yet to show a serious commitment respecting 

Bangladeshi laws as they relate to the right to bargain collectively 

and form unions. 

The global outrage provoked by the tragedies of Tazreen and 

Rana Plaza did not appear to have any negative impact on the 

growth rate of Bangladesh’s RMG exports, which saw a 24 percent 

year-on-year increase in the third quarter of 2013.10 McKinsey & 

Company predicts that between the years 2010 and 2015 the sector 

will double, and then triple by 2020. While recognizing the advantages of its cheap labor and high capacity, the same McKinsey report also identifies several challenges facing the industry, including 

compliance problems with labor and environmental standards, poor 

transportation and energy infrastructure, and political instability 

and labor unrest due to oppressive work environments. Despite 

these issues, a large plurality of surveyed buyers identified Bangladesh as the future of RMG sourcing for their brands. In addition, a majority of buyers hope to expand into more sophisticated 

items like formal wear, requiring more skilled workers (there is 

currently a 25 percent shortage) and moving suppliers up the value 

chain, where there is less competition and higher profits.11

Continued growth of the RMG sector is critical for Bangladesh’s 

development. Between the late 1970s and today, Bangladesh’s poverty rate went from 70 percent to less than 40 percent and the average Bangladeshi went from living on $1 a day to more than $5 

a day. It is no coincidence that the improvement of those numbers 

coincides with the rise of the RMG industry. RMG exports will continue to drive Bangladesh’s GDP growth and provide jobs for rural 

poor, especially women, who are moving to the cities. Moving forward, the RMG sector promises to significantly boost economic deVerDate Nov 24 2008 14:19 Nov 22, 2013 Jkt 000000 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 S:\FULL COMMITTEE\HEARING FILES\113TH CONGRESS, 1ST SESSION\TOPIC REPOR
5 

velopment in Bangladesh and move it up the industrial value 

chain, just as it has for other economies around the globe, including Japan, South Korea and, more recently, China. 

That is good news for the United States, for which Bangladesh 

is a country of strategic interest. Geographically, Bangladesh sits 

at the crossroads of South Asia and Southeast Asia, and it has extensive relations with both India and China. It has the world’s seventh largest population and is the third-largest Muslim-majority 

nation. The United States shares many common strategic interests 

with Bangladesh, including global peace and security (Bangladesh 

is a top contributor of UN peacekeepers), counterterrorism, regional 

stability and global food security. Clearly, the sustained and responsible growth of Bangladesh’s RMG sector is in the interests of 

the United States and the broader international community. But 

that growth is in danger if working conditions fail to improve. Consumers will reject clothing they believe is stained with the blood 

of Bangladeshi workers and global brands, anxious to protect their 

reputations, will be compelled to abandon the ‘‘Made in Bangladesh’’ label. This outcome can and must be avoided. 

FIRE AND BUILDING SAFETY

IN BANGLADESH’S RMG INDUSTRY

When the Tazreen Fashions factory burned down, it was the 

worst garment factory accident in Bangladesh’s history. When 

Rana Plaza collapsed, it was the worst garment factory accident in 

world history. These tragedies spurred Bangladesh’s government, 

global brands, the United States, other foreign governments, and 

international organizations into action. There are now several safety initiatives underway to ensure that none of the approximately 

3,500 operating garment factories in Bangladesh will become another Tazreen or Rana Plaza. Nonetheless, the danger is still very 

real. A survey of factories released in June 2013 by the Bangladesh 

University of Engineering and Technology (BUET) found that 60 

percent of factories were structurally vulnerable.12 And again, 

abuses are widespread, as evident by the 27 garment workers who 

have died in factory fires since Rana Plaze collapsed. 

BANGLADESH’S NATIONAL ACTION PLAN

The National Tripartite Plan of Action on Fire Safety and Structural Integrity (NAP), signed in July 2013 after Rana Plaza, updated a previous fire safety plan signed after Tazreen. The plan 

stipulates a series of commitments for the government of Bangladesh to meet by certain deadlines. For example, the government 

has upgraded its labor inspection department to a full directorate 

with a larger budget and is committed to create 800 positions, including 200 inspectors, by the end of 2013. However, by late November 2013 only four new labor inspectors had been hired since 

Tazreen, bringing the total to just 56.13 The NAP also calls for inspection of all garment factories by the end of 2014, the creation 

of a factory information database, and establishment of a worker 

safety hotline. In addition, the BGMEA committed to creating a 

‘‘transparent and accountable’’ system for sub-contracting in the industry.14

6 

Unauthorized sub-contracting is a significant challenge in Bangladesh’s RMG industry. Factory owners will often take more orders than they have capacity for and send the excess work to subcontractors. This may not be a problem when those subcontractors 

are known to the brand and have been properly inspected for labor 

and safety compliance. But owners may also subcontract to unknown factories that operate in the shadows of Bangladesh’s RMG 

industry. These factories are often the most dangerous in terms of 

worker safety and the most egregious violators of worker rights. 

