[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Collaborative approach needed for RMG sector growth: experts

Experts on Wednesday said that the country needed a collaborative approach from the government and the stakeholders of garments sector to utilise the huge potential of the sector.

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Collaborative approach needed for RMG sector growth: experts
Staff Correspondent 06 November, 2024, 22:27

Civil aviation and tourism ministry secretary Nasreen Jahan as chief guest inaugurates 23rd Bangladesh edition of the Textile Series of Exhibitions hosted by CEMS-Global USA at the Bangladesh-China Friendship Exhibition Centre, Purbachal in Dhaka on Wednesday. Export Promotion Bureau vice-chairman and BGMEA administrator Md Anwar Hossain, BKMEA president Mohammad Hatem and CEMS Global USA and Asia-Pacific president and group managing director Meherun N Islam, among others, were present. | Press release photo

Experts on Wednesday said that the country needed a collaborative approach from the government and the stakeholders of garments sector to utilise the huge potential of the sector.

They made the remark at the inaugural session of the ‘Textile Series of Exhibitions’, organised by New York-based multinational exhibition and convention organiser CEMS-Global USA at the Bangladesh-China Friendship Exhibition Centre at Purbachal in Dhaka.

The Bangladesh edition of CEMS-Global’s Textile Series of Exhibitions features ‘23rd Textech Bangladesh 2024 Expo’ which offers opportunity for industry people to explore the latest innovations in textile production, garment machinery, and related technologies, ‘22nd Dhaka International Yarn and Fabric Show 2024’ which exhibits the collections of yarn, fabric, trims, and accessories, and ‘45th Dye+Chem Bangladesh 2024 International Expo’ which focuses on dyestuff, fine and specialty chemicals.

Export Promotion Bureau vice-president Md Anwar Hossain said, ‘Globally, the total turnover of apparel sector is about $2 trillion, whereas we export only about $40 billion. To utilise the prospects, we need investments as well as policy support from the government.’

Anwar, also the administrator of the Bangladesh Garment Manufacturers and Exporters Association, said, ‘The most challenging thing in front of us is skilled human resources. We need a collaborative initiative on this aspect from the government, business owners and workers of the readymade garments sector.’

Meherun N Islam, president and group managing director of CEMS Global USA & Asia-Pacific, said that these exhibitions were the largest business-to-business meeting place held in Bangladesh for buyers and suppliers, where they could work through direct contact to expand business.

‘As these exhibitions are the largest gathering of foreign and domestic suppliers, buyers and sellers - Bangladeshi businesspeople do not have to go abroad to find buyers or face visa complications, saving money, labour and time,’ she said.

‘Besides, foreign buyers and sellers coming to the exhibition also add a different dimension to Bangladesh’s travel tourism,’ she added.

Nasreen Jahan, secretary of the civil aviation and tourism ministry, said that the government was working alongside the private sector in order to improve the tourism sector in the country.

‘This event is important in terms of unlocking the business prospects in the readymade garments sector, as well as the tourism sector of Bangladesh, as the exhibition brings people from all over the world to this country,’ she said.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, among others, was present in the programme.​

 

[Saif]

Taiwan Textile Federation delegation meets BGMEA administrator to discuss trade, investment

A delegation from the Taiwan Textile Federation (TTF) met with BGMEA Administrator Anwar Hossain to discuss potential areas of collaboration for mutual trade benefits in the apparel and textile sectors. The delegation was led by Justin Huang, President of the Taiwan Textile Federation. The meetin

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Taiwan Textile Federation delegation meets BGMEA administrator to discuss trade, investment
FE ONLINE REPORT
Published :
Nov 09, 2024 21:18
Updated :
Nov 09, 2024 21:18

A delegation from the Taiwan Textile Federation (TTF) met with BGMEA Administrator Anwar Hossain to discuss potential areas of collaboration for mutual trade benefits in the apparel and textile sectors.

The delegation was led by Justin Huang, President of the Taiwan Textile Federation.

The meeting, held on Saturday (Nov 9) at the BGMEA Complex in Uttara, Dhaka, was also attended by representatives from the Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA), and Bangladesh Export Processing Zones Authority (BEPZA).

The discussion covered various trade-related issues, including the current market situation of ready-made garments, global trends, challenges, opportunities, and more.

During the meeting, the potential for knowledge and skill sharing in areas such as technological adaptation, capacity building, innovation, resource efficiency, and circularity within the apparel and textile industries through cooperation was highlighted.

Both sides also discussed how they could collaborate to identify potential trade and investment areas and capitalise on opportunities in the textile and apparel sectors.

BGMEA Administrator Mohammad Anwar Hossain emphasised Bangladesh's increasing focus on boosting non-cotton and high-value garment production.

He mentioned that BGMEA is making every effort to facilitate sustainable growth in Bangladesh’s garment industry through the shift from cotton-based products to non-cotton items, particularly man-made fibre-based products.

In this regard, Taiwan could consider investments in non-cotton textiles, technical textiles, woven textiles, skill development, and innovation in Bangladesh.

He encouraged Taiwanese businesses to invest in these areas, either directly or through joint ventures.

Both sides expressed optimism about working together to achieve mutual benefits in the apparel and textile sectors.​

 

[Saif]

Decision on new wage for RMG workers by April

The decision on whether to formulate another minimum wage for garment workers after making adjustments in line with inflation will be made by April next year.

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Decision on new wage for RMG workers by April
Labour ministry report says

The decision on whether to formulate another minimum wage for garment workers after making adjustments in line with inflation will be made by April next year.

A committee, headed by an additional secretary from the Ministry of Labour and Employment, has already been formed to re-evaluate the minimum wage, it was informed yesterday during a meeting, which was to discuss the progress on the 18-point demands raised by workers in September this year.

The demands were agreed upon by both workers and factory owners following negotiations mediated by the interim government.

The meeting, chaired by Asif Mahmud Shojib Bhuiyan, adviser to the Ministry of Labour and Employment, was held at the Secretariat.

The committee will submit recommendations on the feasibility and imperatives to review the minimum wage to the Ministry of Labour and Employment by April 2025.

The committee, which consists of three representatives each from labour and factory owners, has already held two meetings. The next one will be held on November 20.

Furthermore, over 99 percent of factories under the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have implemented the previous minimum wage, as promised by the factory owners, according to a report from the Ministry of Labour and Employment.

In late November last year, the minimum wage board finalised Tk 12,500 as the minimum monthly salary for garment workers.

According to the report, at least 2,121 factories out of 2,140 had implemented the minimum wage by October this year, with the remaining 19 yet to comply.

The report further noted that out of the 2,140 factories, 2,123 have cleared workers' arrears for September, while 17 factories have not yet done so.

After the meeting, Asif Mahmud said implementing arrears is a complex issue as some factory owners have gone bankrupt. He added that those factory owners could not take money from banks as they were defaulters.

Furthermore, after the political changeover, the garment sector was rocked by labour unrest in September and October this year, which caused production losses of nearly $400 million.

"Only three months have passed since the interim government took office. The overall labour situation is improving. It was dire when we assumed office," he added.

Labour and Employment Secretary AHM Shafiquzzaman said that the labour law will be amended by March next year to align with international standards.

"The labour law amendment will be carried out through an ordinance by March," he added.

The country pledged to amend the labour law at the 352nd session of the International Labour Organization (ILO) Governing Body, held from October 28 to November 7 in Geneva.

A tripartite committee is currently working on possible amendments to the law, including easing trade union rules and documentation requirements.

Regarding service benefits, the progress report stated that benefits are being provided as per labour law.

The report also mentioned that Section 27 of the Labour Law and related sections will be amended.

Additionally, the responsibility for preparing a proposal to provide contributory provident funds to workers has been given to the Department of Inspection for Factories and Establishments, the report stated.

The report also mentioned that the Ministry of Labour and Employment has formed a committee to address the yearly increment.

It further stated that the Minimum Wage Evaluation Committee will submit a proposal regarding the capacity and imperatives of the yearly increment, considering current inflation and balancing it with labour law.

The committee is expected to submit its report by November 30.

The rationing system for workers through the Trading Corporation of Bangladesh is currently in process, the report noted.

