[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

RMG imbroglio

It was no coincidence that the simmering discontent of garment workers burst into full blown labour unrest to synchronise with the July-August mass uprising. Workers who could not press home their demands earlier under a repressive regime known for patronising crony capitalism considered it was the

thefinancialexpress.com.bd

RMG imbroglio
FE
Published :
Jan 13, 2025 21:13
Updated :
Jan 13, 2025 21:13

It was no coincidence that the simmering discontent of garment workers burst into full blown labour unrest to synchronise with the July-August mass uprising. Workers who could not press home their demands earlier under a repressive regime known for patronising crony capitalism considered it was their best chance to align their protests with the anti-discrimination mass movement spearheaded by students. The country was in turmoil and labour unrest continued to deteriorate with both management and workers refusing to see to the greater interest of the RMG industry. Notably, of the more than 4,500 apparel factories, there are 229 LEED-certified green garment factories---highest in the world. These and some other factories boast sound labour-management relations because the authorities there have been considerate enough to pay higher wages and provide various facilities deemed fit to keep workers contended. Unfortunately, the owners of the rest of the garment factories are not equally smart in running their factories.

An incisive government report prepared to identify where things have gone wrong and suggest how the malaise can be addressed does the job more or less comprehensively. The lead story prepared on the basis of the report titled, 'special report on labour unrest in garment sector' and published in The FE's Sunday issue presents quite a disconcerting picture. As if the 1108 incidents of labour unrest that took place between August and December were not enough, there is apprehension of more to come. Of the several reasons that have soured management-workers relations, unpaid wages, retrenchment and refusal to regularise jobs stand out. On the part of management, presumably the smaller and not so well run, the problems stem from shortage of raw materials and work orders. In a competitive market, the smaller units are always at a disadvantage. When industries are restive, their disadvantages compound with dollar crisis leading to limited import of raw materials.

Yet good management tries not to accumulate arrears of wages. As many as 67 factories were closed sine die and 77 temporarily during the period, according to the report. The fact is unrest in the RMG belts never got defused ---even notwithstanding the higher wage agreed upon. Many of the factories did not comply with the payment of outstanding dues to their workers within the stipulated time. Then the termination of thousands of workers' jobs from the closed factories owned by some disgraced industrialists of the past regime has not helped the matter. Its socio-economic implications, as hinted at the report, may be dangerous. At a time when industries in general are facing difficulty, such closures have to be avoided at any cost. Getting the mechanism right to run those would be wiser.

The report has indicated instigation by some labour leaders as one of the factors responsible for the unrest. Well, if workers do not get their overdue arrears and wages regularly on a fixed date, they cannot help taking to the street. In this time of outrageous market volatility, even their regular wages hardly prove more than a pittance. If the industry falters, the sign of which is there, both management and workers will suffer. The country's economy will be affected as well because RMG is the number one foreign exchange earner. Before it makes its downhill slippery journey when rivals like Vietnam and India are gaining grounds, let every stakeholder cooperate to realise the high potential of the garment industry.​

 

[Saif]

Govt should make apparel factory owners behave in paying workers

WORKERS of an apparel factory on the Ashulia outskirt of the capital city, reported to have been abstaining from work for several days, had blocked the Dhaka–Tangail Highway on January 13 for five hours, which majorly disrupted traffic. The workers are reported to be pushing for the demand for...

www.newagebd.net

Govt should make apparel factory owners behave in paying workers
15 January, 2025, 00:00

WORKERS of an apparel factory on the Ashulia outskirt of the capital city, reported to have been abstaining from work for several days, had blocked the Dhaka–Tangail Highway on January 13 for five hours, which majorly disrupted traffic. The workers are reported to be pushing for the demand for job termination benefits. The law enforcement agencies used water cannons and charged at the protesters with truncheons to clear the area and ease traffic movement. The workers say that the factory management suspended them and served notices on 453 workers to explain the unrest at the factory that took place in the past week. The management says that it served the notice on the workers in January 9–12 keeping to Section 23 of the labour law that deals with punishment for misconduct and conviction and the workers have been on demonstration demanding job termination benefits keeping to Section 26 of the labour law that deals with the termination of the employment of workers by employers otherwise than by dismissal, etc. A labour leader says that a tripartite negotiation has settled the issue and the owners, who employ 16,000 workers in several of the factories, have agreed to pay the benefits to the workers.

