Bangladesh Export Processing Zones Authority (BEPZA) wants continuation of exemption from labour law in the country’s EPZs amid local and international outcries to ensure workers’ rights after the recent horrible factory collapse in Savar that left over 1,100 workers killed.
The country has eight export processing zones employing around 300,000 workers. These EPZs under BEPZA enjoy exemption from the land’s labour law.
BEPZA sources said the body does not want to be brought under the clutch of Labour Law 2006 which has recently seen some amendments after intensified demand to ensure workers’ rights.
Labour and Employment Minister Raziuddin Ahmed Razu said there was one of the conditions from 35 foreign investors in EPZs when they first came that they would not be under the country’s labour law.
“So, they can seek continuation of this exemption as per their earlier condition,” he said.
The amendments are now waiting for passage in parliament. “The parliamentary committee will decide whether BEPZA should be allowed to remain out of labour law.”
According to labour ministry sources, the government, however, will consider whether BEPZA factories should be brought under the existing labour law to ensure rights of workers there.
They said workers of BEPZA factories do not enjoy all rights given by the labour law.
After the country’s deadliest industrial incident, it is high time to rethink about BEPZA’s exemption from the amended law. In this regard, a meeting is scheduled to be held at the prime minister’s office late this month with principal secretary Molla Waheeduzzaman in the chair, said an official source.
To improve safety standard in the factories, the law has been amended on group insurance.
As per amendment, if there are 100 workers in a factory, they will be subject to group insurance. Earlier, the number was 200.
The government has been empowered to announce, if necessary, minimum wages for the workers through a gazette notification. Besides, the wages can be paid through workers’ banks accounts.
In the amendments, the law has also included workers of four more sectors- ship-breaking, construction firms, agro firms and rice-husking mills.
As per the amendments, the owners and workers can take the help of trade union experts well-versed in labour laws during bargaining.
Currently, the investors – both local and foreign – in the eight EPZs enjoy 32 fiscal, non-fiscal and other facilities. The foreign investors are from different 35 countries.
The facilities include 10-year tax holiday, duty-free import of raw materials, tax-free dividend, GSP, full repatriation of capital and dividend and remittance of royalty, exemption from technical and consultancy fees.
BEPZA does not allow formation of collective bargaining agencies in the factories, but it approves workers associations, said labour ministry sources.
But the government had to amend EPZ Workers Association and Industrial Relations Act in 2010 following pressure from the United States Trade Representatives (USTR).
The average monthly wages in eight EPZs are $39-48 for unskilled workers, $55 for semi-skilled and $61-109 for skilled. Except for monthly salaries, the workers do not get any other benefits.
Adopting World Bank’s concept, BEPZA started its operation in 1983 to attract more foreign investments and provide more financial benefit to the workers. But in last 20 years, it remains far away from being successful in its basic goals, said the people concerned.
A total of 358,772 workers are employed in eight EPZs till February 2013.
The eight EPZs are – Dhaka, Chittagong, Mongla, Ishwardi, Commilla, Uttara, Adamjee and Karnaphuli.