Executive Summary
The main purpose of this term paper is to provide an insight view of the condition of the workers working in one of the major industries of Bangladesh. The comparison is totally centered on the Bangladesh Labor code, 2006. The focus of this report is mainly on the wages and payments, working hours and leaves, maternity benefits, welfare, employment of adolescent regarding the Bangladesh Labor Code, 2006. This paper will provide a brief view of the Labor code as well as its implication and application in different situation. It will also explain how the workers are deprived of their legal rights and how the industries consciously violating the Labor code. The comparative analysis shows that only a few numbers of visited tanneries covers the majority of the labor code. Most of the companies as well as the workers are unaware of the labor code and the rights and limitations provided on the labor code. So the workers are constantly deceived of their rights in these industries. The revision on the Bangladesh labor code in 2006, covers a lot of the common standard issues like environmental condition, health and safety, as well as wages and working hours. This revision complies with international standards and ensuring the implication of these codes, our industries will definitely attract foreign market.

Introduction

In Bangladesh the leather industry is well established and ranked fourth in terms of earning foreign exchange. In consideration of being a value added sector the (Government of Bangladesh (GoB), Ministry of Industry (MoI) has declared it as a priority sector. The leather products sector have huge opportunities in generating employment , entrepreneurship and investment by increasing export of higher value added products rather than finished leather and by utilizing locally made raw material (finished leather) to convert into more value added leather products (including footwear and other leather goods).

Background

From the very beginning of industrialization in Bangladesh, tanning industries have been playing a significant role in the country’s economy. Due to its importance as a labor based export oriented industry the full flourish of this industrial sector is essential. But due to the absence of proper waste management, using inferior technologies, lack of facilities for treating industrial wastes; the tanning industries especially located in Hazaribag, Dhaka are aggravating environmental problems day by day. The discharging and dumping of wastes near the water bodies without treatment makes it almost look like an area which is lying under the blanket of pollution. It is an emerging problem not only for the environment but also as the social context of the country. This study focuses on the tanneries of Hazaribag located in Dhaka to assess the present situation arising from such activities and proposed several mitigation measures. This was done by analyzing the effects of various chemicals over human health and the surrounding environment. An Environment Impact Assessment (EIA) was undertaken for assessing several physical, ecological, human use and socio-economic parameters of the surrounding environment of the area. The history of the leather sector and tannery industry in Bangladesh started when R.P Saha set up first tannery in Narayanganj back in 1940. It was later shifted to Hazaribagh area of Dhaka, which turned into a location that now accommodates a large number of tannery units of the whole country. At present, the leather sector of Bangladesh has 220 processing units located at different parts of the country (mainly in Hazaribagh, Dhaka). But only 28 tanneries are in operation, among them 20 are operating in crust section and 8 are in finishing section.

Statistics prepared by EPZ

Promotion Bureau of Bangladesh for the Financial Year, 2011-12, the leather sector grew by 17.5 percent and earned $765 million in revenue. Among this $434.8 million was attributed from leather products, accounting for approximately 57 percent of the total revenue.
The leather sector includes 220 tanneries, 3,500 MSMEs and 110 large firms 2 of leather products controlling more than 90% of the export market. Most of the enterprises are located in Dhaka, followed by two big clusters at Bhairab and Chittagong. The sector generates direct and indirect employment for about 850,000 people, including a significant number of women, particularly in the leather products industries.
The larger enterprises like BATA, Gallerie Apex, Bay, Jennys are controlling the domestic market of high ended leather products but they are mostly dependent on imported products. So there is an immense opportunity for the MSMEs to provide up to USD 150 million in import substitution via becoming subcontractors for these very large global enterprises. MSMEs
(Ministry of Micro Small and Medium Enterprises) they are unable to function as important market players due to the following reasons: ➢ Absence of clustering strategy for joint production and retailing by MSMEs ➢ Inefficiency in production , ➢ Lack of skills, ➢ Limited access to modern machinery , ➢ Competition from cheap/illegal imports, ➢ Limited access to market information and market linkages, ➢ Lack of confidence by consumers about locally produced products, ➢ Unable to raise adequate financing.

