[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Number of green apparel factories now stands at 229

The total number of LEED-certified green factories in Bangladesh has now reached 229, following the recent certification of three more apparel and textile factories by the US Green Building Council under the Leadership in Energy and Environmental Design programme...

www.newagebd.net

Number of green apparel factories now stands at 229
Staff Correspondent 21 September, 2024, 22:34

A file photo shows workers sewing clothes at a green readymade garment factory at Savar on the outskirts of Dhaka. | New Age photo

The total number of LEED-certified green factories in Bangladesh has now reached 229, following the recent certification of three more apparel and textile factories by the US Green Building Council under the Leadership in Energy and Environmental Design programme.

According to the Bangladesh Garment Manufacturers and Exporters Association, out of the 229 LEED-certified green factories in Bangladesh, 91 have achieved platinum ratings, while 124 have received gold certification.

With its recent advancements in sustainable practices, Bangladesh now boasts 61 of the top 100 highest-rated LEED certified factories in the world.

The newly certified factories are Sepal Garments Ltd in Gazipur, Unitex Spinning Ltd (Unit-2) in Chattogram and Ananta Huaxiang Limited in Narayanganj.

Both Sepal Garments Ltd and Unitex Spinning Ltd achieved platinum certification, scoring 85 and 43 respectively, while Ananta Huaxiang Limited earned gold certification with a score of 63.

Despite facing challenges from a global economic downturn and domestic issues, Bangladesh’s readymade garment industry continues to focus on sustainable growth, BGMEA director Mohiuddin Rubel said.

He said that the multiple LEED certifications reflected the apparel industry’s commitment to environmental sustainability and enhanced its reputation as a reliable sourcing partner.

Mohiuddin also mentioned that sustainability had always been integral to their operations, ensuring that their growth aligned with international best practices and promoted environmental responsibility.

‘With ongoing partnerships and commitment, we are confident that the Bangladesh RMG industry will reach new heights of excellence, further solidifying its position as a global leader in sustainable and ethical manufacturing,’ the BGMEA leader mentioned.

The Leadership in Energy and Environmental Design (LEED) certification, awarded by the US Green Building Council, is earned by projects that meet prerequisites and credits addressing carbon, energy, water, waste, transportation, materials, health and indoor environmental quality.

Platinum certification, the highest category, requires projects to earn more than 80 points out of 110, while gold certification ranges from 60 to 79 points, and silver certification from 50 to 59 points.​

 

[Saif]

When will the RMG industry owners change?

Bangladesh's readymade garment sector is 45 years old. This garment sector is the source of 80 per cent of the country's export revenue. It also generates employment. As a single country, Bangladesh now stands second in readymade garment (RMG) exports.

en.prothomalo.com

When will the RMG industry owners change?

After the fall of the Sheikh Hasina government, unrest has emerged in the readymade garment sector again. The garment sector is one of the mainstays of the country's economic growth. Turmoil in the sector and labour unrest are nothing new. Analysing issues pertaining to the rights of workers in the garment industry, owner-worker relations, as well as the political clout and power of the owners, Shawkat Hossain writes about reforms in the sector.
Shawkat Hossain
Updated: 22 Sep 2024, 16: 44

Reforms are needed in the management of the RMG sector. Most important are reforms in the mindset and behaviour of the owners.Prothom Alo

Bangladesh's readymade garment sector is 45 years old. This garment sector is the source of 80 per cent of the country's export revenue. It also generates employment. As a single country, Bangladesh now stands second in readymade garment (RMG) exports.

So much has happened over these 45 years, but only one thing hasn't changed. And that is the mindset and behaviour of the RMG industry management. The garment sector is still run on those old conventional lines. The only thing that the persons concerned in this sector have learnt, is to suppress any movements by means of coercion and fear. The garment owners are so politically powerful now, they have no problem whatsoever to ensure all decisions are taken in their favour.

On the other hand, with all regular means of protest shut down, the garment sector workers have no alternative but to take to the streets in order to voice their demands. They have learnt no other way.

Bangladesh will graduate from the Least Developed Country status in 2026. In order to meet the demands of the day then, it is imperative that the RMG sector also undergoes significant changes in its system of management. This requires reforms. And work on this must start now. After all, Bangladesh's economy cannot survive without the RMG sector.

Owners' reforms needed first

The RMG sector has two owners' organisations, BGMEA and BKMEA. Selim Osman, a member of the much touted Osman family of Narayanganj, had been the president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) for a stretch of 14 consecutive years. He first became the BKMEA president in 2010 after Awami League came to power. He was elected the association's president once in 2012 and then the rest of the time he became president through understanding and by force.