Despite the efforts of the brands to make clear to suppliers that 

they do not tolerate unauthorized sub-contracting, the practice continues. The situation provides a strong incentive for brands to facilitate the formation and expansion of independent factory-level 

unions, which would serve as a bulwark against unauthorized subcontracting. 

In the longer term, the government of Bangladesh also plans to 

develop a new 535-acre industrial zone for the RMG sector. The 

zone will feature all-new, up-to-code buildings where factory owners currently operating in vulnerable buildings will supposedly relocate. However, factory locations in the park will be highly coveted 

and, according to one Bangladeshi government official, may end up 

going to owners with political connections and money—a very different group from owners that cannot afford to fix their current factories and operate outside the margins of Bangladeshi law.15

U.S., EU, ILO PLANS

Citing Bangladesh’s failure to improve worker safety and labor 

rights, in June 2013 the United States government (USG) suspended Bangladesh’s eligibility for tariff benefits under the Generalized System of Preferences (GSP) program.16 Since garments do 

not receive tariff benefits under the GSP program, suspension of 

GSP did not impact Bangladesh’s over $4 billion worth of annual 

RMG exports to the United States, however it did effect about $40 

million worth of imports in ceramics, tobacco, and other products. 

But garments receive benefits under the EU’s GSP program, and 

suspension of U.S. GSP raised fears in Bangladesh that the EU 

might follow suit. In July 2013 the USG released its Bangladesh 

Action Plan 2013, which sets out several safety and labor benchmarks for Bangladesh to achieve before GSP benefits could be reinstated. Many of the benchmarks match those in the NAP, such as 

vastly increasing the number of inspectors, inspecting all factories, 

creating an inspection database, and establishing an effective 

mechanism for worker safety complaints.17 As of this report’s publication, none of those GSP action plan benchmarks had been met. 

The GSP action plan also includes several measures on labor 

rights, discussed below. 

The ILO, along with the EU and the United States, supported 

development of another worker safety and rights agreement called 

the Sustainability Compact, which was signed by the government 

of Bangladesh in July 2013. It shares many aspects of the NAP and 

the GSP action plan, and an official review of Bangladesh’s 

progress will occur sometime in 2014.18 Progress on implementation of the NAP, GSP action plan, and Sustainability Compact is 

closely monitored by the international community. Every few weeks 

7 

a ‘‘3+5’’ assessment meeting takes place, attended by Bangladesh’s 

Secretaries of Commerce, Labor, and Foreign Affairs on one side 

and Ambassadors from the United States, EU, Netherlands, United 

Kingdom and Canada on the other. The diplomats engage with the 

Secretaries on next steps and flag deficiencies or problems in implementation of the plans.19

To help Bangladesh with inspections and safety improvements in 

factories, in October 2013 the International Labor Organization 

(ILO) launched a $24 million, three-and-a-half year initiative called 

‘‘Improving Working Conditions in the Ready-Made Garment Sector’’ (RMGP). The program will assist with inspections of approximately half of Bangladesh’s garment factories by helping to stand 

up 30 structural assessment teams. The program will also work to 

improve the government’s inspection mechanisms, build occupational health and safety awareness in factories, and provide compensation and skills training for victims of the Tazreen and Rana 

Plaza accidents.20 The compensation mechanism will establish an 

international trust fund into which retailers, governments, and others can donate. Some 3,900 claimants have already had their biodata collected and bank accounts established in their names, and 

full compensation of victims will require approximately $40 million 

from donors.21

APPAREL COMPANIES AND WORKER SAFETY

Apparel brands launched two major worker safety initiatives 

after Rana Plaza. Over 100 companies, mostly European but joined 

by a few American firms such as PVH (parent company of Calvin 

Klein, Tommy Hilfiger and Izod), American Eagle, and Abercrombie & Fitch, signed on to an initiative called the Accord on 

Fire and Building Safety in Bangladesh (‘‘the Accord’’). Over 20 

American retailers, including Wal-Mart, Gap, Target and JC 

Penny, declined to join the Accord but formed a similar initiative 

called the Alliance for Bangladesh Worker Safety (‘‘the Alliance’’). 

