[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Labour situation in RMG sector improves

The labour situation in the readymade garment sector in Ashulia and Gazipur industrial areas improved on Sunday while fresh unrest occurred in the Dhaka metropolitan area on the day...

www.newagebd.net

Labour situation in RMG sector improves
Staff Correspondent 16 September, 2024, 00:09

Representational image. | New Age file photo

The labour situation in the readymade garment sector in Ashulia and Gazipur industrial areas improved on Sunday while fresh unrest occurred in the Dhaka metropolitan area on the day.

Leaders of the Bangladesh Garment Manufacturers and Exporters Association said that most of the RMG factories in Ashulia resumed operations on Sunday, and the situation remained nearly normal throughout the day.

They also said that all the factories in Gazipur were operational and that no untoward incidents occurred.

However, production was suspended in at least 15 factories in the Dhaka metropolitan area on Sunday due to the fresh labour unrest.

According to the BGMEA, out of 407 member factories in Ashulia, only 16 units remained shut due to the unrest.

Of the 16 factories, 6 were closed under Section 13/1 of the Bangladesh Labour Act, 4 declared a general holiday, and workers at the remaining 6 factories declined to work after arriving in the morning.

Ashulia Industrial Police superintendent Mohammad Sarwar Alam told New Age that the labour situation in the Ashulia industrial belt improved on Sunday, with production resuming in almost all the RMG factories.

He said that a total of 18 BGMEA and BKMEA member factories remained closed under Section 13/1 of the Bangladesh Labour Act, while authorities at 4 factories declared a general holiday.

BGMEA statistics showed that all 876 member factories of the trade body resumed operations on Sunday morning and did not encounter any issues throughout the day.

According to the BGMEA data, authorities at 15 factories in Mirpur area in the city on Sunday forced to announce closure of their units due to the labour unrest.

More than hundred factories in the Savar, Ashulia, and Gazipur industrial belts, particularly in Ashulia, have struggled to operate for over two weeks due to the ongoing worker protests.

The workers have been demanding increased attendance and tiffin allowances, the removal of certain mid-level employees, the recruitment of more male workers, and an end to the blacklisting of workers involved in last year’s wage hike protests.

On Saturday, the government, factory owners and labour leaders held a meeting at BGMEA headquarters in the city to overcome the situation.

During the meeting labour leaders assured that they would provide support to continue production in the readymade garment sector.

Trade union leaders also urged garment workers to return to their respective workplaces immediately in an effort to restore normalcy and prevent further disruptions.

At the meeting industries adviser Adilur Rahman Khan urged factory owners to keep their factories open, warning that troublemakers in any individual unit would be dealt with strict measures.​

 

[Saif]

Why this turmoil in garment sector

The recent labour unrest in the industrial belts in and around the capital city including Savar, Ashulia and Gazipur that led to the general holiday or closure of some 219 garment factories till Thursday last surprised many. It is not only garment factories but pharmaceutical, shoe and other

thefinancialexpress.com.bd

Why this turmoil in garment sector
SYED FATTAHUL ALIM
Published :
Sep 15, 2024 21:38
Updated :
Sep 15, 2024 21:38

The recent labour unrest in the industrial belts in and around the capital city including Savar, Ashulia and Gazipur that led to the general holiday or closure of some 219 garment factories till Thursday last surprised many. It is not only garment factories but pharmaceutical, shoe and other industries have also been facing similar workers' agitation. The agitating workers in many cases came up with demands that were not raised before. For instance, in one garment factory in Ashulia, they demanded that there should be equal number of female and male workers in the factories. Despite the fact that the new wage structure is in place since January this year, the workers were demanding an annual increase in wage by 15 per cent, though just seven months back, it was settled at 5.0 per cent. But the workers placing such irrational demands, in most cases, reportedly, did not appear to be in a mood to sit with the management of the factories concerned for negotiations on whatever were their demands. On the contrary, they took to the street and resorted to street violence and attack on the garment units they worked for resulting in closure of many factories.

Similar stories were reported from pharmaceutical factories. However, the management of such industries (non-apparel) did try to resolve the issues with their workers at an early stage. But the situation was different in the case of garment factories. It is alleged that garment factory owners and industry leaders who used to have close connection with the erstwhile fallen regime tried to handle protesting workers even with genuine grievances in the same way that they did in the past. Obviously, that was through the use of force with the help of hired goons. But this policy is not supposed to work under the changed circumstances. In that case, those who allegedly pursued such strong arm tactics to suppress workers with legitimate demands were perhaps some Rip Van Winkles in the garment sector who failed to come to terms with the changed realities. As a consequence, the situation only worsened in the industry as it was rife with rumours that hit panic button among workers to resort to further violence and anarchy. However, as noted in the foregoing there were also instances of labour unrest that were not based on genuine demands, but meant to create chaos. In such cases, as reported by some garment workers, they were incited to agitation and violence by outsiders whom they were not acquainted with.