He had also been the member of parliament of Narayanganj-5. He would contest from Jatiya Party, while his brother Shamim Osman was the Narayanganj-4 member of parliament from Awami League. Selim Osman's main task was to hold onto the parliamentary seat. Under their dominance, BKMEA contributed nothing to the interests of the industry.

Meanwhile, with one or two exceptions, being the president of BGMEA meant entering the hallowed halls of becoming a member of parliament or being mayor of Dhaka City Corporation. So their main task was to extend support to the government. Only the interests of the government and the owners mattered.

In 2009, a total of 23 owners of garment factories were elected as members of parliament. BGMEA accorded a reception to the members who were elected in the national election. The former president of BGMEA Annisul Huq had been the FBCCI president. The late Annisul Huq later became the mayor of Dhaka City Corporation. Thus a new door opened for the top leaders of BGMEA. After Annisul Huq passed away, Atiqul Islam, another former BGMEA president, became the new mayor.

From 2009 to 2019, whoever had been the president of this organisation, all became either mayor or member of parliament or was placed in some top position. For example, Salam Murshedy who had been BGMEA president from 2009 to 2011, later became MP from Khulna. The next president of the association, Shafiul Islam Mohiuddin, became an MP from a seat in Dhaka. The next president was former mayor Atiqul Islam, now absconding. Then Siddiqur Rahman, Awami League's commerce and industries secretary, was president for four consecutive years. The BGMEA president of 2005-06 Tipu Munshi also became MP and later went on to becoming the commerce minister.

Much earlier, two presidents Mosharraf Hossain and Redwan Ahmed, became MPs from BNP. Redwan Ahmed went on to become a minister too. They were presidents of BGMEA from 1991 to 1996.

SM Mannan was the last elected president of BGMEA. He was the general secretary of Dhaka city (North) Awami League. Known as Mannan Kochi, this BGMEA leader was in the committee for around the last twelve years or so. Politically active Mannan Kochi was kept on the committee to keep political links with Awami League and to suppress any labour movement.
Over the last 45 years, BGMEA has learnt one thing very well and that is to use various agencies of the government to suppress movements, keep wage demands at a minimum and extract benefits and facilities from the government. Labour leaders were linked to them too. They would support the owners in exchange of money. This would happen more at the time of fixing the wage structure.

Actually, BGMEA or FBCCI are basically the business branches of the ruling party. This applies to the business chambers too. So these trade bodies need to undergo reforms. Only then will the use of politics in the interest of business be curtailed.

Demands vs. discussions

The owners complain that the movements in the garment sector do not follow any conventions or rules. On the other hand, the labour leaders say there is no system in the RMG sector for formal bargaining. That is why the movements are not carried out in any regulated manner.

Due to international pressure after the collapse of Rana Plaza in 2013, the registration process for labour unions in the garment sector was relaxed. So far there are 1300 labour unions registered in this industry. In the remaining 70 per cent of the factories there are committees. In most cases, persons with allegiance to the owners are in the leadership of these unions or committees. Those who are not of that camp, are harassed in all sorts of ways after every movement.

After Sheikh Hasina fled from the country and the interim government was formed, like many others, the RMG workers too took to the streets with their demands. While the others have all returned to work, the unrest prevails in the garment sector. The owners can no longer use the intelligence agencies or police to threaten and scare them. In such circumstances, a way for a regulated manner to voice the workers' demands must be formulated. Also, a way for discussions to meet their demands must be created. And whenever there is a movement, random accusations of outside conspiracies, foreign instigation, etc, must halt.

The demands this time

The workers have at least 20 types of demands this time. The written demands of several factories have been analysed. The demands include, increase of annual incentive from 50 per cent, introducing provident fund, 15 days paternal leave, increase of tiffin bill from 35 taka to 50 taka, increase of attendance bonus, increasing maternity leave to 6 months, providing Eid bonus equal to net wage, increasing lunch allowance if working on Fridays, 20 days festival leave, earned leave 30 days, medical leave 20 days and payment of wages within the last five working days of the months.

The other demands of the workers are arranging for one free ultra-sonogram, providing the women with sanitary pads, increasing daycare facilities, two days leave during mensuration, installing an ATM booth, providing Vitamin C during pregnancy and arranging for eye tests and sunglasses.

In 2023 the minimum wage in the garment sector proposed by the workers was Tk 20,393, while the management proposed Tk 10,400. The workers were enraged at the management's proposal and took to the streets, resulting in the death of a worker. When the situation went out of control, the management proposed a minimum wage of Tk 12,500 and that was finalised. But when the movement continued, 43 cases were filed and 114 were arrested. While there is dissatisfaction with that wage, the workers are not demanding for a wage now, after the fall of the government. They are wanting certain benefits and facilities.

