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Last updated at: (Beijing Time) Sunday, September 28, 2003

Dhaka to face trouble for complying with US

Bangladesh is in a dilemma over wooing the United States and losing foreign investors in it's export processing zones (EPZs) as the US ambassador in Dhaka asked the Bangladeshi government to allow trade union activities in the EPZs.


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Bangladesh is in a dilemma over wooing the United States and losing foreign investors in it's export processing zones (EPZs) as the US ambassador in Dhaka asked the Bangladeshi government to allow trade union activities in the EPZs.

Workers of the two major EPZs, the Chittagong EPZ and the Dhaka EPZ, have strongly opposed the proposed trade unionism in the country's free trade areas in fear of loosing jobs due to excesses of the trade unions, The Bangladesh Observer reported Sunday.

The government has decided to form a plant-based Workers Welfare Committee (WWC) in the EPZs in a bid to signalize the US administration that was trying to resolve the issue of trade unionism in the EPZs.

Officials of the Chittagong EPZ authority, however, said that the formation of WWC in the EPZ is not in sight at the moment. Theworkers have shown no such interest in forming the committee in any of the plants in the EPZ.

For the last three years, the United States has been putting pressure on the Bangladeshi government to allow trade union activities in the EPZs from January 2004 in terms of receiving Generalized System of Preference (GSP) and duty-free access of Bangladeshi garment in the US markets.

The US Ambassador to Dhaka Harry k. Thomas jr. told the businessmen Wednesday that Bangladesh should improve labor condition in EPZs by January 2004 as a condition for keeping its GSP privileges and warned that the United States would withdraw the privilege if it failed to honor its commitment.

But the government faced counter-pressure from the major investors like South Korea, Japan and Malaysia in the Chittagong EPZ. The investors warned that they would withdraw their investment if trade unions were allowed in the EPZ.

There are about 100,000 direct employees and 150,000 indirect employees operating in 117 industries in Chittagong EPZ.




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