VZCZCXRO2982
PP RUEHBI RUEHCI RUEHDBU RUEHLH RUEHNEH RUEHPW
DE RUEHKA #0652/01 1820259
ZNY CCCCC ZZH
P 010259Z JUL 09
FM AMEMBASSY DHAKA
TO RUEHC/SECSTATE WASHDC PRIORITY 9095
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
RUEHLO/AMEMBASSY LONDON PRIORITY 2133
RUEHGO/AMEMBASSY RANGOON PRIORITY 2883
RHEHAAA/WHITE HOUSE WASHDC PRIORITY
RHHMUNA/USCINCPAC HONOLULU HI PRIORITY
RHHJJPI/PACOM IDHS HONOLULU HI PRIORITY
RUEHC/DEPT OF LABOR WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 DHAKA 000652 
 
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: 06/30/2019 
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 00000652  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