If wages and allowances are not paid regularly, workers will invariably take to the streets. If the present or future movements are to be halted, it is the garment sector management that needs to be reformed

The owners get all

The first wage board for the garment sector was formed in 1994 and the minimum wage was Tk 930. Now 30 years hence, the wage has increased to Tk 12,500. In the 1994-95 fiscal, export revenue from the garment sector was USD 2.23 billion (USD 223 crore). That revenue has now increased to USD 40 billion (USD 4000 crore). Government and international policy support had a significant role to play in this revenue increase.

For example, before the formation of the World Trade Organisation (WTO), from the time of GATT negotiations, Bangladesh would receive quota facilities up till 2004 under the Multi Fibre Arrangement (MFA). Even though the quota system was lifted in 2005, Bangladesh did not fall back in competition. It is receiving Generalised System of Preference (GSP) facilities from the European Union. Several countries, on a bilateral basis, are still providing Bangladesh with tariff-free market access.

In the meantime, in 1982 changes were made to the industrial policy. There were duty drawback facilities in place for exports. By this, while entrepreneurs paid duty when importing raw materials, this would be reimbursed after export. However due to delays, corruption and procedural problems, the bond facilities were put in place instead. Under this, the garment industry owners could import all sorts of raw material for garment manufacture, free of duty.

In 1986-87 the government introduced back-to-back LC. Under this system, after the export revenue was received, only then would the bank have to be repaid. Researchers feel these two policies have played a vital role for the advancement of the garment sector. Even after that, the government has provided all sorts of concessions including cash incentives. And whenever the garment owners were in a crisis, they have reached out to the government, and the government has fulfilled all their demands.

Giving, not just taking

The readymade garment owners never want to admit that business is doing well. Speaking to any garment factory owner, they will invariably say that business is in a bad shape, orders are dwindling, buyers are purchasing garments at low prices, production costs have shot up and the productivity of the workers here is low.

Yet leaders who work with the workers of the garment sector say that the wealth and the lifestyles of the garment owners do not indicate that business is bad. Even in 2022 the dollars rate was Tk 86. That dollar now stands at Tk 120. So they are receiving Tk 36 more than before for every dollar of their export earnings. Also, if they want productivity to increase, they must give workers fair wages and other facilities and benefits. You can't expect highest productivity with lowest wages. There must be an adjustment between the two.

Another problem in the garment sector is the trade related to waste fabric scraps known locally as 'jhut'. Leaders and activists of the ruling party control this business. The garment factory owners are obliged to sell the fabric scraps or 'jhut' to the political goons. Whenever there is a change in the government, the control of this trade changes hands. So long the Awami League men had controlled this business, now the BNP men are trying to take over.

This too has provided instigation in the present movement. The garment factory owners say if they got fair price for the fabric scraps, they could use this for the workers' welfare. Whether they actually would or not, is another question. But this problem must be resolved. This requires political commitment and the rule of law, and that needs to be ensured by the government.

If wages and allowances are not paid regularly, workers will invariably take to the streets. If the present or future movements are to be halted, it is the garment sector management that needs to be reformed. Most important is the reforms of the owners' mindset and behaviour. The habit of giving, not just taking, must be formed.

* Shawkat Hossain is head of online, Prothom Alo​

 

[Saif]

British-Irish firm to invest $36m in Bepza EZ

British-Irish company Deltaport Ltd will invest $36 million to set up a garment factory in the economic zone of Bangladesh Export Processing Zones Authority (Bepza) at Mirsarai in Chattogram.

www.thedailystar.net

British-Irish firm to invest $36m in Bepza EZ

British-Irish company Deltaport Ltd will invest $36 million to set up a garment factory in the economic zone of Bangladesh Export Processing Zones Authority (Bepza) at Mirsarai in Chattogram.

The company has set a target to annually produce 20 million pieces of protective clothes, workwear, various garments, PPE, hospital gowns, masks, bed sheets, curtains and other items.

The factory will create employment for 5,980 Bangladeshi nationals.

Deltaport Ltd is a sister concern of Eastport Ltd, a garment manufacturing company of the Cumilla EPZ that has been operating since 2013.

According to a press release, Md Ashraful Kabir, member (investment promotion) of Bepza and Junaid Iqbal Umerani, representing Deltaport, signed the agreement at the Bepza Complex in Dhaka recently.

