Trade unions are prohibited in Export Processing Zones (EPZs) in Bangladesh. EPZs are industrial zones with special incentives for foreign investors and imported materials are processed for export. While unions are allowed elsewhere in Bangladesh, EPZ authorities do not permit union activity and workers do not have rights to associate or collectively bargain. Instead, Workers Welfare Associations are permitted but do not have the same bargaining powers as trade unions. The International Labor Organization has condemned Bangladesh for not providing full trade union freedoms in EPZs.

1. 1
Trade union in Epz in Bangladesh
Definition of Epz:
An Export Processing Zone (EPZ) is a Customs area where one is allowed to import plant,
machinery, equipment and material for the manufacture of export goods under security, without
payment of duty. According to the International Labor Organization (ILO), export processing
zones (EPZs) are industrial zones with special incentives set up to attract foreign investors, in
which imported materials undergo some degree of processing before being exported again. The
United Nations Industrial Development Organization (UNIDO) defines an export processing
zone as a relatively small, geographically separated area within a country, the purpose of which
is to attract export-oriented industries by offering them highly favourable investment and trade
conditions as compared with the rest of the host country.
Definition of trade union:
A trade union (or labor union) is an organization of workers who have banded together to
achieve common goals in key areas and working conditions. The trade union, through its
leadership, bargains with the employer on behalf of union members (rank and file members) and
negotiates labor contracts (Collective bargaining) with employers.
Definition of trade union in Epz:
Trade union means workers unity group which ensure workers or employer rights and bargaining
power and in Epz in trade union means the unity of those worker or worker group who work for
the Epz that’s a same like general trade union where must be a group of people select a
representative who can talk with the management about all worker problems.

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Epz in Bangladesh:
Below is the list of export processing zones run by BEPZA:
 Adamjee Export Processing Zone, Siddhirganj, Narayanganj
 Chittagong Export Processing Zone, South Halishahar, Chittagong
 Comilla Export Processing Zone, Cumilla
 Dhaka Export Processing Zone, Savar, Dhaka
 Ishwardi Export Processing Zone, Ishwardi, Pabna
 Karnaphuli Export Processing Zone, North Patenga, Chittagong
 Mongla Export Processing Zone, Mongla, Bagerhat
 Uttara Export Processing Zone, Nilphamari
There are also many Epz which government approve recently but those Epz are the largest and
main epz in Bangladesh.
The main abstractof the Work in Export Processing Zone (EPZ):
Most of the industries of Bangladesh are highly labor intensive. Automation of working process
is still now not very famous here. Employment creation and investment in the export oriented
industries is an important objective of the industrial policy of Bangladesh. An Export Processing
Zone (EPZ) is one of the instruments used for attracting investment, mainly foreign direct
investment and to provide employment. EPZ has been a part of a larger set of instruments and
policy measures in Bangladesh. Around 110,000 workers are working in the Bangladesh Export
Processing Zone.
Trade union in epz in Bangladesh:
Bangladesh EPZ authority doesn’t allow any union activity inside the zone. But they don’t have
any right of association, right for collective bargaining, right to strike.
In Bangladesh there are around 6,300 registered unions and 1.9 millions union members. Almost
100% of government organizations are unionized. But, unionization in private organizations is
not so popular in Bangladesh. Dhaka Export Processing Zone (EPZ) is one of them, where
unions are not allowed. The authority of Dhaka EPZ is Bangladesh Export Processing Zone
Authority (BEPZA) totally prohibited the union inside the zone. Management and monitoring of
EPZs in the country lie with the Bangladesh Export Processing Zones Authority (BEPZA). The

3. 3
employment policies made by the BEPZA. The study shows the characteristic of the worker and
the employment practices inside the zone.
Bangladesh Commerce minister ruled out the possibility of any further changes to the
Bangladesh Export Processing Zone (EPZ) Labour Act 2014, regarding Trade Union (TU)
activities in the Bangladesh’s eight EPZs, employing 360,000 workers.
He said this about the outcomes of his recent meeting with the European Commission (EC) about
progress of implementation of the “Bangladesh Sustainability Compact”, a specific and time-
bound commitment for improving levels of occupational safety and health, promote responsible
business conduct and greater respect of labour rights, with a particular focus on freedom of
association and the right to collective bargaining.
“We have already initiated a process of bringing about necessary amendments to the existing
EPZ law to ensure workers’ rights. No further changes will be made in this connection,” the
minister said.
At present, trade unionism is allowed in the form of workers’ welfare associations (WWAs) and
they were functioning as Collective Bargaining Agents (CBAs) in the EPZs, the minister
claimed. He further said that the EPZ workers were enjoying their lawful rights through the
WWAs.
The minister said that the investors would quit the zones if TUs were allowed in those special
zones. Since it’s establishment there was no provision of TUs in the EPZ factories. He further
said the Compact signatories have agreed with the changes so far brought and did not demand
any further modification in this connection.

