The Centre for Policy Dialogue (CPD) on Sunday proposed several reforms to improve workers’ welfare, including the establishment of a national minimum wage, incorporating children’s education in wage structures and introducing a wage guarantee insurance scheme.
The think tank also recommended a transparent process for selecting wage board representatives, mandatory dispute resolution mechanisms, and significantly higher penalties for failing to pay the minimum wage.
CPD senior research associate Tamim Ahmed proposed that, on a national level, a gradual move should be made towards introducing a national minimum wage, which would temporarily apply to all industries, including those in the informal sector that are not yet covered by the Minimum Wage Board regulations.
He also recommended the establishment of a wage guarantee insurance scheme, funded by employer contributions, to ensure workers are paid in cases where employers fail to do so.
Tamim presented these proposals during a discussion titled ‘Reform in Workers’ Livelihood, Workplace Safety, and Rights-Related Issues: An Agenda for the Interim Government,’ organised at the CPD office in collaboration with Christian Aid.
Among his other recommendations, Tamim suggested creating sector-specific guidelines for worker promotions based on certain grades.
CPD research director Khondaker Golam Moazzem said there are currently 42 formal sectors, with four more under formalisation to establish minimum wage standards.
He said that a total of 140 sectors and sub-sectors have been identified for this process.
‘Our proposal is to develop a national minimum wage in two phases, allowing for the gradual inclusion of sectors that are currently outside its scope,’ he said.
Moazzem also recommended declaring the current calendar year as the year of labour reform to expedite these changes.
He emphasised that ministries and organisations dealing with labour must collaborate effectively, with each establishing its own reform cell.
In the short term, the think tank called for guaranteeing minimum wages for all contract-based workers, including those temporarily hired through third parties, with legal provisions in place.
For the long term, it recommended extending MWB coverage to all industries, prioritising sectors with fewer trade unions.
Other suggestions included introducing a legal provision to impose additional penalties for each day of wage payment delays and significantly raising the penalties for not paying the minimum wage, especially when done deliberately and repeatedly.
CPD proposed making the failure to pay overtime a punishable offence and holding brands and buyers accountable for complying with national rules, including those related to minimum wage and wage payments.
The think tank recommended that the Department of Inspection for Factories and Establishments (DIFE) publish a wage implementation assessment report within four months of setting a new minimum wage, publicly disclosing the names of non-compliant establishments.
Regarding wage payment methods, CPD recommended making it mandatory for wages and other financial benefits to be paid through formal banking channels and/or MFS/DFS, and also suggested enabling night banking services near industrial zones for workers.
On the right to organise, participate, and engage in collective bargaining, the CPD stressed that there should be no separate labour laws for Export Processing Zones (EPZs) and recommended abolishing the EPZ Labour Act 2019, enforcing the Bangladesh Labour Act 2015 instead.
Syed Sultan Uddin Ahmed, Chairman of the Labour Reform Commission, said that approximately 85 per cent of the workforce, or around 60 million workers, remain outside the protection of labour laws, primarily working in informal sectors.
He emphasised their efforts to ensure these workers receive proper recognition and respect for their labour.
Bangladesh Employers’ Federation secretary general Farooq Ahmed pointed out the lack of social dialogue and collective bargaining efforts, which he believed contributed to recent labour protests.
He stressed the importance of improving worker-employer relations and implementing qualitative reforms to strengthen workers’ rights.