LABOR UPDATE AND INTERIM GSP DEMARCHE DELIVERY

C O N F I D E N T I A L SECTION 01 OF 03 DHAKA 000224

SIPDIS

SIPDIS

DEPT FOR AARON SCHEIBE,
WH/USTR FOR CLAUDIO LILIENFELD, MARIDETH SANDLER, ADINA
ADLER;
DEPT OF LABOR FOR TIM WEDDING;
DEPT OF COMMERCE FOR DOREEN MENDOZA;
TREASURY DEPT FOR TIM MILLS

E.O. 12958: DECL: 02/18/2018
TAGS: ELAB ECON ETRD PHUM PREL EFIS EIND EAID SOCI
KTEX, BG
SUBJECT: LABOR UPDATE AND INTERIM GSP DEMARCHE DELIVERY

REF: A. SECSTATE 10011

B. DHAKA 00213

C. DHAKA 000115

Classified By: CDA a.i. Geeta Pasi for reasons 1.4 (b) and (d)



SUMMARY: (U) Post delivered Ref A interim GSP demarche to
the Government of Bangladesh,s Ministry of Foreign Affairs,
Executive Director of BEPZA, and the President of BGMEA.
Charg d,Affaires a.i. has highlighted labor rights in
recent public speeches. One USG-funded NGO reports progress
in his recent meetings with BEPZA and BGMEA. END SUMMARY.


LABOR RIGHTS POINTS: PUBLICLY STATED, PRIVATELY EMPHASIZED
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1. (U) On February 5, CDA a.i. Geeta Pasi delivered a speech
at an award event organized by the US Cotton Council. In the
speech, CDA emphasized key labor rights themes. (NOTE: full
text of the speech is available on Post,s public website:
http://dhaka.usembassy.gov END NOTE) Acknowledging the
current GSP process the CDA,s comments were widely covered
in the local print media. A Bangladeshi labor group sent a
letter of appreciation to the Embassy in response to the
CDA,s comments.


2. (SBU) ADCM and LABOFF delivered the interim GSP demarche
to officials at Bangladesh,s Ministry of Foreign Affairs.
In addition, they presented a copy of letter from U.S. Trade
Representative Schwab to Foreign Adviser Iftekhar Ahmed
Chowdhury. The tone of the meeting was positive and focused
on how the MFA can work with the Embassy to facilitate
communications with others parts of the Government of
Bangladesh. One idea proposed by the MFA was an
inter-ministerial meeting of relevant agencies to discuss the
interim response.


BEPZA: POSITIVE AND PREPARED
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3. (SBU) LABOFF also delivered the demarche to Brigadier
General Ashraf Abdullah Yussuf, Executive Chairman of
Bangladesh Export Processing Zone Association (BEPZA). Yussuf
already had received portions of the demarche through other
channels and was prepared with specific responses to the
points raised. Yussuf stated that the formation of workers,
associations was currently between 60 and 80 percent
complete, and he highlighted that Dave Welsh, head of the
USG-funded labor American Center for International Labor
Solidarity (ACILS),observed association elections in the
EPZ. Concurring with the GSP committee recommendation on
establishing an independent labor tribunal, Yussuf noted he
had on countless occasions contacted the Commerce Ministry to
fulfill this pledge, to no avail. Yussuf also agreed in full
with the proposed appointment of an independent labor
ombudsman, but noted this action also could only be
implemented by the Commerce ministry. Only one point of

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disagreement arose: Yussuf contested the assertion that
grievances were not appropriately heard, and he pointed to a
large stack of documented grievances he personally is
investigating. Overall, he thought it was unfortunate that
the bulk of the demarche recommendations focused on the EPZs,
(which he sees as having better worker protections than
non-EPZ employers),while only one paragraph was devoted to
the ready-made (RMG) sector recommendations (applicable
outside the EPZs).


4. (C) Addressing the demarche,s long-term changes, Yussuf
noted these suggestions require an elected government. He
declared both BEPZA and the owner-investors in the EPZ were
ready for full unionization. Yussuf stated that he was ready
to recommend to the next government that EWAIRA be scrapped,
and allow for full unionization per the Bangladesh Labour Act
of 2006. Yussuf said BEPZA is ready for full unionization,
as it is weary of explaining and justifying the existence of
two labor regimes. (NOTE: ACILS, Welsh finds the assertion
that EPZ investors are ready for full unionization to be
incredible, noting the past strong resistance of the
investors to any labor organization efforts. Separately,
ACILS also expressed the concern that full unionization in
the EPZs could also lead to the introduction into the EPZs of
more politicized unions from the broader national labor
milieu. END COMMENT.)


BGMEA: SHOWING SIGNS OF STRAIN
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5. (C) LABOFF also spoke with Anwar-Ul-Alam Chowdhury (known
as Parvez),President of Bangladesh Garment Manufacturers and
Exporters Association (BGMEA). Parvez was less positive than
he had been in past meetings. He cited labor findings from
the 2006 State Department Human Rights Report as being unduly
negative. LABOFF explained the demarche points were related
to USTR,s recent hearings in Washington on the GSP petition,
hearings in which BGMEA participated. Pervez also expressed
his view that the GOB appeared to have caved into external
pressure in the recent release of labor activist Mehedi Hasan.


6. (C) BGMEA President Parvez expressed frustration that the
demarche focused on problems that require GOB action, and
ignored positive steps taken by BGMEA and others. Parvez
emphasized that BGMEA is committed to dialogue with all
stakeholders and had reached an agreement with ACILS to meet
twice a month, to keep lines of communication open. He
enumerated the educational and training activities BGMEA
conducts and reiterated his vision for advancing labor issues
as part of an RMG sector-wide revitalization effort.
Focusing on the need for more strategic communications to
highlight Bangladesh,s progress on labor issues, Parvez
invited LABOFF to visit some specific factories that BGMEA
was working with to improve labor compliance. Parvez also
expressed hope that the GSP committee would visit Bangladesh
to form its own direct impressions of labor conditions and
current efforts underway.

ON THE ARREST AND RELEASE OF MEHEDI HASAN
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7. (C) Labor activist Mehedi Hasan was released from police
custody on February 3. Prior to his release, Post engaged
various high and medium level GOB contacts to inquire about
Hasan,s arrest and to explain the problems with arresting
individuals lawfully seeking to advance labor rights.
(REFTEL B.) During a discussion between ADCM and the Home
Secretary regarding Hasan, the Home Secretary noted Hasan had

SIPDIS
a history of student activism. (COMMENT: Historically,
university students in Bangladesh have been highly
politicized, and the student wings of the major parties have
been at the forefront of political demonstrations, which
sometimes turn violent. END COMMENT.) He said that Hasan was
released as a favor to the US. ACILS, Dave Welsh reports
progress in his newly re-energized dialogue with BEPZA and
BGMEA. However, procedural details pursued by ACILS with
local police departments for the withdrawal of criminal
charges and cases against the labor workers remains underway.

COMMENT
--------------


8. (C) The arrest of Mehedi Hasan and the filing of charges
against other labor activists underscores that Bangladesh,s
law enforcement community is not attuned to the larger labor
rights picture and the potential consequences of the GSP
petition.


NEXT STEPS
--------------


9. (SBU) Post plans to present the demarche to the Ministry
of Labor. The CDA will also raise these points with the new
Adviser responsible for the Ministry of Commerce.
Additionally, we will look for appropriate opportunities to
engage in public diplomacy on labor issues. Post would
welcome USTR and interagency members of the GSP review
committee to visit Bangladesh for observation of labor
conditions and consultations with various stakeholders.


Pasi