4. 4
What is the difference between trade union and workers
welfare association?
The Bangladesh Export Processing Zone (EPZ) Labour Act 2014 was prepared by a special
committee formed by the Prime Minister’s Office allowing “Workers’ Welfare Associations”
and not “Trade Union”, according to the Cabinet Secretary at the press briefing following
approval of the Act.
Trade Union – a term avoided all along – must be registered with the Directorate of Labor under
the Ministry of Labor in order to be legally recognized as Collective Bargaining Agent whereas
the EPZ Workers’ Welfare Associations can be registered with the BEPZA only. Thus, it
remains an Association and not a Trade Union, legally.
The associations or societies do not have collective bargaining rights but could negotiate with the
employer on working conditions, remuneration or payment for productivity enhancements and
worker education programmes, according to the laws of Bangladesh.
As per the amended law, at least 30 percent workers of a factory within an export processing
zone will have to apply for registration with the Bangladesh Export Processing Zone Authority
(BEPZA) to form an association. After registration the association’s executive committee will be
elected for one year. One candidate or a panel will need at least 50 percent votes to be declared a
winner and there will be a fresh election in case of fewer votes.
The EPZs are governed by a separate agency, the Bangladesh Export Processing Zones
Authority (BEPZA), and by separate laws. By tradition, the authority has been run by a military
officer, active duty or retired, and many factories have hired retired soldiers to oversee security.
Special legislation on unionisation has prohibited the formation of unions in the country’s eight
EPZs, which are exempt from the application of the Bangladesh’s national Labor Act and the
Factories Act, thereby excluding workers in the zones from the coverage of laws governing trade
union rights, wages, hours and safety and health standards. Instead, the government enacted the
EPZ Workers’ Association and Industrial Relations Act in 2004 (amended in 2009) that allows
limited freedom of association in the EPZs. A 2010 amendment renamed the ‘Workers
Associations’ as ‘Workers’ Welfare Societies’ but essentially did not change anything.
ILO condemned Bangladesh: The International Labor Organization (ILO) condemned
Bangladesh for its continuing failure to provide full trade union freedoms and for permitting
serious violations of ILO Conventions both in law and in practice.

5. 5
Elections in the EPZs: At the start of 2008, 69 enterprises in Dhaka and Citation EPZs voted
to establish trade unions. Based on a decision of BEPZA, 124 more enterprises in the two EPZs
will have to hold elections by 2010. According to our information, a number of Asian foreign
investors had publicly warned that allowing the formation of trade unions in export processing
zones would hold back further investment in Bangladesh’s garment sector.
Recent Situation of Trade Unions in EPZs:
government in principle has decided to allow factory workers in EPZs to
conduct trade union activities from January 1, 2014, as part of its measures to fulfill the
conditions set by the United States Trade Representative (USTR). Business leaders and
investors in the EPZs, however, have some misgivings. They say that providing such right
might cause labor unrest in the EPZs which will jeopardize their investment. Foreign
investors in the export processing zones (EPZs) do not want trade unionism as any agitation
or demonstration in such specialized industrial zones will hamper production and overseas
trade. A Japanese investor in Chittagong EPZ said, “We are worried about protecting our
investment as the cabinet agreed to amend the EPZ law, which will allow unionism in the
EPZs. We do not want any new unionism as we already have a workers' welfare committee
(WWC) at every factory in EPZs. This committee is enough to protect the interests of
workers.” A Korean investor in Savar EPZ said, “The inflow of fresh foreign funds in the
EPZs will be affected by unionism.
However, The EPZ authorities took the decisions as part of government measures to fulfill
the USTR conditionality for revival of GSP (Generalized System of Preferences) facilities in
the US market. The US administration scrapped the trade privilege on June 27, 2013 due to
alleged shortcomings relating to labor's rights and working condition after Tazreen Fashions
fire and Rana Plaza building collapse. The USA suspend Bangladesh’s GSP trade benefits in
June 2013 citing poor worker rights and worker safety records. It continues to press for
improvement of those issues, which led to some important progress including the current
amendment of the Bangladesh Export Processing Zone (EPZ) Labour Act 2014. After the
Rana Plaza building collapse in April last year, the government amended the labor law in July
the same year, allowing full freedom of association in factories outside the EPZs. With the
amendment to the labor law, a total of 203 trade unions have been registered since January to
the end of July last year, according to the labor ministry. The government moved to amend
the EPZ law under pressures from the US government as the Obama Administration
suspended the generalized system of preferences status, citing serious shortcomings in labor
rights and working conditions.

