Workers left out of FY26 budget priorities

The proposed budget for the fiscal year 2025-26 has drawn criticism from the government-appointed Labour Reform Commission, which had earlier called for formal recognition of workers and stronger financial and legal safeguards.

The commission says the budget has largely ignored the needs of the country's working population.

Despite rising living costs and repeated calls for fair wages and broader social protection, the budget offers no clear measures to support millions of workers, said Syed Sultan Uddin Ahmed, chairman of the commission.

Following the political changeover in August last year, the interim government appointed the Labour Reform Commission in November. The commission submitted its recommendations to Chief Adviser Muhammad Yunus in April this year.

Among its proposals, the commission urged the government to provide legal protection and formal recognition for all workers. This would cover those in both the formal and informal sectors, as well as migrant workers and self-employed individuals, under a comprehensive labour law.

It also recommended setting national minimum wages that would ensure a decent standard of living. The report suggested revising both national and sectoral wages every three years to reflect inflation and the cost of living.

In an interview with The Daily Star recently, Ahmed said, "We had hoped that the government would seriously consider our proposals, but in reality, that was not reflected."

He noted that although the budget speech outlined 11 priorities, not one focused on workers. "There are seven crore working people in Bangladesh who deserve attention."

Ahmed pointed out that the Bangladesh Labour Welfare Foundation, a state-backed body meant to support workers, has never received an allocation in the national budget.

"This is in no way expected," he added.

He said that 85 percent of workers are employed in the informal sector in Bangladesh, yet no social safety net exists for them. There is also no protection for people who are unemployed or seasonally jobless.

"Our expectation was that at least the government would call us and ask how much money it would initially cost. But that did not happen," commented Ahmed, who is also the executive director of the Bangladesh Institute of Labour Studies (BILS).

He said that their recommendations were not only for the ministry concerned but also for other bodies such as the National Pension Authority.

The formation of such institutions, he said, should be shaped by discussions about social safety for domestic workers, rickshaw pullers, construction workers and others. So far, no such talks have taken place.

Regarding the commission report, he said the chief adviser, the labour adviser and the labour ministry all responded positively and welcomed the recommendations.

"The government, including the chief adviser, assured us that the report would be implemented word for word, which was very encouraging," he said.

While he acknowledged that the labour ministry is working on the matter, Ahmed insisted there should have been consultation and budget allocations before any review began.

"The public, workers and labour organisations want some visible steps," he said. "I am not saying the government is ignoring our report, but we expect proactiveness."

Ahmed noted that vulnerability among workers is rising by the day due to factory closures, political instability and international issues.

"We feel that while some of our recommendations require political consensus, most of them need administrative restructuring, change and reform," he said.

"Political consensus is the main priority, and discussions are now focused on election reform, constitutional reforms and related matters; people think other reports are being sidelined," Ahmed said.

"This is our main concern."

Referring to the July uprising in 2024, he said, "People's aspirations were not limited to political reform. They also demanded social reform and freedom from discrimination in society."

Ahmed said the government must take dynamic action, as it is a different kind of administration. "It is not traditional. It came to power through a movement and the sacrifice of many workers," he said.

He added that workers had hoped for at least a minimum guarantee of livelihood, employment, a society free from discrimination and fair treatment.

Their commission report, he said, mentioned that the means of livelihood of workers must not be destroyed.

For example, he said, "If my car violates traffic laws, they should fine me. They should not take away my car."

"But the reality is, police are seizing and destroying rickshaws. Is this acceptable in a civil society? If they violate the law, fine them, but you cannot destroy their means of livelihood," he said.

"We also propose some structural reforms. One is upskilling or reskilling training, especially for existing workers," said the top labour rights activist.

Normally, skill programmes target unemployed youth entering the labour market, but current workers are also at risk due to automation, political change and shifts in both international and national trade, he said.

Secondly, he called for the immediate creation of a comprehensive database of workers.

"This is vital for identity. During Covid-19, for example, the government failed to deliver much of its aid to the public because of the lack of a proper database," he said.

Ahmed pointed out that the true aim of austerity measures is to reduce unnecessary or luxury spending, not to harm the livelihoods of the most vulnerable.

"The things we propose are very basic and directly linked to livelihood and social safety nets for the unemployed. We want a very targeted social safety net programme for them," he said.

He also raised the matter of the national minimum wage. "I think it is both feasible and necessary," he said.

"There are many skilled private car drivers in Bangladesh. But who decides their salary? It is set by the neighbours. The market is unstable, so they do not get what they deserve," he added.

In his recommendations, Ahmed emphasised recognising workers as workers, ensuring safe workplaces and providing proper compensation for accidents.

"The question may now arise as to how such initiatives will be implemented. First, the process must begin," he concluded.