Industry leaders warned on Thursday that unresolved gaps in Bangladesh’s newly amended labour law could strain the country’s garment sector unless the reforms are aligned with the practical realities manufacturers face, stressing that legal clarity, predictable wage mechanisms and balanced provisions are essential to safeguarding industrial stability.
The observations came at a high-level stakeholder dialogue in Dhaka organised by the Solidarity Center to review the recently passed draft amendments to the Bangladesh Labour Act 2006. Participants included trade unions, employer associations, labour-rights groups, the Labour Reform Commission (LRC), government officials and the Ministry of Labour and Employment.
Employer representatives said several changes reflect workers’ interests, which manufacturers broadly support, but warned that inconsistent or technically flawed provisions could unintentionally disrupt production, compliance planning and investment confidence. They stressed that a globally competitive industry such as RMG requires regulatory reforms that protect both worker welfare and the sector’s long-term viability.
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BKMIEA president Mohammad Hatem said owners agreed to many worker-friendly revisions, but the sector also needs a stable legal environment to operate smoothly. He said the industry is already under pressure from rising production costs, stricter buyer requirements and declining price offers, making it essential that labour laws do not introduce uncertainty or sudden cost shocks.
On wages, he argued that reviewing minimum pay every three years is positive but suggested that annual adjustments based on inflation would prevent abrupt increases of 70–80 percent after several years, which often place factories in a difficult financial position.
Solidarity Center country programme director AKM Nasim noted the proposed “slab approach” for union-formation thresholds could have created a more practical and balanced system for both employers and workers. Instead, he said, the final amendment contains technical inconsistencies that may generate operational challenges for factories.
He cautioned that while the law may look sound theoretically, gaps will emerge during implementation unless addressed early.
Nasim also expressed concern that several Labour Reform Commission recommendations, which could have improved clarity for manufacturers, were excluded despite earlier commitments. Employer groups have repeatedly called for predictable and harmonised regulations to avoid overlapping requirements that complicate compliance.
LRC member Taslima Akhter said worker inputs were not fully reflected but acknowledged that predictable wage revision cycles are a step forward. Manufacturers, however, argued that foreign buyers must also share responsibility.
They said any labour-law reform must be accompanied by stronger buyer accountability, as international brands continue to demand stricter standards while maintaining low price structures, leaving factories with limited financial space to absorb new obligations.
Government representative Shamsul Alam said the amendments are the result of collective engagement and encouraged continued tripartite cooperation. He said the ministry will review additional recommendations submitted at the meeting.
LRC chair Syed Sultan Uddin Ahmed said Bangladesh’s codified labour law can easily accumulate inconsistencies when amended in parts, stressing the need for a comprehensive review. Employers echoed this view, noting that fragmented revisions often create compliance confusion for factories handling complex supply-chain requirements.
Stakeholders concluded that effective implementation of the amended law will require detailed review, evidence-based adjustments and long-term planning. Employer representatives reiterated that a balanced regulatory framework is crucial to sustaining investment, protecting jobs and ensuring the global competitiveness of Bangladesh’s garment industry.
