[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

All sides for 9% raise in minimum garment wage

A state-run annual increment and wage review committee yesterday recommended that the government raise the minimum wage of garment workers by 9 percent.

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All sides for 9% raise in minimum garment wage

photo: Star/file

A state-run annual increment and wage review committee yesterday recommended that the government raise the minimum wage of garment workers by 9 percent.

The workers had been seeking 10 percent to address yearly inflation in the country while staging demonstrations in August and September over an 18-point demand.

However, the garment factory owners offered 8 percent during recent tripartite meetings organised by the Ministry of Labour and Employment.

One such meeting yesterday settled on 9 percent, according to an agreement signed by the committee's Chairman Md Sabur Hossain alongside representatives of the workers and factory owners.

The labour ministry will now have to finalise the rate and issue a circular to bring it into effect.

A tripartite meeting yesterday settled on a 9 percent increase to the minimum wage for garment workers, according to an agreement signed by Md Sabur Hossain, increment and wage review committee chairman, as well as workers' representatives and factory owners

This will enable workers to receive revised salaries based on the increment from January next year.

Other benefits will also take into account the annual increment as per the Labour Law (amended) of 2006, the agreement said.

In previous years, the increment was fixed at 5 percent.

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.​

 

[Saif]

Bangladeshi garment workers at risk from extreme heat: study

Workers in some of the world’s biggest garment manufacturing hubs in Bangladesh, Vietnam, and Pakistan are increasingly exposed to extreme heat as climate change pushes temperatures up, a report found on Sunday, a problem multinational retailers and brands will have to help address.

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Bangladeshi garment workers at risk from extreme heat: study

Workers at a garment factory are making jeans in Dhaka. Photo: Reuters

xWorkers in some of the world's biggest garment manufacturing hubs in Bangladesh, Vietnam, and Pakistan are increasingly exposed to extreme heat as climate change pushes temperatures up, a report found on Sunday, a problem multinational retailers and brands will have to help address.

New European Union regulations make retailers selling in the bloc, like Inditex, H&M and Nike, legally liable for conditions at their suppliers, putting pressure on them to help fund improvements to cool factories they source from.

In Dhaka, Hanoi, Ho Chi Minh City, Phnom Penh and Karachi, the number of days with "wet-bulb" temperatures - a measurement that accounts for air temperature as well as humidity - above 30.5 degrees Celsius jumped by 42 percent in 2020-2024 compared to 2005-2009, researchers at Cornell University's Global Labor Institute found.

Above that threshold, the International Labor Organisation recommends as much rest as work in any given hour to maintain safe core body temperature levels.

The report identified only three retailers - Nike, Levi's, and VF Corp - which specifically include protocols to protect workers from heat exhaustion in their supplier codes of conduct.

"We've been talking to brands for ages now about this issue, and they're only now starting to turn their attention to it," Jason Judd, executive director at Cornell University's Global Labor Institute, told Reuters.

"If a brand or retailer knows that temperatures in a production area are excessively high or doing damage to worker health, then they're obligated under this new set of rules to do something about it," he added.

The EU Corporate Sustainability Due Diligence Directive came into force in July and will start applying to large companies from mid-2027.

Fixes to cool factories could include better ventilation and water evaporative cooling systems, instead of energy-intensive and expensive air conditioning that would increase manufacturers' carbon emissions.

Some factory owners would likely be willing to make such investments themselves, given how heat stress significantly impacts productivity, Judd said, but the EU rules highlight brands' responsibility to address the issue too.

The report also urged retailers and brands to invest in higher wages and health protections so that workers can manage the risk of missing work days due to heatwaves.