Regarding the blacklisting of some workers, the Ministry of Labour and Employment has formed a technical team that will submit a report reviewing the overall situation, which is now under process.

The committee has instructed labour leaders to collect forms and submit them to the Ministry of Labour and Employment after completing them in relation to the withdrawal of cases filed against workers during the minimum wage movement in 2023.

Once submitted, the ministry will forward them to the district magistrates, the report said.

The report further said that over 80.55 percent of factories have set up daycares and the BGMEA is monitoring the remaining factories to ensure they set up daycares as well.

The Minimum Wage Board, a government regulatory agency responsible for recommending changes to the minimum wage, has also submitted a proposal to the Ministry of Labour and Employment to amend the labour law and update its provisions.

The board has suggested that the ministry amend the labour law to ensure stricter enforcement of wage structures in factories, according to the proposal.

Amending the labour law has been a long overdue issue in Bangladesh.

Last December, the president returned the "Bangladesh Labour (Amendment) Bill-2023" unsigned, citing the need for further amendments to certain key clauses.

In response to the Rana Plaza building collapse and subsequent international pressure, the government amended the 2006 labour law in August 2013 to ensure workplace safety and labour rights issues meet international standards.

In September 2015, the government formulated labour rules to guide the proper application of labour law at factories.

The law was further amended in 2018, again under international pressure, to lower the worker threshold for union formation from 30 percent to 20 percent.​

 

[Saif]

Jhut sector must be formalised to prevent chaos: experts

Experts on Tuesday stressed the need for a textile waste (jhut) management policy in Bangladesh, saying that its informal nature of the sector fuelled political-economic tensions and...

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Jhut sector must be formalised to prevent chaos: experts
Staff Correspondent 12 November, 2024, 23:16

Commerce ministry additional secretary Abdur Rahim Khan, deputy head of EU delegation to Bangladesh Bernd Spanier, chief technical adviser on circular economy in global value chain at UNIDO Mark Draeck, BGMEA support committee member Rezwan Selim and Desh Group deputy managing director Vidiya Amrit Khan, among others, are present at an event at the Hotel InterContinental in the capital Dhaka on Tuesday. | Press release photo

Experts on Tuesday stressed the need for a textile waste (jhut) management policy in Bangladesh, saying that its informal nature of the sector fuelled political-economic tensions and labour unrests in the country’s readymade garment sector.

At an event titled ‘Switch to upstream circularity roundtable: path towards circularity in Bangladesh’s RMG industry’ at the Hotel InterContinental in Dhaka, they also said that an enabling policy framework was essential to drive the transition, as it could create millions of jobs in the recycling industry and reduce Bangladesh’s reliance on imports.

The event was organised under the SWITCH to Circular Economy Value Chains project, co-funded by the European Union and the Finland government.

It was led by UNIDO in collaboration with Bangladesh Garment Manufacturers and Exporters Association, Global Fashion Agenda, BESTSELLER, Reverse Resources, Chatham House, Circle Economy and the European Investment Bank.

‘The industrial textile waste market in Bangladesh remains largely informal, which has a significant political-economic impact on the sector, as seen during the recent labour unrests in the RMG sector at Ashula and the other parts of Dhaka,’ said Bernd Spanier, deputy head of the EU delegation to Bangladesh.

He said that formalising the sector was crucial, as a clear regulatory framework and enabling conditions would attract innovative recycling technologies and expertise.

The diplomat also said that the transition towards circularity could create millions of jobs in the recycling industry and reduce Bangladesh’s reliance on imports.

‘We believe that the next five years will be crucial for Bangladesh’s garment industry. Under the EU Strategy for Sustainable and Circular Textiles the EU is introducing significant initiatives in this region,’ he said.

Spanier said that garment-producing countries must transition from a linear to a circular production model to ensure that, by 2030 — which is not far away — textiles in the EU market are largely made of recycled fibres, free of harmful substances and produced in an environmentally and socially responsible manner.

Citing a recent GIZ study, he said that Bangladesh’s lack of supportive policies had contributed to shifting preferences towards countries like Vietnam and Indonesia as destinations for recycling industries.

‘We aim to retain the recycling industries in Bangladesh, but a post-industrial regulatory framework is essential, as current frameworks, such as the national environmental policy, solid waste management rules, and Bangladesh Labour Act, are not yet aligned with emerging EU and international standards for circularity in textile manufacturing and waste management,’ Spanier added.

Commerce ministry additional secretary Abdur Rahim Khan said that in Bangladesh, jhut business was not an economic issue now, but it turned into a law and order issue.

‘As you know, we face unrests within our RMG sector, and some of my colleagues suggest that jhut business is contributing to this instability,’ he said.

Rahim Khan emphasised the need to establish a policy for jhut waste management, saying that it would not only support the transition to circularity, but also help address the unrests currently affecting the RMG sector.

Now it is time for Bangladesh to have a proper coordination between three stakeholders — manufacturers, waste management companies and global brands.

If these stakeholders work together, transformation is likely to occur; otherwise, despite discussions and dialogues, real change may not take place, Rahim Khan observed.

Chief technical adviser on circular economy in global value chain from UNIDO Mark Draeck said that in the textile industry, especially regarding circularity, things were more complex, which was why progress had not been straightforward.

He highlighted two concrete pilot projects they are working on, closely collaborating with both brands and manufacturing companies to address challenges at the technology, logistics, economics and traceability levels.

However, to scale these initial experiences across the industry, more systemic challenges, including policy, capacity building, access to finance and the necessary investments for this shift must be addressed, Draeck observed.

BGMEA support committee member Rezwan Selim, Desh Group deputy managing director Vidiya Amrit Khan and global Fashon Agenda stakeholder consultant Shamiul Hoque, among others, spoke at the event.​

 

[Saif]

Towards a zero-waste textile sector

Given the highly pollutant nature of the textile and fashion industry, the Western importers of textile products from developing nations including Bangladesh want to see that waste generated by the industry is managed efficiently and sustainably. In the textile industry, which is dominated by

thefinancialexpress.com.bd

Towards a zero-waste textile sector
Published :
Nov 15, 2024 21:24
Updated :
Nov 15, 2024 21:24

Given the highly pollutant nature of the textile and fashion industry, the Western importers of textile products from developing nations including Bangladesh want to see that waste generated by the industry is managed efficiently and sustainably. In the textile industry, which is dominated by the Readymade Garment (RMG) factories in Bangladesh, in addition to the chemicals or various solid wastes generated during manufacturing process, pieces of cloths or textiles from which garment articles are produced also become waste called garment waste. The informal business involving textile or garment waste, or jhut in Bangla, is a major socio-political issue here as it has given rise to violent turf wars among jhut traders. So, proper management of textile waste is more than being environmentally conscious. As the garment waste or jhut is behind eruption of occasional violence and labour unrest, addressing the issue urgently and efficiently has now become a priority before the government and the industry operators. Against this backdrop, a roundtable titled, 'Switch to Upstream Circularity: Path Towards Circularity in Bangladesh's RMG Industry' was recently organised in the city where the industry people, government leaders, international development partners as well as brand representatives participated. As it emerged from the discussion event in question, it is the informal nature of the textile waste market here that lies at the heart of the prevailing crisis in the sector. The answer to it is going circular which is about reducing waste, reusing and recycling it thereby converting the waste into more useful value-added items (upcycling).

Hence, experts on the issue suggest that by adopting an appropriate policy, the garment waste that is now presenting itself as a nuisance can revolutionise the entire outlook of the industry by not only reducing the sector's dependence on import of raw materials but also creating a large number of new jobs through establishing recycling industries. That is also important for stimulating the export of garment products for the simple reason that modern environment-conscious consumers in the West appreciate value-added upcycled textile products. But the only way of transitioning to the next phase of the industry where there is no concept of waste, Bangladesh should introduce the needed technology and expertise in the textile sector. Until that is done, Bangladesh's textile or apparel sector will lag behind its regional and international competitors and helplessly watch the shift of the technology and expertise to the Southeast Asian countries like Vietnam and Indonesia.