There is no question that the mass-student upheaval that unseated the immediate past regime has impacted different sections of the working people who think that they are somehow deprived and have a cause to fight for and hence demonstrate their strength to raise new demands. Also, there are others, who want to fish in troubled waters. They might be the beneficiaries of the past government who have a stake in destabilising the mainstay of the country's export sector. There is also the turf war over the lucrative jhut (garment waste) trade that has intensified with the change in political power.

So, whether the labour unrest in the garment sector arose out of workers' genuine demands or that it was the work of saboteurs out to create disorder should be found out before addressing it accordingly. The industry leaders must restore order in their own interest.

The police force that they would depend on so much during the previous regime to quell any labour unrest in their factories with an iron hand is still recovering from the trauma of September 5 revolution. And one should not fail to notice that in about every case of law and order issue, other supporting forces including the military have to come in aid of the police, an arrangement no doubt expensive. Understandably, the garment sector has a strong claim to the government's attention for the simple reason that their products make up more than 80 per cent country's exports. But given the fact that the current interim government which is only one-month-old and yet to fully organise itself, its response to every trouble may not be instant. The industry leaders need to understand this and not wait for the government's support to deal with day-to-day problems like in the past. It may be recalled at this point that in the beginning when the workers as well as troublemakers started to run riot in Savar, Ashulia and Gazipur, the industry leaders met with the interim government advisers a number of times seeking urgent strong action by the law-enforcement agencies. However, later they came up with the idea of conducting joint drives with help of the army, police and the BGB (Bangladesh Border Guard) and suggested the interim government accordingly. Thankfully, the joint drives have reportedly produced results with the arrest of some people (14 persons charged with instigating workers to create unrest). Meanwhile, the good news is, the majority of the garment factories except 49 units in Ashulia area reportedly started operation by Saturday as workers joined their duties. To maintain law and order, the police, Rapid Action Battalion (RAB), the Border Guard and Army personnel were found patrolling streets in the industrial area. Evidently, the wave of post-revolution uncertainties and instability that jolted society is gradually settling down. It is the unity of people that has made it possible. Every segment of society, the garment workers included, should own the change that has taken place and in this crisis time lend a hand so the nation may tide over.​

 

[Saif]

Almost all Savar, Gazipur garment factories resume

Nearly all of the roughly 407 garment factories situated in the Ashulia area under Savar upazila and Zirabo and Zirani areas under Gazipur were operational yesterday after security measures were beefed up centring labour unrests.

www.thedailystar.net

Almost all Savar, Gazipur garment factories resume

Nearly all of the roughly 407 garment factories situated in the Ashulia area under Savar upazila and Zirabo and Zirani areas under Gazipur were operational yesterday after security measures were beefed up centring labour unrests.

Around 15 factories were kept shut by the owners, who also announced that they were implementing a "no work, no pay" clause under the labour law.

Workers at some of the factories have been staging demonstrations for more than 15 days over different benefits and allowances, such as higher night allowances, tiffin bills, attendance bonuses and incentives for achieving production targets.

They also want factory authorities to implement a four-month maternity leave and provide light work to expecting mothers in their fifth month.

Other demands include senior officials refraining from using abusive language in factories and an end to the arbitrary termination of workers by factory authorities. Furthermore, they want due benefits to be paid as per the law if an employee resigns.

No untoward incident was reported yesterday.

Workers at some of the factories have been staging demonstrations for more than 15 days over different benefits and allowances

"I am hopeful that the factories that remained shut will reopen from tomorrow [Monday]," Khandoker Rafiqul Islam, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Daily Star over the phone.

"Normalcy has been restored with improvements in law-and-order with the deployment of more police and army personnel," he said.

Law enforcers and labour leaders are holding talks for the reopening of the factories, which witnessed production losses over the last two months, firstly for the anti-discrimination student movement and subsequent labour unrest, Islam said.

The BGMEA has been assessing the loss of business during both periods.

Many factory owners will have to provide discounts and face order cancellations and expensive air shipments, he added.