Major General Abul Kalam Mohammad Ziaur Rahman, executive chairman of Bepza, Mohammad Faruque Alam, member (engineering), and ANM Foyzul Haque, member (finance), were also present.​

 

[Saif]

Fresh labour unrest shuts 70 apparel factories in Bangladesh

The authorities of at least 70 industrial units, including 59 readymade garment factories in Savar, Ashulia, and Gazipur, were forced to suspend operations on Monday as fresh workers’ protests broke out...

www.newagebd.net

Fresh labour unrest shuts 70 apparel factories in Bangladesh
Staff Correspondent 23 September, 2024, 23:28

Army personnel detain 24 people on charge of creating anarchy in the industrial area at Kaliakair in Gazipur on Monday. | New Age photo

The authorities of at least 70 industrial units, including 59 readymade garment factories in Savar, Ashulia, and Gazipur, were forced to suspend operations on Monday as fresh workers’ protests broke out over several demands, including a wage hike.

According to the Industrial Police, out of 70 industrial units, 52 are located in Savar and Ashulia while the rest 18 factories are in Gazipur industrial area.

Law enforcers detained 21 individuals in Gazipur on the charges of instigating labour unrest in different factories.

Against the backdrop of fresh labour unrest, the Bangladesh Garment Manufacturers and Exporters Association convened an emergency general meeting on Monday night at its headquarters in Uttara in the capital.

During the meeting majority of the factory owners opposed to increase wage and raise the annual increment from the current 5–10 per cent.

They argued that the new wage was set in December 2023 and the sector was currently grappling with several challenges stemming from both global and internal factors, including a decline in global demand and high production costs exacerbated by rising energy prices, and elevated bank interest rates.

Factory owners said that production had been suspended for over two weeks this month and that they had previously experienced closures during the July–August anti-discrimination movement, which led to buyers shifting work orders to other countries.

The emergency general meeting was still in progress at the time of filing this report about 8:30pm.

Ashulia zone Industrial Police superintendent Mohammad Sarowar Alam told New Age that total 43 factories, mostly RMG units in Ashulia belt, were closed under the section 13(1) of the Bangladesh Labour Act, while eight others announced general holiday on Monday amid the labour unrest.

Sources from the Industrial Police headquarters said that production in 18 industrial units was suspended in Gazipur area on the day.

Police sources said that workers from the Seasons Dress garment factory in Gazipur took to the streets on Monday morning, blocking the Dhaka-Mymensingh highway over unpaid wages for part of July and August.

Meanwhile, workers from Generation Next in Ashulia also gathered on the Bipail-Abdullahpur road, demanding wage payments and other issues.

Industrial Police and Army personnel were dispatched to both locations, where demonstrating workers were joined by workers from other factories, they added.

The police said that workers from many factories on Monday demanded a wage hike, which was a fresh demand since no such demands came earlier from the protests that began since the end of August to continue for over three weeks.

On September15, the unrest was brought under control as most factories reopened and workers returned to work, following a tripartite call from factory owners, labour leaders, and advisers of the industries, labour and employment, and fisheries and livestock.

The situation improved last week despite protests within some units over various demands continued.

But from Sunday the situation deteriorated again when workers blocked two major highways in Ashulia and Gazipur over issues, including unpaid dues, wages and tiffin bonuses.

Considering the situation, the labour ministry on Monday held a meeting with factory owners and labour leaders to find ways to calm the situation.

At the meeting labour leaders placed a 18-point demand compiling the demands of agitated workers in several garment factories in Ashulia and Gazipur.

The demands include—reconstitution of the wage board to set new minimum wages for workers; quick implementation of the 2023 minimum wage in factories; amendments to labour laws; immediate payment of all outstanding wages; and increase in attendance bonuses, tiffin bills and night allowances at the same rate across all factories.

The demands also include establishment of provident funds in all factories; 10 per cent yearly wage increase and food rations for workers; no blacklisting of workers following the biometric database; withdrawal of cases against those involved in the 2023 wage protests; enactment of guidelines to limit the dominance of jhut (garment factory waste materials) business; and establishment of non-discriminatory employment practices in factories.

The demands further include compensation and medical care for workers killed or injured during the July-August movement; initiatives to support the well-being of Rana Plaza survivors; mandatory establishment of day-care centres in all factories as required by labour laws; and stopping of unlawful terminations; and extension of maternity leave to 120 days.

Labour secretary AHM Shafiquzzaman at the meeting assured labour leaders that the government was addressing several of the workers’ demands, including compensations for those killed in the July-August movement and the Rana Plaza building collapse.

Some issues, such as wage reviews, depended on policy decisions, and the ministry was committed to working on them, he said adding that factory owners agreed to meet some factory-level demands, including various bills, payment of dues, and the implementation of wages.

Regarding other matters, including the 10 per cent yearly increment, factory owners said that that they would announce their decision following discussions with fellow factory owners.

During the meeting, factory owners termed security as the prime concern for running factories at the moment.

Export orders were shifting to other countries due to the unrest forcing many factory owners to struggle to pay September wages in time, they said.