Historically MSMEs have failed to reach the next level of the value chain due to the above mentioned reasons. Efforts from all available resources will be required to turn these actors in the value chain for leather within Bangladesh into sustainable stakeholders.
Government observation at lather industry

The Ministry of Industries of the Government of Bangladesh has selected a number of “booster” sectors for SMEs that have great potential to contribute significantly to the country’s economy. The sectors are: agro-processing, natural fibers, leather, plastics, light engineering, electronics, furniture and home textiles. The SCGS (SME Competitiveness Grant Scheme) program intends to support these chosen sectors through direct development projects and skills development and capacity building of related Business Intermediary Organizations’ (BIOs). As a part of this program, the present project has been taken up to provide technical assistance to the Ministry of Industries of the Government of Bangladesh and the SME Foundation, so that the chosen clusters and sector business associations and other business organizations can submit high quality applications under the SCGS. This information is intended to provide the above mentioned assistance to the leather sector those are such as:

➢ 90% of basic raw materials i.e. hide locally available. About 220m sq feet of leather of high grain produced locally, ➢ The sector is very much akin to the RMG sector, but there is far greater scope of value addition ~90% as oppose to RMG where value addition scope is ~40% as basic raw materials for leather sector are locally available. RMG is the single largest contributor to export about USD over 20b; however, basic raw materials are imported,

➢ 50% of leather is being exported in the form of semi finished and finished leather losing the value addition opportunity. Rest 50% is being converted into footwear and leather products for low end market, ➢ There is an enormous scope for entrepreneurs and investors. The sector is still catering to the low end export market. In order to advance it must move to the next levels,

Problems founded by the Government

➢ Business friendly policy: The sector needs business friendly policy by Government to increase the investment, ➢ Needs more skilled workers and managers: Although there are unskilled competitive labor forces, there is shortage of skilled workforces, managers and entrepreneurs, ➢ Limited access to market: Bangladesh has a limited or small share (~0.56%) in the global business, so there is a tremendous opportunity to grow to capture more market share around the world. Vietnam can be a benchmark for Bangladesh who imports 70% of raw materials and exports Shoes and footwear products: USD 6.549b, Bags & leather handbags: USD 1.289b, ➢ Limited access to market information: A deeper, more widely held understanding of market trend in terms of quality, fashion, leather product prices, competitors, importers and consumers’ preferences, and anticipated regulations and restrictions needs to be developed in Bangladesh, ➢ Poor cooperation between firms/stakeholders: strong connections between value chain members for a strong sector position, the stakeholders should hold their hands together for mutual benefits. Unfortunately this is still not the case, ➢ Low product quality and productivity: Product quality and overall productivity is always a concern for this sector. The product quality means the reliability and aesthetics of the finished products. It stems from the quality of basic raw materials including flayed hide/skin and chemicals, the overall workmanship and the machines/process used in the industry, so the sector still today target mostly the low end product market, ➢ Outdated Machineries: Traditional status quo mind set of the owners; they lack information on appropriate machineries, sources, prices etc. They also lack awareness on incentives for product / productivity improvements, are using traditional tanning and manufacturing methods and process, ➢ .Limited access to finance: Lack of awareness of Faison potentiality and risks of this business. Collateral and complicated formalities to have finance, ➢ Pollution from Tanneries: The tanneries discharge nearly 22,000 cum of untreated and highly toxic (contains chromium) into the water body every day. It produces 100 tons of solid waste everyday in the form of trimmings of finished leathers, shaving dust, hairs, trimmed animal flesh skins/hides to contaminate the soil and the water, ➢ Government allocated a dedicated land with CETP and necessary infrastructures in Savar, adjacent to Dhaka city, to address the major issues against environment, and to check pollutions by relocating Hazaribagh cluster to Savar, ➢ Relocation and moving to designated modern tannery cite with existing outdated old machineries from the existing Hazaribagh cite is a big challenge, and a matter of big investments for the tannery owners, ➢ There is an Institute of leather engineering and technology producing 150 graduates every year. Many leather engineers get involved in the unrelated fields of their expertise as the sector is not nurtured or promoted, ➢ Although there is a tendency of rent seeking mentality, and avoiding entrepreneurial challenges, there are many educated leather technologists and business persons who can emerge as very talented entrepreneurs provided the sector is nurtured and facilitated with basic requirements of a sector, ➢ Lack of support and promotion for SMEs, ➢ Absence of integrated policy; no long term policy regarding Common Facility Center (CFC), ➢ Lack of Accessories Manufacturers as backward linkage, ➢ Lack of skill development institutes , ➢ Under activities and support from BIOs/BMOs, ➢ Poor infrastructure (power), interrupted power supply, ➢ Waste management is in shambles.