AK Azad, chairman and executive officer of Ha-Meem Group, which has a garment factory at Ashulia, said his factory resumed operations from yesterday as law-and-order improved and workers rejoined their workplaces.

His factories were shut for 12 days in September and eight days in August because of the labour unrest and anti-discrimination student movement.

He is also assessing his losses and planning for recovery of the losses. His buyers have already expressed concern over the frequent unrests and production losses.

He said he has received a lesser amount of work orders from international retailers and brands targeting the upcoming winter season.

Normalcy has been restored at the garment factories and production is ongoing, said Md Towhidur Rahman, president of the Bangladesh Apparel Workers' Federation.

The factory owners should fulfil commitments made to workers during the labour unrest, he added.

Amirul Haque Amin, president of the National Garment Workers Federation, echoed the same.

"It is business as usual at the industrial zone," he said.

Bangladesh's garment sector has overcome much more critical times and it is expected that the production losses can be recovered, Amin added.

Nazma Akter, president of the Sammilito Garment Sramik Federation, said factory owners should meet the legitimate demands of the workers.

She said production fell by a substantial amount in the garment sector in July, August and September.

These three months comprise the peak season for the shipment of goods for the upcoming Christmas period as well as the peak season for booking work orders for next year's summer, autumn and winter seasons.

However, many senior officials of international retailers and brands cancelled business trips and work orders, delayed factory visits, sought big discounts or expensive air shipments.​

 

[Saif]

Unrest emerges as a new threat to RMG recovery

The number of apparel work orders received by Bangladeshi companies from international retailers and brands for the autumn and winter seasons of 2025 dropped by nearly 10 percent compared to the past due to major shocks from the nationwide student movement and labour unrest in major industrial...

www.thedailystar.net

Unrest emerges as a new threat to RMG recovery
Labour leaders say owners should fulfil all logical demands

PHOTO : AKLAKUR RAHMAN AKASH

The number of apparel work orders received by Bangladeshi companies from international retailers and brands for the autumn and winter seasons of 2025 dropped by nearly 10 percent compared to the past due to major shocks from the nationwide student movement and labour unrest in major industrial belts over the past two and half months.

In light of the tense situation prevailing since July, major buyers pushed back planned trips or altogether cancelled factory visits, which led to a fall in the number of work orders for the upcoming seasons.

The months of July, August and September are not only the peak season for shipping goods meant for sale during Christmas to Western retailers, they are also the busiest months in terms of booking work orders for the next autumn and winter seasons.

However, that period coincided with an unprecedented breakdown in the law and order situation this year.

Production was severely hampered in mid-July, when the Sheikh Hasina-led Awami League government imposed a curfew and an internet blackout to quell the unrest stemming from the demand to reform the job quota system for public recruitment.

Ultimately, those measures proved futile. The Awami League government was overthrown by a mass uprising, with Hasina signalling the end of its tenure by fleeing to India on August 5.

After a new government was formed, led by Nobel laureate Professor Muhammad Yunus, different demands started coming up from workers of numerous sectors.

Of them, garment workers started raising charters of demand and production was halted for nearly 15 days as employees agitated.

Thousands of garment workers came out on the streets in industrial belts like Ashulia, Zirani, Savar, Tongi and Gazipur while some allegedly engaged in vandalism and arson.

Factory owners then began to shut down units one by one to avoid any spillover from the unrest as well as to protect the production units and machinery from vandalism.

This was exacerbated by the fact that the law and order situation was practically non-existent following the changeover in power.

Members of the Industrial Police refrained from patrolling industrial areas as they feared for their safety given that police personnel were being attacked.

Alongside that, the police administration was being reshuffled following the change of government so almost all police stations were hamstrung.

As a result, factory owners dared not run their manufacturing units.

The factories could not be run properly even with the help of the army as it did not have any magistracy powers.

So, most factories in Ashulia, Savar, Zirani and Zirabo either remained shut or were vandalised by workers.

Finally, the factory owners had to turn to their ultimate weapon, shutting down factories under the clause 13(1) of the Bangladesh Labour Act, which mainly deals with the "no work, no pay" stipulation.


WHY DID THE UNREST TAKE HOLD AT THIS TIME?

Many may question why the unrest erupted when the nation was in such a delicate situation, especially considering that a new wage structure for garment workers came into effect in December last year.

However, the workers' standards of living have not improved significantly despite the hike in pay due to persistent inflationary pressure.

