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Trade unionism in EPZs

Balanced approach welcomed
16 March 2004
• EDITORIAL
The government's decision to allow 'limited trade union rights' in the export processing zones (EPZs) of the country represents a move forward. For, it has broken the stalemate over an issue that has been lying with the government for the last few years since a threat was issued by a US company to stop importing goods from EPZs unless the latter abided by the ILO convention on labour rights. The government was initially in two minds, especially as the majority of investors in the EPZs were not in favour of granting trade union rights to their workers. They apprehended disruption in the factories if trade unions with political links were allowed. But perhaps the provision not to allow the trade unions to get involved with any political party has allayed their fears.

The government is prepared to give effect to the compromise formula reached on the subject between the stake-holders within a time-frame through an ordinance, if necessary. The agreement has struck two different kinds of balance: one between the welfare of workers and the investors' interests; and, secondly, between the investors' rights and the export interests of the country.

What seems to have clinched the issue is the US authorities' flexibility in not insisting on their earlier stance for wholesale trade unionism in the EPZs. We must also thank the World Bank for mediating the meeting that produced an agreement acceptable to all concerned. Balanced trade unionism can provide a fillip to productivity just as a rabid form of it can cause harm to industrial and service sectors.

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