Industry leaders in Bangladesh have raised concerns over several proposed amendments to the Bangladesh Labour Act, warning that some measures could disrupt industrial stability, deter foreign investment, and weaken export competitiveness.

Speaking at a discussion organised by the Bangladesh Employers’ Federation (BEF) in Dhaka on Saturday, employers voiced support for balanced reforms but opposed at least nine of the 101 proposed changes, calling for broader consultation before they are enacted.

One of the most contentious proposals would allow a trade union to be formed with just 20 workers, regardless of factory size.

“This could lead to a proliferation of paper-based unions in small and medium factories, triggering frequent disputes and lowering productivity,” said BEF President Fazlee Shamim Ehsan, who also leads the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Currently, forming a trade union requires the support of at least 20% of a factory’s workforce. The BEF has proposed a proportional system based on factory size.

Employers also objected to making provident funds mandatory for factories with 100 or more workers, saying such schemes are unpopular among employees and would add compliance burdens.

BKMEA President Mohammad Hatem said the changes risk scaring off foreign investors. “If unions can be formed with only 20 workers, investors will think twice before entering the market,” he cautioned.