Tannery Workers in Bangladesh

Most of the tannery workers will work at their respective factories which are now under relocation. But they require housing, medication, education and other basic needs to survive there. The government should address the problems before relocating the factories, the speakers added.

❖ Most of the tannery industry workers are illiterate, ❖ They are unaware about their rights and benefits, ❖ Recruitment on a job is not fair and proper, ❖ Job security is almost zero, ❖ Payment of wages is not according to labor code, ❖ No definite working hour. Work;’’ has to work more, ❖ Overtime facility is not proper, ❖ Casual leave or sick leave does not provide wages. ❖ Maternity benefits are provided according to labor code. ❖ Employment of adolescent in equate high. ❖ Adolescent are used in all kinds of work though there are provisions about probation on certain tasks. ❖ Adolescent are paid less than adults. ❖ Working hour of adolescent is not maintained at all. ❖ Not enough first aid kit available for accident in the tanneries. ❖ No canteen or rest room facility for the workers. ❖ No room children of the female workers in the establishment.

HEALTH, SAFETY AND WELFARE MEASURES

In terms of occupational safety and health issues, the status of Bangladesh is very poor and workers are extremely vulnerable in this regard. Owners of the industries or factories are exploiting the poor workers by virtue of the opportune TV of abject poverty of the poor workers. They are treated as irrational being by their health and safety facilities.
Workers in Bangladesh, for example, garment industry, are not often provided medical facilities such as first aid box, well equipped dispensary with patient room, nursing and staffs, albeit these health and security facilities are strongly ensured by the Bangladesh Labor Laws. According to the laws, employers are required to take appropriate measures to protect workers from danger and damage due to fire. Unfortunately, more than thousands of garments workers have to die only by fire burnt. The
.recent accident by fire of ‘Tazrin Fashion’ of Dhaka is the vivid example in this regard. Workplaces are required to be kept clean and free from effluvia arising out of any drain, privy or other nuisance. In this regard, Bangladesh shows poor scenery with unhygienic toilet, Tiffin-room. No separate toilet for male and female labour is found as well. The owners are frequently violates the laws in terms of overcrowded rooms, insufficient lighting, air and not providing pure drinking water.

Existing Laws under the Bangladesh Labor Code 2006:

Cleanliness: Section 51 of the code of labour law provides for cleanliness rules.
Ventilation and temperature: Section 52 of the code of labour law provides for ventilation and temperature law.
Dust and fume: Section 53 of the code of labour law provides for dust fume rules.
Disposal of wastes and effluents: Section 54 of the code of labour law provides for disposal of wastes and effluents rules.
Artificial humidification: Section 55 of the code of labour law provides for artificial humidification rules.

Insufficient HRM Practice:

Practices of HRM, is very rare in tanneries of Bangladesh, especially the medium and small size tanneries do not have HR unit to manage employees. The employees from administration department perform the activities of employee management. They do not know various HRM practices and cannot apply it properly to increase the motivation of the employees and productivity of the tanneries. Supervisors often shout and bully at workers; and children work in some factories.

Welfare and Social Protection:

In the case of gratuity, provident fund and group insurance, there are frequent violations of the laws as workers are not often allowed in this regard in Bangladesh. According to the laws, every employer should provide compensation to its workers for work-related injury, disability and death. Very few institutions have experience regarding this in Bangladesh. Most of the owners in Bangladesh try to avoid the case of compensation intentionally. This case is frequently happened as law enforcement agency including police, court and concerned department or ministry of government are failed to trace the cases because of corruption and bureaucratic complexity. It is priory mentioned that laws related to indiscrimination against women regardless of payment and conduct, forced risky jobs to women are being violated to a greater extent.