Extreme heat and flooding could erase $65 billion in apparel export earnings from Bangladesh, Cambodia, Pakistan and Vietnam by 2030, research from asset manager Schroders and the Global Labor Institute found last year.​

 

[Saif]

US Trade Representative, BGMEA discuss RMG issues

US Trade Representative Brendan Lynch and Trade Policy Analyst for South and Central Asia Emily Ashby met with the leadership of the Bangladesh Garment Manufacturers and Exporters Association at a hotel in Dhaka on Tuesday...

www.newagebd.net

US Trade Representative, BGMEA discuss RMG issues
Bangladesh Sangbad Sangstha . Dhaka 10 December, 2024, 22:33

New Age file photo

US Trade Representative Brendan Lynch and Trade Policy Analyst for South and Central Asia Emily Ashby met with the leadership of the Bangladesh Garment Manufacturers and Exporters Association at a hotel in Dhaka on Tuesday.

The meeting focused on key issues of bilateral trade, with particular emphasis on the US-Bangladesh Trade and Investment Cooperation Forum Agreement.

Administrator Anwar Hossain led the BGMEA delegation. Other members of the delegation included former BGMEA president Faruque Hassan, former senior vice-president Abdullah Hil Rakib, BGMEA support committee members InamulHaq Khan Bablu, Asif Ashraf and ANM Saifuddin, said a press release.

During the meeting, BGMEA Administrator Anwar Hossain provided an overview of the remarkable progress made by Bangladesh’s readymade garment industry in recent years.

The BGMEA leaders also highlighted progress made by the industry in workplace safety, workers’ rights, labour law reforms, and environmental sustainability.

They also reiterated the industry’s commitment to continuing its efforts to ensure that the RMG sector grows responsibly while meeting international standards.

Both the US and BGMEA representatives expressed commitment to continued collaboration, working towards a more sustainable and worker-friendly future for Bangladesh’s RMG sector.

The meeting underscored the importance of productive dialogue through TICFA to further enhance bilateral trade and investment opportunities.​

 

[Saif]

Unrest in RMG sector created: M Shakhawat

Labour and employment adviser M Shakhawat Hussain has said the industrial sector is going through some sort of unrest. In particular, the unrest prevailing in the readymade garment (RMG) sector was created. The ousted government and their friend nation together are creating some problems. The...

en.prothomalo.com

Unrest in RMG sector created: M Shakhawat
Staff Correspondent
Dhaka
Updated: 11 Dec 2024, 19: 56

Labour and employment adviser M Sakhawat Hussain File photo

Labour and employment adviser M Shakhawat Hussain has said the industrial sector is going through some sort of unrest.

In particular, the unrest prevailing in the readymade garment (RMG) sector was created. The ousted government and their friend nation together are creating some problems. The workers too are creating some problems without understanding.

M Shakhwat Hussain made the remarks at an event titled ‘Nagorik Utsab’ organised on voter awareness and civic activism. The Hunger Project Bangladesh and Shushashoner Jonno Nagorik (SHUJAN) jointly organised the event at Bangladesh Investment Development Authority (BIDA) auditorium in the capital’s Agargaon on Wednesday.

Referring to the anarchy in the RMG sector, M Shakhawat Hussain said, “The workers are not creating the problem. They are being used to create problems. It is quite unfortunate. We have to be aware of those who are instigating to create unrest inside the country from outside.”

He also talked about the national election. He said, “So far, the country witnessed four national elections which were more or less acceptable globally.”

Criticising the three national polls held under the Awami League government, the labour adviser said, “You don’t need to go abroad to learn how to ruin an electoral system. These elections were the last nails on the coffin of democracy. We have already seen the consequences. Each and every infrastructure has been destroyed.”

“The general election was considered a festival once. However, the people of the country were deprived of their voting rights. A credible election must be participatory, which means the voters have an active participation in the polls,” he added.

He hoped that the next election will be an exceptional one.

Shakhawat Hussain further said, “Those who will participate in the upcoming polls might have taken lessons from the last three elections. If they hadn’t, that would be unfortunate.”

SHUJAN acting president justice MA Matin said, “We have to raise awareness among the people. People have some birthrights. When the spirit of democracy is prevalent, there is no need for governance and law. When that spirit is dead, then even the laws won’t be enough to uphold that spirit.”

