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Bangladesh today has entered the highway of development in a confident journey - where progress in a new direction is not just a dream, but a matter of realization. The country is becoming a centre of interest for international investors due to its export-led economy, rising GDP growth, large youth workforce and geographical advantages. BEPZA, BIDA, BEZA and other development partners are actively working to realize this potential. But in the midst of this, a terrible obstacle repeatedly came to the fore - worker discontent.
It is never possible to achieve the desired level of foreign investment (FDI), ignoring it. If workers' rights, safety and equality are not ensured, it will be difficult to attract foreign investment. Therefore, the prerequisite for creating a sustainable investment environment is the effective elimination of worker dissatisfaction. The future of the country's foreign investment depends on this step.
Labour dissatisfaction in industries and factories not only disrupts the production process, but also has a profound negative impact on the overall economy. The dissatisfaction of workers is mainly the result of errors relating to wages, working conditions and management. Absence of timely payment of salaries and bonuses, lack of fair wage structure, discriminatory treatment and harassment of workers, excessive workload and negligence in redressal of grievances are the main driving forces of worker discontent.
The lack of adequate fire safety measures and personal protective equipment in the factory intensifies concerns about the safety of workers. In addition, delays in resolving grievances, limited access to trade unions, poor living conditions, lack of access to education and training, economic instability, interference from local influentials, and political instability in the country all contribute to labour discontent.
When foreign investors think of investing in a country, they first judge the country's political stability, infrastructure quality, legal security, and labour environment. In this judging process, the efficiency of workers, the wage structure, the extent of strike or dissatisfaction, the labour law and its implementation are considered to be one of the most important indicators.
Worker dissatisfaction is a major concern for investors. If the basic rights and safety of workers are not ensured, it will not be possible to attract investment only by improving the quality of infrastructure. Creating a healthy, participatory and humane labour environment is essential for the long-term economic development of the country. When such problems occur again and again, the image of Bangladesh is tarnished for foreign investors and they look for alternative countries.
Since independence, labour unrest in Bangladesh has gradually become a regular challenge. During the famine of 1974, discontent started in the public sector industries demanding salaries and rations. With the development of the ready-made garment industry in the 1980s and 90s, protests among garment workers increased due to layoffs, low wages, and poor working conditions. The Minimum Wage Board was formed in 2006 after a major movement in Savar. The 2012 Tazreen Fashion fire and the 2013 Rana Plaza collapse brought domestic and foreign attention to the issue of worker safety. In the years that followed, there were repeated protests demanding an increase in wages. In particular, during the COVID-19 pandemic in 2020, thousands of workers lost their jobs, many factories closed or salaries were reduced - leading to renewed discontent and a humanitarian crisis. In 2023 and 2024, labour discontent intensified due to global economic pressures, the dollar crisis, and inflation.
In the wake of July 2024 political unrest and the post-July political changeover, many industry owners fled the country. As a result, production was disrupted and the workers were not paid their salaries on time. This purposefully-created volatile environment makes worker dissatisfaction more complex and multidimensional. This dissatisfaction still persists, which is a major obstacle to the sustainable progress of the industrial sector and foreign investment.
Labour unrest in Bangladesh has long been a major obstacle for foreign investors. From 1990 to 2000, many foreign companies moved out of Bangladesh or shifted their production sites to other countries due to labour movement, pay disparity and dissatisfaction with the work environment. After the 2013 Rana Plaza disaster, there was a growing concern about Bangladesh among foreign investors, and many international brands shifted their production to countries such as Vietnam, Ethiopia and Myanmar.
At present, labour discontent is still a major challenge for foreign investment. Although the government has taken various initiatives to improve the safety and working environment of workers, foreign investors are still waiting for a safe and fair labour environment. They take their investment decisions very carefully.
Worker dissatisfaction is not an immediate phenomenon. It is the result of long-accumulated deprivation, misunderstandings and lack of communication. Foreign investors want a stable, reliable and productive environment. Long-term investment cannot be sustained, when there are repeated work abstentions, street protests, or employers close down factories and flee.
Not only the ready-made garment industry but also electronics, agro-processing and information technology see investors take the labour-environment into account. Production is the main driver of any industrial establishment, and the workers are the lifeblood of that production system. If the workers are dissatisfied or offended, it directly affects production and investment negatively. International investors are now emphasizing not only easy policies, but also a stable and peaceful labour environment. In this reality, if labour discontent in a country is prolonged, investors do not hesitate to find an alternative destination.
A worker dissatisfaction-free work environment is very important in implementation of the government's goals. The government aims to boost foreign investment. For this, various initiatives including the creation of new EPZs, special economic zones, one-stop services, new guidelines are underway. But investment is not just about land or electricity, it is a contract of trust - where the state guarantees that the investor's production will not be hampered. But the fact is that every year, on the eve of Eid or at different times, worker discontent is created. Anger rises among workers due to irregular pay, overtime, workload, lack of medical facilities, etc. If this anger is not resolved structurally, it will hamper not only investment but also overall economic growth.
The labour ministry, labour directorate, Directorate General of Factories and Establishments Inspection (DIFE), BEPZA, industrial police, BGMEA, BKMEA, district administration and law enforcement agencies are directly involved in resolving labour unrest in Bangladesh. They ensure peaceful resolution of problems through labour-employer mediation, law enforcement, safety assurance and negotiation.
