Why Bangladesh must align wages, working conditions, trade union rights with international standards

By Abu Sufian*

Bangladesh stands at a critical juncture in its quest to revive Generalized System of Preferences (GSP) benefits, which offer duty-free access to key markets like the United States and the European Union. Recent statements from Finance Adviser Dr. Salehuddin Ahmed and Commerce Adviser Sheikh Bashir Uddin underscore the interim government’s diplomatic push to restore these trade privileges, with a clear focus on addressing labour rights deficiencies. This initiative is not just about ticking boxes for GSP compliance—it’s about fostering fair, sustainable economic growth that aligns with global standards. For Bangladesh, a nation heavily reliant on its garment industry, prioritizing robust labour law implementation is non-negotiable.

The garment sector, which accounts for 85% of Bangladesh’s export earnings and ranks second globally, faces mounting challenges. Competitors like Vietnam, Cambodia, and Laos are gaining ground, and Bangladesh risks losing its edge if it fails to address persistent labour rights issues. The country has faced international criticism for substandard working conditions, inadequate wages, child labour, and restrictions on trade unions. These are not mere reputational blemishes—they threaten Bangladesh’s economic lifeline.

Take the recent 9% wage hike for garment workers, effective December 1, 2024. While a step forward, it falls short of the 15% increase workers demanded, especially against a backdrop of 14.1% food inflation (per BBS data from July 2024). With wage growth lagging behind inflation—6.17% in July and 8.1% in November 2024 against 13.8% inflation—workers’ real income and purchasing power are eroding. The minimum wage of $105 (recently increased) pales in comparison to Vietnam ($132–192), Jordan ($366), or even Cambodia. This reliance on cheap labour, a hallmark of Bangladesh’s garment industry for 45 years, is no longer viable in a competitive global market that increasingly values ethical production.

The consequences of low wages extend beyond worker dissatisfaction. Malnutrition and declining health are reducing productivity, trapping Bangladesh in a middle-income quagmire, as noted by economist Dr. Debapriya Bhattacharya. The International Labour Organization’s 2024–25 report ranks Bangladesh third in South Asia for low-wage workers, a statistic that should sound alarms. Meanwhile, the EU and U.S. have repeatedly flagged concerns about cheap labour, with the latter tying long-term purchase orders to meaningful wage increases, as seen in Cambodia’s successful model.

The U.S. has outlined 11 labour rights priorities for Bangladesh, including simplifying trade union registration (reducing the required worker consent from 20% to 10%) and raising minimum wages to global standards. A U.S. labour delegation’s visit to Dhaka in November 2024 reinforced this message: addressing labour rights is critical not only for GSP reinstatement but also for democratic stability and inclusive growth. The EU, which absorbs 58% of Bangladesh’s exports, offers GSP+ benefits contingent on compliance with 32 international conventions and the government’s National Action Plan (NAP). Failure to meet these standards risks a 8.7% duty on EU exports and a 16% duty on U.S. exports, which would cripple the garment sector.

The stakes are higher as Bangladesh nears graduation from least developed country (LDC) status, after which GSP benefits will vanish without robust labour reforms. The Rana Plaza collapse and Tazreen Fashions fire led to the U.S. suspending GSP benefits, a reminder of the cost of inaction. Yet, there is hope. The interim government’s formation of a Labour Reform Commission, welcomed by the U.S., and its acceptance of the EU’s 2023 Universal Periodic Review signal progress. But intent must translate into action.

Bangladesh’s economy, propped up by garment exports and remittances, cannot afford complacency. Labour law reform is not just a prerequisite for GSP benefits—it’s a moral and economic imperative. By aligning wages, working conditions, and trade union rights with international standards, Bangladesh can secure its place in global markets, improve worker livelihoods, and build a resilient economy. The time to act is now.

---

*Independent researcher and freelance columnist

Comments

Countrywide protest by gig workers puts spotlight on algorithmic exploitation

By A Representative A nationwide protest led largely by women gig and platform workers was held across several states on February 3, with the Gig & Platform Service Workers Union (GIPSWU) claiming the mobilisation as a success and a strong assertion of workers’ rights against what it described as widespread exploitation by digital platform companies. Demonstrations took place in Delhi, Rajasthan, Karnataka, Maharashtra and other states, covering major cities including New Delhi, Jaipur, Bengaluru and Mumbai, along with multiple districts across the country.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Budget 2026 focuses on pharma and medical tourism, overlooks public health needs: JSAI

By A Representative Jan Swasthya Abhiyan India (JSAI) has criticised the Union Budget 2026, stating that it overlooks core public health needs while prioritising the pharmaceutical industry, private healthcare, medical tourism, public-private partnerships, and exports related to AYUSH systems. In a press note issued from New Delhi, the public health network said that primary healthcare services and public health infrastructure continue to remain underfunded despite repeated policy assurances.

'Gandhi Talks': Cinema that dares to be quiet, where music, image and silence speak

By Vikas Meshram In today’s digital age, where reels and short videos dominate attention spans, watching a silent film for over two hours feels almost like an act of resistance. Directed by Kishor Pandurang Belekar, “Gandhi Talks” is a bold cinematic experiment that turns silence into language and wordlessness into a powerful storytelling device. The film is not mere entertainment; it is an experience that pushes the viewer inward, compelling reflection on life, values, and society.

Penpa Tsering’s leadership and record under scrutiny amidst Tibetan exile elections

By Tseten Lhundup* Within the Tibetan exile community, Penpa Tsering is often described as having risen through grassroots engagement. Born in 1967, he comes from an ordinary Tibetan family, pursued higher education at Delhi University in India, and went on to serve as Speaker of the Tibetan Parliament-in-Exile from 2008 to 2016. In 2021, he was elected Sikyong of the Central Tibetan Administration (CTA), becoming the second democratically elected political leader of the administration after Lobsang Sangay.

Silencing the university: How fear is replacing debate in academic India

By Sunil Kyumar* “Republic Day is a powerful symbol of our freedom, Constitution, and democratic values. This festival gives us renewed energy and inspiration to move forward together with the resolve of nation-building”, said Prime Minister Narendra Modi on January 26, 2026. On this occasion, the Prime Minister also shared a Sanskrit subhashita— “Paratantryābhibhūtasya deśasyābhyudayaḥ kutaḥ. Ataḥ svātantryamāptavyaṁ aikyaṁ svātantryasādhanam.”

Harsh Mander moves police over Assam CM’s remarks on Bengali-speaking Muslims

By A Representative Peace and justice worker and writer Harsh Mander has filed a police complaint against Assam Chief Minister Himanta Biswa Sarma over public statements made on January 27 at an official event in Digboi, Tinsukia district, alleging that the remarks promote hatred, harassment and discrimination against Bengali-speaking Muslims in Assam.

Advisor appointment rekindles debate on governance in Jammu & Kashmir

By Raqif Makhdoomi* The government in Jammu and Kashmir has completed approximately one and a half years in office. During the initial phase of its tenure, public expectations were shaped by commitments made during the election campaign. In particular, the Chief Minister, Omar Abdullah, stated at a press conference held at the Sher-i-Kashmir International Conference Centre (SKICC) that major promises would be addressed within the first six months of governance. As the government has now crossed two such six-month periods, public discourse continues to assess the extent to which these commitments have been met.

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

Search This Blog