However, the main roadblock to this path of progress is the existing regulatory framework which is unhelpful to formalising the textile waste or jhut market. Of necessity, the new regulatory framework will have to be a post-industrial one that will revamp, for example, the present national environmental policy, solid waste management rules, Bangladesh Labour Act, etc., in order that they are in line with the emerging international, particularly the EU standards for circularity in textile manufacturing and waste management. Some international experts held that the next five years (till 2030) will be crucial for Bangladesh's apparel industry since by then it will be required to meet the EU Strategy for Sustainable and Circular textiles. The EU market, which is an important destination of the country's apparel exports, will look for textile products that are recycled fibres, free from harmful substances and produced in an environmentally as well as socially responsible manner.

In that case, the primary task before the government now is to come up with a clear regulatory framework that would formalise the textile waste sector and thus create the desired enabling conditions for it to attract the necessary knowhow and innovative recycling technologies.​

 

[Saif]

The barriers to unionisation in the garment industry

Bangladesh has a class problem which deters from effective conversations about the many barriers to operational unionisation in the garment industry.

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The barriers to unionisation in the garment industry

Although worth a staggering amount of $55 billion a year, the industry’s infrastructure is far from perfect. Be it political unrests in the country, sustainability concerns from pressure groups or worker dissatisfaction, it is riddled with issues that need to be urgently addressed. PHOTO: AFP

According to the World Trade Organisation (WTO) Bangladesh boasts the title of being the second largest global RMG exporter. The garments sector has contributed to transforming the local economy to lower-middle income from one that was worryingly below the poverty line. Although worth a staggering amount of $55 billion a year, the industry's infrastructure is far from perfect. Be it political unrests in the country, sustainability concerns from pressure groups or worker dissatisfaction, it is riddled with issues that need to be urgently addressed. Not to mention that workers are paid less than a living wage, which is not inflation adjusted to the soaring costs.

Bangladesh has a class problem which deters from effective conversations about the many barriers to operational unionisation in the garment industry. Without trade unions, it is difficult to address safety issues and elevate workers to fair wages and improved working conditions. The Labour Act 2006 governs labour relations and workers' rights in myriads of sectors of Bangladesh with an entire chapter dedicated to trade unions and industrial relations. Following the dreadful Rana Plaza collapse, the legislation had various amendments made to it to ensure workplace safety, maintain health standards and improve workers' rights and representation. Additionally, to ascertain that the formation and registration of trade unions is facilitated, provisions were strengthened.

While this Act explicitly grants permission for trade unions to be formed, a minimum of 20 percent of workers within the same establishment are required to register one. The registration process is dauntingly bureaucratic and involves extensive paperwork. By the virtue of this legislation, the registered trade unions have the right to represent their members and can engage in collective bargaining on behalf of their members and negotiate better wages, working conditions, and other benefits. Employer interference through imposing any contractual obligations on workers to not join any union, dismissal or discrimination of workers who are members of any union, and refusal of employment on such grounds is deemed unlawful through the Labour Act 2006.

It has been established that on paper there is a comprehensive guide for operation of this in an ideal world, but the reality is far from it. The implementation is dangerously deficient. Lack of awareness of the workers themselves prevent them from recognising the benefits of collective bargaining. It does not help that the legislation is riddled with legal jargons that a lay person cannot comprehend. Workers in the garment sector also fear ramifications from employers as they consider themselves low skilled and highly replaceable. There is sufficient precedence of fear mongering by employers in this regard with reports of intimidation, harassment, and retaliations against union organisers and participating workers alike. Historically, the government has been complicit in the maltreatment of workers as they often prioritise increasing the GDP of the country rather than emphasising better standards of living.

Earlier this year, following massive protests by garment industry workers, the minimum wage was increased from Tk 8,300 to Tk 12,500, whereas workers and trade unions say that Tk 23,500 is the living wage. Even this unsatisfactory increase came at the cost of the lives of four workers, while many others were left injured. Many workers were arrested without any possibility of bail. During this time, letters have been issued by big-brand buyers such as ASOS, Hugo Boss, and H&M asking for suppliers to conclude negotiations peacefully and offer the workers an adequate living wage. Buyers conveniently neglected to quote the amount asked for by the workers in those letters. So, they are indirectly colluding with the employers in the maltreatment of these workers by not up taking the cost of increasing the minimum wage.

Despite legal frameworks being present, it could prove to be useful to simplify the union registration process. Many NGOs and grassroot organisations are running awareness campaigns to ascertain that workers are aware of their rights to unionise. However, it is pertinent for the government to also be involved in the process and detract from the unfair power dynamics between the workers and employers. Employers should face penalisation for engaging in intimidation or any other unfair practices to prevent workers from forming unions. International pressure by purchasers on employers in the garment industry should be more than just condemnations on paper, it should be more than hollow commitments to support a minimum wage, and they should reaffirm the exact amount demanded by the unions and workers.

The barriers to effective unionisation by workers in Bangladesh remain a critical issue and tackling it is the first step to creating a long overdue fair and equitable working environment for the blue-collar workers on whose backs this country runs.

Raina Sabanta is a barrister.​

 

[Saif]

Preparations needed to address 4IR automation job losses: experts

Experts at a programme on Saturday said that Bangladesh should make timely preparations to address the job losses automation could cause in the readymade garment and textile sector...

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Preparations needed to address 4IR automation job losses: experts
Staff Correspondent 16 November, 2024, 22:48

A file photo shows workers sewing clothes at a readymade garment factory at Savar, on the outskirts of Dhaka. Experts at a programme on Saturday said that Bangladesh should make timely preparations to address the job losses automation could cause in the readymade garment and textile sector. | New Age photo

Experts at a programme on Saturday said that Bangladesh should make timely preparations to address the job losses automation could cause in the readymade garment and textile sector.

According to a study report released at the inaugural ceremony of a two-day symposium titled ‘The 4th Industrial Revolution: impact on workers and employment and the need for inclusive policies’, automation could displace 60 per cent of the workforce in Bangladesh’s RMG and textile sector from their traditional roles by 2041 although a significant number of new types of jobs would emerge in the sector during this period.

The Bangladesh Institute of Labour Studies in collaboration with the International Labour Organisation organised the event at the CIRDAP auditorium in the capital Dhaka.

Experts stressed the urgent need for government action to protect, upskill and reemploy workers facing both short- and long-term risks from the 4th Industrial Revolution.

They called for the involvement of workers, trade unions, employers and the civil society in this process.

Skill development was highlighted as a key priority, requiring strategic planning for successful implementation.

Labour secretary AHM Shafiquzzaman said that that Bangladesh must align itself with the global shift towards the 4th Industrial Revolution, stressing that now is the time to make necessary preparations.

He underscored the importance of making timely policy decisions to mitigate the risks to workers’ employment arising from the 4th Industrial Revolution, while also leveraging technology to benefit the country.

Information and Communication Technology Division additional secretary Abu Sayed Md Kamruzzaman said that it was crucial to define the term ‘worker’ accurately and establish ethical standards for the use of artificial intelligence.

The event was presided over by BILS vice-chairman Md Mujibur Rahman Bhuiyan, with the opening speech delivered by BILS executive director Syed Sultanuddin Ahmed.

The study revealed that up to 5 lakh jobs at the operator level, including those handling single and double needle lockstitch machines, chain stitch machines, and sewing mechanics, were at risk in the apparel and textile sector.

It also found that floor supervisors and pattern makers could see a loss of 10,000 positions, with another 10,000 jobs in quality control, production planning and merchandising potentially disappearing as well.

Even high-skilled roles, including fashion designers, CAD-CAM operators, portfolio developers, and production controllers are not immune, with an additional 10,000 jobs at risk, said the report which was presented by iSocial Limited chief executive officer Ananya Raihan at the programme on Saturday.

He said that in 2022, the machine-to-human work ratio was 44 per cent to 66 per cent, respectively, but by 2035, it was expected to shift to 57 per cent and 43 per cent.

The report highlighted alarming job losses due to automation across five major industries: the RMG and furniture sectors, each projected to lose 60 per cent of jobs, the agro-food processing industry with a 40-per cent reduction, the leather sector facing a 35-per cent decline and the tourism sector anticipating a 20-per cent job loss.

The report said that the automation in the RMG and textile sector was creating new jobs that combine technology with traditional manufacturing processes.

