Author: Md. Mahfuz Ul Bashar
In Bangladesh’s dynamic ready-made garments (RMG) sector—where tight deadlines, hierarchical structures, and high production pressure are the norm—conflict is not an exception, but an expectation. Yet, how these conflicts are handled can define the difference between disruption and progress. Traditional grievance mechanisms often escalate tensions or delay resolution. In contrast, Alternative Dispute Resolution (ADR) models offer a transformative shift: from adversarial standoffs to constructive dialogue. By embracing ADR, factories can foster a culture of mutual respect, reduce operational downtime, and align with global standards for ethical labor practices.
Why Traditional Dispute Mechanisms Fall Short
Despite legal provisions for conciliation and arbitration under Bangladesh’s labor laws, factory-level disputes in the RMG sector frequently spiral into
- Worker protests,
- Production halts, or
- Costly legal battles.
These breakdowns aren’t just procedural—they’re rooted in deeper, systemic issues. Poor communication, inaccessible grievance channels, and a persistent lack of trust between workers and management turn minor misunderstandings into major disruptions. When resolution feels distant or biased, confrontation becomes the default path.
In recent years, Bangladesh’s RMG sector has witnessed several waves of worker unrest that underscore the limitations of traditional dispute resolution mechanisms. In late 2023, protests erupted across major industrial zones like Gazipur, Ashulia, Savar, and Mirpur following dissatisfaction with proposed minimum wage revisions. Reports says that the unrest led to the closure of over 300 factories, clashes with law enforcement, and even fatalities. Workers demanded wage increases in response to rising inflation, but delays in wage board decisions and lack of transparent communication fueled mistrust and frustration. These events reveal how unresolved grievances and opaque negotiation processes can quickly escalate into production halts and legal confrontations—costing both lives and livelihoods.
What Is Alternative Dispute Resolution (ADR)
ADR encompasses a range of structured yet flexible methods for resolving workplace conflicts without resorting to formal litigation or disruptive protests. These approaches prioritize dialogue, neutrality, and fairness.
- Mediation: A neutral third party facilitates negotiation.
- Conciliation: A conciliator proposes a resolution after listening to both parties.
- Arbitration: A binding decision is made by an independent arbitrator.
- Peer Review Panels: Worker-management committees resolve issues internally.
These models not only reduce escalation but also build trust, save time, and align with international labor standards—making them especially valuable in Bangladesh’s RMG sector. These approaches emphasize dialogue over disagreement, ensuring disputes are settled early, fairly, and without escalation.
Global Relevance and Bangladesh’s Readiness
Alternative Dispute Resolution (ADR) is proving to be a game-changer in labor-intensive industries worldwide. According to the Better Work Viet Nam Annual Report 2023, ADR practices—such as mediation and social dialogue—have contributed to a 40% reduction in formal labor disputes across participating factories in Vietnam, Indonesia, and Ethiopia. These models have helped over 750,000 workers in Vietnam alone by promoting compliance, improving working conditions, and reducing production disruptions.
Bangladesh is increasingly aligning with this global shift. On February 25, 2025, a BGMEA delegation met with the ILO Director-General in Geneva to highlight progress in compliance and social dialogue.
Considering the current use in the RMG sector, informal peer mediation is practiced in several large factories, especially those supplying to brands with strict social compliance requirements.
IndustriALL Bangladesh Council has launched mediation training for worker leaders, in partnership with the National Coordination Committee on Workers Education (NCCWE), launched the Workers Resource Centre (WRC) on April 11, 2018. Supported by the ILO’s Social Dialogue and Harmonious Industrial Relations project, funded by Sweden and Denmark, the WRC was established to train trade union leaders and worker representatives in mediation, grievance handling, negotiation, and collective bargaining. Located in Tongi, a key RMG hub near Dhaka, the center also provides legal advice, paralegal support, and a call center for workers seeking guidance.
Before that on January 5, 2025, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) met with ILO Country Director Tuomo Poutiainen at the BGMEA Complex in Dhaka and released that the discussion as advancing labor standards and dispute resolution mechanisms in the RMG sector. A key outcome of the meeting was BGMEA’s proposal to establish sectoral mediation centers aimed at institutionalizing Alternative Dispute Resolution (ADR) practices.