Labor Relations and Social Dialogue:

By core conventions of UN (No. 87 and 98); freedom of association and right to organize, and collective bargaining, Bangladesh is on alarming crossroads, where 82 published reports were there in 2012 regarding in the violation of ratified UN conventions number 87 (freedom of association and right to organize) and 123 reports were published regarding violation of collective bargaining. Owners often impose restrictions on formation of trade union. Sometimes, workers are allowed to form union but in limited or formation of union by the workers who are in favor of the owners. Under these processes of so called union formation, owners can manipulate the bargaining process and exploit the workers managing a few workers. It is common in Bangladesh that workers who want to form union have to lose their jobs or threaten by the mastan (hoodlum) from owners’ side.

Implementation of environmental laws:

Department of Environment officials explained there is a de facto policy not to implement environmental laws in Hazaribagh because the government is preparing a site in Savar, some 20 kilometers to Hazaribagh’s west, in which to relocate the tanneries. Officials confirmed that, on the basis of this understanding, they do not regularly monitor water, air, or soil in Hazaribagh, nor do they levy fines or other sanctions against its tannery owners for untreated effluent discharges. The government’s plan to prepare a relocation site in Savar has suffered chronic delays. Its most recent deadline (at this writing) is for tanneries to move there by the end of 2013. But given the long history of bureaucratic delays, some people familiar with the leather industry believe that relocation is unlikely before 2015, while others suggested it might only happen in 2017. When Human Rights Watch visited Savar in May 2012, no tannery had begun building new facilities at the site.

Lack of oversight:

While the Department of Environment operates on an understanding not to implement environmental laws in Hazaribagh, officials in the Ministry of Labor’s Inspection Department admitted that “the Hazaribagh tanneries are barely touched [by us].” They explained that with just 18 inspectors to monitor an estimated 100,000 factories in Dhaka the department lacks resources to ensure that Hazaribagh tannery employers comply with the law.

Worker Compensation

Background:

The whole area of compensation of a worker for injury by accident was death with by the workmen’s compensation act 1923 which is now repealed by the provision of working hours of Bangladesh labor code 2006. These provisions have their roots in the theory that a state cannot be mute spectator to the sufferings of the working class engaged in factories or establishments who are exposed to the various risks to their limbs and lives. Due to technological innovations and automation introduces in industries the working class operating these sophisticated mechanical devices and in variably exposed to the risk of being involved in accidents for no fault of theirs.

Under section 150 of the code the employer is liable for compensation in case of following factors:

• There must be a personal injury caused to a worker,

• Such a personal injury is caused in an accident,

• The accident has arisen out of and in the course of employment

• The injury has resulted either in the death of the worker or in his total or partial disablement for a period exceeding three days.

Employer liability to pay compensation

We can see a story of a tannery worker named Jahaj, 17, has worked in a factory where animal hides are tanned in Hazaribagh, a combined residential and industrial neighborhood of Dhaka, since he was 12. He works a 10-hour day (with an hour off for lunch) and earns 3,000 taka (US$37) a month. Around 50 other people work in the tannery, including a seven and an eight-year-old, who are employed nailing hides out to dry. Jahaj told Human Rights Watch that he mostly processes raw hides into the first stage of leather, known as “wet blue,” which exposes him to hazardous chemicals. The tannery pits are four-meter square tanks that hold hides and many of the diluted chemicals used to cure them. Jahaj particularly dislikes working there. We get inside, take the hides with our hands and throw them outside the pit. We wear gloves and boots but water splashes on our skin and clothes. We don’t wear an apron. The water in the pits has acid, which burns when it touches my skin. He suffers from rashes and itches; his father and two brothers, also tannery workers, have similar skin diseases. Asked why he performed such hazardous tasks, he said: “When I’m hungry, acid doesn’t matter—I have to eat.”Jahaj has had various accidents at work: he once stepped on a nail used to pin leather out to dry, has hurt his back lifting heavy hides, and was once trapped inside a large rotating wooden drum used to hold the skins. I started shouting, ‘Who has turned on the drum?’After a couple of minutes they turned it off but I was already injured with lots of cuts and bruises on my head, my back, my arms. There are long wooden planks inside the drum that make the skins soft and they hit my body repeatedly. A major Dhaka hospital diagnosed Jahaj with asthma. “The fumes from the chemicals where I work are really strong,” he said. When Jahaj can-not work because he is ill or injured, he is not paid—also a violation of Bangladesh’s labor laws. Nor, he said, has he seen a government labor inspector during his five years at the tannery.

