US embassy cable - 05DHAKA3132

UNCLAS SECTION 01 OF 02 DHAKA 003132 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ELAB, ETRD, PHUM, PREL, BG, BGD Elections 
SUBJECT: BEPZA CLAIMS PROGRESS ON ELECTIONS AND RESOLVING 
ALLEGATIONS OF MANAGEMENT REPRISALS 
 
REF: A. DHAKA 1765 
     B. DHAKA 2414 
 
1. (SBU) SUMMARY.  BEPZA, with a revised count of factories 
that need to have elections, said that elections will be 
completed within weeks, arbitrators will be hired to resolve 
labor-management disputes, and "conciliators" will train 
workers on labor issues after elections, While a number of 
allegations of management intimidation and firings remain 
unresolved, the BEPZA chairman has reviewed others and is 
working towards their resolution. END SUMMARY. 
 
2. (SBU) On July 3, Poloff informed Bangladesh Export 
Processing Zone Association (BEPZA) Executive Chairman 
Mohammed Zakir Hossain that the AFL-CIO has again petitioned 
the USTR to remove Bangladesh's GSP benefits.  Hossain said 
that BEPZA has made progress in implementing the law.  He 
presented a new count, dated June 30, that of the 218 
companies in operation in Export Processing Zones (EPZs), 
elections have been held in 163.  He added that the actual 
count of companies eligible for elections is only 173 because 
the other companies have not been in operation sufficient 
time to be required under the law to hold elections.  He said 
the remaining elections will be held within weeks. 
 
3. (SBU) When reminded that he had said in mid-December that 
he would be finished with all elections within four months, 
Hossain replied that he would have been finished earlier, but 
taking into account American Center for International Labor 
Solidarity's (ACILS) suggestions "took additional time." 
 
4. (SBU) He cited the hiring and training of 30-40 
"conciliators," funded by the World Bank, who will provide 
training and counseling to workers at factories who have had 
Worker Recreation and Welfare Committee (WRWC) elections as 
additional progress in the implementation of the EPZ law.  He 
noted that the first class will graduate July 3 and will be 
in field within the week.  He expected to hire another 20 
within months. 
 
5. (SBU) When asked about notification and training of 
workers on the law and the process of the elections, prior to 
the elections, Hossain admitted that not every worker has 
been given a copy of the election law.  However, he insisted 
that his election training teams had instructed workers at 
every factory.  When asked about allegations that only 
selected workers were given such training, he sidestepped the 
question by noting that workers often move to different 
shifts to accommodate workload needs. 
 
6. (SBU) When asked about allegations of management 
interference, intimidation, and firings of workers, Hossain, 
unlike two months ago when he said he had no knowledge of 
allegations (ref A), said he had a list of 18 allegations 
that they have investigated, of which a number have been 
resolved.  When asked if his list would match a similar list 
that ACILS might have, he admitted that probably there would 
be more. 
 
7. (SBU) Poloff asked about the allegation involving a 
Chittagong-based employee at Sasha Denim Ltd.(ref b), who was 
allegedly fired for his advocacy for the WRWC.  Hossain 
replied that he had asked the "fired person" to come to 
Dhaka, but that he had not shown up yet.  Hossain added that 
he as the Executive Chairman had not yet approved the firing 
of the person.  However, Hossain admitted that the individual 
had not gotten his job back, that the sacking was contrary to 
the law but complained that he was powerless to force 
management to take back an employee. 
 
8. (SBU) When asked how he planned to handle management-labor 
disputes, Hossain said that he was in the process of hiring 
arbitrators, who he wanted to be former judges, to rule on 
such problems.  He said he wanted the process to be 
"transparent" but would not comment on whether the laborers 
could have outside assistance in such cases. 
 
9. (SBU) In response to question about individuals, on their 
own time, going to a local USG-supported labor NGO, located 
out of the EPZs, to obtain labor information prior to 
elections, Hossain said that this is contrary to section 87 
of the EPZ Law.  He said that the labor NGO, "Bangladesh 
Independent Garment Union Federation (BIGUF), is a political 
organization," and the law prohibits workers from associating 
with political organizations.  When asked how one person can 
meet the criteria of law, which prohibits workers 
associations from associating with political organizations, 
he replied that "in Bangladesh, everything is political," and 
"one worker becomes 10" and soon it is a political party. 
 
10. (SBU) When pressed on the allegations and their effect on 
the AFL-CIO petition, Hossain noted that there were 2 to 3 
other major allegations to be resolved, such as BEPZA's 
disagreement at one factory over a mass firing of 50 workers. 
  He said he has acted forcefully on a number of occasions, 
as when he revoked the work permit of a recalcitrant factory 
manager of LSI Ltd, a Taiwan based maker of garment 
accessories, and has threatened to revoke the export license 
of others.  He complained that some factories are better 
equipped to deal with the elections than others, but smaller 
factories with only a few management staff are having a 
difficult time coping with elections.  Others, such as 
Koreans, with their history of violent labor problems, 
complain bitterly over the EPZ law, which was seen as a 
betrayal of the original EPZ agreement which brought them to 
Bangladesh.  He also complained that BEPZA was not designed 
to hold elections and that he is short staffed.  Under such 
conditions, he said it was difficult for BEPZA to get some 
managers and "illiterate workers" to resolve these 
allegations. 
CHAMMAS