The factory management, however, seeks to say that the workers, who were invited to a feast for the wedding of a member of the owners’ family that had a mismanaged serving of food, went on demonstrations and vandalised the factory. The management says that some leaders provoked the workers even after they had been assured of a proper serving of the food. The management on January 11 filed a case against three of the workers. This serving of food story could very well be an owners’ ploy to lessen the gravity of the failure of the management or this could also be a tipping point of the of the workers’ dissatisfaction that they have worked with in the factory. Such a failure on part of apparel factory management is a well-known issue and the repression of apparel workers continues even after meetings, decisions and measures that have taken place one after another. What ultimately remains beyond such stories is the deprivation that the workers continue to face. Yet, nothing definitive has taken place to stop the exploitation of and repression on the workers. And, the primary onus for all such failures and the unrest that gives birth to the unrest falls more on the owners, who almost always bring up an excuse to cover their failure, and the government, which almost always sides with the owners in protecting their interests.


The problem of worker unrest over payment in apparel factories, which has been taking place year after year, may not be resolved unless the government becomes serious enough about protecting the rights of the workers and disciplining the owners of apparel factories. It is time that the government decisively dealt with the issue, rising above owners’ interests, to end the menace once and for all.​

 

[Saif]

https://thefinancialexpress.com.bd/editorial/ensuring-minimum-wage-for-workers

Ensuring minimum wage for workers
Published :
Jan 14, 2025 22:38
Updated :
Jan 14, 2025 22:38

Fixing minimum wage for workers is a tricky issue regardless of the sector of the economy they are employed in. Going by experience, the work of settling minimum wage, even for those in the industries including garment workers, who constitute organised section of the workforce, has proved to be very challenging. Since the minimum wage for RMG workers was first fixed in 1986, it's a long history of struggles that they have been waging to arrive at a wage structure that is rational and humane. The struggle has often been violent and, sometimes, bloody. But had there been recognised workers' unions, or an alternative dispute resolution mechanism for settling emerging issues through negotiations with the factory owners, the atmosphere would be more peaceful, the workers happier and industries more productive. But such an ideal condition is yet to be created in the formal sector of the economy, let alone in the informal one. Laws on workers' rights framed both by the governments and the International Labour Organization (ILO) are in existence. But, as always, the problem lies in their implementation. It is the goodwill of the employers, seriousness as well as efficiency on the part of the officials in charge of labour department of the government and the existence of an effective mechanism for dispute resolution that are required for settling the minimum wage for workers once and for all. In the informal sector of the economy, implementation of the laws on workers' minimum wage is more challenging.

Against this backdrop, the interim government and experts in the related field, reportedly, have thought up an ambitious idea of introducing a national minimum wage for all workers and a uniform labour law. The issues came up for discussion at an event organised jointly by a local policy think tank, namely, the Centre for Policy Dialogue (CPD) and an international donor agency. Attended by the head of the government's labour commission, among others, the discussants at the event suggested, ways to ensure better livelihood, workplace safety and rights of workers.

Notably, in November last year, the interim government formed the Labour Reform Commission in a bid to address various issues related to structural, institutional and operational weaknesses concerning workers' livelihood, rights and their welfare. In this connection, the challenges faced by the Commission in performing its tasks, as admitted by its head at the discussion event in question, say it all. Considering the magnitude of the problems facing the working class, the 90 days' time as allocated for the Commission has proved to be quite inadequate for coming up with a set of watertight recommendations to improve workers' condition. Then comes the issue of the quality of labour rights-related data available and the amount of research done on it previously to work on. Add to that the concern of small businesses in the informal sector which employ some 55 million workers. That is about a quarter of the country's total workforce. But the Commission's work may not appear appealing to the employers of the informal sector. They are hardly willing to do justice to the issues of workers' rights, their workplace safety and so on. In fact, theirs is indeed an area where slavery in the form of enforced or bonded labour exists. Obviously, the talks of job protection, maternity leave, etc., sound fanciful there.

In that case, the Commission should assure the employers in the informal sector of required government assistance so they might extend cooperation to fulfil the former's task. In fine, issues pertinent to workers and employers of both formal and informal sectors of the economy should feature prominently in any recommendations made for the good of workers.​

 

[Saif]

RMG exports reached $38.48 billion last year

Bangladesh exported $7.2 billion worth of garments to the US, its single largest export destination, in 2024, according to data from the Export Promotion Bureau (EPB).

www.thedailystar.net

RMG exports reached $38.48 billion last year
Says EPB data

Bangladesh exported $7.2 billion worth of garments to the US, its single largest export destination, in 2024, according to data from the Export Promotion Bureau (EPB).

The US accounted for 18.72 percent of Bangladesh's total garment exports last year.

The European Union remained the dominant market, accounting for 50.34 percent of total RMG exports, which amounted to US $19.37 billion.

In 2024, Bangladesh's Ready-Made Garment (RMG) exports totalled US $38.48 billion.

The UK contributed US $4.3 billion, representing an 11.25 percent share.

Within the EU, key markets included Germany, which imported US $4.83 billion, followed by Spain with US $3.42 billion, and France with US $2.14 billion.

Additionally, exports to Canada reached US $1.24 billion, accounting for 3.23 percent of the market.

