Bangladesh stands at a pivotal moment in its development journey as IT approaches graduation from least developed country (LDC) status in 2026

This $2,000,000 Cooperative Agreement, awarded on December 1, 2024 by the U.S. Department of Labor's Bureau of International Labor Affairs under the International Labor Programs (CFDA 17.401), aims to support labor reforms in Bangladesh aligned with International Labor Standards (ILS). The grant will be implemented by the International Labor Organization (ILO) to empower trade unions, strengthen labor inspection systems, and promote freedom of association and collective bargaining rights. This project seeks to address longstanding labor issues in Bangladesh's ready-made garment (RMG) sector, which employs over 4 million workers and contributes 10.35% of the country's GDP. The award will help build the capacity of stakeholders, including governments, worker organizations, and civil society, to improve labor market governance and ensure a just and equitable labor environment as Bangladesh transitions out of Least Developed Country (LDC) status by 2026.

The recent civil unrest and the subsequent changes in the government administration in august 2024, has underscored the pressing need for political and economic reforms. The formation of an interim government presents both challenges and opportunities to address longstanding issues with workers rights and labor issues. The success of bangladeshs transition will largely depend on sustainable growth, inclusive human development, and, crucially, the prioritization of labor reforms aligned with international labor standards (ILS). Empowering trade unions to effectively safeguard workers rights is critical in ensuring a just and equitable labor market. The ready-made garments (RMG) sector plays a vital role in this regard, as IT is the largest formal sector of employment, with around 4 million workers, and contributed 10.35% of GDP in 2023.despite notable progress in working conditions since the rana plaza tragedy, bangladesh continues to face significant challenges in labor market governance. These challenges include weak legislative frameworks, ineffective labor inspection systems, and limitations on freedom of association (FOA) and collective bargaining (CB) rights. The situation is further exacerbated by insufficient tripartism, gender disparities in labor force participation, and low trade union density (11.9%), all of which undermine bangladesh S global competitiveness and risk the loss of preferential market access post LDC graduation. In addition, the lack of regular data on the trade union density and collective bargaining coverage is a key constraint in understanding the overall situation of FOA and CB rights in the country based on such quantitative evidence and building up capacity in this regard would be crucial for the future. The urgency of addressing these issues is further highlighted by the ongoing article 26 complaint of non-observance of ratified ILO CONVENTIONS0F1, raised by worker delegates at the international labor conference in 2019. This complaint prompted the government of bangladesh (GOB) to commit to a series of labor sector reforms through the ILO governing body (GB) roadmap (2021-2026) and the national action plan (NAP) for the labor sector (2021-2026).the project is a critical component of a broader, coordinated effort by the ILO, the GOB, and workers and employers organizations to promote decent work in bangladesh. The project will contribute to improving overall working conditions and social dialogue mechanisms for workers in garment factories through better works factory engagement model, which includes assessment, advisory, and training services. The project aims to capacitate enterprise-level trade unions in better work-registered factories to ensure their effective operations and establish an enabling environment for improved FOA and CB. Working in tandem with broader ILO initiatives, better work will use the knowledge and evidence generated from this project to strengthen sound industrial relations at the sectoral and national levels. The outcomes of the project will provide 4VALUABLE experience and results that can ideally be replicated across other industrial sectors in bangladesh, further enhancing the overall impact of these efforts. This project contributes to better work bangladeshs ongoing efforts to ensure responsible business conduct, respectful of internationally recognised human rights, and aligning its efforts with the ilos work to promote the UN guiding principles on business and human rights (UNGPS) and the ilos MNE declaration.aligned with national and international development frameworks, including the 8TH five year plan (FYP) and the UN sustainable development cooperation framework (2022-2026), the project contributes to the pursuit of the sustainable development goals (SDGS) by 2030.