According to workers, union leaders, labour experts and factory owners, there were some other reasons behind the labour agitation.

During the latest spell of unrest, workers primarily raised demands to standardise tiffin and attendance allowances as different factories in the same industrial belt pay different rates.

Another demand from workers was to recruit males and females in equal proportion to remove "discrimination".

Moreover, influential locals, especially those with political links, also influenced workers to capitalise on the lack of law and order.

Alongside that, a struggle ensued to fill the power vacuum and take control of the 'jhut' (waste fabric generated during apparel manufacturing) business after the fall of the government on August 5.

At a view exchange meeting with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) this week, Major General Muhammad Md Moin Khan, general officer commanding of the 9th Infantry Division of Bangladesh Army, outlined three reasons for the unrest: instigation by outsiders, logical and illogical demands raised by the workers, and a turf war over the jhut trade.

Amid the unrest, the interim government said it may review the wage structure.

However, labour leaders said reviewing the wage structure is not the main demand of the workers this time.

Nazma Akter, president of Sammilito Garment Sramik Federation, said many workers had been laid off since the beginning of the movement in July. She also validated their demands, saying their standards of living were still not up to scratch.

The factory owners need to agree with the logical demands, including calls for social protection, removal of some clauses of the labour law, implementation of maternity leave and provident fund, and stopping abuse of female workers, for the greater interest of the garment business, Akter said.

Md Towhidur Rahman, president of the Bangladesh Apparel Workers Federation, echoed Akter's sentiments.

Outsiders are also involved in the latest spate of unrest, he said. However, he added that many garment factories had not paid salaries timely, which was another trigger for the unrest.

"Usually, garment workers get a low salary. So, if they are not paid timely, how will they run their families and meet expenses such as house rent and tuition for their children?" he asked.

As an example, he said that some garment factories had not paid workers their salary for the month of August yet.

Last week, Amirul Haque Amin, president of the National Garment Workers Federation, said more than 400 garment workers were blacklisted by different factories for alleged involvement in the unrest.

As attendance of workers is registered through biometrics, either through fingerprints or facial detection, blacklisted workers cannot get jobs at other factories.

So, Amin said factory owners should wipe the names of those workers from the blacklist since they engaged in the unrest only to realise their logical demands.

At present, normalcy is being restored to industrial belts, particularly areas in Ashulia, Savar, Zirani and Zirabo, as security has been beefed up by deploying more members of law enforcement agencies.

Almost all factories in these areas were reopened by Sunday and production started as the workers re-joined their workplaces.

IMPACT OF THE UNREST

Not only have a certain percentage of work orders been diverted from local factories, but officials are also concerned about whether they can ensure the timely delivery of goods.

Consequently, Bangladeshi garment exporters will have to provide big discounts or opt for expensive air shipments to offset the time lost.

In some cases, work orders may be cancelled due to a failure to ship goods timely.

But in most cases, exporters will choose air shipment despite steep costs in order to meet the strict lead times and maintain smooth relationships with retailers and brands.

However, they know all too well that the profit margin will be dented significantly due to the increased costs of air shipment.

To ship goods via air from the Dhaka airport to any destination in Europe, exporters must pay over $4 per kilogramme of dry cargo.

However, it would cost less than 10 cents to send the same shipment to Europe through the Chattogram seaport.

The long-lasting disruption to production is the latest setback for Bangladesh's garments industry, which was already struggling to recover from the severe fallout of the Covid-19 pandemic, the Russia-Ukraine war, persistent inflation, and the Red Sea crisis.

Khandoker Rafiqul Islam, president of the BGMEA, said that apart from a 10 percent decrease in work orders, nearly the same percentage of work orders have been diverted to other countries.

It will take time to recover the lost work orders and it depends on full restoration of the normal business environment, Islam told The Daily Star over the phone.

As many factories were struggling, the Bangladesh Bank helped them clear salaries for the month of August. Around 90 percent of units had paid salaries for August as of September 17, he added.

"We expect full normalcy to be restored to industrial belts and for business to go back to usual after workers rejoin their workplaces," the BGMEA president also said.​

 

[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.

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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.​

 

[Saif]

50 RMG units suspend operations amid unrest

At least 51 readymade garment factories in Ashulia and Gazipur suspended operations on Saturday, primarily after lunch, as workers staged protests over arrears, the reopening of factories, and demands for a wage increase...

www.newagebd.net

50 RMG units suspend operations amid unrest
Staff Correspondent 28 September, 2024, 13:35

The workers of a garment factory staged a demonstration on Dhaka-Mymensingh highway demanding resignation of an official of a garment factory in Konabari of Gazipur on Saturday. | UNB photo

At least 51 readymade garment factories in Ashulia and Gazipur suspended operations on Saturday, primarily after lunch, as workers staged protests over arrears, the reopening of factories, and demands for a wage increase.