Hameem Group managing director AK Azad, former Bangladesh Textile Mills Association president Tapan Chowdhury, Bangladesh Garment Manufacturers and Exporters Association president Khandoker Rafiqul Islam, Garment Workers Trade Union Centre president Montu Gosh, Sammilita Garment Shramik Federetion president Nazma Akter, Bangladesh Garment and Industrial Workers Federation president Babul Akter, and Sramik Samhati president Taslima Akhter, among others, spoke at the meeting.​

 

[Saif]

Factory owners accept all 18 demands of RMG workers

Garment factory owners in Bangladesh have accepted all 18 of the demands of the workers, such as ensuring provisions for tiffin and night allowances, to tame ongoing unrest in the sector.

www.thedailystar.net

Factory owners accept all 18 demands of RMG workers

Army personnel are posted outside a shuttered garment unit in the Narasinghpur area of Savar. Industrial belts have been hit hard by unrest as garment workers agitated to have their demands met. The government and factory owners yesterday accepted all of their demands. Photo: Aklakur Rahman Akash

Garment factory owners in Bangladesh have accepted all 18 of the demands of the workers, such as ensuring provisions for tiffin and night allowances, to tame ongoing unrest in the sector.

Labour and Employment Secretary AHM Shafiquzzaman announced the decision at a press briefing at the labour ministry in Dhaka yesterday. He was joined by four advisers to the interim government, union leaders and leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

According to our Savar correspondent, around 55 garment factories in the Ashulia area remained closed yesterday.

Normal operations in the industrial zones are expected to resume on Wednesday as demands have been addressed, Labour and Employment Adviser Asif Mahmud Sajib Bhuiyan said at the briefing.

The arrears in salary will also be cleared, he said, adding that normalcy would be restored to the sector from today.

Home Affairs Adviser Jahangir Alam Chowdhury echoed Bhuiyan's sentiments, urging workers to return to their workplaces.

"I want to see all industrial units operating from tomorrow [Wednesday]. Please do not take the law into your own hands," Chowdhury said at the meeting.

Speaking on behalf of union leaders, Kutub Uddin Ahmed, former secretary general of IndustriALL Bangladesh Council, also urged workers to return to work.

He added that different quarters outside the garment sector had been instigating the unrest.

The workers' key demands included implementing the existing minimum wage in all factories and settling all outstanding payments. Additionally, workers sought to raise attendance bonuses by Tk 225, night shift bonuses by Tk 10 and tiffin allowance by Tk 10.

Shafiquzzaman said around 1 to 2 percent of garment factories did not implement the latest wage structure that came into effect in December last year.

He added that the government would also provide support in dense industrial areas under the Trading Corporation of Bangladesh's open market sales programme, allowing workers to buy essentials at cheap rates.

The government will frame a policy to centrally control the jhut (waste fabric) business as control for the trade of scrapped clothes emerged as one of the main reasons for the unrest.

A separate review committee will submit a report on the industry's capacity to review the wage structure, the labour secretary said, adding that the government will also review police cases against workers to ensure they are not harassed.

Md Sarwar Alam, superintendent of Ashulia Industrial Police-1, said yesterday: "Of the closed factories, 46 were shut today due to workers' protests over demands for salary increases, increments and other benefits while nine had declared a general holiday."

Labour leaders reported that workers of several factories gathered in front of the premises in the morning but left when they were found to be closed.

According to the Industrial Police, the closed factories are primarily located along the Bypail-Abdullahpur road in the Jamgora, Narasinghpur, and Zirabo areas of Ashulia.​

 

[Saif]

A welcome decision to resolve RMG unrest

Cooperative efforts, sound leadership vital going ahead

www.thedailystar.net

A welcome decision to resolve RMG unrest
Cooperative efforts, sound leadership vital going ahead

VISUAL: STAR

We welcome the decision of garment factory owners to accept all 18 demands of agitating workers, a much-needed development that will hopefully resolve the unrest that plagued the sector for weeks. According to a report by this daily, factory owners on Tuesday agreed to workers' demands including enforcing the minimum wage in all factories, clearing outstanding payments, provisions for tiffin and night allowances, etc. The government will also help workers in dense industrial areas buy subsidised essentials through its Open Market Sales (OMS) programme, regulate the scrapped clothes business (a key source of the unrest), and review police cases against workers to prevent harassment.

As expected, the decision has had an immediate impact as most factories in Savar and Ashulia reopened on Wednesday, with workers returning to their duties in a peaceful manner. Security has also been beefed up to prevent any untoward situation. However, some factories still remained closed, mainly owing to disruptions caused by financial constraints. This again highlights the urgency of addressing the losses suffered by factories not just during protests but also in the unprecedented mayhem that ravaged various industrial units since the regime change on August 5. The truth is, while we recognise the importance of Tuesday's decision to restore order, we cannot ignore the tremendous challenges that lie ahead for the industry.