Together, the apparel brands and retailers in the Accord and the 

Alliance source from approximately half of the active garment factories in Bangladesh. The firms in the Accord source from about 

1,500 factories and the Alliance’s members source from nearly 700 

factories; the two share about 350 factories.22

Both programs are developing inspection standards for fire and 

building safety in supplier factories, and have harmonized their 

standards with each other and the government of Bangladesh.23

Both programs will last 5 years, require membership fees, perform 

full inspections of all factories, provide safety training for all workers and managers, and have mechanisms, such as low-cost loans, 

for remediation of non-compliant factories.24 Each of these initiatives will spend millions of dollars pursuing improved safety objectives in their supplier factories. Some observers are concerned that 

factory owners may refuse remediation mandated by Alliance or 

Accord members and source to a less scrupulous buyer. It will be 

critical for the government of Bangladesh and BGMEA to impose 

effective sanctions in these situations. 

One key difference between the Accord and the Alliance is the 

assignment of decision-making authority. The Accord centralizes its 

decision-making authority in its executive while the Alliance leaves 

8 

most decisions up to individual retailers. For example, the Accord’s 

executive board is responsible for hiring inspectors and deciding 

whether Accord members can continue sourcing from a factory 

based on inspection results (in at least one case so far, the Accord’s 

members have ceased doing business with a factory that refused to 

address deficiencies found during inspection).25 The Accord also 

gives an oversight role to trade union signatories, who can initiate 

binding arbitration against another member of the Accord for noncompliance with the terms of the agreement.26

In the Alliance, individual members are responsible for hiring Alliance-approved inspectors. Alliance members can choose whether 

or not to continue doing business with a factory based on inspection 

results, and only retailers can initiate arbitration against other retailers, which at worst results in expulsion from the Alliance. 

While it is too early to tell whether the different approaches 

being pursued by the Accord and the Alliance will result in different outcomes regarding improvements in fire and building safety 

at their supplier factories in Bangladesh, other differences in governance structure and worker empowerment are substantial. 

LABOR RIGHTS AND RELATIONS

IN BANGLADESH’S RMG INDUSTRY

Bangladesh has a troubled history of labor relations. In the 

1970s, the jute industry played a similar role as the RMG industry 

does today, accounting for nearly 90 percent of all exports and driving GDP growth.27 While a combination of factors contributed to 

the jute industry’s decline, RMG factory owners and BGMEA officials will commonly cite a single reason: labor unions. Decades ago, 

labor unions in jute factories were highly politicized and controlled 

or influenced by political forces; plant-level unions competed fiercely and would bring production to a halt for reasons unrelated to 

working conditions or labor rights.28

RMG factory owners and some government officials fear that the 

past will repeat itself in the RMG industry. Some owners in Dhaka 

claim workers do not need unions because working conditions are 

so good.29 Others owners fear they will lose control of their factories if workers unionize. The bottom line is that freedom of association and collective bargaining are not well understood and 

unions are generally maligned. 

There is cause for hope. The RMG industry has made progress 

in the past on moving to eliminate the use of child labor, allowing 

workers to take bathroom breaks, and keeping gates unlocked.30

But workers’ rights to associate, organize, and engage in collective 

bargaining have been largely ignored for the last 25 years, and the 

current state of misunderstanding and mistrust about the proper 

roles and responsibilities of unions will require tremendous and 

sustained efforts to overcome. While some small steps have been 

taken, much remains to be done. 

