The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has differed on the clauses of the newly approved Bangladesh Labour (Amendment) Ordinance 2025, especial that linked to labour union.
Other issues of concern included the amended clauses that created confusion over workers’ provident fund and universal pension facility, and that widened the definition of labour accommodating industry officials.
At an emergency press conference on Tuesday, the apex body of the apparel exporters called on the government to reconsider those clauses and warned that those clauses could destabilize the industry, discourage investment, and disrupt production.
BGMEA President Mahmud Hasan Khan expressed serious concerns over the new provisions allowing trade unions to be formed with as few as 20 workers and prohibiting employers from blacklisting workers.
Calling the changes “imbalanced and impractical,” he said the decision disregards the consensus reached earlier among stakeholders during extensive discussions in the Tripartite Consultative Committee (TCC) and the Working Committee.
“After detailed dialogue, it was agreed that trade unions could be formed with the consent of at least 50 workers in factories employing between 50 and 500 workers,” Mahmud said.
“However, this balanced proposal was later overturned at the Advisory Council meeting, which unilaterally reduced the threshold to 20–300 workers, dividing factories into five categories,” he added.
He warned that allowing just 20 workers to form a union could lead to manipulation by individuals or groups not directly connected with the industry, resulting in “internal conflicts, instability, and production disruptions.”
“Such a framework will undermine investor confidence and discourage entrepreneurs from setting up or expanding factories,” he cautioned.
Mahmud also noted that the inclusion of employees or officers within the legal definition of workers would blur the distinction between management and labour, creating confusion in decision-making and complicating factory operations.
“This will weaken the management structure, disrupt responsibilities, and ultimately harm productivity,” he added.
Citing examples from neighbouring countries, the BGMEA president pointed out that in India, forming a union requires the consent of at least 10% or 100 workers, while in Pakistan, 20% worker consent is mandatory.
“By comparison, Bangladesh’s new rule—allowing a union with just 20 workers—creates the weakest and most unstable structure in South Asia,” he said, warning that such a move sends “a negative signal to foreign investors.”
He further alleged that several clauses of the new ordinance were approved without discussion, despite having been previously endorsed unanimously in TCC and Working Committee meetings.
“This procedural injustice undermines mutual trust among workers, entrepreneurs, and the government,” he said.
Mahmud emphasized that at a time when competing nations are pursuing investment-friendly labour reforms and industrial upgrades, Bangladesh risks falling behind.
“If such impractical laws are enforced, foreign investment will decline, exports will suffer, and industrial unrest will rise,” he cautioned.
The BGMEA chief also raised broader industry concerns, including the rising port charges at Chattogram, the energy crisis, and challenges linked to Bangladesh’s impending LDC graduation.
Responding to the Shipping Ministry’s statement that port fees had not been increased in 40 years, Mahmud said, “That claim needs clarification. Any abrupt fee hike will further burden exporters already facing high operational costs and low profit margins.”
He urged the government to ensure a business-friendly environment, address gas shortages, simplify customs and NBR procedures, and improve logistics and infrastructure to sustain export competitiveness.
On the issue of LDC graduation, Mahmud appealed for an extension of Bangladesh’s transition timeline by at least three years, saying, “Until the necessary preparations are in place, we sincerely urge the authorities to delay graduation to protect competitiveness and ensure a smooth economic transition.”
Representatives of several major trade bodies were also present at the press conference, which was convened in response to the government’s recent approval of the Bangladesh Labour (Amendment) Ordinance 2025.