Owners of readymade garment factories in Bangladesh who prevent trade union activity among their workers can face legal action. The US government has persuaded Bangladesh to implement an action plan for developing a conducive environment in readymade garment units after the industry was hit by a series of building collapses and factory fires.
Allowing freedom in trade union practices is one of the key components for restoration of the Generalised System of Preferences (GSP) facility in the US market. The US suspended its GSP facility to Bangladesh in April 2013 following several industrial disasters. Now the US is interested in working with the government of Bangladesh to restore GSP benefits at the earliest appropriate time, based on progress made to address the items in the action plan.
The US GSP is a program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 5,000 designated products. Products that are eligible for duty-free treatment under GSP include most manufactured items, many types of chemicals, minerals and building stone, jewelry, many types of carpets, and certain agricultural and fishery products.
The Bangladesh government is working to create a database with all information regarding registration of trade unions and inspection of factories. There is an allegation that a vested quarter, mainly involved with management of the readymade garment factories, has been creating impediments to formation and operation of trade unions.