The cumulative effect of frequent factory closures and suspensions of production and the vandalism witnessed over the past month and a half is that a number of international buyers have diverted their orders to competing nations. We have earlier commented on how this situation is affecting business, especially after many requests for value-added garments were cancelled or postponed because buyers had to cancel their trips. For a country heavily reliant on its garment exports, such shifts in buyer confidence and preferences do not bode well for both the sector and the country.

The diminished work flow will likely continue to haunt the industry, affecting not just workers and owners but also the scope of investment in modernisation, sustainability, and compliance with global standards. As highlighted by an industry insider, a consolidation phase appears imminent with smaller and financially weaker factories potentially closing. There are lessons for all stakeholders in this: the government, factory owners, and union leaders. Going ahead, they all must ensure collaborative efforts and sound leadership to prevent any further turmoil. The government, in particular, must undertake a comprehensive review of the health of the industry and provide necessary support to help it rise again.​

 

[Saif]

Apparel exporters go into overdrive to meet deadlines

Garment exporters have gone into manufacturing overdrive to recover from continual production disruptions over the past three months due to nationwide protests and curfews, the fallout from the ouster of the previous government, and the recent spell of labour unrest at major industrial belts.

www.thedailystar.net

Apparel exporters go into overdrive to meet deadlines

Many factories are now operating around the clock to make up for the time lost in July, August and September.

Garment exporters have gone into manufacturing overdrive to recover from continual production disruptions over the past three months due to nationwide protests and curfews, the fallout from the ouster of the previous government, and the recent spell of labour unrest at major industrial belts.

Factories are now operating around the clock to make up for the time lost in July, August and September -- the peak months for shipping Western orders centring Christmas and securing bookings for the upcoming autumn and winter seasons.

Besides, local exporters are turning to subcontractors and requesting extensions from international retailers to maintain long-standing business relationships.

According to Indian rating agency CareEdge Ratings, if the crisis continues for more than a quarter or two, nearly 10 percent of Bangladesh's ready-made garment (RMG) export orders could shift to market rivals like India and Vietnam.

At present, many exporters fear they will have to provide big discounts or opt for expensive air shipments due to production delays while some may face order cancellations.

According to apparel makers, shipping one kilogramme (kg) of dry cargo from Dhaka to Europe by air can cost over $4 while the same can be transported by sea for less than 10 cents.

Exporters said if international retailers and brands allow extensions to lead times considering the labour unrest and political changeover, they may be able to avoid adverse impacts.

"I have already requested extensions from the retailers and brands that I work with, explaining the recent labour unrest and political changes in the country," said AK Azad, chairman and managing director of Ha-Meem Group.

"I am hopeful that they will approve extensions if the current state of normalcy continues in the factories," he added.

Moreover, Azad is seeking subcontractors to ensure the timely production and shipment of goods.

Following the ouster of the Sheikh Hasina-led Awami League government on August 5 by a mass uprising, labour agitation in major garment industrial hubs flared up.

Their 18-point charter of demands included increased attendance bonuses and tiffin allowances.

After lengthy consultations with union leaders and the authorities during tripartite meetings, factory owners agreed to all 18 demands made by the workers and issued a joint statement on September 24.

Azad said all of Ha-Meem Group's factories are now operating at full capacity as normalcy is returning to industrial belts.

A major European retailer in Dhaka said his company did not cancel or seek discounts from any local suppliers due to the student movement, curfew, internet blackouts, political changeover or labour unrest, as they understood the turbulent political atmosphere.

"We are happy that normalcy is being restored to the sector," he said. "The shipment of our goods is now back on track."

Shams Mahmud, managing director of Shasha Denims, whose buyers include multinational giants like H&M and Marks & Spencer, said the labour situation has now stabilised and almost all factories are back in production.

"We are part of a global supply chain. Most of the orders we take are time-sensitive. Hopefully, with the improving law and order situation, we will be able to deliver goods on time," Mahmud added.

However, he said the backlog would likely lead to air shipments and discounts.

He noted that the financial implications of the situation require attention from the government and the central bank.

"Almost all RMG factories are currently burdened by forced loans due to mismatches in imports, exports, salaries, bank loan repayments and overdue payments," Mahmud said.

"Unless these issues are addressed promptly, especially for small and medium-sized garments, there could be long-term negative effects on macroeconomic stability."

He added that brands remain committed to Bangladesh.

"In all these discussions, the importance of Bangladesh's position, along with necessary investments in renewable energy and carbon reduction as well as the deployment of a circular ecosystem, is getting lost," he added.

