VZCZCXRO4311
RR RUEHBI RUEHCI
DE RUEHKA #0618/01 1610917
ZNR UUUUU ZZH
R 090917Z JUN 08
FM AMEMBASSY DHAKA
TO RUEHC/SECSTATE WASHDC 6871
INFO RHEHAAA/WHITE HOUSE WASHINGTON DC
RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHBK/AMEMBASSY BANGKOK 8462
RUEHLM/AMEMBASSY COLOMBO 8481
RUEHIL/AMEMBASSY ISLAMABAD 2210
RUEHKT/AMEMBASSY KATHMANDU 9715
RUEHNE/AMEMBASSY NEW DELHI 0682
RUEHKO/AMEMBASSY TOKYO 1184
RUEHCI/AMCONSUL KOLKATA 1326
RUEHBI/AMCONSUL MUMBAI 0321
RUEHCG/AMCONSUL CHENNAI 0966

UNCLAS SECTION 01 OF 04 DHAKA 000618 
 
SIPDIS 
 
WHITE HOUSE FOR USTR: AARON ROSENBERG, MEREDETH SANDLER, ADINA 
ADLER 
DEPARTMENT OF LABOR FOR ILAB: TIMOTHY WEDDING, RACHEL RIGBY, 
JENNIFER PIORKOWSKI 
DEPT FOR: USAID, G/TIP, G, DRL, IWI, PRM, SCA/RA, SCA/PB, EA 
 
E.O. 12958: N/A 
TAGS: ELAB EAGR ETRD SOCI PGOV KWMN BG
SUBJECT: BANGLADESH SHRIMP SECTOR - CHILD LABOR PRESENT BUT NOT 
PERVASIVE 
 
REF: DHAKA 00584 
 
SUMMARY 
------- 
 
¶1.  (SBU) Recent Embassy visits to shrimp processing factories in 
southwestern and southeastern Bangladesh revealed cases of child 
labor in a handful of factories.  Econoff and Econ Specialist 
visited nine shrimp processing factories in Bangladesh's Khulna 
region, four in Cox's Bazaar, and five in Chittagong. Our assessment 
is that the shrimp processing industry is aware of prohibitions 
against the use of child labor and is generally free of child labor. 
Some factories, however, continue to employ child workers through 
contractors.  Overall, shrimp industry groups are working with the 
Government of Bangladesh to eradicate child labor in shrimp 
processing.  END SUMMARY. 
 
¶2.  (SBU) In an April 23 report (The True Cost of Shrimp) on the 
shrimp industry in Bangladesh and Thailand the American Center for 
International Labor Solidarity (ACILS, also known as the Solidarity 
Center) alleged widespread use of child labor and other labor abuses 
in Bangladesh's shrimp processing sector.  Government officials and 
industry representatives have told us privately abuses occurred in 
the past but said steps were being taken to eradicate child labor 
from shrimp processing.  Publicly, government and industry have 
denied the charges made in the April 23 report, which largely 
restates claims made in the 2007 Generalized System of Preferences 
petition filed by the AFL-CIO with the US Trade Representative. 
 
 
UNANNOUNCED VISITS: MORE THAN MEETS THE EYE 
------------------------------------------- 
 
¶3.  (SBU) Econoff and Econ Specialist conducted unannounced visits 
at nine factories in Bangladesh's Khulna region in May to assess 
labor conditions, particularly use of child labor in the shrimp 
sector.  Seven of the nine factories visited are located in Khulna's 
main shrimp processing quarter known as Char Rupsha, a densely 
concentrated area of factories located 30 minutes from Khulna city. 
At the first factory, six or seven boys who appeared to be under age 
14 carried cardboard and paper bundles to and from a print shop that 
produced shrimp packaging.  A group of women removing shrimp heads 
sat on a factory floor away from the bulk of the processing, while 
young children played or slept beside them.  One or two slightly 
older girls appeared to be casually assisting their mothers. 
Adolescent girls (between 14 and 18) appeared to be part of this 
female working group. (NOTE: per local law, workers under age 14 are 
considered child labor, while those 14-18 are adolescent and able to 
do non-hazardous work. The informal and agricultural sectors are 
exempted from the labor law.) 
 