Key emerging occupations include professionals skilled in computer-aided process planning, quality control, and training, as well as those working with automated inspection and material handling systems, it said.

According to the report, jobs such as artificial neural network experts, pick-and-place robot operators, numerical controllers, and automated fusing and pressing machine operators were becoming increasingly important.

Enterprise resource planning experts are also in demand to optimise production and resource management, it said.

The study revealed that jobs in customer service, retail checkout, data entry, assembly lines and translation were increasingly replaced by technology.

Financial analysis, graphic design, content writing, supply chain management, legal counselling, and accounting jobs have also started to be lost.

Meanwhile, the fastest-growing jobs from 2023 to 2027 include AI and machine learning specialists, sustainability specialists, business intelligence analysts, information security analysts, fintech engineers, data analysts and scientists, robotics engineers, big data specialists, agricultural equipment operators, and digital transformation specialists.

The study found bank tellers, postal clerks, editors, cashiers, data entry clerks, secretaries, accounting staff, legislators, finance clerks and door-to-door sales workers as fastest-declining jobs from 2023 to 2027.

The event also featured speeches from NCCW chairman Badal Khan and Samajtantrik Sramik Front president Rajequzzaman Ratan, among others.​

 

[Saif]

Labour unrest puts huge strain on RMG industry

The labour unrest that broke out in Ashulia in late August and spilled over to Gazipur has put enormous impacts on the billion-dollar garment industry, according to sector insiders. The impacts include shift in work orders to other places inside and outside the country and also a halt in massive i

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Labour unrest puts huge strain on RMG industry
Monira Munni
Published :
Nov 18, 2024 00:07
Updated :
Nov 18, 2024 00:07

The labour unrest that broke out in Ashulia in late August and spilled over to Gazipur has put enormous impacts on the billion-dollar garment industry, according to sector insiders.

The impacts include shift in work orders to other places inside and outside the country and also a halt in massive investment plans.

Entrepreneurs are now struggling to cope with the production deadline and costs as many apparel factories have to suspend operations in fear of vandalism.

Some of them have to renegotiate with their buyers for deferment or air shipments, they noted.

Talking to the FE, an official at a textile group said their company halted the investment plan though structure is ready in Bhulta area of Narayanganj.

"We are not installing the machinery at this moment mainly because of the labour unrest to wait and watch what will be happening," he noted.

Mohammed Sohel, managing director of Bangla Poshak Ltd, said due to three days' protest by TNZ workers, he was likely to send some of his shipments by air if he failed to produce them in a couple of days.

"My workers did overtime on Thursday and worked on Friday to meet the deadline," he said, adding that these have a negative impact on their productivity too.

Mr Sohel said all these might have an additional cost up to Tk 0.7 million.

Buyers, mostly non-branded ones, are taking advantage of the situation by offering low rate or asking for discount, he noted.

Mahmud Hasan Khan, managing director of the Rising Group, said the loss they have incurred due to the labour unrest is not recoverable though buyers give some time or flexibility for delay and air shipments.

"We met the deadline by shifting the orders to my other factories in other places," he said, adding that one of his factories located in Ashulia had to suspend production due to the unrest.

Buyers have a negative notion about placing work orders in factories in Ashulia as labour unrest takes place here.

"If buyers have any option to shift to other location, they will move," he opined.

When asked, Khan Monirul Alam Shubho, managing director of the Fashion.com Ltd, said that in September buyers shifted a certain portion of work orders to other factories mainly to reach goods to their stores.

Even entrepreneurs will not want to invest in the industrial zones of Ashulia where from labour unrest started due to high occupancy of factories, labour intensiveness, trade unions and investigators.

The existing factories might not be relocated overnight due to the availability of gas connection, labour and others. But some of them are downsizing the capacity, he added.

About five per cent monthly labour migration is very common while the rate is currently up to 10 per cent and many of the factories are not recruiting new workers as they plan to run with the existing capacity, Mr Shubho noted.

Mohiuddin Rubel, additional managing director of Denim Expert Ltd, said the factories affected due to labour unrest either perform their orders in their other units located outside Ashulia or Gazipur, even in Chattogram, or subcontract work to other factories mainly to meet the deadline or avoid air shipments.

It is very usual to inter-transfer the orders in a crisis situation, he noted.

Talking to the FE, a number of exporters said a factory might have an internal problem but, based on this, a section of the workers was attacking other factories, carrying out vandalism and inciting their workers by spreading rumours.

The agreement between representatives from owners and workers on 18-point demands failed to stop such recurrence of protests.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) claims that the clothing industry has suffered a production loss of $400 million due to the labour unrest that continued until early October.

Some 39 affected factories were unable to pay wages for September because of the labour unrest, leading the BGMEA to request interest-free bank loans on easy terms from the government to support them.

According to Bangladesh Institute of Labour Studies (BILS), 96 incidents of labour unrest took place in the country's major garment industrial belts, mostly in Ashulia and Gazipur, from January to September 2024.

A majority or 39 incidents of labour protests took place over dues while 22 over various other demands, the BILS data show.

The institute recorded eight incidents of workers' protests over opening of closed units, 13 over payment of bonus, five over deaths of workers and the remaining nine over other demands.

Talking to the FE, Amirul Haque Amin, a labour leader, said some incidents of protest like that of TNZ took place mainly because of the ignorance of factory owners and agitation spread into other nearby factories.

"The government should take strict measures against the factory owners, who are not paying wages, and arrest them," he noted.

Unless the government and the BGMEA take strict measures against such acts, no peaceful situation could be expected in the country's largest foreign currency-earning sector, he said, adding that timely wage payment is most important for workers. Nazma Akter, president of the Sammilito Garments Sramik Federation, said the labour unrest took place mainly because of political shift, control over jhut or garment waste trade, allowance and other reasons. Unrest has negative impact both on industry and its business while workers also left no choice as they are not paid despite repeated commitments, she said.

Blacklisting of workers is yet to stop while cases against workers are not withdrawn, she noted.

According to BGMEA sources, eight factories in Gazipur and Mymensingh areas and two in Savar-Ashulia-Zirani area remained closed on Saturday over the labour unrest.

Five of the trade body's members did not pay wages for September and August while 11.11 per cent or 232 BGMEA listed units yet to pay wages for October until Saturday.​

 

[Saif]

COP29 and the future of Bangladesh’s RMG sector

I believe COP29 holds major promise for the future of circularity and sustainability in Bangladesh’s RMG sector.

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COP29 and the future of Bangladesh’s RMG sector

The RMG sector faces mounting pressure to adopt circular and sustainable practices. PHOTO: STAR/FILE

COP29 offers a unique opportunity for global stakeholders to accelerate the transition towards sustainable practices in sectors that heavily impact the environment. One sector where this transformation is particularly urgent is the ready-made garment (RMG) industry in Bangladesh. The RMG sector, which accounts for a significant portion of our GDP and is a vital employment source, faces mounting pressure to adopt circular and sustainable practices. As Bangladesh joins the world at COP29, here I look at how this conference could shape the future of circularity and sustainability in our RMG sector.

Bangladesh is the world's second-largest garment exporter, supplying major fashion retailers in the US and Europe. However, the industry's contribution to the economy is accompanied by equally significant environmental challenges, including high levels of water consumption, pollution, waste, and carbon emissions. Furthermore, its linear production models, focused on high-volume, low-cost outputs, have resulted in considerable textile waste, with limited infrastructure to support recycling and reuse.

The concept of circularity entails moving from a "take-make-waste" linear model to one where resources are used, reused, and recycled, reducing waste and environmental harm. For the RMG sector in Bangladesh, circularity could mean designing garments for longevity, adopting sustainable materials, recycling textile waste, and building infrastructure that supports garment reuse.

COP29 could potentially play a critical role in establishing universal standards and frameworks for circular economy practices across industries. For the Bangladesh RMG sector, such frameworks could create clear guidelines and benchmarks for sustainable production, helping manufacturers align with global expectations and attract more eco-conscious international buyers. With standardised metrics for circularity, companies could potentially better measure and report their environmental performance, which could further increase their competitive edge in the global market.

