Small-and-medium-sized garment factories say the newly published labour law will put them under significant strain, especially while they struggle with tight margins, limited workforces and increasing compliance demands.
The law, published on Tuesday, introduces changes to wages, workplace safety, union formation and dispute-resolution procedures.
However, the criteria to form a union within factories emerged as a hot debate.
One of the most debated provisions is the rule allowing factories with 300 or fewer workers to form up to five trade unions, each requiring only 20 workers.
Owners say this will be extremely difficult to manage in smaller factories already burdened by operational challenges.
Under the revised thresholds, forming a trade union requires at least 20 workers in factories with 20-300 workers, 40 workers in factories with 301-500 workers, and 100 workers in factories with 501-1,500 workers.
For factories with 1,501-3,000 workers, the minimum rises to 300, while factories with more than 3,001 workers must have at least 400 workers to form a union.
According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), nearly 2,000 factories fall within the 300-500 worker category – most of them small-and-medium enterprises (SMEs) that owners say remain highly vulnerable to labour unrest following the regulatory shifts.
They fear disruptions in these factories could create ripple effects across the larger supply chain.
BGMEA senior vice-president Inamul Haq Khan said small-and-medium factories will come under significant pressure under the new law.
“Factories with 300 or fewer workers can form up to five unions with just 20 workers each, which will be extremely difficult for owners to handle,” he said.
He added that decisions on such an important law should ideally have been taken by an elected government after proper consultation.
Bangladesh Knitwear Manufacturers and Exporters Association president Mohammad Hatem echoed the concern, saying earlier tripartite discussions had produced certain compromises, but the interim government has now imposed its own decisions.
“This approach will not protect the interests of either factory owners or workers. Instead, it could destabilise the industry and put export trade at risk. We reject the new labour law,” he added.
The amendment came at a time when Bangladesh faces rising international scrutiny over labour governance in export-oriented sectors.
Responding to the criticism, Department of Labour Director for Administration, Accounts and Planning SM Enamul Haque said the ordinance to amend the labour law aims to strengthen workers’ organisations and improve transparency in workplaces, reflecting the government’s intention to create a fairer labour environment.