Trade Unions

An Industry or establishment cannot form more than three trade unions. The right of trade unions and freedom of association as stipulated in Section 176 are as follows:

(a)workers, without distinction whatsoever, shall have the right to form trade union primarily for the purpose of regulating the relations between workers and employers or workers and workers and, subject to the constitution of the union concerned, to joint trade union of their own choosing;

(b)Employers, without distinction whatsoever, shall have the right form trade union primarily for the purpose of regulating the relations between employers and workers or employers and employers and, subject to the constitution of the union concerned, to join trade union of their own choosing; and

(c)Trade unions of workers and employers shall have the right to form and join federation sand any such union and federation shall have the right to affiliate with any international organization and confederation of worker’s or employer’s organization.

(d)Trade unions and employers’ associations shall have the right to draw up their constitutions and rules, to elect their representatives in full freedom, to organize their administration and activities and to formulate their programmers.

Full trade union activities were restored by the democratic government in 1991.-In 2006, an updated, consolidated and unified version of labor laws was enacted.-During the Emergency in 2007-2008 that lasted for 23 months, trade unions and collective bargaining were prohibited and the determination of collective bargaining agent could not be made.-However, full trade union activities were restored by the democratic government in 2009.

Limitations:

In Bangladesh Trade Unions have a lot of unavoidable problems :

1. Lack of consciousness: Trade unions are not actually completely aware about employee’s legal rights and duties

2. Lack of Unity: In Bangladesh trade unions are separated for political influence.

3. Lack of knowledge: The workers of Bangladesh don’t have enough knowledge about their rights and duties.

4. Political influence: In Bangladesh, trade unions work a part of political parties not as a free right saving association.

5. Division of trade union: Bangladesh is a country where every organization has more trade unions in name only.

Recommendations

Order all Hazaribagh tanneries to immediately begin relocating outside Dhaka city. In accordance with Bangladesh’s Environmental Conservation Act (1995) and Environment Conservation Rules (1997), ensure that all tanneries (including relocated ones) have an environmental clearance certificate for industrial units categorized as “red” (i.e. heavily polluting) from the Department of Environment, or close them down. Immediately fill all vacancies for inspectors and assistant inspectors in the Ministry of Labor’s inspection departments. Within two years, significantly increase the number of staff positions and resources (including for salaries) available to the department to enable it to conduct more regular in-field assessments, including unannounced inspections.
Take immediate and sustained action to enforce compliance by all tanneries in Hazaribagh (and, following relocation, in Savar) with the Labour Act (2006), including the provisions on:
—Worker health and safety,
—All paid leave including sick leave,
—Compensation for injuries (including occupational diseases),
—Effective disposal of waste and effluent.

Conclusion

Every year, Bangladesh exports hundreds of millions of dollars’ worth of leather for luxury goods to seventy countries worldwide, including China, South Korea, Japan, Italy, Germany, Spain and the United States. Most of these leathers originate tanneries in Hazaribagh, a neighborhood of Dhaka, the capital. Health problem among workers and residence of Hazaribagh slums related to unregulated pollution produced by these tanneries and dangerous working conditions within them.
Under international law, Bangladesh’s Government must take reasonable steps to protect the right to health of every one in its borders. But Government’s officials told Human Rights Watch that they do not enforce environmental or labor laws with respect to Hazaribagh’s tanneries, and the government has ignored High Court orders to clean up to relocate or shut offending tanneries.

References

✓ http://www.slideshare.net/sadmanprodhan/an-overview-on-the-implication-of-bangladesh-labor-code-2006-in-the-tannery-industry-28639730

✓ http://euinspired.org.bd/docs/grant_scheme/INSPIRED%20-%20Leather%20Sector%20Report%20-%20Jan%2013.pdf

✓ http://ecopolproject.blogspot.com/2013/11/why-should-we-care-about-child-labor-in.html

✓ Note Book: The Bangladesh Labour Code,2006.

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