One of the key outcomes anticipated from COP29 is an increased commitment to climate finance, which could open doors for Bangladeshi RMG manufacturers to access funding for green technologies and circular infrastructure. Why does COP29 not propose a Circular Transition Fund? This could be used to support the garment industry's shift towards the circular economy which will be a costly process. Climate finance will be key to support small and medium-sized enterprises (SMEs), which make up a significant portion of the RMG sector, adopt circular practices despite resource constraints.

For Bangladesh's RMG sector, international collaborations could provide access to new technologies and knowledge in circular textile practices. Partnering with countries that have advanced recycling systems, for example, could enable Bangladesh to improve its waste management processes and develop the capacity to recycle textile waste on a large scale. This cooperation could also promote skills exchange, where Bangladeshi workers learn techniques for sustainable garment production, ultimately benefiting the sector's sustainability efforts.

Effective policy support is crucial for driving the shift to circularity. As COP29 may influence Bangladesh's policy direction on sustainability, it's possible the government could introduce incentives to encourage RMG manufacturers to adopt circular models. For instance, tax breaks for companies that use recycled materials, subsidies for sustainable technology adoption, or grants for eco-friendly infrastructure could make circular practices more feasible for manufacturers.

As Bangladesh aligns with COP29 goals, it's essential to ensure the transition to circular practices also benefits the millions of workers in the RMG sector. This includes providing training for green jobs, ensuring safe working conditions, and fair wages. COP29 could serve as a platform to push for labour practices that support social sustainability alongside environmental objectives, ensuring a just transition for RMG workers.

One important aspect to consider is consumer behavior. To succeed in a circular economy, brands, and retailers must educate consumers on the importance of sustainable fashion and encourage responsible consumption. However, if Bangladesh seizes the opportunities presented at COP29, the RMG sector could emerge as a leader in sustainable fashion, providing a model for other developing economies. By embracing circularity, the sector could reduce its environmental impact while increasing resilience to global supply chain disruptions.

I believe COP29 holds major promise for the future of circularity and sustainability in Bangladesh's RMG sector. Through climate finance, partnerships, policy support, and a commitment to worker well-being, the conference could help cement meaningful change in how garments are produced, consumed, and disposed of.

Mostafiz Uddin is the managing director of Denim Expert Limited. He is also the founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE).​

 

[Saif]

Low wages, production pressure hurt Bangladeshi RMG workers: study

Low wages and constant pressure to meet production targets have put significant negative impacts, including reliance on overtime, rising debt, health risks and limited access to essential services, on Bangladeshi garment workers, according to a study...

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Low wages, production pressure hurt Bangladeshi RMG workers: study
Staff Correspondent 23 November, 2024, 22:28

A file photo shows working arranging garments at an apparel factory. Low wages and constant pressure to meet production targets have put significant negative impacts, including reliance on overtime, rising debt, health risks and limited access to essential services, on Bangladeshi garment workers, according to a study. | New Age photo

Low wages and constant pressure to meet production targets have put significant negative impacts, including reliance on overtime, rising debt, health risks and limited access to essential services, on Bangladeshi garment workers, according to a study.

According to the study ‘Paying the price for fashion: securing a living wage for Bangladesh’s garment workers’ published on November 21, despite being a major supplier to the European Union, most workers in the Bangladesh readymade garment sector earn insufficient wages to cover basic living costs.

The report highlighted how workers’ lack of bargaining power, compounded by pressure from global buyers, led to heavy reliance on overtime pay.

Swedwatch, a Sweden-based research organisation, conducted the study in May 2023 across major garment production hubs in Dhaka, Ashulia and Tongi, in collaboration with the Awaj Foundation, an organisation dedicated to advocating for workers’ rights in the garment sector.

After China, Bangladesh is the second-largest supplier of textiles and clothing to Sweden, with imports valued at approximately 8.8 billion SEK in 2022.

The report observed that the recent increase in Bangladesh’s RMG sector minimum wage — from Tk 8,000 to Tk 12,500 a month — still fell short, leaving workers with only 38 per cent of what would be considered a living wage.

This amount is also well below the Tk 23,000 demanded by workers, unions and international organisations, including those affiliated with IndustriALL Global Union Bangladesh.

As a result, many workers struggle to afford essential needs such as food, housing, healthcare and education for their children, which perpetuates cycles of debt and exploitation, the report said.

It also said that long working hours and excessive overtime remained a major issue, with factory owners often imposing 12–16-hour shifts seven days a week, due to pressure from global buyers to meet production targets and unreasonable deadlines.

According to the report, workers in Bangladesh’s garment sector have limited options and are often forced to accept excessive overtime.

A decreasing proportion of their basic salary has left many reliant on overtime pay, with refusal to work extra hours sometimes resulting in punishment, the report mentioned.

It said that this situation severely impacted workers’ well-being, with many reporting stress-related illnesses, depression and fatigue.

The minimum wage structure in Bangladesh included various elements such as a basic salary along with allowances for health, housing, transport and food.

However, the basic salary percentage is particularly important for workers, as it determines not only overtime pay but also bonuses, annual pay rises, and other benefits, including maternity payments.

Over time, the reduction in the basic salary percentage has forced workers to depend on overtime for income, while the overall value of their basic salary has continued to decline.

The basic pay for garment workers in Bangladesh has declined by 14 percentage points, now making up only 53.6 per cent of the total minimum monthly wage of Tk 12,500 set in 2023.

In comparison, basic pay accounted for 67.67 per cent of the minimum wage of Tk 1,663 in 2006, according to the report.

Garment workers in Bangladesh remain trapped in an exploitative system that leaves them unable to meet their basic needs, the report said.

Despite decades of activism and corporate commitments, a living wage – a fundamental human right – continued to elude these workers, it mentioned.

Sofia Käll, programme officer at Swedwatch, who conducted research in Bangladesh, said ‘With global brands sourcing garments from Bangladesh facing stricter human rights requirements, they have no excuse but to take immediate and decisive action to improve workers’ access to living wages.’

The report recommended that global brands strengthen their due diligence efforts by meaningfully engaging with garment workers, unions and non-governmental organisations to address negative impacts.

It urged the brands to adopt responsible purchasing practices to prevent wage suppression, ensure worker well-being, promote supply-chain transparency and provide accessible grievance mechanisms.

The report also stressed the importance of continuous engagement to support suppliers and ensure living wages.

Swedwatch called on the EU member states and the global brands to fully leverage the potential of the corporate sustainability due diligence directive by guaranteeing fair wages and safe working conditions.​

 

[Saif]

The Faces Behind ‘Made in Bangladesh’

The Daily Star (TDS): How did you transition to your new research focus on the garment sector in Bangladesh, given your previous extensive research on the prospects and implications of microloans in the country? What prompted this apparent shift from rural to urban settings in your research field?

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The Faces Behind ‘Made in Bangladesh’

Lamia Karim

The Daily Star (TDS): How did you transition to your new research focus on the garment sector in Bangladesh, given your previous extensive research on the prospects and implications of microloans in the country? What prompted this apparent shift from rural to urban settings in your research field?

Prof Lamia Karim (LK): I am an economic anthropologist specializing in political economy and women's labor. My primary focus lies in the anthropological dynamics surrounding women's participation in the workforce, particularly the recognition of women as visible agents within the labor market. Historically, women have engaged in informal labor within the domestic sphere, contributing to their families and supporting their husbands. For instance, a male vendor selling food in the market often relies on female family members to prepare the food. Consequently, women's labor remains both invisible and uncompensated. Feminist scholars have long advocated for the acknowledgment and inclusion of unpaid work within economic policy.

My interest in this field is also shaped by my personal background. I grew up in a family where women were actively engaged in professional roles; my great-aunt (my grandmother's sister) was a published poet in the 1930s, my mother's first cousin was the first female photographer in what was then East Pakistan, and my mother, along with several of her female cousins, held academic positions as professors and principals of women's colleges. Thus, the sight of women pursuing professional careers was integral to my upbringing. However, I also witnessed the labor of women hired to work in our household—specifically, cooks and cleaners—whose work was often regarded as a natural extension of their identity rather than as respectful employment.