SHUJAN secretary and chief of the reform commission on the electoral system, Badiul Alam Majumder said, “Everybody has some liability for where we are standing today. In this case, politicians have more responsibilities. They didn’t fulfill their commitments. Justice Habibur Rahman said the country was in the hands of gamblers.”

He went on saying, “A reform within the political parties is quite essential to get rid of this situation. And it should not be imposed on them; rather the political parties should come forward with some reform initiatives. However, no attempts will be successful if the citizens do not raise their voice as they are the owners of the state.”

Badiul Alam further said they were expecting the caretaker government system to be resumed through a court verdict on 17 December. Everyone should act as watchdog so this system does not get discarded ever again, he said.​

 

[Bilal9]

9% salary increment for RMG workers, effective from 1st December, 2024​

BTJ News Desk
11/12/202401
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Government of Bangladesh has announced a 9% wage increment for ready-made garment workers, effective from 1st December. This decision follows extensive negotiations between employers, workers, and government representatives, aiming to resolve wage-related unrest in the garment sector.

The agreement was finalized during the fifth meeting of the committee on minimum wage revaluation and annual wage increases, chaired by Additional Secretary Md. Sabur Hossain. Initially, workers demanded a 10% increment while employers proposed 8%. A consensus was reached at 9%, with all parties signing a joint declaration.

The meeting included representatives from various stakeholders, including the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and labor unions. Labor Secretary AHM Shafiquzzaman emphasized that the decision aligns with the previously agreed 18-point plan to enhance labor standards in the sector.

Union leader Babul Akhter urged workers to return to work and maintain production, emphasizing unity against potential conspiracies. The wage increment reflects a collaborative effort to address workers’ demands and stabilize the industry, contributing to improved labor conditions in Bangladesh’s vital RMG sector.

 

[Bilal9]

RMG net export earnings exceed 70%​

BTJ Desk Report
03/12/2023
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For the third consecutive quarter ending in September 2023, Bangladesh’s net export earnings from the shipment of readymade garments (RMG) constituted over 70 % of gross export receipts. In July-September of fiscal year 2023-24, the net export receipt of the RMG sector reached $8.2 billion, making up 70.78 % of the total gross export earnings of $11.61 billion during that period. This indicates an increasing trend, with net export earnings rising from 51.49 % in the same period of the previous fiscal year.

The expansion of the backward linkage industry, reducing the need for imported materials, has contributed to this positive trend, according to the Bangladesh Bank. The BB report highlighted the challenges faced by the RMG sector, including domestic political unrest, global geopolitical conflicts, energy price hikes, and cotton price fluctuations. Despite these challenges, the RMG sector contributed 10.35 % to Bangladesh’s gross domestic product.

The top destinations for Bangladesh’s apparel exports during this period were the United States, Germany, the United Kingdom, Spain, France, the Netherlands, Italy, Canada, and Belgium. Going forward, the central bank review anticipates challenges for apparel exports due to subdued economic activities, higher inflation, higher interest rates, geopolitical uncertainties, weak productivity growth, and a complex financial environment.

 

[Saif]

USAID recognises 25 RMG factories for empowering women workers

USAID’s Women Thrive in Bangladesh Activity organised a Suppliers’ Roundtable and Champions Award Ceremony at Hotel Le Meridien, Dhaka yesterday

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USAID recognises 25 RMG factories for empowering women workers

USAID's Women Thrive in Bangladesh Activity organised a Suppliers' Roundtable and Champions Award Ceremony at Hotel Le Meridien, Dhaka yesterday.

The event brought together attendees to share lessons learned and best practices from the activity implementations as well as recognizes factories for their achievements in providing life and professional skills training to women workers in Bangladesh's ready-made garment (RMG) sector.

A total of 25 PVH supply chain factories received Thrive Champions Awards for demonstrating significant, measurable, and evident achievements in implementing the Personal Advancement and Career Enhancement (PACE) training programme.

The PACE training programme provides women workers with market-oriented soft skills, like negotiation and communication, to support career advancement while also helping them overcome social norms and gender barriers.