¶4.  (SBU) In the main factory area at least two children worked in a 
processing line.  The floor manager tried to block Econoff's efforts 
to photograph one boy at work.  The floor manager instructed the boy 
to move to a different room.  Later, the floor manager quietly told 
the LES that "When foreigners visit, it causes problems for these 
kids." (COMMENT: Presumably this means they have to hide, or are 
fired.) We observed three to four children working in the processing 
line, and about a dozen apparently adolescent workers elsewhere in 
the factory.  Along a narrow street outside the factory at least two 
groups of boys who said they worked as day laborers were moving ice 
and shrimp. At first shying away from the camera, they later 
gathered around to see their pictures on the digital screen. 
 
¶5.  (SBU) At one of the largest factories there was a delay at the 
gate before officials allowed in Embassy staff.  Factory officials 
then made Econoff and Econ Specialist wait several minutes in an 
empty office.  When we explained the purpose of our call, the 
factory manager said there was a problem and began a variety of 
delay tactics.  Eventually Econ Specialist spoke with the factory 
owner, who claimed angrily that non-governmental organizations were 
targeting him and had photographed children outside his gate, 
falsely identifying them as workers in his factory.  Eventually 
officials allowed us to tour the factory.  We observed no children. 
 
DHAKA 00000618  002 OF 004 
 
 
In a meeting with factory workers later, they claimed that while we 
were delayed child workers were rounded up and hidden. 
 
¶6.  (SBU) We observed no child labor at the other six Khulna 
factories visited.  Several of the factories were transparent and 
welcoming; one gate featured a hand-made sign in the local language 
stating no one under age 18 should apply for work.  Nearly all the 
factories had clean bathrooms, gender segregated changing areas, 
hand-washing stations with chlorinated water, and foot bath systems 
at entry and exit points.  Most workers wore lab-coats, boots, and 
many wore gloves and/or face masks. Some workers (mostly those 
working in the walk-in freezers) were equipped with warm parkas. 
Laboratories appeared to be present at most facilities as well.  The 
general standards of cleanliness within the formal sector seemed 
quite high. Econoff confirmed the Solidarity Center's finding that 
some informal processing (in unhygienic facilities) is also 
occurring in the vicinity of the factories, although producers 
claimed it was export rejected shrimp, designated for the domestic 
market. 
 
 
WORKERS LIVE WITH HARSH REALITIES 
--------------- ------------------ 
 
¶7.  (SBU) ACILS organized a group of approximately 30 workers (men, 
women and children) to meet with Embassy staff at the ACILS' Khulna 
office.  Among the group, 14 were under age 14, and six were between 
the ages of 14 and 18. The workers said they had taken vacation time 
to attend the meeting.  ACILS provided each worker some compensation 
for coming to the meeting. Some appeared to have been coached as to 
what to say. Seven workers between the ages of 8 and 12 credibly 
claimed to have worked in shrimp processing factories: they named 
two labor contractors who had arranged for them to work in four 
factories.  Two child workers said they worked at the factories 
where we directly observed children at work.  Adult workers at this 
meeting complained of 12-hour work days for which managers only 
allow them to claim eight hours worked. 
 
 
SHRIMP PROCESSING PATTERNS CONSISTENT NATION-WIDE 
------------------ ------------------------------ 
 
¶8. (SBU) The Solidarity Center report was based entirely on data 
collected from the Khulna shrimp processing factories.  For a more 
comprehensive perspective, the Embassy conducted additional surveys 
in the south-east beach town of Cox's Bazaar, and the industrial 
port city of Chittagong.  In each location, only one factory was 
observed to have apparent child workers. 
 
¶9. (SBU) Econoff visited four shrimp processing factories on the 
outskirts of Cox's Bazaar town.  Two child laborers were directly 
observed at one factory immediately on entering the factory gate. 
After a delay of 15 minutes (during which we observed the children 
being shooed away) Econoff was giving a limited tour. (COMMENT: We 
believe child workers were removed to a separate part of the factory 
to which we were not given access. END COMMENT.) The other three 
factory owners were wary but welcoming; all expressed a clear 
understanding of the laws against child labor.  Noting the presence 
of a worker complaint box, Econoff asked about complaints received; 
the factory claimed the only complaint related to leaking gum boots. 
They characterized their industry as suffering from limited supplies 
of shrimp, pointing to one factory that had shut down recently. 
 