These life experiences made me particularly interested in examining the effects of both waged and unwaged work on women and how social forces condition us to view women's work. Bangladesh is home to two significant industries that center on women's work: the microfinance sector pioneered by Nobel Laureate Professor Muhammad Yunus and the overseas apparel production industry. Both sectors have emerged as prominent examples of women's work as empowerment, a debatable point, within the framework of neoliberal capitalism. Therefore, I perceive my intellectual trajectory not as a shift but as a natural progression of my scholarly pursuits.

TDS: How do you interpret the trajectory of the garment sector in Bangladesh, which originated from a global capitalist restructuring that heavily relied on exploiting cheap labor, and incidents of so many accidents eventually evolving into the primary contributor to the nation's economy? Despite witnessing a semblance of women's empowerment, how do you address the prevalent issue of widespread exploitation of women, which has unfortunately remained integral to this sector?

LK: The exploitation of women's labor within the manufacturing industry has a deeply entrenched and troubling history. An examination of industrialization in 19th-century England reveals how poverty forced women, men, and children to the cotton mills of Manchester, where they endured minimal wages and horrific work conditions. A pivotal moment in labor history occurred in the United States in 1911, when the Triangle Shirtwaist Factory fire claimed the lives of 143 workers, in factory conditions reminiscent of what occurred at the Rana Plaza factory collapse that killed over 1,100 workers.

Bangladesh is no different. A complex web of actors—including global retailers, government entities, factory owners, BGMEA, the families of these workers, and Western consumers—contributes to the systemic exploitation of working-class women, thereby facilitating the extraction of labor to yield profits and affordable goods.

The answer to your question is also embedded in cultural attitudes. We are a very class-based hierarchical society. Upper and middle-classes tend to treat people from the lower economic strata as less than them. Many factory owners, managers, supervisors, see the workers as lower than them on the social scale, and they take it for granted that they can treat workers poorly, such as using vile language or to physically hit them. Firing workers under all sorts of fictional pretexts and defrauding them of wages is another way that workers get exploited.

To tackle the problem of violence against women at work, the way forward is the unionization of garment workers, a movement that remains significantly underrepresented in the Bangladeshi apparel industry. Legal NGOs and Human Rights Organizations should be watchdogs scrutinizing the factories for compliance to safety standards. The government too has a crucial role to play in supporting workers' rights. If all these actors could come together, viable change is possible.

TDS: What have your research findings revealed about the daily experiences of women laborers in the apparel manufacturing industry? You mentioned that instead of facilitating sustainable improvements in their lives, the neoliberal economy has perpetuated precarity in their work. Could you elaborate on how this has impacted the lives of these women?

LK: One is the precarity of global supply chains where workers are at the mercy of the global economy. During the pandemic for example, stores closed in the West, factories had to close in Bangladesh, making many workers lose their earnings. This dependence on the global economy is precarity at its worst manifestation because the workers who are the bottom of the supply chain do not control what happens to them. There are no safety nets to support them. Importantly, these workers do not understand how supply chains work, and how a sudden loss in demand in the US or EU will have tremendous effect on their livelihoods.

In conversation with Lamia Karim, Professor of Anthropology at the University of Oregon, Eugene, and author of Castoffs of Capital: Work and Love Among Garment Workers in Bangladesh (University of Minnesota Press, 2022), which received the Gregory Bateson Book Prize Honorable Mention 2023.

Precarity at the factory—low wages, long hours, poor quality of housing, poor diet, abuse at the hand of factory management, is constantly compounding precarity in worker's lives. It is well-known that the wages they receive do not cover their living expenses. The women also support their extended families, by extension, another twenty million people (mothers, father, siblings) indirectly depend on their wages. They send home money for a brother's education, mother's medical expense, building a new roof, and so on. Their private lives are also precarious. Most of these women enter the workforce around the average age of fifteen. They are recent rural-to-urban migrants. They are usually brought to the city by a relative or a procurer. Most of them come to Dhaka with no prior knowledge of what it means to live in the city and how cruel and unforgiving the city can be. Many of the young women fall in love with men they meet in the city, who unbeknownst to them may already have a wife. These relationships are tragic and often involve severe domestic abuse. The men in their lives make constant demands on their wages, and if they do not hand the money over, the women are severely beaten. With no family elders, such as a father or an uncle to intercede for them, these women have to cope with these situations on their own. So, one on the one hand, they have attained certain autonomy, they earn wages, they have physical mobility, go to a movie, sit outdoors with friends and have some fuchka, met someone romantically, all the things that would be denied to them in rural society. On the other hand, they make many difficult decisions on their that often gets them into serious domestic precarity.

TDS: In your research, you explored the private lives of garment workers, delving into their intimate spheres of love, marriage, and romance. This perspective offers a novel way to understand them beyond the confines of economic analysis. How do you perceive the generational shifts among workers in this sector, from the macroscopic view to the individual human experience?

LK: I wanted to understand the attitudinal differences between older and younger women workers. The older women entered in the 1990s, some even in 1980s, at very low wages. All the older women shared a similar background. They came from landless and impoverished families. They described the before and after of coming to work as "Before I could not eat, now I can eat, before I could not send my child to school, now I can send my child to school, before I lived in a house with a leaking roof, now I live in a house with a roof that does not leak." The women had basic literacy of class three or five in a rural school. They could not read their hiring documents, making it easy for factory managers to fire them by making them sign on a document they could not read. Most of the older women came as married women with children, but their husbands had abandoned them. The women had to raise the children on their own. By the time they entered the factory, they already had many familial responsibilities. These women saw themselves as poor women whose goal was to get their children educated and moved up the economic social ladder. After twenty plus years of working, these older women's bodies and hearts were broken.

The younger women were entering with higher levels of education, often between class eight to ten. They could read their hiring documents. The younger were mostly single when they came from the village. They also came from poor families, but they entered factory work at higher wages. They would buy new salwar-kameezes, go to the beauty parlors to get their eyebrows threaded, openly hang out with their boyfriends. They did not have children to take care of. Familicidal responsibilities were less burdensome for them. Some of them told me that they would delay marriage because they wanted to experience life and make some money. These younger women exercised more sexual autonomy. They saw themselves as moving up the social ladder. They always called themselves middle-class and they would call the factory "office" and not karkhana. They eschewed the term kormojibi or sromik.

To the younger garment factory workers, belonging to the middle class signaled the exit from their poverty-stricken rural backgrounds. Factory employment had moved them up the economic scale. Similarly, taking the label of middle class set them apart from the poorer people they encountered in the city. As garment workers they were not like the women who worked as day laborers, cleaners, maids, cooks, and the like. They worked in brick buildings, operating industrial machines. that endowed them with a sense of pride and achievement when compared to their poorer rural and urban counterparts. They were the new symbol of "Made in Bangladesh" that is youthful, shiny, and hopeful. The combination of these factors gave them a sense of a new world of opportunities and their entrance into middle-class status.

TDS: Could you share insights from your conversations with the 16 interlocutors who are older or have aged out of the workforce about their initial aspirations? Additionally, could you discuss the differences observed in their ultimate realities, particularly regarding the changes in life after reaching a mature state within the garment sector?

LK: The sixteen older women, between the ages of 45-55 approximately, I interviewed had earned a limited form of sovereignty over their lives. They left abusive spouses, stood up to factory management when they faced workplace injustices, and tried to create better lives for their children through education. For these factory women, class mobility was a cherished goal that they saw as worth sacrificing for. Their goal was to help their children reach the new middle class that was unfolding through industrial capitalism in Bangladesh. Yet only two sons of the older female workers had made it to the new middle class, one as an accountant at a factory, and the other as an IT technician, the rest of their children had either entered the garment workforce or they were in other low-paying jobs as vendors, shop-keepers, guards. These older women recognized the limits of upward mobility in a deeply hierarchical society due to their lack of social capital. As one older woman said to me, "My son has received his bachelor's degree. He wants to work in a government office, but I do not have the contacts to help him. He has ended up working at a store." But their voices remained laced with traces of hope—if not for them, then for their children.

These older women entered the workforce when wages were very low, so they had little savings by the time they were forced out of factory work. They suffered from poor health. Their eyesight, fingers, arms were affected from long-term factory work. Kidneys were affected from not drinking water at work to avoid taking toilet breaks, something frowned upon by line supervisors. Many of them suffered from lung infections from breathing the air inside factories that is full of debris of clothing. Many workers were provided masks, but workers did not wear them because they felt hot and uncomfortable. It was a zero-sum game for these women.