USAID's Women Thrive in Bangladesh Activity presented these awards to not only recognise the factories' efforts in empowering women workers but also to inspire others, promote positive competition, and strengthen accountability in implementing the PACE programme.

Blair King, Deputy Director of USAID's Office of Democracy, Human Rights, and Governance graced the occasion as chief guest. Najeeb Sayed, Senior Director and Country Manager of PVH Bangladesh, and Ram Das, Country Director of CARE Bangladesh, also spoke as special guests.

Bushra Binte Baten, Corporate Responsibility Manager at PVH Corp., Sazzad Kamal, Project Management Specialist at USAID; and Aamanur Rahman, Chief of Party for USAID's Thrive Activity contributed to the discussions. Senior officials from PVH Corp. and its leading supply chain factories, CARE Bangladesh, and partner NGOs, among others, attended the event.

Implemented by CARE Bangladesh, USAID's Women Thrive in Bangladesh activity collaborates with the global brand PVH to empower women in the ready-made garment sector.

The activity provides a combination of professional skills and leadership development training for women ready-made garment workers in PVH Corp.'s supply chain factories and in the communities.

The activity aims to train more than 100,000 women workers in RMG factories and adjacent communities by 2026.​

 

[Saif]

Price of garments exported to the US fall

The prices of major garment items exported to the US declined year-on-year in the January-October period this year as American consumers are yet to recover from heightened inflationary pressures..During the 10 months, the price of men’s cotton woven trousers declined by 7.7 percent, accor

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Price of garments exported to the US fall

The US's overall apparel imports from the world fell by 0.33 percent year-on-year to $67.04 billion in the January-October period this year. China ranked first in apparel shipments to the US, with Vietnam in second place. Bangladesh retained its position as the third-largest garment exporter to the US. File Photo

The prices of major garment items exported to the US declined year-on-year in the January-October period this year as American consumers are yet to recover from heightened inflationary pressures.

During the 10 months, the price of men's cotton woven trousers declined by 7.7 percent, according to data from the US Office of Textiles and Apparel (OETXA).

Meanwhile, prices of women's cotton woven trousers declined by 4.4 percent, men's cotton woven shirt by 3.8 percent, cotton knitted sweater by 7 percent and cotton knitted t-shirt by 3.9 percent.

This resulted in 3.33 percent decline in garment shipments from Bangladesh to the US, hitting $6.14 billion.

The US's overall global apparel imports fell 0.33 percent to $67.04 billion in the same period.

China ranked first in apparel shipments to the US while Vietnam took second place.

Bangladesh retained its position as the third-largest garment exporter to the US.

Both the prices and volume of garment export to the US, Bangladesh's single largest export destination, declined as the world's largest economy slowly recovers from persistent inflation, with retail sales growth increasing gradually.

Additionally, due to some domestic problems, the export prices of the garment items declined.

For instance, the garment sector faced massive spates of labour unrest in recent months, meaning many factories could not ship goods on time. So, they had to provide big discounts, reduce prices, or face work order cancellations.

Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association, added that the negative import growth of clothing items by US retailers and brands also impacted the volume and value of Bangladeshi garments.

"But on the bright side, the US market is rebounding gradually. Shipments have been showing a bit of an upward trend," Hassan told The Daily Star over the phone.

The garment and textile sectors must be supplied with adequate gas and power so that those can run at full capacity, recover their exports and ensure timely shipments, he added.

The taka's sharp depreciation against the US dollar is another reason, with the per unit price of local garment items falling. The taka has lost 36 percent of its value against the greenback since January 2022.

Another reason outlined by the former BGMEA chief is that local manufacturers are now booking work orders at lower prices to keep factories running since they have to incur big losses if machines remain idle.

Local garment factories have been facing challenges such as massive labour unrest and factory closures following the deferral in timely production and shipment.

Very often, factories were shut down in major industrial zones like Ashulia, Savar, Zirani and Zirabo because of the labour unrest, which affected the production and shipment of goods, exporters said.​