Bangladesh lacks a proper institutional framework to address labour discontent. This shortage is making the labour environment unsafe and has become a major obstacle in the way of sustainable industrial development.
Deficiencies in the institutional framework:
Weakness in the implementation of labour laws: Although there are multiple agencies in the implementation of labour laws in Bangladesh, the real picture is not satisfactory. Many of the organisations responsible for receiving and resolving workers' complaints are active only on paper. Although the Directorate of Inspection of Factories and Establishments (DIFE) has the responsibility of ensuring proper inspection, enforcement of labour laws and safe working environment, effective supervision is not possible due to manpower shortage, lack of vehicles and lack of skills. In reality an inspector has to supervise many factories, which is almost impossible to do alone. Besides, there is a lack of preparation, experience and necessary facilities of the concerned agencies for immediate solution in case of worker dissatisfaction. As a result, the problems become more complex and the dissatisfaction of the workers increases. Structural reforms and skill development in the implementation of labour laws are very important today.
Lack of Factory Based Negotiations: In many industries of Bangladesh, the bilateral negotiation committees or joint consultation committees formed for the purpose of building bridges between owners and workers are practically ineffective in most cases. These committees do not meet regularly, or even if they do, the views or demands of the workers do not get due importance. In particular, there is a lack of clear and honest communication with workers on important issues such as salaries, bonuses, overtime payments, due dates, festivals and annual holidays. This creates a crisis of confidence among the workers and gradually leads to discontentment. Lack of regular, transparent and participatory discussions is one of the main causes of worker dissatisfaction.
There is no grievance redressal system: Many workers in Bangladesh do not know where, how and to whom to complain or how to get legal aid. As a result, they face problems. Complaints to superiors, especially about overtime, vacation, behavioral or other minor issues, are often not taken seriously. When the workers' statements were ignored, frustration and anger gradually built up among them. As these complaints were not resolved in time, it turned into a major resentment. Lack of effective grievance management, worker-friendly counseling centres and transparent and accountable procedures for receiving and resolving complaints are some of the reasons for the increase in worker dissatisfaction.
Relying on the response of the industrial police: Many times the industrial police and other law enforcement agencies are relied upon only to control the situation without taking preventive measures in advance to resolve the workers' discontent. An analysis of past events shows that when discontent begins, the first to enter the field are the industrial police, who, although playing an important role in maintaining security, often do not have enough training or experience in labour law and labour-related social realities. As a result, they try to handle the situation by applying immediate pressure instead of going deep into the problem. As a result, worker dissatisfaction is often exacerbated. Although the role of law enforcement agencies is essential in the interest of security, it is essential to ensure long-term solutions, not only through reactive measures, but also through early negotiation, mediation and proper enforcement of labour laws.
The time has come for visible and institutional changes to create an investment-friendly labour environment. Some effective structural recommendations are as follows:
If the ADR procedure is legally mandated, it is possible to resolve worker dissatisfaction quickly and effectively. If ADR steps are added to Section 33 of the Labour Act, it will have a legal basis. Inspectors can play an active role by resolving various complaints during inspection, which will be helpful in preventing major worker dissatisfaction. In addition, the law enforcement agencies concerned, including the industrial police, will also be able to play an effective role in resolving labour discontent by applying the ADR method.
At the beginning of any worker discontent, the industrial police arrive and try to calm the situation by talking directly to the workers. However, there is a need for the industrial police to acquire more in-depth knowledge and skills on labour laws, worker psychology and techniques for resolving discontent. If they are provided with specialized training in this regard and are able to tactfully apply the ADR method, it will be possible to resolve labour discontent quickly, peacefully and effectively.
Labour unrest is a major impediment to industrial growth. If the goods are not delivered on time, the confidence of the buyers is lost, which causes the closure of the factory and the workers are affected. Therefore, the workers should understand that it is not discontent but pro-industry attitude that will shape their future. It is possible to increase their interest and sense of responsibility through motivation and awareness, which will ensure the stability of the industry and the security of their employment. This attitude of the workers can be developed through motivational videos or campaigns.
Simplifying and streamlining the sales process of closed or defunct factories can bring a new life to the labour environment. The existing legal and policy complications are a major obstacle to the revival of the factory. To overcome this situation, the government should develop a transparent, fast and effective system in which all three parties - owners, investors and workers - will benefit. This will ensure prompt payment of arrears to workers, restarting of factories and ensuring employment.
At the same time, those who spread rumours in industrial areas with political persuasion create labour discontent through misdeeds, and force helpless workers to lose their jobs through the destruction of state resources - they should be brought to book and severely punished. Only then will worker discontent be significantly reduced and sustainable peace will be established in the industry.
At the end of the day, trust and partnership are the key to investment. Today Bangladesh is at a potential stage for foreign investment. The government is sincere, the workers are hardworking, the infrastructure is also developing. But the discontent of workers is hindering this progress from within. Investment depends not only on capital, but also on the trust, safety and participation of workers. If workers do not feel they are part of development, investment will not last long. Therefore, the redressal of labour discontent for sustainable development is the need of the hour. Everyone has to work together. A peaceful and labour unrest-free environment can ensure a stable investment climate.
Dr. Sohel Mia is a labour relations specialist.
drsohelbepza@gmail.com