Khandoker Rafiqul Islam, president of the Bangladesh Garment Manufacturers and Exporters Association, said on Wednesday that since normalcy is being restored to the garment sector, they would meet with major retailers and brands on Sunday or Monday to discuss the overall situation.

Buyers are expecting quick delivery, but they have not cancelled work orders yet, he said.

Islam also said that the garment sector lost over $100 million due to the recent labour unrest, as many factories were unable to produce goods and ship them on time. Buyers' visits to factories were also cancelled.​

 

[Saif]

Inside the lives of rmg workers

In the shadowy predawn hours, the air in Ashulia, a small industrial town on the outskirts of Dhaka, is thick with anticipation.

www.thedailystar.net

Inside the lives of rmg workers

Photo: Aklakur Rahman Akash

In the shadowy predawn hours, the air in Ashulia, a small industrial town on the outskirts of Dhaka, is thick with anticipation.

The rhythmic hum of sewing machines will soon fill the air, heralding another day for the world's second-largest garment-exporting nation.

But before the machines roar to life, a different kind of movement begins – the quiet exodus of thousands of garment workers from their homes to the factories that dominate the landscape.

As the first rays of light break through the smog-heavy night, Rubiya Akter, a 30-year-old garment worker, emerges from a tin-roofed shack.

Her calloused feet hit the dusty path, each rhythmic step a testament to years behind a sewing machine.

Rubiya's day begins long before the sun dares to peek over the horizon, a brutal schedule dictated by the relentless demands of the fashion industry.

"I leave my children alone all day due to the immense pressure of work," she said.

Rubiya's long work hours and meagre wages exemplify the plight of lakhs in Bangladesh, where the demands of global fashion brands clash with the realities of the labour force.

Behind Rubiya, in the tiny tin shed she calls home, lie her most precious treasures: her daughter Omi, 6, and son Rakib, a Secondary School Certificate (SSC) candidate.

The single room that houses their dreams is a masterclass in resourcefulness. A single bed, where her children sleep soundly, hogs most of the space. Clothes hanging on the walls serve as a colourful tapestry of their life, each garment a story of careful budgeting and maternal pride.

In one corner stands an old refrigerator, a prized possession acquired through months of saving. But more often than not, its dim hum is all the comfort it offers. The shelves inside lay bare, a stark reminder of the family's financial standing.

Housing conditions are cramped and facilities are stretched thin.

"We have only two bathrooms for 10 families. We have to stand in line every morning," Rubiya said.

Education, seen as a path to a better future for future generations, comes with its own set of obstacles. "The kids walk to school, which takes an hour. All the schools are one hour away from our house."

Healthcare accessibility also proves challenging. The nearest affordable medical facility, Gonoshasthaya Kendra, is a gruelling journey away.

"It takes almost 2 hours on the road, but we go there for medical treatment as it is less expensive."

The arithmetic of survival

As Rubiya walks, calculations race through her mind.

Her monthly salary of Tk 12,800 – hard-earned through countless hours of stitching and sewing – seems to evaporate before her eyes.

The numbers dance in her head: Tk 3,500 for rent, Tk 500 for electricity, Tk 6,000 for food and basic necessities.

The remaining Tk 2,800 must somehow be stretched to cover her children's education – Omi's school fees and Rakib's crucial SSC exam preparations.

"Sometimes I can't even pay tuition fees," she admitted, the weight of stress evident in her voice. "I need to borrow money frequently. It's a cycle that never ends."

In Ashulia's kitchen market, four eggs cost Tk 65, broiler chicken Tk 200 per kilogramme (kg), beef Tk 750 per kg, onions Tk 120 per kg, and green chilis Tk 70 per kg.

"I generally cook small tilapia fish for my children as I can't afford beef," Rubiya explained. "There was a time when I tried to purchase eggs every day, but due to price hikes, those are now out of reach."

Speaking about the standard of living of RMG workers, Syed Sultan Uddin Ahmmed, executive director at the Bangladesh Institute of Labour Studies (BILS), said real wages had not increased greatly because of persistent inflation.

According to the cost of living indexes of various government institutions, including the Bangladesh Bank, it is not possible to live on Tk 12,500, the minimum monthly RMG wage.

"Our government has not adopted any programmes for workers' welfare for a long time. There is no initiative to improve industrial areas with schools, hospitals, markets, housing, or transportation. The civic benefits and social security of workers should be ensured regionally. Again, at the factory level, workers do not have the opportunity to express themselves, so their needs are not known."

Stories of struggle

Rubiya's story is not unique. Similar tales of hardship echo throughout the narrow alleys and crowded worker houses in Ashulia, home to over 407 garment factories.

Shahida Khan, 37, works as an operator from 8 in the morning to 10 at night. A single mother, she supports her university-going daughter on a monthly salary of Tk 12,500.