¶10. (SBU) Econoff visited five shrimp processing factories in 
Chittagong. Due to supply limits, one had refocused on whitefish 
processing for export to the Middle-East.  Another factory (newly 
expanded) was in the process of becoming operational. Emboff 
observed child workers at one large factory. The site manager 
claimed that one child (wearing gum boots, and appearing to be a 
worker) was there to deliver rice to her mother.  When a group of 
three or four apparently young workers were observed running out of 
a room, the manager lamely explained they were running because they 
had to use the toilet. 
 
 
DHAKA 00000618  003 OF 004 
 
 
 
NETTING OF SHRIMP LARVAE FROM THE SEA, SHRIMP FARMING, AND 
HATCHERIES 
-------------------------------- 
------------------------------------ 
 
¶11. (SBU) At the Cox's Bazaar beach, dozens of fishermen dotted the 
beach collecting shrimp larvae directly from the sea with fine mesh 
nets set in the surf.  Through the moon-lit night and into the 
morning, teams of men, youths and children huddled over plastic 
buckets with flashlights sorting shrimp larvae from buckets of 
concentrated microfauna. By isolating thousands of larvae, a worker 
can earn as much as 300 hundred taka a night (about $4). The 
children admitted they would rather go to school, but their elders 
pointed out that they had to eat.  Those who supported younger 
family members attending school questioned the utility of education, 
if the only way for their siblings to earn in the future would be 
collecting shrimp larvae.  This pattern of child work in the 
informal sector is not covered under Bangladesh's labor laws; the 
use of fine mesh nets is, however, illegal for environmental reasons 
(but rarely enforced). The practice of fine mesh netting for shrimp 
larvae has also been observed in the Sundarbans protected forest 
area. 
 
¶12.  (SBU) Embassy representatives also visited the Shatkira region 
near Khulna, a hub for freshwater shrimp farming.  An adult farm 
worker said that at the pond where he was employed the farm owner's 
children and other local children may assist during the busy periods 
which is legal under Bangladesh's laws.  At a small shrimp hatchery 
(21 tanks) small shrimp larvae are grown in brine water to a size 
that they can be sold to shrimp farmers for transfer to freshwater 
ponds.  Econoff saw six young men ranging in age from about 18 to 30 
who ran the operations.  The workers monitored the chemical 
composition of each tank and prepared a special protein shake for 
the shrimp. This work appeared technically sophisticated, and the 
men claimed there was no scope for child worker involvement. 
 
 
INDUSTRY ASSOCIATION WORRIED 
---------------------------- 
 
¶13.  (SBU) In meetings with the Embassy, Bangladesh Frozen Foods 
Exporters Association (BFFEA) officials voiced concern about the 
ACILS report, which they described as inaccurate and claimed had 
resulted in queries from international buyers.  They highlighted the 
importance of the industry as a source of employment, particularly 
for women, and as a source of revenue for aquaculture farmers in the 
impoverished Khulna region.  Acknowledging past problems with child 
labor in shrimp processing factories, they claimed to be taking 
steps to eliminate child labor that the ACILS report ignored. 
 
 
COMMENT 
------- 
 
¶14.  (SBU) Our surveys of the shrimp processing industry in 
Bangladesh indicate that claims of child labor in the shrimp 
processing factories have some basis but that child labor is not a 
pervasive characteristic in the industry.  The Government of 
Bangladesh is making efforts on the shrimp sector with renewed 
intensity. On May 15-16, a delegation led by the Commerce and 
Fisheries and Livestock Secretaries visited Khulna to conduct 
inspections and outreach.  They were accompanied by an EU diplomat, 
and the ACILS director for Bangladesh (who reports that hardly any 
workers were seen by the delegation.) On May 17, the USAID country 
director addressed a seminar on improving the shrimp sector. On May 
19, DRL DAS Barks-Ruggles, the Ambassador and USAID Mission Director 
Rollins attended an informal lunch hosted by the Commerce Advisor 
for candid discussions on the shrimp sector (REFTEL). 
 
¶15. (SBU) We are informed (by the Bangladesh Embassy in Washington) 
that the GOB has initiated case actions against four shrimp 
processing companies in Khulna.  The Embassy will follow up for more 
information. Bangladesh's Shrimp Foundation told the Embassy that a 
 
DHAKA 00000618  004 OF 004 
 
 
delegation from the GOB and shrimp industry associations will be 
visiting Washington in mid-June to meet USG officials and buyers 
groups to present their plans to improve the sector. 
 
MORIARTY