Bangladesh is also making notable progress in non-traditional markets like Japan and Australia, reflecting efforts to diversify.

Non-traditional markets contributed US $6.33 billion, or 16.46 percent of total RMG exports.

Among these markets, Japan led with US $1.12 billion, followed by Australia at US $831 million, India at US $606 million, Turkey at US $426 million, and Russia at US $343 million.​

 

[Bilal9]

RMG exports grew moderately in 2024 despite headwinds

In spite of turbulent times prevailing both at home and abroad, garment exports from Bangladesh grew in 2024 by 7.23 percent year-on-year to $38.48 billion, according to the Export Promotion Bureau (EPB)..This is due to an increasing demand for clothing with the fall of inflation in major

www.thedailystar.net

RMG exports grew moderately in 2024 despite headwinds

View attachment 12704

In spite of turbulent times prevailing both at home and abroad, garment exports from Bangladesh grew in 2024 by 7.23 percent year-on-year to $38.48 billion, according to the Export Promotion Bureau (EPB).

This is due to an increasing demand for clothing with the fall of inflation in major export destinations.

Last year, the local garment sector witnessed demonstrations, national election-related movements, factory closures and production halts amid massive labour unrest after the fall of the Sheikh Hasina-led administration on August 5.

Goods shipment was severely affected in July, August, September and October due to a student-led mass movement culminating in Awami League's ouster and widespread labour unrest demanding wage hikes and an end to workplace discrimination.

On the international front, high inflation has persisted over the past few years because of far-reaching implications of the Russia-Ukraine war that began just after the pandemic, affecting consumer demand.

But Western economies have been rebounding gradually with rising demand, for which retail sales have also been growing with the clearance of inventories of previous years in Europe and the US.

Exports from the sector grew although many had thought that shipments would be negatively affected by domestic and external challenges.

For instance, garment exports in fact declined by 6.62 percent year-over-year to $2.38 billion in April, which came as a surprise given that the export trend was enjoying positive momentum.

Similarly, garment shipments declined last June by 10.48 percent year-on-year to $2.97 billion after increasing by 1.45 percent in January and 4 percent in March.

In July, apparel exports grew by only 2.89 percent year-on-year to $3.17 billion, as per the EPB data.

However, the exports rebounded strongly from September, growing by 14.61 percent to $3.01 billion that month and by 22.80 percent to $3.29 billion in October.

The trend did not stop there as the garment shipments grew by 16.25 percent to $3.30 billion in November before expanding again by 17.45 percent to $3.77 billion in December.

Exports started rebounding from September as normalcy gradually returned to the industrial zones after the labour unrest ended with factory owners accepting the 18-point demands of garment workers.

Moderate retail sales growth continued in November even as two of the holiday season's busiest shopping days bumped over into December and were not included in the month's totals, according to National Retail Federation (NRF), the largest US retail association.

"November sales increased on top of a strong October and would have been even higher if Thanksgiving Sunday and Cyber Monday hadn't fallen in December," NRF President and CEO Matthew Shay said in a statement.

"Year-over-year gains were solid even as retail prices in many categories are lower this year, showing that consumers are buying more merchandise as the economy continues to grow. We remain confident in our holiday forecast," Shay said.

Total retail sales, excluding automobiles and gasoline, were up 0.15 percent seasonally adjusted month-over-month and up 2.35 percent unadjusted year-over-year in November, according to the Retail Monitor.

That compared with increases of 0.74 percent month-over-month and 4.13 percent year-over-year in October.

In 2023, the garment export sector aimed for $50 billion in 2024 but adjusted expectations to $38.48 billion, marking a 7.23 percent increase from 2023.

The industry confronted challenges like wage protests leading to a 56 percent wage hike, said Mohiuddin Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and additional managing director of Denim Expert.

Even after uncertainties from the national election, there was a 1.45 percent year-on-year growth in garment exports in January, he said.

A 60 percent cut in export incentives, compounded by global economic instability and volatile oil prices, affected consumer behaviour, he said.

Rising energy and transportation costs, along with high bank interest rates, hurt small and medium enterprises, causing closures, he added.

Despite a slight increase in exports in July and August compared to the same months of 2023, the figures for 2024 lagged behind those of 2022.

Rubel also said the outlook for 2025 depends on improved industrial relations and political reforms.

Former BGMEA president Faruque Hassan said garment exports would have been much higher had the challenges not been there. However, he expects 2025 will be a better year as normalcy is returning to the sector.

Exports grew not only in volume, but also value as international retailers' and brands' confidence in Bangladesh has been boosted, and the local currency was devalued, he added.​

The fact that exports grew at double digits for the last four months of last year is indication that exports are on a roll. Another indication is the number of heavy cargo carriers at the airport, with several dozens moving exports everyday - for the spring season apparel market.