LABOR LAW REFORM

On July 15, 2013, Bangladesh’s Parliament passed reforms to the 

country’s labor law, and the government is now writing the implementing regulations. While the reforms changed 87 sections of exVerDate Nov 24 2008 14:19 Nov 22, 2013 Jkt 000000 PO 00000 Frm 00014 Fmt 6633 Sfmt 6633 S:\FULL COMMITTEE\HEARING FILES\113TH CONGRESS, 1ST SESSION\TOPIC REPOR
9 

isting law—a number often cited by Bangladeshi officials—it fell 

short of expectations, and most observers agree that Bangladesh 

did just enough to allow the ILO to approve a Better Work program 

(discussed below). The ILO’s initial review of the legislation found 

that, among other things, the new labor law eliminates the requirement for the government to send factory owners the names of 

union leaders registering unions in their factories, allows union 

leaders to call on outside experts for advice during collective bargaining, and improves several provisions on workplace safety and 

health. Overall, the ILO found that ‘‘the amendments did address 

some of the ILO’s specific concerns, while falling short of several 

important steps called for by the ILO.’’ 31

In its review, the AFL-CIO criticized the reform package for several reasons: it does not make the union registration process any 

easier (though the government has nominally increased approvals 

of applications); it does not allow union representatives fired from 

their jobs to keep their factory-level union membership while they 

contest their termination; trade unions are required to receive government permission to affiliate with an international union or receive financial assistance from foreign groups; and provisions relating to severance payments were actually made more restrictive 

than existing law.32

The GSP action plan also includes a provision requiring the government of Bangladesh to bring the labor law in Export Processing 

Zones (EPZs) into conformity with international standards and, 

until that time, issue regulations to protect freedom of association 

in the EPZs.33 The EPZs are special industrial zones that were set 

up to attract foreign investors in the early days of Bangladesh’s 

RMG industry. Workers inside the zones enjoy safer working conditions and slightly better pay than those outside, but at the cost of 

their fundamental labor rights.34 The USG’s position is that there 

is no need to continue to limit workers’ rights in the EPZs, and 

Bangladesh should remove these restrictions immediately. 

Bangladesh still has a long way to go in reforming its labor laws 

to meet international standards. The recently passed amendments 

should not be considered sufficient as they do not meet the labor 

law reform requirement in the GSP action plan. Furthermore, this 

committee, the United States government and the international 

community will be watching closely as Bangladesh writes the implementing regulations for the labor reforms. The committee welcomes ILO assistance for Bangladesh in this effort. 

The GSP action plan and the Sustainability Compact also have 

several measures on labor rights in the RMG sector. Benchmarks 

include: reforming the labor law to address concerns related to freedom of association and collective bargaining; expeditiously and 

transparently registering new unions and protecting workers from 

anti-union activity; reporting anti-union activity on a public database; implementing mechanisms to prevent harassment of labor activists and leaders; and advancing the investigation into the murder of labor activist Aminul Islam.35

As of this report’s publication, the government of Bangladesh had 

made little progress on any of those benchmarks, save for nominally increasing union registrations. However, Bangladesh did 

make progress on some benchmarks, such as registering non-govVerDate Nov 24 2008 14:19 Nov 22, 2013 Jkt 000000 PO 00000 Frm 00015 Fmt 6633 Sfmt 6633 S:\FULL COMMITTEE\HEARING FILES\113TH CONGRESS, 1ST SESSION\TOPIC REPOR
10 

ernmental labor organizations that meet administrative requirements and dropping criminal charges against labor activists. If the 

U.S. Congress renews the GSP program, which has expired, the 

U.S. Trade Representative is expected to conduct an official review 

of Bangladesh’s progress on the GSP action plan and announce a 

determination on its eligibility in mid-2014.36

UNION REGISTRATION AND ORGANIZATION

To its credit, the government of Bangladesh has made some 

progress in registering new unions. Whereas only two new unions 

were registered between 2011 and 2012, 59 new unions were registered between January and October 2013, with 30 applications 

pending.37 The United States—through the AFL–CIO’s Solidarity 

Center—and other international donors, in conjunction with the 

ILO, should take advantage of this opening by increasing labor-related technical assistance that builds organizing capacity. Factorylevel union organizers have expressed an urgent need for more 

training on organizing, collective bargaining negotiations, and labor 

law.38

Though the registration of unions is a welcome development, the 

USG and other international observers must continue to pressure 

the government of Bangladesh on its commitment. Specifically, at 

least five of the newly registered unions are management-sponsored and meant to compete with and crowd out independent, representative unions. In one case, the management tried to apply for 

the factory’s full quota of three unions, which would have left no 

space for a genuine union.39

National union federations in Bangladesh are moving quickly to 

expand and organize new factory-level unions. Previously, they cultivated union leaders by identifying workers respected by their 

peers, began training them, and tested them with increasing responsibilities while assessing their leadership abilities. But now 

