Maternity Benefits under the Bangladesh Labour Law 2006 An analysis with focus on the RMGIndustry

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In the latter half of the twentieth century, there has been a dramatic rise in the proportion of women who have entered the workforce throughout the world. In Bangladesh the number of women working has also gone up in the last 20 years. As per available data of Bangladesh Bureau of Statistics (BBS) in 2006, of the 49.5 million of civilian workforce, about 38% are female (BBS, 2006). With women working, maternity leave is of course an issue.Evolution of the labour laws and those relating to maternity benefits in BangladeshThe century old labour law system in Bangladesh was enacted during the British rule of the subcontinent, in 1881. Later, laws concerning different labour issues, e.g., The Factories Act (1881), Workmens Compensation Act (1923), Trade Unions Act (1926), Trade Disputes Act (1929), Payment of Wages Act (1936), Maternity Benefits Act (1939), and the Employment of Children Act (1938) were a few of the employment/labour laws enacted during that period. After the separation of the Indian sub-continent in 1947, almost all the laws during the pre-partition period were kept in force with some modifications and amendments, in the form of administrative rules, by the Pakistan Government.After the independence in 1971, the Bangladesh government retained the previous laws through the Bangladesh Laws Order (Presidents Order No. 48). No major development took place in the history of labour legislation till the enactment of the Bangladesh Labour Act, 2006. The Bangladesh Labour Act, 2006 is a major and comprehensive enactment regarding industrial relation system through codification of existing labour laws in order to avoid overlapping and inconsistencies and brought some significant changes in industrial relation system.Before the amalgamation of all the labour laws through the Bangladesh Labour Act 2006, there were three distinct acts for the regulation of maternity benefits for women for certain periods before and after child birth and for the payment of maternity benefits to them. These were The Maternity Benefits Act 1939 (which was most widely used in manufacturing, service and other organizations), The Mines Maternity Benefit Act 1941, and The Maternity Benefits (Tea Estate) Act 1950. All three of these acts have been repealed and amalgamated into the new labour laws under Chapter IV as Maternity Benefits.What are the provisions/benefits being provided to women workers, what has changed from before?The maternity leave policy available to women in Bangladesh is 16 weeks with full payment. However, interestingly enough, there are no specific laws that exist for management level (women) staff. The law that exists is Bangladesh Sromo Ain, 2006 or The Bangladesh Labour Act, 2006 given in Chapter IV called Maternity Benefit, referring to workers that do manual work mainly in factories, etc. The leave period that is guaranteed to non-management women workers is similar to Pakistan, Singapore and Sri-Lanka from the Asian region.Table: A comparison between the current and previous provisions

Comparison CriteriaMaternity Benefits (MB), Chapter IV under BLA 2006Maternity Benefits Act, 1939 (widely used previously)The Changes

Leave Duration(Sec 46)16 weeks (8 weeks prior and 8 weeks post-delivery)12 weeks (6 weeks prior and 6 weeks post-delivery)An extension of 4 weeks

Eligibility(Sec 46)Have served at least a minimum of 6 months with current employerHave served at least 9 months with current employerEligibility criteria relaxed by 3 months

Employment type eligibleThose employment in permanent capacitySameNo changes in eligibility:

Funding SourcesEmployer funded,Employer FundedNo changes

Procedure of payment(Sec 47)3 options are available:

0. Payment of 8 weeks of salary within 3 days of submitting proof of pregnancy and remaining 8 weeks 3 days after submission of proof of delivery.

1. Payment of 8 weeks of salary within 3 days of submitting proof of pregnancy and remaining within 8 weeks after submission of proof of delivery.

2. The whole amount (16 weeks salary) within 3 days of proof of delivery.To be paid within 48 hours of submission of certificate of pregnancy or delivery (Sec 5)Has been relaxed from employers perspective

Amount to be paidTotal wages/ salary earned during the preceding 3 months prior to availing leave divided by the number of days actually worked (during that period)SameNo changes

Denial of eligibility0. Those who have worked less than 6 months

1. Those who have 2 or more surviving children, they can avail other leave(s)- sick/ annual/casual etc.Those who have not completed 9 months of active service with current employerA major step in benefit provision of limiting to two children only

