Ignoring The Law - Labour Rights Violations and The Bangladeshi Garment Industry
Ignoring The Law - Labour Rights Violations and The Bangladeshi Garment Industry
Ignoring The Law - Labour Rights Violations and The Bangladeshi Garment Industry
Introduction
Employing 2.5 million workers in 4,500 garment factories, Bangladesh’s garment industry generates over three
quarters of the country’s total export revenue. In spite of the central role the sector plays in the nation’s
economy, Bangladeshi garment workers suffer from appalling conditions in the factories while earning well below
a living wage and having limited or no benefits. Female workers, who make up nearly 85% of the garment sector
workforce, are paid even less than their male counterparts, and are especially vulnerable to abuse.
War on Want works in partnership with the National Garment Workers’ Federation (NGWF), a Bangladeshi trade
union that promotes the rights of garment workers. This briefing paper outlines the results of research carried
out between June and September 2008 by the NGWF and the Alternative Movement for Resources and Freedom
Society (AMRF), a research group based in Bangladesh. As part of the study, a team of researchers interviewed
1,203 garment workers from 43 factories across Bangladesh. The full report of the study is being published in both
English and Bangla.
There are other voluntary associations that have been The minimum wage
set up by the factories themselves that purport to
While for the most part minimum wage laws are
play an important role in enforcing labour standards
being adhered to, the salaries are set at levels that
in the garment sector. The Bangladesh Garment
keep most workers in dire poverty. The minimum
Manufacturers and Exporters Association and the
wage is set by the Wage Board, which, according to
Bangladesh Knitwear Manufacturers and Exporters
the Labour Law, “shall take into consideration, while
Association were both established by the garment
framing any recommendation, the cost of living, standard
industry to monitor and report on the implementation
of living, production cost, production capacity, price of
of the Labour Law in factories. Such compliance
produced goods, inflation…and socio-economic condition
associations operate outside any enforceable legal
of the country.”
framework, and have proven unwilling to pursue any
cases of non-compliance in their member factories. The minimum wage in Bangladesh is determined by
each worker’s employment level. An entry-level worker,
In addition to the marked absence of domestic
for example, is guaranteed a minimum monthly wage
enforcement of the law, there is also no international
of Tk 1,663 – just under £14.2 Workers interviewed
mechanism that can be used to hold foreign companies
for this study spanned entry-level earners to higher
operating in Bangladesh to account for conditions in
paid labourers, and 88% of them received the minimum
their supply chains. Many multinational companies are
wage according to their grade as defined by the
supplied by Bangladeshi factories, including British
government. There were, however, numerous reports
retailers Tesco, Asda and Primark. These companies
of violations committed by sub-contractors. Over 60%
wield enormous influence over their foreign suppliers,
of garment workers interviewed received a monthly
and the pressure placed on these suppliers leads to
wage of less than Tk 3,000, which is roughly £25.
lower wages and deteriorating conditions for workers.1
The current minimum wage, established by the Wage
Board in 2006 after remaining fixed for over a decade,
Labour violations in the factories in fact has a lower value in real terms than the
Without effective enforcement of the Labour Law, previous minimum wage after the rising cost of food,
Bangladeshi workers continue to face dire conditions. fuel and other commodities are taken into account.
New research carried out by the AMRF and the NGWF, Factoring in this disparity between wage levels and
including interviews with over 1,200 garment workers, increases in the cost of living, the current minimum
has revealed a pattern of labour law violations in wage is in direct contravention of Bangladeshi law.
Bangladesh’s garment factories. Workers described
a series of issues, including unsafe factories, unpaid
overtime, lack of benefits, gender discrimination and The National Garment Workers’
paltry wages that do not cover basic expenses. The Federation (NGWF)
key findings of the research, summarised below, are
evidence of a failure to implement existing labour The NGWF was established in 1984
legislation and also to ensure a decent life for millions as an independent, democratic and
of workers and their families. progressive trade union federation in
Bangladesh. With a central office in
Proof of employment Dhaka, the capital, and regional branches
The 2006 Labour Law makes it compulsory for in industrial districts across the country,
employers to issue appointment letters to all workers. 31 registered factory-based unions are
An appointment letter serves as a de facto contract affiliated to the NGWF.The union’s
and enables workers to prove their status as employees network has expanded its presence into
who are entitled to the full range of rights. However, an additional 1,000 factories where non-
53% of the workers interviewed as part of the legally recognised factory committees
research did not receive an appointment letter, and operate on behalf of workers.This
thus had no legal standing vis-à-vis their employer. move is a crucial first step towards full
legal standing as a trade union.The
In many cases workers were given pieces of identification
NGWF currently has more than 22,000
with far less legal value, such as ID cards or attendance
members across Bangladesh.
cards. These documents offer limited protection against
fraudulent employer practices: many workers reported
that managers held on to their attendance cards 1. See Fashion Victims II: How UK clothing retailers are keeping
or reissued them on a monthly basis, in both cases workers in poverty, War on Want, December 2008
2. The exchange rate from sterling to Taka has been calculated
leaving them without a record of their hours worked. at £1 = Tk 119, the average rate for October 2008
IGNORING THE LAW 3
The arduous hours and unpaid overtime are made health and safety violations are rife in Bangladesh’s
all the more shocking by the frequency with which garment factories. Over 70% of workers said that
workers are cheated out of payment for hours their workplace lacked safe drinking water, even
worked. Over two thirds of workers interviewed though many factories are poorly ventilated and
received no wage slip or other documentation of often reach blistering temperatures. An even higher
their earnings, making it impossible for workers to percentage of workers (87%) reported that the
verify that they are being paid the proper amount. factory where they worked did not have a functioning
Many factories that do issue wage slips present the fire escape. Moreover, only 23% of those interviewed
information in a way that is deliberately misleading. said they had access to toilet facilities.
For example, on many wage slips the total amount is
divided across several columns, making the final figure
difficult to ascertain for workers, the vast majority “We women workers are forced to do
of whom are poorly educated. Around 45% of the more work for less wages compared
workers interviewed said that their final wages do
to men.” – Nazma
not reflect the full number of hours worked.
Garment workers must also contend with late
payment of wages. Less than 10% of workers
interviewed for this research received their wages Gender discrimination
within the legal timeframe established under the The 2006 Labour Law contains a provision
2006 Labour Law. Over a third of the workers guaranteeing equal rate of pay for men and women.
interviewed reported that they typically receive However, according to the research conducted by the
their pay towards the end of the month following AMRF and the NGWF, women earn far less than their
that which they worked, which is three weeks later male colleagues. Over 70% of the women spoken to
than the legally mandated payment deadline. over the course of the study received less than
Tk 3,000 per month; by comparison, less than half of
Unsafe conditions the men interviewed earn below that mark.
Bangladeshi labour law states that employers must
ensure that basic standards for health and safety in
the workplace are complied with. Despite this law, Despite the passage of the 2006 Labour Law, factory
conditions in Bangladesh remain dire.
This report has been produced with the financial assistance of Irish Aid. The contents of the report are the sole
responsibility of War on Want and can under no circumstances be regarded as reflecting the position of Irish Aid. www.waronwant.org
War on Want registered charity no. 208724