factory workers are increasingly self-selecting leaders, who approach the federations for assistance with organizing and capacity 

building. And whereas before union organizers had to go door-todoor in workers’ neighborhoods to organize, in many cases the 

workers now proactively seek out the union representatives.40

But barriers still exist, and many employers are actively suppressing unions in their factories. There have been several documented cases of anti-union activity in different factories and untold 

numbers of undocumented cases. Anti-union tactics range from 

harassment and termination of unionized workers to the beating of 

union leaders. In one case, a female union leader was taken to a 

hospital bleeding and semi-conscious after thugs attacked her with 

a pair of cutting shears. Other factory-level union leaders, many 

just in their 20s, say that they would never have tried to organize 

a union had they known managers would make life so difficult for 

them. Some have been intimidated by goons, harassed by managers, isolated from other workers and threatened with termination. But other organizers have success stories: management has 

ended physical punishments, stopped cursing at employees, and 

dispensed holiday bonuses for the first time.41

11 

APPAREL COMPANIES AND LABOR RIGHTS

The Alliance and Accord plans, while sharing similarities in their 

approach to fire and building safety inspection, have a few important differences when it comes to worker participation and empowerment. For example, while the Accord’s executive committee 

has equal representation between trade union signatories and corporate signatories (three seats each), the Alliance’s executive committee has no representation by worker rights organizations. Furthermore, the Accord’s safety training teams include union representatives that educate workers about their right to refuse work 

in a dangerous building, which could lead to broader discussions on 

worker’s rights. At present, the Alliance’s training teams do not include union representatives; neither initiative explicitly includes 

training on freedom of association, collective bargaining, and the 

role of unions. 

The Alliance plans to engage with workers principally through 

Worker Participation Committees (WPCs). WPCs are platforms for 

worker-management dialogue and are required by Bangladeshi 

law. Workers elect their representatives to the WPC, which then 

meets with management once every month or two to discuss worker concerns. While WPCs give workers some voice, they are essentially powerless and have no leverage when dealing with management. There are also instances of management influencing the selection of worker representatives to WPCs. WPCs are clearly no 

substitute for genuine representation of workers’ interests through 

unions and collective bargaining agreements. 

Both the Accord and the Alliance should include education on 

freedom of association, organization, and collective bargaining in 

their training curriculum and ensure that the workers in their factories are aware of their rights and the differences between WPCs 

and genuine unions. They should also educate owners and managers on how to maintain constructive and cooperative relations 

with independent labor unions in their factories. Improved workermanagement dialogue will be critical to ensuring safe, healthy, and 

decent working conditions in Bangladesh’s expanding RMG sector. 

LABOR-RELATED FOREIGN ASSISTANCE

While funding for labor-related technical assistance programming 

in Bangladesh’s RMG sector has increased recently, the overall 

sums remain small. The USG’s main implementing partner for 

RMG labor-related programming in Bangladesh is the AFL–CIO’s 

Solidarity Center. The Solidary Center is currently implementing 

two multi-year programs, with a combined $4 million, which seek 

to strengthen workers’ rights of freedom of association by enabling 

union organization and collective bargaining. These objectives are 

being pursued by the Solidarity Center primarily through training, 

capacity building, and legal assistance.42 As of November 2013 

these programs had trained over 50 full-time organizers and held 

dozens of organizational capacity trainings for new unions.43 The 

program has financially supported 20 organizers and hopes to support 65 more. Training of organizers was previously constrained by 

the inability to register new factory-level unions. Now that the government of Bangladesh is allowing unions to register, the SoliVerDate Nov 24 2008 14:19 Nov 22, 2013 Jkt 000000 PO 00000 Frm 00017 Fmt 6633 Sfmt 6633 S:\FULL COMMITTEE\HEARING FILES\113TH CONGRESS, 1ST SESSION\TOPIC REPOR
12 

darity Center expects to scale up its operations and train more organizers, with the goal of registering 500 new unions over the next 

5 years. 

