The Bangladesh Knitwear Manufacturers and Exporters Association is urging the South Asian nation’s government to reconsider—and perhaps modify—several provisions in the updated labor act, citing “ambiguous” changes it claims appear to be part of a “planned” effort to destabilize the garment sector.
Speaking at a press conference in Dhaka on Sunday, BKMEA President Mohammad Hatem said the 2025 Labour Act (Amendment) Ordinance fails to fully reflect decisions agreed upon during meetings of the Tripartite Consultative Council, which includes government, employer and worker representatives. He warned that instability from higher production costs and administrative red tape could threaten Bangladesh’s position as the world’s second-largest clothing exporter after China—already a wobbly proposition given Vietnam’s rapid ascendance.
Hatem’s criticism marks a sharp pivot from the general air of optimism that accompanied the law’s inception. When Muhammad Yunus’s interim government gazetted the ordinance in November, it presented the update as a landmark overhaul designed to align the South Asian nation with international standards by lowering union registration thresholds, strengthening collective bargaining rights and protecting what activists say are increasingly criminalized labor organizers from discrimination, harassment or blacklisting.
The BKMEA, which represents some 2,500 knitwear factories, maintains, however, that the law’s practical rollout tosses up several operational roadblocks. One particular source of contention, Hatem said, is the expanded definition of “workers” to include employees in administrative, supervisory and managerial roles, entitling them to the same “worker-level service benefits” even though they’ve been covered under contractual agreements.
The trade organization likewise took aim at the issue of compensation. Under the new ordinance, a worker who resigns is entitled to seven days’ wages for every year of service after completing a minimum of three years—something Hatem described as “unreasonable.” He said the benefit should instead apply after three to five years of continuous service, with a graded scale for longer tenures—for instance, 15 days for five to 10 years and 30 days for more than 10 years.
With new regulations allowing up to five trade unions to register within a single establishment or group of establishments—up from the previous three—Hatem called for stricter oversight, warning the change could lead to internal rivalry and spark industrial unrest. He also urged a revision of the collective bargaining agent selection process, proposing that a union secure support from at least 51 percent of the workforce—rather than the current 33 percent—to officially represent the factory.
Another demand: restructuring of the proposed insurance framework. While the government is pushing for a mandatory Employment Injury Insurance scheme to protect workers, the BKMEA contends the financial burden shouldn’t fall on employers alone but be shared by the government and buyers. If the EII is implemented, he added, existing requirements for employers to pay direct compensation for workplace injuries should be removed to avoid what he called “duplicate” financial liabilities.
Hatem said the BKMEA supports worker welfare, but any improvements must be “investment-friendly” to ensure the industry’s longevity. He further alleged, without evidence, that certain provisions were drafted with the “intent to destroy our industrial infrastructure.”
“To ensure the continuous growth of the knitwear sector, it is essential to align the law with the realistic recommendations provided by the owners and the TCC,” Hatem added.
Others were more sanguine. Last month, 160 garment workers at Fashion Pulse in Gazipur formed Bangladesh’s first union under the amended law—allowing them to bargain collectively for better wages and safer conditions alongside the Bangladesh Independent Garment Workers Union Federation, with legal and technical support from the Solidarity Center.
“Our next priority is to organize more workers to join the union and strengthen it so that we can effectively engage with the employer and negotiate on behalf of the workers,” says Tanzila, general secretary of the new Fashion Pulse Limited Sramik Union.