Reason for concern:no practice, only paper lawsA survey by Bangladesh Institute of Labour Studies (2010) on ready-made garments (RMG) and construction industries showed that factories do not provide maternity leave for four months and most establishments give maternity leave only without pay. The survey exposed that female workers many times do not want to bear child because of fear of losing their jobas majority end up being fired by their employers when they become pregnant, or sent on leave without pay (BILS, 2010). While the public sector workers are privileged, where most recently the maternity leave period has been extended to 6 months or 24 weeks, the situation is much worse in the largest manufacturing sector of the country, the garments sector which is the largest employer of women.Survey by War on Want (2011) on 988 garments workers reveals 50% of the interviewed for this report stated that some form of maternity leave is provided at their workplace. However, 48% had been denied the benefit. Also, two thirds of the women interviewed were unaware of the full legal entitlement to maternity leave. Only 24% were aware of the proper maternity benefits they deserved. Many workers also had to look for new jobs after giving birth or return to the same factory at a lower grade, as they did not know their legal rights to return to the same grade they held before their maternity leave.So, the issues are non-compliance to the provisions of the laws relating to maternity benefits in the private sector, specially the RMG sector. But there are various reasons behind this phenomenon as discussed below.Breach of equity in the name of profitabilityThe sectors which have seen the boom in business since the 1980s (mainly RMG) have been attributed to being promoters social change for women. Although neo-liberal policies have generally led to greater feminization of the labour market, they may also have had adverse effects on women; that is, on the demand side, firms employ women simply because they represent a submissive pool of cheap labour an issue that is often entwined with the element that as Standing (1999) said the relatively few women who participate in the labour market often remain confined to the ranks of the so-called vulnerable employed (Standing, 1999).In Bangladesh, availability of such a large pool of cheap labour meant that manufacturers moved away from the traditional core worker model and leaned towards the more contingent worker models. Irregular wage, overtime and bonus payments have long been and remain one of the most significant problems workers face in the industry including women. All of this has meant that until recently, few women garments workers worked longer than five years (Hossain, 2011). Variations in maternity leave provision across factories/industries and a lack of awareness of workers rights mean that this basic entitlement of employee equity has long been breached. Such malpractice from employers clearly violates a component of theequity dimension balancing work and non-work needs (Befort and Budd, 2009).War on Wants survey (2011) showed that 50% still had to work overtime while pregnant, 29% had suffered humiliating treatment at the hands of their employers while they were pregnant, and 24% had been denied sick leave during pregnancy (War on Want, 2011).More recently, BGMEA (the apex body of the garments makers and exporters) submitted their opinion on maternity leave to the labour ministry for consideration and proposed introduction of 12 weeks or 84 days of maternity leave for female workers in the garments industries citing the example of India, Nepal and Indonesia. Their objection is that 24 weeks maternity leave for female workers of garment industry would increase birth rate in the country. This goes to show the other side of the coin, as employers are still concerned with cost saving and profit maximization but fail to see the positive effects of workplace efficiency through enhancing/ improving employment relationships.All the dimension of inequity comes together for these workers. They are trapped in an inadequate employment relationship where low wages, lack of paid leave (including maternity leave and benefits), no retirement benefits (not in private sector) and other entitlements (like insurance, which are almost non-existent in Bangladesh) making it exceedingly difficult for these workers to get ahead.Lack ofemployee voiceEmployee voice is an essential element in the modern employment society but in case of Bangladesh, apart from the public sector and a few industries where multinationals operate (pharmaceuticals, FMCG, etc.) there is little objection from employees/workers to such abject exploitation. There are two main reasons, one is the failure of the civil organizations (unions) and second, these workers were the first generation rural migrants to the city who lacked any knowledge of workers rights (Rahman, 2011). Also,in Bangladesh, where there is seemingly unlimited supply of femalelabour in search of jobs in the garments, construction and other sectors, women are particularly very cautious about making demands or taking steps that might endanger their employment and the costs they may incur if they were to try to do so, that prevent the majority of women workers from standing up for their rights.In this advent, when we analyse the four dimensions of employee voice for women workers in Bangladesh, there is hardly any notion of free speech rights, participation in decision making, and consultation and social dialogue. In Bangladesh, the overwhelmingly male-dominated trade unions rarely have been willing to take up womens issues. But there is change coming, as a number of the more progressive unions have sought to set upwomens wingswhich deal more sensitively with women workers (Kabeer and Mahmud 2004b: 153 as cited in Hossain, 2012). Trade unions were prohibited in the EPZsuntil the 2004 EPZ. A survey by Kabeer and Mahmud (2004) found that only 5 per cent of EPZ garment workers, 1 per cent of export garment workers outside the EPZs and none of the non-garment informal-economy women workers reported the presence of a trade union at their place of work (Kabeer and Mahmud 2004). Hence, a slow development in countervailing collective voice can be seen.Recommendations:Need for a common policy, more voice and equityIn Bangladesh, the employment relationship across industries can be characterised as having a weak voice (weak unions and protection for individuals), weak in terms of equity (due to high inequality in practice of standards) but high in efficiency (hardly any government interference, easy hire and fire). Although, the boom in these industries have given women the freedom and economic independence, collectively, these working women are worse off than their rural sisters (Ahmed, 2004).Following are some proposed modifications/steps that might assist to balance the negativities:Introducing a common Maternity Benefit Provision for all working womenWhile extending the maternity leave provisions of public servants to 6 months (24 weeks) the government has ignored the private sector where most irregularities are prevalent (The Daily Star, Dec 19, 2010). Rather, it should be universal for employed women in all sectors. The maternity law should be reviewed and should not be used as an excuse for employing women on short-term basis. Also, the fines for breaching the law should be increased as it is only a minimal amount.Ensuring welfare facilities for women in the workplace as an equity measureIn Bangladesh, only a handful of organisations have recently started to offer their female employees on-site child care, although this is a requirement as per law. Such additional welfare measures can create a more equitable workplace and increase employee loyalty. Such arrangements can be also made with assistance from donor organizations and community day care centres can be established in factory sites.Facilitating Countervailing Voice through unions & social partnersWomen workers need to realize that the only way they can share / convey their requirements to employers or to the state is through a collective voice, i.e. through unions. Thanks to the efforts of different social advocacy groups (like Ain-O Salish Kendra or ASK) women workers have not remained untouched by the forces of change in the larger society. Intense media coverage of their working conditions, increased attempts to mobilize them and the involvement of a wider range of players than traditional trade unions have helped to raise their awareness of their rights. Workers may also have becoming less willing to put up with instances of injustice in the workplace and recent demonstrations and strikes indicate to that (Reuters, Feb, 2012).Collective voice can improve circulation of benefits as well as support the rights and dignity of workers.Recently, the Textile and Garment Workers Federation, for instance is moving towards a more ratified mode of representational principles in place of the adversarial politics (BIDS, 2006). The Bangladesh Independent Garment Workers Union Federation (BIGUF) and Karmojibi Nari (Working Women), constituted of active, rather than token, women leaders has also been extremely active and pursues a variety of strategies to organize garment workers, visiting them, organizing cultural programs to motivate them to engage in collective bargaining with management and providing legal education as well as legal support during disputes with management.International Buyers need to enforce working conditions strictly to create equityWith absence of direct intervention from the Government, related/vested groups should take notice of the irregularities in labour law practice including maternity issues. Recently, prolonged efforts of trade unionists, consumers and human rights activists/NGOs to exert pressure on buyers to take greater responsibility for working conditions have resulted in the proliferation of codes that garment manufacturers now have to accept before they can win an order from these buyers. Indeed, the BGMEA/BKMEA, at least have realized that conformity is the key to future survival in the post-MFA competitive environment. As a result, there has been a marked improvement in health and safety standards in the major factories as well as a range of other benefits, such as payment on time, proper overtime, maternity leave, etc. But these are the large establishments (with forward and backward linkage) who are more complaint. These types of efforts are required in all sectors employing women to create a sense of equity/ fairness in the workplace. Women in Factories, a five year initiative by Wal-Mart is such a program in conjunction with Care Bangladesh (PR Newswire, New York, 05 Apr 2012). As Kabeer and Mahmud indicate, there is certainly evidence of greater compliance in the garment sector than in other industries (Kabeer and Mahmud, 2006).Such measures can elevate the status of women as competent workers by enhancing their self-worth and allowing them the freedom of balancing work and non-work needs, job security, self-determination and hence increase equity and voice at their workplaces.ReferencesAhmed, Fauzia Erfan., 2004, The Rise of the Bangladesh Garment Industry: Globalization,