6. 6
Trade union in EPZs gets nod:
The cabinet yesterday finally gave the nod to the draft Bangladesh EPZ Labour Law 2016, with
provisions for forming legal trade unions in factories inside of the Export Processing Zones
(EPZ).
Allowing trade unions in factories was the last of the 16 conditions set by the US to be fulfilled
by the Bangladesh government for regaining the GSP (Generalised System of Preferences) in the
US market.
Bangladesh government has already submitted the progress report on the implementation of 16
conditions to the United States Trade Representative (USTR), the chief trade negotiation body
for the US government, for reinstatement of the GSP privilege.
The GSP was suspended for Bangladesh in June, 2013, due to serious shortcomings in workplace
safety and labour rights.
Apart from suspending the GSP benefit after the Rana Plaza building collapse, the US
government gave the 16 conditions as “Bangladesh Action Plan”.
The government made delays in allowing unions in the EPZs, as the foreign investors were
divided on the issue. Investors of some countries said the unions would hamper the production
while others argued that the unions would establish labour rights.
If this draft, which amends EPZ Workers' Welfare and Industrial Relations Act, 2010, is passed
by parliament and made into law, the Workers' Welfare Associations (WWA) in factories inside
of the EPZs would act as the legal trade unions.
The workers' associations had no legal status earlier but the amendment would give them the
legal status of the Collective Bargaining Agent in factories inside of the EPZs, said Nazma Binte
Alamgir, general manager, public relations of the Bangladesh Export Processing Zones
Authority (BEPZA), the regulating body for the EPZs.
Under the new rules, 30 percent workers would have to ask the BEPZA, filling in a form, for the
formation of the Workers' Welfare Associations, Nazma Alamgir said.
Once the BEPZA verifies the applications and allows the WWAs, there would be a referendum
among the workers for holding a polls to elect WWA leaders. Workers would only be allowed to
hold the polls after the referendum decides that the workers want a WWA.
However, Sirajul Islam Rony, a member of the minimum wage board for garment workers, said
the amendment to the law would allow partial trade unionism in factories, not the full rights due
to the provision for referendum.

7. 7
“But, at the same time giving the legal status to the workers' welfare association as unions will
also allow guaranteed benefits to the workers. The workers will enjoy all benefits if any factory
is shut down for any reason,” he said.
“We want equal labour law for workers inside and outside of the EPZs in our country,” said
Nazma Akter, president of Sammilito Garment Sramik Federation, a garment workers' platform.
“I do not agree with many provisions in the amendment,” she said.
Currently, more than 4.40 lakh workers are employed in eight EPZs across the country with 453
factories in operation. A total of 121 factories are under construction there.
There is a $3.74 billion investment from home and abroad, Nazma Alamgir said, adding that the
factories exported goods worth $6.11 billion in 2014-15 fiscal year.
The Bangladesh EPZ Labour Law, 2016, also has a provision for forming a permanent wage
board for workers, said Cabinet Secretary M Shafiul Islam yesterday after the cabinet meeting
held at the Secretariat with Prime Minister Sheikh Hasina in the chair.
Briefing reporters, he said workers would get various advantages, including retirement benefits,
mandatory group insurance, compensation in case of deaths, cash payment for earned leave, full
salary as festival bonus, and maternity leave for 16 weeks.
He said the family members of a worker would get Tk 2 lakh compensation if he or she dies on
duty and Tk 2.25 lakh for any worker for his or her permanent disabilities caused by accidents at
work.
Shafiul said the labour organisations in EPZs would be named Sramik Kalyan Samity.
The cabinet secretary said the proposed law would ensure the right to joint wage bargaining for
workers where their representatives would be able to bargain directly with the owners for fixing
wages, working hours, appointments, and conditions for appointments and observing strikes.
“The law is going to be framed in light of the existing Labour Law 2006 and in line with the
central bargaining agent (CBA) and trade union,” the cabinet secretary told reporters.
The executive chairman of BEPZA would act as the chief of the permanent wage board for
fixing the minimum wages for workers. “The wage broad, if it deemed necessary, can reorganise
the wages of the workers,” he added.
The government had earlier formed a committee to formulate a law in line with the Bangladesh
Labour Law, 2006.

