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Wednesday, July 24, 2013

Bangladesh Government Passes Factory Safety Law


Following the deadly garment factory collapse earlier this year that killed 1,129 workers, the Bangladesh government has passed a law to improve conditions for factory workers. The law strengthens permit requirements for the addition of floors to an existing building, and it mandates that factories contribute 5% of their profits to a welfare fund for employees.

However, the law has been met with concerns and criticism because it states that export-oriented factories (which account for a majority of the country’s garment factories) are exempt from the provision mandating contributions to employee welfare funds. The law also perpetuates a policy that in order to unionize, workers in Bangladesh factories need to first gather signatures from at least 30% of their company’s workers. This policy has significantly hindered the possibility for factory worker unions in Bangladesh since many employees fear termination if their supervisors find out they support unionization.

U.S. government recently suspended Bangladesh’s trade preferences over concerns for the safety of garment factory workers, and the Obama administration is now reviewing the new law before making further decisions.