HomeCommerce"Bangladesh Labor Act Amendment Sparks Industry Concerns"

“Bangladesh Labor Act Amendment Sparks Industry Concerns”

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The recent approval of the Bangladesh Labour Act (Amendment) Ordinance 2025 by the advisory council took both factory owners and labor representatives by surprise. Industry leaders express concerns as the approved draft on trade union formation deviates from earlier agreements among employers, unions, and government officials.

Under the Tripartite Consultative Council (TCC) meetings, it was decided that trade unions could be formed based on specific worker consent thresholds according to factory size. However, the advisory council has significantly reduced these thresholds in the approved draft, making it easier for unions to be established.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and other employers fear that the lowered thresholds could lead to confusion and unrest in factories, rather than safeguarding workers’ rights. Despite international pressure to align with global standards, concerns are raised about potential negative impacts on the industry.

Various stakeholders, including industry leaders and labor representatives, have voiced their opinions on the amendment. While some support the revised thresholds, others warn about the risks of excessive union activity and potential challenges for smaller factories. Calls for further discussions and revisions to the amendment are being made to address these concerns.

The draft will undergo further scrutiny by the law ministry before reaching the President’s office for final approval as an ordinance. The evolving situation reflects the complexities and debates surrounding labor rights and union formation in Bangladesh, highlighting the need for balanced and inclusive decision-making processes.

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