In addition, in June 2013 the Department of Labor announced a $2.5 million program to strengthen enforcement of fire of building 

safety standards by building the capacity of worker organizations 

to monitor safety violations. The funding will be split between 

grants to the Solidarity Center ($1 million) and the ILO ($1.5 million).44

Few other countries and international organizations have programs promoting workers’ rights in Bangladesh. The Dutch trade 

union Federatie Nederlandse Vakbeweging (FNV) has a four-year 

program to support training of Bangladeshi partner unions. The 

Clean Clothes Campaign, which is part of the Accord, also has a 

four-year program to support worker organization in Bangladesh’s 

RMG industry.45 Clearly, there is a need for more foreign governments and international organizations to finance and implement 

programs supporting freedom of association and collective bargaining. 

As a result of the passage of the labor law reforms and the registration of new unions, the ILO, in partnership with the International Finance Corporation (IFC), launched a Better Work Bangladesh program in October 2013. The Better Work program will 

focus on industrial relations and worker concerns like hours and 

wages.46 The program will work with participating retail brands to 

select factories, clustered in a few geographic areas, which are 

deemed qualified for the program after undergoing inspections. 

Many retailers are anxious for their factories to participate in the 

program, and some may even compel their suppliers to join. The 

committee encourages American brands and retailers, especially 

members of the Alliance, to urge their suppliers to join Better 

Work. 

After selection, Better Work teams will enter the factories and 

provide advisory services and training to management and workers 

while ensuring compliance with labor standards and facilitating 

strong social dialogue. For example, Better Work teams will help 

factories implement the new labor law by educating workers on 

how WPCs function and the difference between WPCs and labor 

unions.47 As WPCs have been used to crowd out unions in the past, 

this will be an important distinction for workers to learn. 

Better Work teams will begin inspecting factories in the second 

quarter of 2014. The program plans to scale up to 500 factories by 

its third year. The ILO has created a ‘‘Framework for Continuous 

Improvement’’ that has targets Bangladesh must meet in order for 

the Better Work program to continue. The commitments associated 

with the framework are derived from the NAP, the GSP action 

plan, and the Sustainability Compact.48 The establishment of a 

Better Work program in Bangladesh is a positive development that 

promises to pay serious dividends in improving working conditions 

in RMG factories, especially where there are active unions in place. 

CONCLUSION

The various worker safety programs initiated in the wake of 

Tazreen and Rana Plaza have the potential to considerably improve 

13 

the safety of Bangladesh’s garment factories in the short term. But 

these gains may be lost without strong worker oversight in the 

form of independent unions. 

Some progress has been made recently by Bangladesh’s fledgling 

unions, but much more remains to be done. The biggest obstacles 

to the future development of unions are the current anti-union 

mindset of factory owners and a fear and lack of awareness among 

factory workers. These barriers will take some time to overcome. 

Progress is clearly possible, though, with sustained and genuine efforts by the governments of the United States, Bangladesh, and 

other countries, as well as apparel brands and retailers. 

International pressure is growing against the government of 

Bangladesh, apparel brands and factory owners in Bangladesh. 

Bangladesh’s garment sector may not be able to withstand another 

tragedy on the scale of Tazreen and Rana Plaza. The surest way 

to guarantee the success of the apparel industry is to avoid another 

disaster by promoting and protecting labor rights now, while the 

world’s attention is on Bangladesh. The present opportunity to improve working conditions in Bangladesh cannot be squandered. 

FULL LIST OF RECOMMENDATIONS

For the United States Government 

• The USG should hold the government of Bangladesh to the 

highest standards in implementing the GSP action plan, especially provisions pertaining to labor law reform and protecting 

the freedom of association and the rights to organize and bargain collectively. 

• The USG should increase funding for technical assistance programs in Bangladesh, such as those run by the AFL-CIO’s Solidarity Center, that improve workers’ capacity to organize and 

engage in collective bargaining. 

• The U.S. Department of State should place a full-time labor 

attache ́ from the U.S. Department of Labor at its mission in 

Dhaka. 

For Apparel Brands and Retailers 

• Apparel brands and retailers should aggressively continue implementing inspection and remediation programs focused on 

fire and building safety in their suppliers factories in Bangladesh. 

• Apparel brands and retailers, especially those with very large 

operations in Bangladesh like Wal-Mart, Gap, and others in 

the Alliance for Bangladesh Worker Safety, should, in coordination with the ILO, launch long-term, well-resourced programs to educate their suppliers of their expectation for compliance with laws allowing the right to organize unions and 

bargain collectively. 

• Apparel brands and retailers, in coordination with the ILO and 

representative unions, should launch a program to educate 

garment factory workers about their rights and responsibilities 

with respect to freedom of association, organization, and collective bargaining. 

