Dhaka: The Cabinet on Monday gave the final approval to the draft of the ‘The Bangladesh EPZ Labour Law, 2016' keeping a provision for constituting labour organisations in the Export Processing Zones (EPZs) as well as forming a permanent wage board for their workers.

The approval came at the regular weekly meeting of the Cabinet held at Bangladesh Secretariat on Monday with Prime Minister Sheikh Hasina in the chair.

Briefing reporters after the meeting Cabinet Secretary Mohammad Shafiul Alam said the law is going to be framed in light of the existing Labour Law 2006. ‘It's consistent with the central bargaining agent (CBA) and trade union,’ Alam said.

Under the proposed law, he said, the family members of a worker will get compensation of Tk 2 lakh if he or she dies while on duty, and Tk 2.25 lakh has been fixed for any worker for his or her ‘permanent’ or ‘complete’ disability.

The Cabinet Secretary said a committee was earlier formed to frame this law in line with the Bangladesh Labour Law, 2006.

Following the recommendations of the committee, he said, a draft was prepared and it was shared with all the stakeholders concerned, including representatives of Shramik Kalyan Samity, investors and various international agencies.

‘The proposed law having 16 chapters and 202 sections is more or less inclusive and it is an integrated law,’ Alam said.

He said the advantages of the draft law include financial facility for workers, their retirement benefits, mandatory group insurance, compensation in case of deaths, cash payment for earned leave, paying full salary as festival bonus and maternity leave for 16 weeks.

Alam said the law has a provision for forming a 12-member permanent wage board comprising the representatives from workers and investors as well as representative from a neutral source.  

‘The Executive Chairman of BEPZA will act as the chief of the permanent wage board for fixing the minimum wages for the workers,’ he said.

For ensuring the right to forming labour organisations and operating its activities in the EPZs, he said such organisations in the EPZs will be named as Sramik Kalyan Samity, which has no difference with other trade unions.

The Cabinet secretary said the proposed law has ensured the right to joint wage bargaining for workers where their representatives will be able to bargain directly with the owners for fixing wage, working hours, appointments and the conditions for appointments and observing strikes.

He said the government hopes the EPZ Labour Law would ensure labour-friendly atmosphere in the EPZs and protect the rights of the workers.

Answering to a question, the Cabinet Secretary said the law is being framed in line with the ILO convention since Bangladesh is a signatory to ILO while there were also demands from the international agencies. ‘The government also had sincere efforts to this end,’ he said.

Replying to another question he said the workers would retire from their jobs from the EPZ factories on completion of 60 years age while they could also opt for (voluntary) retirement upon completion of their jobs for 25 years.  

‘The workers will enjoy provident fund facilities in both cases,’ he added.

Ministers and state ministers and secretaries concerned were present at the meeting.