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

From plagiarism to proxy exams: Galgotias and systemic failure in education

By Sandeep Pandey* Shock is being expressed at Galgotias University being found presenting a Chinese-made robotic dog and a South Korean-made soccer-playing drone as its own creations at the recently held India AI Impact Summit 2026, a global event in New Delhi. Earlier, a UGC-listed journal had published a paper from the university titled “Corona Virus Killed by Sound Vibrations Produced by Thali or Ghanti: A Potential Hypothesis,” which became the subject of widespread ridicule. Following the robotic dog controversy coming to light, the university has withdrawn the paper. These incidents are symptoms of deeper problems afflicting the Indian education system in general. Galgotias merely bit off more than it could chew.

Covishield controversy: How India ignored a warning voice during the pandemic

Dr Amitav Banerjee, MD * It is a matter of pride for us that a person of Indian origin, presently Director of National Institute of Health, USA, is poised to take over one of the most powerful roles in public health. Professor Jay Bhattacharya, an Indian origin physician and a health economist, from Stanford University, USA, will be assuming the appointment of acting head of the Centre for Disease Control and Prevention (CDC), USA. Bhattacharya would be leading two apex institutions in the field of public health which not only shape American health policies but act as bellwether globally.

The 'glass cliff' at Galgotias: How a university’s AI crisis became a gendered blame game

By Mohd. Ziyaullah Khan* “She was not aware of the technical origins of the product and in her enthusiasm of being on camera, gave factually incorrect information.” These were the words used in the official press release by Galgotias University following the controversy at the AI Impact Summit in Delhi. The statement came across as defensive, petty, and deeply insensitive.

Farewell to Saleem Samad: A life devoted to fearless journalism

By Nava Thakuria* Heartbreaking news arrived from Dhaka as the vibrant city lost one of its most active and committed citizens with the passing of journalist, author and progressive Bangladeshi national Saleem Samad. A gentleman who always had issues to discuss with anyone, anywhere and at any time, he passed away on 22 February 2026 while undergoing cancer treatment at Dhaka Medical College Hospital. He was 74.

Growth without justice: The politics of wealth and the economics of hunger

By Vikas Meshram* In modern history, few periods have displayed such a grotesque and contradictory picture of wealth as the present. On one side, a handful of individuals accumulate in a single year more wealth than the annual income of entire nations. On the other, nearly every fourth person in the world goes to bed hungry or half-fed.

From ancient wisdom to modern nationhood: The Indian story

By Syed Osman Sher South of the Himalayas lies a triangular stretch of land, spreading about 2,000 miles in each direction—a world of rare magic. It has fired the imagination of wanderers, settlers, raiders, traders, conquerors, and colonizers. They entered this country bringing with them new ethnicities, cultures, customs, religions, and languages.

Thali, COVID and academic credibility: All about the 2020 'pseudoscientific' Galgotias paper

By Jag Jivan* The first page image of the paper "Corona Virus Killed by Sound Vibrations Produced by Thali or Ghanti: A Potential Hypothesis" published in the Journal of Molecular Pharmaceuticals and Regulatory Affairs , Vol. 2, Issue 2 (2020), has gone viral on social media in the wake of the controversy surrounding a Chinese robot presented by the Galgotias University as its original product at the just-concluded AI summit in Delhi . The resurfacing of the 2020 publication, authored by Dharmendra Kumar , Galgotias University, has reignited debate over academic standards and scientific credibility.

Conversion laws and national identity: A Jesuit response response to the Hindutva narrative

By Rajiv Shah A recent book, " Luminous Footprints: The Christian Impact on India ", authored by two Jesuit scholars, Dr. Lancy Lobo and Dr. Denzil Fernandes , seeks to counter the current dominant narrative on Indian Christians , which equates evangelisation with conversion, and education, health and the social services provided by Christians as meant to lure -- even force -- vulnerable sections into Christianity.

Unpaid overtime, broken promises: Indian Oil workers strike in Panipat

By Rosamma Thomas Thousands of workers at the Indian Oil Corporation refinery in Panipat, Haryana, went on strike beginning February 23, 2026. They faced a police lathi charge, and the Central Industrial Security Force fired into the air to control the crowd.

Search This Blog