14 

• Apparel brands and retailers should also collectively develop 

and implement a policy of zero-tolerance for suppliers who consistently engage in anti-union activity. 

For the Government of Bangladesh and BGMEA 

• The government of Bangladesh and the BGMEA should immediately develop and implement tough and effective sanctions 

against factory owners who engage in anti-union activity, and 

advance progress in sanctioning owners who do not comply 

with required safety standards. • The government of Bangladesh and the BGMEA, in coordination with the ILO, should undertake a program to educate garment factory owners on the constructive role of labor unions in 

garment factories and endeavor to ensure that anti-union activity is eradicated. • The government of Bangladesh and the BGMEA, in coordination with the ILO and representative unions, should sponsor a 

program to educate garment factory workers about their rights 

and responsibilities with respect to freedom of association, organization, and collective bargaining. • The next government of Bangladesh should act quickly to reform existing labor laws, including EPZ labor laws, to bring 

them into conformity with international labor standards. 

(15) 

NOTES

1 Julfikar Ali Manik and Jim Yardley, ‘‘Bangladesh Finds Gross Negligence in 

Factory Fire,’’ New York Times, December 17, 2012, accessed November 20, 

2013, http://www.nytimes.com/2012/12/18/world/asia/bangladesh-factory-firecaused-by-gross-negligence.html 

2 ‘‘RMG: The Mainstay of Bangladesh Economy.’’ Bangladesh Garment Manufacturers and Exporters Association, accessed November 20, 2013, http:// 

www.bgmea.com.bd/home/pages/Strengths#.Uoz348ReZLA 

3SFRC staff discussion, Dhaka, August 2013. 

4 AMRF Society, ‘‘Workers’ Voice Report 2013: Insight into Life and Livelihood 

of Bangladesh’s RMG Workers.’’ Paper presented to SFRC staff, September 25, 

2013. 

5SFRC staff discussion, Dhaka, August 2013. 

6 Yardley, Jim. ‘‘Garment Trade Wields Power in Bangladesh.’’ New York Times, 

July 24, 2013, accessed November 21, 2013, 

http://www.nytimes.com/2013/07/25/world/asia/garment-trade-wields-power-inbangladesh.html 

7SFRC staff discussion, Dhaka, August 2013. 

8 Yardley, Jim. ‘‘Garment Trade Wields Power in Bangladesh.’’ New York Times, 

July 24, 2013, accessed November 21, 2013, 

http://www.nytimes.com/2013/07/25/world/asia/garment-trade-wields-power-inbangladesh.html 

9SFRC staff discussion, Dhaka, August 2013. 

10 Al-Mahmood, Syed Zain. ‘‘Bangladesh Exports Undeterred.’’ The Wall Street 

Journal, October 10, 2013, accessed November 21, 2013, 

http://online.wsj.com/news/articles/SB300014240527023045004045791273142136 

23956 

http://online.wsj.com/news/articles/SB300014240527023045004045791273142136 

23956 

11 Achim Berg, Saskia Hedrich, and Thomas Tochtermann, ‘‘Bangladesh: The next 

hot spot in apparel sourcing?,’’ Mckinsey & Company, March 2012, accessed November 21, 2012, 

12 Burke, Jason. ‘‘Majority of Bangladesh garment factories ’vulnerable to collapse.’’ The Guardian, June 03, 2015, accessed November 21, 2013, 

http://www.theguardian.com/world/2013/jun/03/bangladesh-garment-factories-vulnerable-collapse 

13SFRC staff discussion, Washington, D.C. November 2013. 

14 ‘‘National Tripartite Plan of Action on Fire Safety and Structural Integrity in 

the Ready-Made Garment Sector in Bangladesh.’’ Accessed November 21, 2013, 

http://www.ilo.org/wcmsp5/groups/public/_asia/_ro-bangkok/_ 

ilo-dhaka/documents/genericdocument/wcms—221543.pdf 

15SFRC staff discussion, Dhaka, August 2013. 

16Froman, Michael. U.S. Trade Representative , ‘‘ustr.gov.’’ June 2013, accessed 

November 21, 2013, 

http://www.ustr.gov/about-us/press-office/press-releases/2013/june/michael-fromangsp-bangladesh. 

