The Rana Plaza owner and eight other people, including garment factory owners, have been detained in the collapse investigation. Authorities say the building owner added floors to the structure illegally and allowed the factories to install heavy equipment that the building was not designed to support.
The Cabinet decision to allow trade unions came a day after the government announced a plan to raise the minimum wage for garment workers. Both moves are seen as a direct response to the collapse of the building, which housed five garment factories.
Government spokesman Mosharraf Hossain Bhuiyan said the Cabinet approved an amendment to the 2006 Labor Act lifting restrictions on forming trade unions in most industries. The old law required workers to obtain permission before they could unionize.
"No such permission from owners is now needed," Bhuiyan told reporters after the Cabinet meeting presided over by Prime Minister Sheikh Hasina. "The government is doing it for the welfare of the workers."
Local and international trade unions have long campaigned for such changes.
Though the 2006 law technically allowed trade unions — and they exist in many of Bangladesh's other industries — owners of garment factories never allowed them, saying they would lead to a lack of discipline among workers.
Trade union leaders responded cautiously.
"The issue is not really about making a new law or amending the old one," said Kalpana Akter of the Bangladesh Center for Workers Solidarity, a group campaigning for garment workers' rights. "In the past whenever workers tried to form associations they were subjected to beatings and harassment," she said. "The owners did not hesitate to fire such workers."
Bangladesh's government has in recent years cracked down on trade unions attempting to organize garment workers. In 2010 Hasina's government launched an Industrial Police force to crush street protests by thousands of workers demanding better pay and working conditions.