Workers from several garment factories, including Mondol Knitwear, blocked the Bypile-Abdullahpur road in the Zirabo area of Ashulia in the morning, demanding the reopening of closed factories, the withdrawal of cases against workers, and an increase in the minimum wage to Tk 22,000.

Workers of four garment factories in Gazipur staged demonstrations over separate demands, including opening of closed factories and payment of arrears, New Age Gazipur corresponcent reported.

Workers also blocked the Dhaka-Mymensingh and Konabari-Kashimpur roads.

Workers of Jamuna Denims Limited in the Konabari area, HR One Fashion Limited and HR One Accessories factory in Shalna area and Silicon Swing Limited factory in Memberbari area held protests and blocked roads.

Law enforcement agencies later cleared the workers from both locations.

Officials from the Industrial Police stated that workers at Mondol Knitwear had blocked the Ashulia road for three hours in the morning due to their demands for a wage increase, among other issues.

As a result of these incidents, 20 to 25 readymade garment factories in Ashulia announced the closure of their units after lunch.

The majority of factories in the industrial zone had been operating since morning, with workers attending their workplaces.

Protests from the Lusaka Group and Mondal Group, along with several nearby factories, however, forced many to announce closures.

According to industry sources, a total of 49 garment factories in Ashulia and two in the Gazipur industrial belt halted production on that day.

Of these, 12 factories in Ashulia closed under labour law provision 13(1), which states ‘no work, no pay,’ while the remaining 37 factories announced a holiday as workers either did not report for work or left after attending.

Garment factory owners had agreed on September 24 to all 18 demands of the protesting workers, including increases in attendance, tiffin, and night shift allowances, in an effort to restore normalcy in the units, particularly in the Ashulia area, where protests had been ongoing since August 29.​

 

[Saif]

Major brands sticking to Bangladesh

Contrary to what has been claimed in a number of media reports, a recent survey of some 20 global apparel buyers points to their continued confidence in Bangladesh readymade apparel (RMG) industry. Following widespread protests by workers in the industrial belts of Gazipur and Ashulia since early t

thefinancialexpress.com.bd

Major brands sticking to Bangladesh
Published :
Sep 28, 2024 22:02
Updated :
Sep 28, 2024 22:03

Contrary to what has been claimed in a number of media reports, a recent survey of some 20 global apparel buyers points to their continued confidence in Bangladesh readymade apparel (RMG) industry. Following widespread protests by workers in the industrial belts of Gazipur and Ashulia since early this month, nearly 100 RMG factories were forced to shut down disrupting the export supply chain. These events have sent shockwaves across Bangladesh and beyond, but findings of a survey carried out by the Business and Human Rights Resource Centre (BHRRC) provide some reprieve. The centre had reached out for feedback from some twenty global clothing brands to know about their future plans on apparel sourcing from Bangladesh particularly in light of the recent labour-related disturbances. Interestingly, some of the major names have stated that they have no immediate plans to divert orders from the country, which include Adidas, C&A, H&M amongst others. Although some brands politely declined to share their future plans, one cannot forget that the country offers not only the economies of scale in production but offers some of the most competitive prices for particular segments in apparels anywhere in the world.

The relations between foreign brands and Bangladeshi garments manufacturers span many decades and it is not that easy to replicate these longstanding relations in a different country simply because of more favourable conditions elsewhere. Cost remains a major issue and sourcing particularly low-end products any of the other competing countries including India, Cambodia or Vietnam will inevitably bring new challenges for buyers. Hence it makes sense for a lot of these brands not to have transferred orders as they are waiting to see how the situation unfolds. Interestingly, the BHRRC found some major fashion brands to be unhelpful in coming up with information requested. As pointed out in a recent report published in The Financial Express, the body stated that "several brands were reluctant to provide information on the impact of the protests on how they have ensured responsible purchasing practices and protection of worker welfare during the unrest."

