After Rana Plaza: Governing Exploitative Workplace Labour Regimes in Bangladeshi Garment Export Factories

Abstract

In 2013, the Rana Plaza disaster highlighted the highly exploitative conditions of the global garment supply chain centred on Bangladesh. Global lead firms and other stakeholders responded by reforming the labour governance system comprising public and private regulations. How can the effects of this new multi-level governance system on worker outcomes (wages, working conditions and workers’ rights) be conceptualized and explained? Using an inter-disciplinary framework integrating an industrial relations/sociology perspective and a global production network approach, we show how workplace relations (structural and relational workplace characteristics) mediate the relationship between the labour governance system and worker outcomes. A mixed methods research design that includes a factory management survey and case studies enables us to identify and analyse two predominant types of workplace labour regimes associated with different patterns of worker outcomes (procedural and substantive employment conditions). Referred to as the hardship and sweatshop regimes, respectively, these differ in the extent to which workers are exploited. With the emergence of the Covid-19 pandemic, we discuss the possibility that modern slavery, the worst form of worker exploitation, is emerging. The paper concludes by briefly considering several research and practical implications of our analysis.

Modern slavery and the employment relationship: Exploring the continuum of exploitation

“…Examining labour exploitation from multiple viewpoints reveals the true complexity of designing regulatory systems and improved business practices to address entrenched labour exploitation. The research of both Caspersz et al (2022) and Frenkel et al (2022) reveals the utility of examining the causes of labour exploitation through an industry specific lens that ties factory practices with broader macro-economic trends evident in GVC production. Modern slavery and labour exploitation more generally impact a diverse range of workplaces and manifest in many different forms so there continues to be value in further exploring these issues sector by sector.…”

“…The fifth article in this Special Issue examines the influence of the post-Rana Plaza labour governance system on worker outcomes, in terms of their process rights, wages, and conditions of employment. Frenkel et al (2022) highlight the relationships between elements of the labour governance system, workplace regimes (structural and relational workplace characteristics), and worker outcomes. Specifically, they examine worker exploitation as expressed in hardship and sweatshop type workplace labour regimes.…”

Social Upgrading in the Bangladeshi Garment Sector Since Rana Plaza: Why Some Governance Matters More Than Others

“…Parts of the findings have been presented in the final project report of the Garment Supply Chain Governance Project 1 as well as in project-related publications (see, e.g., Publishing AG. All rights Frenkel et al, 2017;Kabeer et al, 2019Kabeer et al, , 2020Oka et al, 2020;Rahman & Rahman, 2020;Schuessler et al, 2019aSchuessler et al, , 2019bSchuessler et al, , 2020.…”

Liberalization and Global Business Dilemma in Third World Countries: A PEST Analysis

“…In pursuit of lower production costs, multinational corporations may exploit cheap labor in third world countries, leading to poor working conditions, low wages, and labor rights abuses. For example, garment factories in Bangladesh have faced scrutiny for unsafe working conditions and low wages despite the country's economic liberalization efforts (Frenkel, Rahman & Rahman, 2022). Furthermore, rapid industrialization driven by global business interests can result in environmental degradation and resource depletion.…”