TDS: Have you noticed any significant changes in the trade union movement or apparent enhancements in safety measures within this sector following the Rana Plaza incident?

LK: The trade union movement, still insignificant compared to the scale of the workforce, has become more visible after the Rana Plaza factory collapse. After the accident, the global retailers and EU did not have a fig leaf to cover their complicity in ignoring the safety conditions in the factories they were sourcing from. EU, Canada, Australia, and US to a lesser degree, became vocal about the right to unionize and the safety accords were written and implemented, with their many limitations. Trade union leaders have told me that now they have a voice with factory owners, BGMEA, and the government. This is an ongoing struggle.

I did not inspect factories since that was not what I was doing. Safety measures vary across factories. There are factory owners who are forward looking and want to improve work conditions; there are others who think of workers as disposable bodies. The answer to your question requires investigative journalism.

TDS: As automation advances, Bangladesh's impending graduation from the category of least developed countries (LDCs) looms, coinciding with a gradual decline in women's participation in the sector. What are your thoughts on the garments industry as a whole, and what potential changes, both minor and monumental, do you envision that could reshape the prevailing landscape?

LK: With the garment sector accounting for Bangladesh's largest export, generating $47 billion in 2023 and employing approximately four million workers whose earnings sustain the Bangladeshi economy. To effect meaningful change, it is essential to improve wages, enhance workplace safety, and provide accessible housing, healthcare, childcare, and education for their children. Factory owners resist these improvements, citing pressure from Western buyers who are reluctant to increase costs.

Bangladesh will face increased competition from other LDCs. The Ethiopian government sought to attract Western buyers by guaranteeing wages as low as $22 per month for workers. Conversations with several garment factory owners regarding the potential loss of business to competing countries revealed a prevailing belief in their logistical advantages. However, as evidenced by the presence of garments labeled "Made in Ethiopia" in H&M stores, capital will invariably pursue profit at the expense of workers unless robust unionization efforts are undertaken. Such collective action represents a crucial avenue for genuine empowerment and systemic change.

I would recommend diversification from the garment industry to other sectors, and to invest in the domestic market. Here I am arguing for import substitution, so we are not wholly dependent on the vicissitudes of the global economy. While China has transitioned from low-wage apparel manufacturing to high-value sectors such as semiconductor processing, Bangladesh remains stuck on its garment industry. The nation's economic landscape necessitates a forward-looking approach, emphasizing diversification away from apparel manufacturing and the training of workers for more sustainable employment opportunities. But there is an intangible paradox here between the welfare of workers and the welfare of capital. The logic of capitalism is to chase lowest production costs across the globe, devouring the poor and dispossessed on its journey. To harness unfettered capitalism, one needs a systemic change to the economic structure. I do not see that on the horizon.

My goal in writing Castoffs of Capital was to humanize these women, to glimpse their world through their eyes, as they graciously allowed me into their lives. I envisioned a future where a Western consumer, poised to purchase a simple tee-shirt or a pair of jeans, could not only see the garment but also feel the pulse of those who made it. I wanted them to visualize the women, to empathize with their stories, and to reflect on the profound consequences of their consumer choices. In this way, I hoped to weave a deeper understanding of the interlocking human tapestry that sustains our global economy.

My heartfelt thanks to Kormojibi Nari who assisted me with the research on older workers.

The interview was taken by Priyam Paul of The Daily Star​

 

[Saif]

US labor delegation, BGMEA discuss RMG workers’ rights in Dhaka

A high-level meeting between the US Department of Labor and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) discussed workers' rights in Bangladesh's readymade garment (RMG) sector. The discussions focused on key issues related to the RMG sector, with a special emphasis on w

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US labor delegation, BGMEA discuss RMG workers’ rights in Dhaka
FE Online Report
Published :
Nov 24, 2024 23:27
Updated :
Nov 24, 2024 23:27

A high-level meeting between the US Department of Labor and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) discussed workers' rights in Bangladesh's readymade garment (RMG) sector.

The discussions focused on key issues related to the RMG sector, with a special emphasis on workers' rights, workplace safety, labour law reforms, and market access.

The meeting between the delegation from the Bureau of International Labor Affairs of the US Department of Labor and the BGMEA was held at The Westin in Dhaka on Sunday.

The delegation included Kelly M Fay Rodríguez, Special Representative for International Labor Affairs; Thea Lee, Deputy Undersecretary for International Affairs; and Anne M Zollner, Chief of the Office of Trade and Labor Affairs.

It also included Christy Hoffman, General Secretary of UNI Global Union; Scott Nova, Executive Director of the Worker Rights Consortium; and senior representatives from major global fashion brands, including GAP Inc, PVH Corp, and VF Corporation.

The BGMEA side was headed by Administrator Anwar Hossain, along with members of BGMEA’s Support Committee and BGMEA leaders.

During the meeting, BGMEA Administrator Anwar Hossain apprised the delegation of the substantial progress made by the RMG industry in recent years, particularly in the areas of workplace safety, labour rights, and reforms to labor laws.

The BGMEA Support Committee members highlighted the ongoing efforts of the government of Bangladesh and the garment industry to further enhance workers' rights and welfare.

Appreciating the progress made by Bangladesh, particularly in improving labor conditions, the US delegation emphasised areas where further improvements can be made, including the amendment of the Bangladesh Labor Act (BLA).

The meeting underscored the importance of continued collaboration between Bangladesh, the US government, and industry stakeholders to build a more sustainable, fair, and resilient RMG sector.​

 

[Saif]

US team expresses concerns over labour rights

The visiting United States’ delegation led by the special representative for international labour affairs at the US Department of State, Kelly M Fay Rodriguez, on Monday expressed concerns over unfair labour practices, complex trade union registration processes and legal actions against garment...

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US team expresses concerns over labour rights
Staff Correspondent 25 November, 2024, 22:58

The visiting United States’ delegation led by the special representative for international labour affairs at the US Department of State, Kelly M Fay Rodriguez, on Monday expressed concerns over unfair labour practices, complex trade union registration processes and legal actions against garment workers and labour leaders involved in labour movements.

The delegation members expressed the concerns at a meeting with senior officials of the labour ministry at the Bangladesh Secretariat in the capital Dhaka on the day.

The US delegation also demanded a full implementation of 11 points, provided by the Biden administration in April 2024, within a short time to protect the workers’ rights in Bangladesh, labour secretary AHM Shafiquzzaman said at a briefing following the meeting.

‘We have conveyed that significant progress has been made on all issues outlined in the 11-point plan, and most of the requirements will be met within a short period of time,’ he said.

Regarding the minimum membership threshold for the trade union registration, the labour ministry informed the US delegation that the government has decided to reduce the threshold to 15 per cent from existing 20 per cent, the labour secretary said.

The ministry has also conveyed that a labour grievance monitoring committee has been established to address the unfair labour practices and anti-union discrimination within the timeframe outlined in the standard operating procedure, Shafiquzzaman mentioned.

The labour ministry informed the delegation that the government is eagerly interested to work on workers’ rights issues with the US.

‘It is crucial now for rebuilding the trust of global stakeholders, which has been eroded by past instances of noncompliance with our commitments,’ the labour secretary said.

He said that a single labour act for industrial units within and outside export processing zones would be considered after conducting an impact assessment through a third-party engagement.

Shafiquzzaman said that the government would fulfil all its labour-related commitments by March 2025, ahead of the next governing body meeting of the International Labour Organisation.

During the briefing, he also said that an advisory council committee, led by labour adviser M Sakhawat Hossain, was formed to review the labour and business conditions at the Beximco Industrial Park.

The committee will assess the impact of unrest at the industrial park on nearby industrial establishments and public life and will formulate recommendations for appropriate actions, Shafiquzzaman added.​

 

[Saif]

Cixing hosts ‘Bangladesh Night’ to boost knitwear collaboration

Ningbo Cixing Co, Ltd, a global leader in knitting machinery and technology, hosted ‘Cixing Bangladesh Night Products Promotion Meeting’ at hotel in capital Dhaka on Tuesday. The event brought together key industry stakeholders, including the owners and executives of over 300 influenti

thefinancialexpress.com.bd

Cixing hosts ‘Bangladesh Night’ to boost knitwear collaboration
FE ONLINE DESK
Published :
Nov 26, 2024 21:29
Updated :
Nov 26, 2024 21:32

Ningbo Cixing Co, Ltd, a global leader in knitting machinery and technology, hosted ‘Cixing Bangladesh Night Products Promotion Meeting’ at hotel in capital Dhaka on Tuesday.

