Dhaka: The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has called upon the Prime Minister and Members of Parliament to reconsider and amend several provisions of the Bangladesh Labor (Amendment) Ordinance, 2025. In a press conference held at the BKMEA office in Bangla Motor, the BKMEA expressed its concerns regarding the potential negative impact of the ordinance on the country's industrial sector.
According to United News of Bangladesh, BKMEA President Mohammad Hatem voiced apprehensions that some amendments proposed by the previous interim government were ambiguous and appeared to be part of a planned effort to destabilize the industrial sector. Hatem suggested that certain individuals within the former administration may have intentionally crafted these rules to undermine the export-oriented industry. The trade body warned that specific sections of the new ordinance could create administrative complexity, increase production costs, and threaten the global competitiveness of the country's readymade garment (RMG) sector.
The BKMEA identified several areas where the 2025 Ordinance deviates from the industry's practical needs and the recommendations of the Tripartite Consultative Council (TCC). They argued that the amended definition of a "worker" is too broad, causing confusion between general employees and management/administrative officers, and called for a clearer distinction to prevent administrative overlap.
Furthermore, the BKMEA commented on the compensation for resignation clause, which entitles a worker to 7 days of wages as compensation for each year of service after only three years of employment. They proposed that this benefit should only activate after a minimum of three to five years of continuous service, with a graded scale for longer tenures. Additionally, they suggested that even if a facility has only one trade union, it must secure a majority (50% + 1) in an election to be recognized as the Collective Bargaining Agent (CBA).
The mandatory Provident Fund (PF) provision, which requires a PF for any factory with 100 permanent workers, was also critiqued by the BKMEA. They recommended raising this threshold to 500 workers to lessen the financial and administrative burden on smaller and medium-sized units. Moreover, the allowance for up to five trade union registrations in a single establishment was a point of concern, with the BKMEA advocating for strict oversight to prevent industrial unrest.
BKMEA also called for clearer operational guidelines for the mandated 5-member Harassment Grievance Committees to ensure their fair functioning. While supporting worker welfare, the association emphasized that laws must be "investment-friendly" to guarantee industry sustainability, warning that the current version of the ordinance could lead to factory closures and a decline in national exports.
In conclusion, the BKMEA urged the government to engage in further dialogue to ensure the Labor Act fosters a stable environment for both workers and employers, maintaining Bangladesh's position as a leading global apparel exporter. Fazlee Shamim Ehsan, Executive President of BKMEA, Senior Vice President Amal Podder, CIP, and Vice President Mohammad Rashed were among those present at the press conference.