Labour ordinance goes past tripartite agreement

The interim government's amendment of the labour law, despite objections raised by business groups during the draft stage, has triggered fresh protests demanding its withdrawal. Opponents argue that some key provisions deviate from the understandings reached earlier in tripartite meetings involving the government, employers and labour representatives. The gazette notification issued on November 17 by the Ministry of Law, Justice and Parliamentary Affairs introduced a range of revisions, including reducing the number of workers required to form a union, easing trade union registration requirements, expanding definitions related to workers and workplaces and imposing new obligations on employers regarding safety, hygiene and maternity benefits. One of the most significant shifts allows for 20 workers in factories employing between 20 and 300 workers to form a trade union.

These changes, widely seen as driven by international pressure, aims to align Bangladesh's labour standards with global norms -- an alignment deemed crucial for sustaining preferential trade benefits, particularly in the European Union. Rights organisations, major buyers, and international partners such as the International Labour Organisation (ILO), the EU and the United States have been consistently advocating for stronger labour rights and more flexible trade union rules. However, several provisions of the amended Ordinance have drawn sharp criticism for allegedly straying from the consensus built during earlier consultations. A central point of contention concerns the criteria for forming trade unions. The amended ordinance replaces the percentage-based representation system with fixed numerical thresholds. Critics say this change departs from the tripartite committee's recommendation, which required a minimum of 50 workers to form a union in establishments with 50 to 500 employees. The new framework, they argue, lowers the bar too far and risks destabilising industrial relations.

Under the Bangladesh Labour (Amendment) Ordinance 2025, at least 40 workers' representation would be required for factories having workers ranging from 301 to 500. Factories having workers from 501 to 1,500 and 1,501 to 3,000 would require 100 and 300 workers' consent respectively to form a trade union. Some 400-worker representation is a prerequisite to form a trade union in factories with more than 3,000 workers. The ordinance permits up to five unions within a single establishment, raising fears of union proliferation, factionalism, and potential interference from external actors. These sweeping changes have drawn strong resistance from key industry bodies. They argue that several provisions incorporated into the ordinance go beyond what had been agreed upon in the consultative process. The trade bodies warn that unless the amendments are reconsidered, the industry could face operational instability.

At the core of the business community's dissatisfaction is the belief that the consensus-based approach promised during the amendment process was not honoured. Their grievance -- that the agreed positions reached in tripartite discussions were sidelined -- cannot be dismissed lightly. Since the reform was meant to reflect a broad-based agreement, it was reasonable to expect adherence to the negotiated outcomes. The controversy now underscores the delicate balance required between meeting global labour standards and ensuring stability in the country's industrial landscape.