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Why are labor unrest prolonged?
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Why are labor unrest prolonged?

Following the political change on August 5, the country’s main export earning sector, the garment industry, witnessed a prolonged and large-scale period of labor unrest in industrial belts such as Savar, Gazipur, Ashulia, Zirabo and Zirani .

The weak law and order situation at the time contributed to the long period of unrest that broke out in mid-July.

This severely affected the shipment of goods, impacting both transportation and production.

The issue was not resolved until the first week of October, following the adaptation of a tripartite agreement in the last week of September.

The 18-point demands made by the garment workers had some logical requests and all were accepted.

For example, several garment factories did not pay salaries on time, while around 5 percent did not fully implement the minimum wage structure that came into effect in December last year.

Workers cannot trust union leaders and factory owners because they were not paid on time despite several assurances, a union leader said.

Other demands included the removal of abusive mid-level managers, as well as increases in attendance bonuses and tiffin allowances.

Union leaders also demanded quick amendments to labor legislation, which contains some anti-union clauses that prevent workers from forming unions unless they meet strict conditions.

For example, they demanded to review the norm that requires that at least 20 percent of workers participate in the formation of a union in clothing factories.

Workers also demanded a review of the minimum wage structure and the Ministry of Labor and Employment formed a committee to re-evaluate it in light of persistent inflation.

The decision on whether another minimum wage will be formulated for garment workers will be made in April next year.

The avalanche of labor unrest caused direct losses of more than $100 million, although indirect losses, resulting from delayed shipments, costly air shipments, deep discounting, and canceled work orders, were much greater.

Additionally, the timing of the episode meant that local exporters received almost 10 percent fewer work orders for the upcoming fall and winter seasons.

However, normality was restored with the adoption of the 18-point charter, as most factories implemented the measures outlined in the agreement.

However, 19 factories were unable to fully implement it. As a result, riots broke out again in those factories.

They did not implement the changes due to a host of reasons, including the fact that some of the owners are abroad while others are in prison due to their political affiliations. Others cannot get loans from banks and are overloaded with installments.

AHM Shafiquzzaman, secretary of the Ministry of Labor and Employment, said the problem had been resolved in two or three factories.

The owners of the affected factories are in jail, abroad or do not have the financial capacity to pay salaries, he said.

For the latest resolution, the government lent Tk 16 crore to the TNZ Group so that it could resolve issues in paying workers at its Gazipur unit. Of the amount, Tk 10 million came from the Ministry of Finance and Tk 6 million from the Central Fund.

Following those assurances, workers removed the blockade along the Dhaka-Mymensingh Expressway on Monday night.

Newly appointed advisor to the Ministry of Labor and Employment, M. Sakhawat Hossain, yesterday warned factory owners to pay workers on time and implement the minimum wage structure.

“Otherwise, the government will appoint administrators for those factories,” he said.

Amirul Haque Amin, president of the National Garment Workers Federation, said the financial situation of garment workers is now dire due to inflation, which has remained above 9 percent since March last year.

“In addition, they do not receive timely salaries from the factory owners,” he lamented.

Some workers have not been paid for two or three months, so they took to the streets to make their demands a reality, he said.

He added that the latest period of unrest took place in specific factories because they were not paying workers on time, although a tripartite agreement in September said arrears would be cleared very soon.

Md. Towhidur Rahman, president of the Bangladesh Garment Workers Federation, echoed Amin’s views.

Workers cannot trust union leaders and factory owners because they were not paid on time despite several assurances in the past, he said.

Khandoker Rafiqul Islam, immediate past president of the Bangladesh Garment Manufacturers and Exporters Association, said the association had warned factories to pay workers on time.

All factory owners do not respect the conditions of the 18-point agreement, he said.

As a result, workers are taking to the streets to demand timely payment, he added.