The event brought together key industry stakeholders, including the owners and executives of over 300 influential sweater production companies in Bangladesh.

BGMEA Fashion Technology University (BUFT), a well-known fashion education institution in Bangladesh, also attended to jointly explore cooperation in high-end talent in the field of knitting industry.

In a significant move towards developing future talent, Cixing signed series of cooperation agreements with local famous companies, including BSKL and Cixing, Knit Asia and Cixing, Bettex and Cixing, NEXUS and Cixing, TWELVETEX and Cixing, and SWEATERTECH and Cixing, which marks a new chapter in the cooperative relationship.

A captivating grand fashion show was also held to release the latest work of the Cixing sweater design team, showcasing Cixing's products, technology, and unique industrial advantages, underlining its potential to revolutionise the local industry and establishling deeper and long-term partnerships with new and old customers.

Frank Sun, Chairman of Ningbo Cixing Group, delivered a speech, saying that as the world's leading provider of intelligent knitting equipment and digital knitting factory solutions, Cixing Group has been committed to promoting innovation and development in the knitting industry.​

 

[Saif]

Garment export to EU market risks 20pc fall

Bangladesh's garment export to the European Union market may fall 20 per cent under a combined effect of the country's LDC graduation and the EU-Vietnam Free Trade Agreement (EVFTA), economists say and show remedies. Vietnam's ready-made garment (RMG) export is currently subject to average 9.6

thefinancialexpress.com.bd

Garment export to EU market risks 20pc fall
Fallout from EU-Vietnam FTA, Bangladesh's graduation
FE REPORT
Published :
Nov 28, 2024 00:51
Updated :
Nov 28, 2024 00:51

Bangladesh's garment export to the European Union market may fall 20 per cent under a combined effect of the country's LDC graduation and the EU-Vietnam Free Trade Agreement (EVFTA), economists say and show remedies.

Vietnam's ready-made garment (RMG) export is currently subject to average 9.6-percent duty on the EU market that will hurtle down to zero-rated taxing by 2027 by virtue of EVFTA. On the contrary, Bangladesh is likely to count a jacked-up 12-percent duty after 2029 for the lapse of duty-free access to the EU under the Union's EBA programme, as a status-change cost the country's graduation from the least-developed country (LDC) club.

This twin trade-preference erosion, stemming from Vietnam's enhanced access under the EVFTA and the tariff hikes facing Bangladesh after its graduation, scheduled for 2026 with a three-year transition period until 2029, could significantly undercut the latter's export competitiveness on its most vital market, economists predict.

Besides, Bangladesh is lagging behind in implementing policy to develop backward linkages, especially for MMF-based garments, while Vietnam has rigorously taken right policy by making significant simplification of business environment and opening up trade and investment.

As such, Bangladesh may also face strong competition from Vietnam on account of MMF-based apparel exports to the European Union.

The statistics and observations were made Wednesday at a dissemination event on 'The EU-Vietnam Free Trade Agreement Implications for Bangladesh's Export Competitiveness' organized by Research and Policy Integration for Development (RAPID) and FES Bangladesh at a city hotel.

Economic relations division secretary Md Shahriar Kader Siddiqy was chief guest at the event moderated by RAPID executive director Dr M Abu Eusuf. FES Bangladesh resident representative Dr Felix Gerdes and Business Initiative Leading Development chief executive officer Ferdaus Ara Begum also spoke.

The EVFTA, effective since 2020, grants Vietnam significant trade advantages, including zero-duty access to the EU market, replacing its previous Standard Generalised Scheme of Preferences (GSP) tariffs.

In addition to tariff eliminations, the EVFTA addresses non-tariff barriers, opens markets for services and investment, and aligns Vietnam with the EU's labour and environmental standards, collectively strengthening its competitive edge and investment appeal.

Speaking there, RAPID chairman Dr MA Razzaque said the combined impact of EVFTA and LDC graduation on Bangladesh's exports to the EU is simulated a nearly 20-percent fall in apparel exports and a one-third reduction in leather, textiles, and processed-food exports.

"Macroeconomic effects would be that Bangladesh's GDP is projected to decline by 1.0 per cent driven by LDC graduation-related tariff hikes and trade diversion under the EVFTA," he explains, to underscore necessary preparedness.

Bangladesh remains dominant in apparel exports, accounting for 21.7 per cent of the EU's non-EU apparel imports, largely due to duty-free access under the Everything But Arms (EBA) scheme and relaxed Rules of Origin (RoO) requirements.

Bangladesh absorbed much of the EU market share lost by China as it shifted away from low-value apparel production, while Vietnam benefited more from this shift on the US market, he told the meet.

The country's share of the EU apparel market rose from 6.0 per cent in 2010 to 22 per cent in 2023, compared to Vietnam's modest growth from 2.0 per cent to 4.7 per cent over the same period.

However, in the United States, where both countries face identical tariffs, Vietnam captured a significantly larger slice of market cake, rising from less than 1.0 per cent to 18 per cent, compared to Bangladesh's slow-pace increase from 3.3 per cent to 9 per cent.

The RAPID made a number of recommendations, including engaging with the EU to negotiate an additional extension of the post-LDC graduation transition period by 3-5 years to soften tariff hike and pursue relaxed rules of origin and safeguard provisions to retain apparel-sector preferences under GSP plus and fulfilling GSP+ eligibility requirements by aligning with the EU's 32 international conventions.

Other suggestions include initiating discussions for an FTA or Comprehensive Economic Partnership Agreement (CEPA) with the EU to secure long-term market access and attract FDI and undertake reforms in labour standards, trade facilitation, and regulatory alignment to meet EU requirements and enhance competitiveness.

To enhance firm-level competitiveness, the recommendations include support to industrial upgrading and innovation with policies such as tax incentives, low-interest financing, and supply-chain development for ancillary industries.

Export Promotion Bureau vice-chairman and BGMEA administrator Anwar Hossain told his audience that the quality and reliability of power supply remain a significant challenge for all industries, particularly for the textiles, as many of them are unable to fully operate due to gas shortages.

"Despite government policies allowing bonded-warehouse facilities for partial exporters, the National Board of Revenue (NBR) has not extended this benefit to furniture exporters, which hampers the potential for export diversification and limits opportunities for growth in potential sectors."

Dr Mashrur Reaz, Chairman of Policy Exchange Bangladesh, said traditional business practices would no longer sustain growth at the time when global regulations and consumer preferences are changing rapidly.

"The US trade policies as regards China may remain unchanged, rather intensified, and the ongoing trade war would create new business opportunities for Bangladesh," he said, raising the question how much Bangladesh takes advantage largely depends on its preparations.

Abu Sayed Belal, trade counsellor at the EU Delegation in Bangladesh, said Vietnam has adopted effective policies focusing beyond just market preferential access and implemented the policy reforms to streamline processes, which have been instrumental in attracting higher levels of foreign direct investment or FDI.

He is, however, of the opinion that Bangladeshi exporters are satisfied with their export performance while local manufacturers benefit from a highly protected domestic market.

"This protectionism that discourages innovation and risk-taking, undermining Bangladesh's competitiveness in the international market, should be avoided," he said, suggesting Bangladesh should prioritise regional connectivity and establish more trade agreements with its trading partners.

Fazlee Shamim Ehsan, Executive President of Bangladesh Knitwear Manufactures and Exporters Association (BKMEA), however, differed on this score. Bangladesh's export growth might slow down and export volume is unlikely to decline, he said.

"China and Vietnam have labour shortage as workers there are not willing to work in garment factories as they consider the jobs not prestigious, which could lead a shift in orders to Bangladesh," he added.

Explaining difficulties like banking, shortage of gas and electricity and inconsistency in policies they face, he said, "Everything is against business environment."​