Including overtime, she earns a maximum of Tk 16,000.

"My daughter lives in Dhaka," Shahida shared. "Her semester fee is Tk 3,000. Plus, there's her sublet rent. I can't save any money for her future. Meat is a dream for us."

Nearby, Polash Mahmud and Jasmin Akter struggle to balance work and family. Their 4-year-old son lives with relatives in their village home of Jamalpur, a heart-wrenching decision driven by necessity.

Polash mentioned: "I used to be the sole earner, but now my wife also works at the factory to help make ends meet."

Due to their struggles, they have had to sacrifice their role in raising their child.

"We've sent our son to the village as we don't have enough time or money to take care of him," Polash explained. "We have to send Tk 2,000 home each month. Mostly, I have to buy basic commodities on credit. There's no money left for medical and other necessary expenses."

Polash and his wife rent a small room for Tk 4,000. "The environment here is poor. When it rains, our house floods due to water logging, but we stay here to save on transport costs."

Hosna Akter is a 24-year-old mother of one child who has been working in a garment factory of Mirpur for more than five years. She was getting Tk 13,550 as a senior operator.

After working for five years, Hosna's husband Manna, an operator, earns Tk 13,800.

The couple's monthly expenditure includes Tk 6,000 for rent, Tk 400 for electricity, Tk 500 for internet, and Tk 8,000 for groceries – more than 54 percent of their joint earnings. Then there is the money that they have to spend on their child.

Hosna and Manna recently resigned out of frustration, deciding they would be better off if they relocated to their village.

Another worker from Mirpur, Shanta, has processed her way to Jordan to work as a labourer as she found it impossible to meet her expenses with the low pay in the garment sector.

A system under pressure

Data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) shows that there are 3.3 million workers in garment factories, with 52.28 percent being women.

Although the industry provides crucial employment, it also operates on razor-thin margins. Factory owners, under pressure from global brands to keep costs low, often struggle to improve working conditions or raise wages significantly.

Dr Rubana Huq, a former president of the BGMEA, said: "Tk 12,500 is not the ideal salary but because of not getting the prices from buyers and the declining value and volumes of the clothes, there is little scope to give anything more. Thus, we need to think about non-wage benefits such as transport, housing, and food subsidies. These are the areas that the government must consider. Manufacturers need to come forward too."

She added that workers must be given education and healthcare benefits.

Last year, workers protested for an increase in their monthly minimum wage to Tk 25,000. After negotiations, the government settled on Tk 12,500 for entry-level workers in the RMG sector – a 56 percent increase from the previous Tk 8,000, but still far below what workers say they need to live with dignity.

Of the amount, Tk 6,700 has been fixed as basic salary, Tk 3,350 as the house rent, Tk 750 as medical allowance, Tk 450 as conveyance, and Tk 1,250 as food allowance.

Bangladesh's garment exports reached $32.86 billion from July to February in fiscal year (FY) 2023-24, up 4.77 percent year-over-year, according to the Export Promotion Bureau (EPB).

The Export Promotion Bureau (EPB) noted that garment exports during the first two months of this year amounted to $9.47 billion, registering a 13.15 percent year-on-year growth.

Khondaker Golam Moazzem, a research director of the Centre for Policy Dialogue (CPD), opined: "The structure of the minimum wage is faulty. Allocations for basic housing and medical expenses are far less than required. Besides, some other expenses are important – child education, communication expenses, entertainment, and internet bills. These are not in the salary structure."

He added that workers did not compete on an even footing when it came to negotiating for better wages and working conditions.

"The wage negotiation should be tripartite, including the government, workers and owners. But in reality, the decision comes in a bipartite fashion – from the government and owners only," Moazzem said.

"Workers fear that they may lose their jobs during these negotiations. Meanwhile, owners argue that higher wages would increase costs and reduce competitiveness, though there's little evidence supporting this.

"According to the Bangladesh Labour Act, there are 12 indicators for wage negotiation, but only two or three are used. Ultimately, wage negotiations in our country are not data-driven and owners tend to avoid them."

The human cost of fast fashion

As the sun sets on another gruelling day, Rubiya makes her way home. Her fingers are sore, her back aches, but her resolve remains unbroken. Tomorrow, she'll do it all again.

The stories of Rubiya, Shahida, Polash, Jasmin, Hosna, Manna, Shanta and countless others serve as a powerful reminder of the human cost of the price tags we see in stores.

Some expressed plans to leave the industry if the situation of workers does not improve, agreeing that it's better to settle in their village homes.

As night falls, the factories finally fall silent. But in countless tiny homes, the struggle continues – a testament to the resilience of those who stitch our clothes and, in doing so, weave the very fabric of their dreams.​