[🇧🇩] Textile & RMG Industry of Bangladesh

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[🇧🇩] Textile & RMG Industry of Bangladesh
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The barriers to unionisation in the garment industry

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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.​
 

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

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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.​
 

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

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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.​
 

COP29 and the future of Bangladesh’s RMG sector

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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).​
 

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

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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.​
 

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