8. 8
ILO COMMITTEE OF EXPERTS’ 2018 REPORT CONFIRMS -NO REAL
PROGRESSIN BANGLADESH
In February 2018, the ILO Committee of Experts (the “Committee”) released its annual report on
member states’ compliance with ratified conventions. This includes 1much-anticipated
observations with regard to the Government of Bangladesh’s (GOB) compliance with ILO
Conventions 87 (freedom of association) and 98 (collective bargaining). As in several previous
reports, the Committee expressed its concern over serious violations of the conventions in both
law and in practice. As the report indicated, there has been no progress at all on cases of anti-
union violence. The adoption of standard operating procedures (SOPs) for union registration and
investigation of unfair labour practices have had no meaningful impact; indeed, the majority of
union registration applications are still denied.
Export Processing Zones Labor Act:
The GOB has proposed a new EPZ Labour Act. As with the BLA, the proposal would still leave
the law very far out of compliance with Conventions 87 and 98. The GOB excuses some of these
flaws on workers, claiming that they do not want some of the rights to which they are entitled.
However, this runs contrary to the information obtained by NGOs through surveys of workers in
the EPZs. Indeed, we have serious doubts as to whether the alleged consultations were genuine
and based on informed discussions with WWA leaders on the legal options available. The GOB
also explains that foreign investors had discouraged some reforms, which is deeply troubling.
ILO criticized Bangladesh labor act:
ILO has severely criticized the BLA as restricting the fundamental rights of workers. The claim
also that workers have affirmatively stated a preference for the zone authorities to conduct
inspections instead of labor authorities is an absurd and self-serving statement. Indeed, in
interviews with EPZ workers they have indicated that the zone authorities are primarily
interested in protecting investment – not addressing workers’ rights violations. EPZ workers
have told us that they want their rights, and that there be no discrimination between workers
inside and outside of the zones.
The committee regretted:
the Committee “regretted” that “many changes requested by the Committee are still not
addressed by the proposed amendments” and stated further that “Observing that a very large
number of provisions would need to be repealed or substantially amended to ensure the
compatibility of the draft EPZ Labor Act with the Convention and recalling the conclusions of
the Conference Committee, the Committee requests the Government to continue to review the
draft EPZ Labor Act, in consultation with the social partners, to address all the issues highlighted
above and to bring the EPZs within the purview of the Ministry of Labor and the Labor
Inspectorate.

9. 9
Why Trade Union should be allowed in industries of EPZ in Bangladesh?
1. No Freedom of Association for Bangladesh's EPZ Workers, trade union ensure the
freedom of workers.
2. Trade union leader may guide the EPZ worker to do better work.
3. The export processing zone industries could understand what the worker or employer
want.
4. Unwanted issues could be reduce
5. Many of the employers while talking to The Independent expressed their fear that politics
might infiltrate trade unions.
6. For solving the disputes
7. Ensure EPZ worker rights
8. Trade union member can do strike on management or industry owner unethical issues
which may harm them.

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Reference:
https://www.thedailystar.net/frontpage/trade-union-epzs-gets-nod-511831
https://www.steinandpartners.com/en/no-trade-union-workers-welfare-associations-at-epz/
https://www.ituc-csi.org/IMG/pdf/bangaldesh_evaluation_ilo_experts_2018_final_ituc_ccc.pdf
https://www.refworld.org/docid/4c52ca44c.html
http://www.theindependentbd.com/post/91019
https://www.thedailystar.net/epz-workers-get-rights-to-union-32286
http://shailallb.blogspot.com/2010/02/trade-union-should-be-allowed-in.html
https://dokumen.tips/documents/why-trade-union-should-be-allowed-in-bepza.html
https://www.bepza.gov.bd/
1. Handbook of Bangladesh labor act 2006
2. Bangladesh labor act 2010
3. ILO annual report 2018