Bangladesh’s readiness is further reinforced by recent legal and policy developments. On September 24, 2024, a landmark agreement was reached between workers and employers in Ashulia following wage protests, showcasing the power of social dialogue in de-escalating unrest. The ILO Country Office in Dhaka has since called for the establishment of an independent ADR institution and reforms to the labor court system to improve case management and reduce delays.
These efforts are part of a broader labor reform agenda, including amendments to the Bangladesh Labour Act, the institutionalization of the Employment Injury Scheme, and the ratification of key Occupational Safety and Health (OSH) conventions.
Turning Conflict into Opportunity: ADR Matters
In the high-stakes environment of garment production, every minute counts—and so does every relationship. Alternative Dispute Resolution (ADR) offers more than just a way to settle disagreements; it transforms how factories operate and how workers engage.
- Faster resolution means fewer production delays. When disputes are resolved quickly through mediation or peer panels, factories avoid costly shutdowns and maintain delivery timelines.
- Preserving relationships is key to long-term stability. ADR encourages respectful dialogue, helping workers and managers build trust rather than tension.
- Cost-effectiveness is a major advantage. By sidestepping lengthy legal battles, factories save on legal fees, fines, and reputational damage.
- Improved compliance makes factories more attractive to global buyers. Ethical sourcing standards increasingly favor suppliers with transparent, fair dispute systems.
- Worker empowerment is perhaps the most transformative benefit. ADR gives workers a safe space to raise concerns without fear of retaliation, fostering a culture of dignity and inclusion.
Together, these benefits position ADR not just as a tool for conflict resolution—but as a strategic asset for sustainable growth in Bangladesh’s RMG sector.
From Policy to Practice: Making ADR Work Across the Industry
To embed Alternative Dispute Resolution (ADR) meaningfully across Bangladesh’s garment sector, the industry must move beyond isolated pilots and embrace systemic change. Here’s how that transformation can begin:
| Recommendation | Purpose / Impact |
| Build In-House Mediation Teams | Resolve disputes early within factories; reduce escalation and production loss. |
| Launch a Sector-Wide ADR Hub | Handle complex or cross-factory disputes with impartial oversight. |
| Train the Frontline for Dialogue | Equip supervisors and union leaders with skills in negotiation and de-escalation. |
| Digitize the Grievance Journey | Enable secure, anonymous reporting and transparent tracking of dispute resolution. |
| Celebrate Resolution, Not Just Production | Normalize collaborative conflict resolution through storytelling and recognition. |
Beyond ADR: The Urgent Need to Upgrade Conventional Grievance Mechanisms
While ADR offers a transformative path forward, the reality is that many factories still rely on outdated grievance systems that lack credibility and responsiveness. Upgrading these conventional mechanisms is not optional—it’s foundational. A modern grievance system must be clear in process, accountable in action, and transparent in outcome. This means conducting a thorough assessment of all relevant issues, engaging qualified experts for deep analysis, and establishing a grievance process that is timely, impartial, and independently managed. To build trust across the workforce, the system must also ensure transparency—such as publishing anonymized resolution data—and regularly reviewing its scope to ensure it effectively reduces conflict and fosters a more respectful, inclusive work environment.
Moreover, the scope and coverage of these systems must be revisited. Are all categories of complaints—wage disputes, harassment, safety concerns—adequately addressed? Are vulnerable groups, such as women and persons with disabilities, able to access these channels without fear? A comprehensive upgrade should aim not only to reduce conflict but to foster a congenial, respectful, and resilient work environment where grievances are seen as opportunities for improvement, not threats to stability.
Final Thought: Conflict to Collaboration
In the evolving landscape of Bangladesh’s RMG sector, disputes are not signs of failure—they are signals for change. What matters most is not the presence of conflict, but the method of resolution. Alternative Dispute Resolution (ADR) offers a pathway where fairness replaces fear, and collaboration replaces confrontation. It’s not just a tool—it’s a mindset shift.
With the right systems, skilled facilitators, and a commitment to transparency, the industry can transform its approach to conflict. When dialogue becomes the norm, not the exception, factories don’t just produce garments—they cultivate dignity, resilience, and trust.