17Della, Gloria. U.S. Department of Labor News Release, ‘‘ILAB,’’ July 29, 2013, 

accessed November 21, 2013, 

http://www.dol.gov/opa/media/press/ilab/ILAB20131494.htm. 

16 

18 European Union Joint Statement, ‘‘Staying engaged: A Sustainability Compact 

for continuous improvements in labour rights and factory safety in the ReadyMade Garment and Knitwear Industry in Bangladesh.’’ Accessed November 21, 

2013. 

http://trade.ec.europa.eu/doclib/docs/2013/july/tradoc—151601.pdf 

19Staff discussion in Washington, D.C. November 2013 

20 International Labor Organization. ‘‘Towards a safer garment industry in Bangladesh.’’ October 22, 2013, 2013. 

http://www.ilo.org/global/about-the-ilo/activities/all/safer-garment-industry-inbangladesh/lang--en/index.htm 

21Staff discussion in Washington, D.C. November 2013 

22Staff discussion in Washington, D.C. November 2013 

23 Al-Mahmood, Syed Zain. ‘‘Safety Groups Agree on Common Standards for Bangladesh Garment Factories,’’ Wall Street Journal, November 20, 2013, accessed 

November 21, 2012 

http://online.wsj.com/news/articles/SB1000142405270230433740457920995427 

3740442 

24 ‘‘Accord on Fire and Building Safety in Bangladesh.’’ 

http://www.bangladeshaccord.org/; ‘‘Members Agreement of Alliance on Bangladesh Worker Safety.’’ 

http://www.bangladeshworkersafety.org 

25 Accord on Fire and Building Safety in Bangladesh. Press release. October 14, 

2013. 

http://www.bangladeshaccord.org 

26 ‘‘Accord on Fire and Building Safety in Bangladesh.’’ 

http://www.bangladeshaccord.org 

27SFRC staff discussion, Dhaka, August 2013. 

28SFRC staff discussion, Dhaka, August 2013. 

29SFRC staff discussion, Dhaka, August 2013. 

30SFRC staff discussion, Dhaka, August 2013. 

31 International Labor Organization. ‘‘ILO statement on reform of Bangladesh 

labour law.’’ July 22, 2013, 2013. 

http://www.ilo.org/global/about-the-ilo/media-centre/statements-and-speeches/ 

WCMS—218067/lang--en/index.htm 

32Drake, Celeste. ‘‘The AFL-CIO Reacts to Recently Passed Amendments to the 

Bangladesh Labor Law of 2006.’’ AFL-CIO NOW July 23, 2013, 2013, accessed 

21 Nov 2013, The-AFL-CIO-Reacts-to-Recently-Passed-Amendments-to-the-Bangladesh-Labor-Law-of-2006 

33Della, Gloria. U.S. Department of Labor [News Release], ‘‘ILAB,’’ July 29, 2013, 

accessed November 21, 2013, 

http://www.dol.gov/opa/media/press/ilab/ILAB20131494.htm. http://www.dol.gov/ 

opa/media/press/ilab/ILAB20131494.htm 

34SFRC staff discussion, Dhaka, August 2013. 

35Della, Gloria. U.S. Department of Labor [News Release], ‘‘ILAB,’’ July 29, 2013, 

accessed November 21, 2013, 

http://www.dol.gov/opa/media/press/ilab/ILAB20131494.htm.http://www.dol.gov/ 

opa/media/press/ilab/ILAB20131494.htm 

36SFRC staff discussion, Washington, D.C. November 2013. 

37SFRC staff discussion, Washington, D.C. November 2013. 

38SFRC staff discussion, Dhaka, August 2013. 

39SFRC staff discussion, Dhaka, August 2013. 

40SFRC staff discussion, Dhaka, August 2013. 

41SFRC staff discussion, Dhaka, August 2013. 

17 

42 United States Agency for International Development. ‘‘USG Programs to Improve Labor Conditions in Bangladesh.’’ July 15, 2013. 

43SFRC staff discussion, Washington, D.C. November 2013. 

44SFRC staff discussion, Washington, D.C. November 2013. 

45SFRC staff discussion, Washington, D.C. November 2013. 

46 ‘‘Q&A on the Better Work Programme in Bangladesh.’’ October 22, 2013. 

http://betterwork.org/global/?p=3712 

47SFRC staff discussion, Washington, D.C. November 2013. 

48SFRC staff discussion, Washington, D.C. November 2013. 

Æ