Overview

Until the 1960s, shipbreaking was considered a highly mechanized operation, concentrated in industrialized countries - mainly in the United States, United Kingdom, Germany and Italy.
From early 1980s to maximize profits ship owners sent their vessels to the scrap yards of India, China, Pakistan, Bangladesh, the Philippines and Vietnam where pay, health and safety standards are minimal and workers are desperate for work. It is estimated that over 100,000 workers are employed at ship breaking yards worldwide. Of the approximate 45,000 ocean-going ships in the world about 700 (1.55%) are taken out of service every year (FIDH, 2002). At the end of their sailing life, ships are sold so that the valuable steel - about 95% of a ships mass can be reused (Greenpeace, 2005).

Shipbreaking activities in Bangladesh is concentrated in Sitakund (Bhatiary to Barwalia), just north of Chittagong city on the Bay of Bengal. It is of paramount importance to the macro and micro economies of poverty stricken Bangladesh. Shipbreaking activities present both challenges and opportunities for our coastal zone management. Meeting the increasing demand for raw materials such as steel needs to be balanced with the negative impact this activity is having on our coastal environment and the conditions of the workers.

History 

The shipbreaking industry started its operations in the 1960s when a Greek ship ‘MD Alpine’ was stranded on the shores of Sitakund, Chittagong after a severe cyclone. The ship remained there for a long time before the Chittagong Steel House brought the vessel and scrapped it.
During the Liberation War in 1971, a Pakistani ship ‘Al Abbas’ was damaged by bombing. It was later salvaged and brought to the Fauzdarhat seashore. In 1974, Karnafully Metal Works Ltd bought it as scrap, introducing commercial shipbreaking in Bangladesh. The industry flourished during the 1980s. Today it has become large and profitable industry for Bangladesh.

Socio-economic profile of ship breaking activities

Most of the ship breaking workers come from the poverty stricken northern region of Bangladesh where there are limited employment opportunities. Usually, the workers are not given an appointment letter and there is no formal contract between the employer and the employee. Workers have been unable to enforce their right to permanent and secure employment as they are unable to demonstrate an employment relationship exist between the yard owners and themselves. Their wages depend on the number of hours worked as well as the type of work and skill level. They have no entitlement to overtime, sick or annual leave. Their wages range from 85-180 taka.

It was found that majority of the labour (40.75%) are between the ages of 18-22 years old. Only 1.13% of labour is between 46-60 years old. One of the most disturbing findings was that child labour (under the age of 18) made up 10.94% of the workforce. 46.42% of yard workers are illiterate while 43.02% attained primary school education.

There are no arrangements for pure drinking water, healthy food, hygienic toilets and living conditions for the workers. It was observed that 86.44% of the labour force stated that they received no medical facilities from the ship yard owners, 5.93% said they received medical facilities, 4.15% said they got medical facilities but in a nominal way or by way of first aid treatment and 1.69% stated sometimes they got medical facilities and sometimes not. As the government has not recognised it as an industry, the industry based labour laws (for example the Factory Act 1965) do not apply. Though the workers have been working in the scrap yards for years they are not allowed to form or join a trade union to bargain and enforce their rights. The workers are deprived of proper compensation due to the lack of a valid contract. In order to maximize profits little is done to minimalize the risk of accidents.

The Law exists

The recently passed Labor Law Act 2006 has provisions on working conditions, health and safety, hours, leave and compensation. However, enforcement and compliance is almost non existent. There is a lack political will and resources on the Government side while the owner's see no reason to comply. The Ministry of Labour and Employment have initiated a project, entitled Safe and Environment Friendly Ship Recycling, with the support of UNDP and ILO. However, the effects have yet to be seen.