Women Workers, and Voice,NWSA Journal, Volume 16, Number 2, Summer 2004, pp. 34-45

Ain o Salish Kendra, A Legal Aid and Human Rights Organization, viewed Sept 29, 2012

Bangladesh Bureau of Statistics, viewed Sept 29, 2012 Bangladesh Sromo Ain (The Bangladesh Labour Act), 2006,Ministry of Labour and Employment, Bangladesh

Befort, S. F., and John Budd, 2009, Invisible Hands, Invisible Objectives: Bringing Workplace Law and Public Policy into Focus,Stanford University Press, California.

Cagatay, Nilufer, and Sule Ozler. 1995. Feminization of the labour force: The effects of long-term development and structural adjustment.World Development23, (11) (11//): 1883-94.

Hossain et al., Decent Work and Bangladesh Labour Law: Provisions, Status, and Future Directions, BILResearch and Advisory Team,April 2010

Hossain, Naomi., 2011, Exports, Equity, and Empowerment: THE Effects of Ready Made Garments Employment on Gender Equality in Bangladesh,World Development Report, Background Paper.International comparison of maternity leave benefits, Viewed September 30, 2012

Kabeer, N. and S. Mahmud, 2004: Globalization, Gender and Poverty: Bangladeshi Women Workers in Export and Local Markets,Journal of International Development, Volume 16, Issue 1, pp. 93109

Nirmalendu Dhar, (2007). Dhar on Labour and Industrial Laws of Bangladesh,Remisi Publishers, Dhaka

Rahman, Zia., Labour Unions and Labour Movements in the Readymade Garment Industry in Bangladesh in the era of globalization (1980-2009), 2011,University of Calgary, Ottawa, Canada

RMG Workers Demand Maternity Leave,New Age Bangladesh, January 29, 2004Standing, Guy. 1999. Global feminization through flexible labour: A theme revisited.World Development27, (3) (03//): 583-602.

Stitched up, Women workers in the Bangladeshi garment sector, August 2011

viewed September 24, 2012