09 February 2011

Bangladesh ShipBreaking study by BILS in 2000: Summary

A Study by the (Bangladesh Institute of Labour Studies) BILS in September 2000 found the ship graveyard at Sitakunda to be the only “iron ore mine” in Bangladesh. It occupies an offshore area, 10 km. in length, which starts from Baro Aolia to Vatiary of Sitakunda in Chittagong.

The key reasons for the growth and development of ship breaking during the last two decades are the following:
1.   Natural bathing and beaching facility;
2.   Advantage of strong high tide;
3.   Little financial investment on human resources and machinery for operating the business;
4.   High demand of low cost raw materials for re-rolling mills;
5.   Cheap and available labour;
6.   Low enforcement of legislation related to the business;
7.   Isolation from conscious public eye and social observation; and
8.   Weak monitoring infrastructure of government agencies.

At present, the number of active ship breaking yards at Sitakunda has come down to 30 from the early-eighty number of 55. That has happened mainly due to massive default of bank loan and merger of small companies. The current bank loan default amounts to Tk. 1300 million.  This industry now generates Tk. 5000 million as revenue for the Bangladesh Government. Labour Department Officials reject the claim of the owners of ship breaking yards and assert that this industry is fully covered by the existing labour laws and labour inspection system.

No Management–Worker Relationship--
There is no formal management-worker relationship at the ship breaking yards. In reality, workers of different categories of job are directly recruited by the Foremen or Supervisors on daily basis as per instructions of the management or labour contractors engaged by them. They work under a “No work, no pay” system.

The workers are of the following categories:
1. Yard manager,
2. Labour contractor,
3. Foreman 
4. Cutter (Ship)  
5. Cutter (Ground)  
6. Helper (for the Cutter)
7. Ware Group Worker,
8. Oil Group Worker 
9. Loader Group Worker 
10. Mud Group Worker and 
11. Child Labour.

They get wage according to the following rates:
1. Foreman—A monthly salary of Tk. 4000/-5000/
2. Fitter Worker—Daily wage of Tk. 65/-70/
3. Fitter Helper— Daily wage of Tk. 55/-60/
4. Cutter Man (Ship) — Daily wage of Tk. 120/-130/
5. Cutter Man Helper (Ship) — Daily wage of 60/-70/
6. Ware Man— Daily wage of 60/-75/
7. Cutter Man (Ground) — Daily wage of 80/-100/
8. Cutter Man Helper (Ground) — Daily wage of 60/-65
9. Mud Worker— Daily wage of 60/-65/
10. Loader Worker-- Daily wage of 70/-80/
11. Oil Group Worker--Daily wage of 70/-75/

Recruitment through Intermediaries
Generally, the selected labour contractor makes an agreement with the shipyard owner for scrapping the whole ship in exchange for a certain amount of money. This labour contractor is directly responsible for recruitment and management of workers, manpower expenses, payment of wages and bonus to workers, occupational healthy and safety, loading/delivery of sold materials, and other scrapping operations.

Age, Background, etc.—
The whole work of scrapping is very much labour-intensive. Workers belong to age groups ranging from 10+ to 65+. The foreman engages his men to collect ordinary unskilled persons from economically poorer areas like northern districts of Sherpur, Jamalpur, Tangail, Rangpur, Kustia, and Dinajpur.

No Work-Organization
These workers do not get any letter of appointment, identity card, etc. from the employers, There is no system of any kind of service record or service condition for them. But, the labour contractor and foremen strictly monitor their attendance and movements at the yards. They can be permanently dismissed at any time; the employers are not required to show any proper reason for such action. There is no fixed working hour; it extends up to 10 hours. The ship breaking yards operate on 7 days a week and 30 days a month.

It was found that Health and Safety facilities at the ship breaking yards are far below the expected minimum general standard. Various sizes of metal objects, working tools, small LP gas cylinders, hose machine, metal chains and ropes, oxygen cylinders are left under the sky in unsafe condition. The yards are muddy most of the times. Frequent movement of groups of workers inside the yard area with work cries on their lips is a common scene in the ship scrapping yards of Sitakunda.

Occupational Accidents, etc.—
Accidents, injuries and deaths are very frequent and normal events among employers and workers. Injury and death from falling objects, sharp materials and fire blast caused by gas explosion are the most common and frequent accidents faced by the workers in the ship scrapping yards. Fire blasts take place because of formation of inflammable gas caused by oil slash left inside the ship. The traders in ship scrapping prefer to purchase the unclean ships because of their lower price. According to newspaper reports, 400 workers died and 6000 were injured in last 21 years at ship breaking yards due to gas explosion and fire. Government sources give these two numbers to be 15 and 10 respectively.

Occupational Diseases
Random survey showed that 65% of the interviewed workers are suffering from gastric and other stomach problems, bone and chest pain and physical weakness. 80% of the workers of the cutter group suffer from various eye and digestion problems. 75% of the loading group workers are suffering from backbone pain or pain at the joints of hand or legs.

Causes of Accident and Disease:
1. Purchase of unclean ships;
2. Absence of knowledge and expertise for scrapping ships in scientific methods;
3. Absence of training on OSH at both the levels of workers and employers;
4. Lack of personal safety equipment and necessary welfare facilities at the yards;
5. Low enforcement of safety laws by concerned government agencies;
6. Lack of positive discussion among employers and workers regarding hazards and risks;
7. Absence of regular, effective inspection and monitoring facilities; and
8. Absence of fire fighting facilities at or around the yards.

Trade Union Rights:
The study found the workers at the ship scrapping yards completely unorganized. They are frightened at the very thought of forming any trade union at the yards. There is a continuous high pressure from the part of the yard owners and labour contractors for never moving in the direction of association or union activities. It was alleged that in case of a single spontaneous procession, the particular dealt very severely with the organizers and participants.

Concluding Observations:
1.   The status of ship breaking as an industry is not clear. There are contradictory claims from the parts of the government and the owners. 
2.   There is no standard wage rate-minimum or fair. Even the workers are not aware of anything like that.
3.   Absence of any awareness among the workers about labour laws, basic rights and trade union.
4.   Recruitment through intermediary contractors and absence of any direct responsibility of the owners.
5.   Local musclemen being the intermediary contractors and workers being recruited from far-off poverty-stricken areas, it is a condition of captivity for the workers at the ship breaking yards.
6.   Ineffective and partial role of the local administration.
7.   Lack of transparency about accidents, casualties and even work pattern. And
8.   Lack of initiative from local and national mainstream TU movement to organize and mobilize ship-breaking workers.   

Source: Bangladesh Institute of Labour Studies. Dhaka. 2000

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