GARMENTS WORKERS CLASH WITH AUTHORITIES OVER

C O N F I D E N T I A L SECTION 01 OF 02 DHAKA 000653 SIPDIS WH FOR USTR: CLILIENFELD, AROSENBERG, VKADER DEPT FOR: USAID, SCA/RA, SCA/INSB, EEB, DRL, G, IWI LABOR FOR TIM WEDDING, ANNE ZOLLNER AND RACHEL RIGBY E.O. 12958: DECL: 06/29/2019 TAGS: ELAB ECON ETRD PHUM PREL BG SUBJECT: GARMENTS WORKERS CLASH WITH AUTHORITIES OVER WAGES; TWO DEAD REF: DHAKA 405 Classified By: Deputy Chief of Mission Geeta Pasi. Reasons 1.4(b) and (d). Summary -------------- ¶1. (C) Bangladesh,s ready made garments (RMG) industry faced disruption after clashes between law enforcement and workers June 27-29 left two people dead, more than 100 injured, and at least one factory burned. The rioting, which centered in Ashulia, an industrial area on the outskirts of Dhaka, started over a dispute between workers and management at one garment factory, about wages, and spiraled out of control after the factory owner dismissed three workers. Although the situation is currently under control, the area remains tense as workers continued to demonstrate on the streets and damage vehicles, throughout the day, today, June ¶30. As a result, factories in Ashulia remain closed today. Yesterday, industry groups and workers reached a compromise agreement in which the business associations agreed to compensate the families of the deceased and open an investigation into the causes of the problem. As of the writing of this cable, industry and labor representatives report the situation has largely come under control. Where it all began -------------- ¶2. (C) According to the President of the Awaj Foundation, a garment workers rights group, the problem began as a dispute over piece rates for workers in a sweater factory in Ashulia. Following discussions in which labor leaders thought they had reached an agreement over the rates, she alleged that factory managers dismissed three workers and refused to make any concessions. Union leaders asked the owners to reinstate the three workers, but management refused their request. On June 27, workers from the affected factory began demonstrating, and the Ansars, a paramilitary group of the security forces, confronted the demonstrators, killing one and injuring at least 25 others. The following day, workers from nearby factories joined the protests. They attacked vehicles and factories and barricaded a major highway. Demonstrators set at least one factory on fire; factory owners were unable to give an accurate estimate about the extent of the damage. On the second day, the Government of Bangladesh (GOB) brought in police reinforcements, who helped quell the unrest but also killed another demonstrator and injured several others. Several police officers and protestors were injured in the riot. The officer in charge of police was reported to have sustained severe head trauma. It is still unclear who fired upon the protestors. Police denied firing live bullets at any of the demonstrators. Politics plays a part -------------- ¶3. (C) Labor rights groups alleged that activists from the ruling Awami League assisted the security forces, using violence to put down the demonstrations. They acknowledged, however, that several members of leftist political parties, including the Communist Party of Bangladesh (CPB),were involved in supporting the workers, noting that several CPB leaders were involved in the clashes. Labor leaders further allege that some CBP members were injured in the riots, spurring further violence. Media reports suggested that a number of workers from the local export processing zone (EPZ) were involved in the demonstrations, but there is little to indicate that the problem has spread elsewhere. Representatives from the American Center for International Labor Solidarity (ACILS) confirmed that part of the EPZ in Dhaka was closed as a precautionary measure but confirmed that violence in RMG factories outside the EPZ did not spread into the export processing zone. Factories in the riot-affected area remained closed for a fourth day today as workers demonstrated and damaged vehicles. The situation remained tense but no clashes have been reported so far. Industry responds DHAKA 00000653 002 OF 002 -------------- ¶4. (C) The boards of the two chief industry associations, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear and Exporters Association (BKMEA),met with the workers and labor groups June 28 and separately in a tripartite forum including the GOB June 29. The Minister of Commerce and the Minister of Labor convened the tripartite meeting. Labor groups acknowledged the meetings were productive and the discussions contributed to a drop in violence. While the main intent of the meetings was to stem the flow of violence, labor groups stated that both the BKMEA and BGMEA had agreed to pay $4,500 (300,000 Bangladesh taka) compensation to the family of one of the victims. Once authorities identify the second victim, his/her family will also receive compensation. In addition, the GOB and industry pledged to set up a commission to probe the deaths of the two workers and look into the activities of the security forces, particularly the use of lethal force. But more is needed... -------------- ¶5. (SBU) The riots come on the heels of a report published by the Chief Inspector of Factories within the Ministry of Labor, on pay and working conditions in the RMG industry. According to the report, nearly 15 per cent of factories inspected did not pay their workers regularly. A number of these had neglected to pay overtime and nearly 34 per cent were deemed &substandard8 in implementation of the labor code. The BGMEA President acknowledged this but argued that the situation was improving, adding that many factories were affected adversely by the global recession. Labor groups suggested however, that blaming the recession was simply a poor excuse for exploitation. Comment -------------- ¶6. (C) Compared to past disturbances in the RMG industry in Bangladesh, these riots were fairly localized and contained. Nevertheless they underscore the volatile nature of the garment industry, the country,s single biggest source of export earnings. The presence of political parties on either side of the dispute is not surprising; labor issues are highly politicized here. Despite increased responsiveness from industry, more needs to be done to bring the RMG industry,s labor conditions up to par. Post will continue to work with the GOB and industry to improve labor conditions country-wide. MORIARTY