A small step on the road to normality

The peaceful start to an annual holiday in Bangladesh really shouldn't be newsworthy.

But the fact that the annual Eid-ul-Azha holiday got under way without any reported demonstrations in apparel factories over unpaid or inadequate bonuses contrasts both with scaremongers' predictions and what's been happening in Pakistan.

Confusion over the basis for calculating the bonuses, and fears some businesses would default on them, raised the spectre that the riots at he beginning of the month, but on a wider scale, would resurface. Strong teamwork by the country's businesses, and sensible interventions from the government, appear to have put a stop to those worries. With higher minimum wages about to be paid (and implementation monitored by the country's Chief Inspector of Factory and Establishment) and serious steps to establish trades unions, this is the best news to emerge from Bangladesh for years. Add to that the easier access to EU duty-free privileges announced this week, and prospects for Bangladesh look rosier now than for a very long time.

It's all a stark contrast with Pakistan, where protests against unpaid Eid bonuses were exacerbated by a foolish government promise in May to increase minimum wages – a promise that seems to have been made without any prior consultation, or any attempt to honour. Labour leaders' claims that apparel factories are rolling in money might well be unfounded – but in a week in which textile industry profits in Pakistan overall are reported to have grown by over 200%, neither factories nor the government seem to have put any effort into communicating with workers or defusing potential trouble.