With the exception of two brands out of 11, all others were on board to offer varying degrees of vendor support and letters of credit options to help ease cash flow issues. What all this points to is that a sizeable portion of international brands are not abandoning the country's RMG sector. While one brand has been forthcoming in providing "low-interest or no-interest financing to suppliers and have also covered the cost of air shipments to mitigate delivery challenges", this is by no means the consensus amongst brands covered. Hence the question arises, what will be brands' response in the next quarter should unrest continue to persist in industrial areas.

It is obvious that the potential fallout of any further unrest will have on Bangladesh and it is heartening to learn that a tripartite agreement among government, the industry and labour rights organisations have been reached. That said, there are enough external elements that appear hell bent on continuing to brew discontent over perceived deprivations and it is very much up to authorities to improve the law and order situation. Buyers for their part should keep faith that the country is picking up the pieces after a total change in the seat of government and work with their Bangladeshi counterparts to overcome obstacles, and not abandon what is obviously a win-win situation out of panic. Things are improving on the ground and time needs to be given to restore order.​

 

[Bilal9]

It is clear beyond the shade of a doubt that the defeated party and their backer India, are behind this unrest ^^. No need to verbalize further. In any case, here is the Bangladesh apparel sector MMF strategy as defined and interpreted by Lightcastle Partners, a Dhaka thinktank. Bangladesh exports mostly cotton apparel currently and this will need to change.

The full article is available here,

RMG Sector's Move to Man-Made Fiber for Sustainable Fashion

Explore how Bangladesh's RMG sector is adopting man-made fibers (MMF) to enhance sustainability and implement a circular fashion lifecycle.

lightcastlepartners.com

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Bangladesh’s Fiscal Year (FY) 2024-25 budget has been prepared amidst ongoing economic challenges, proposing a total allocation of BDT 7,970 billion (around USD 66 million). Concurrently, the government has set an ambitious new export revenue projection of USD 110 billion by 2027, as outlined in the export policy for 2024-27. Achieving this ambitious target, requires urgent attention from the ready-made garments (RMG) industry leaders, as they strategize to boost apparel exports and maintain sector competitiveness in the global market.

However, Bangladesh’s RMG sector has faced a decline in export growth since the beginning of 2024, particularly from major buyer countries. One contributing factor to this decline has been the shifting trade policies in these markets. For instance, changes in U.S. trade policies and tariff structures have likely influenced export dynamics with Bangladesh. Simultaneously, the EU’s stringent green regulations and due diligence requirements have put additional pressure on Bangladesh’s export competitiveness. As a result, exports to the EU dropped by 9.85% (Eurostat, EU) between January and April, while exports to the USA fell by 14% (OTEXA, USA) during the same period, raising serious concerns for industry leaders.



As the RMG industry is increasingly saturated with cotton-based apparel production, manufacturers must diversify into non-cotton-based apparel, particularly man-made fiber (MMF) to retain Bangladesh’s position as the second-largest RMG exporter in the global market. The demand for MMF-based clothing is growing worldwide, driven by a focus on recyclable raw materials and high-value-added apparel, making diversification essential for Bangladesh’s export basket. Bangladesh must also align with upcoming EU regulations, such as the EU Green Deal framework and the Eco-design for Sustainable Products Regulation (ESPR). These regulations are prompting global apparel brands to shift towards sustainable initiatives, boosting the use of recycled inputs and encouraging suppliers to incorporate environmentally friendly materials.

Adopting such practices facilitates a closed loop within the apparel lifecycle, promoting circularity by ensuring resources are continuously reused or recycled into new garments.

This approach significantly reduces waste and diminishes reliance on virgin materials, helping Bangladesh meet its export targets and comply with international sustainability standards.

Figure 3: Latest Annual Sustainability Report of Respective Brands.

Global brands are also increasingly integrating recycled raw materials into their production processes, as shown in the figure, and by adhering to these sustainable practices, apparel producers are incorporating environmentally friendly raw materials that require less water and energy. This shift includes focusing on man-made fibers (MMF) as part of sustainable raw materials for apparel producers. A key reason for MMF’s global ascent is its higher sustainability performance compared to cotton.

The Imperative to Integrate MMF in the Production Process​

Diversifying into various categories of fibers enables manufacturers to achieve a balanced production mix without overburdening a single material. With this diversification in mind, suppliers are increasingly incorporating man-made fibers (MMFs) into their production processes due to their superior recyclability.

Figure 4: Defining various types of non-cotton fibers

Focusing on MMFs is crucial as it supports the implementation of a circular economy model, which extends the apparel life cycle, and carbon footprint by 1.5kg compared to using cotton across the value chain. MMF demonstrates lower water consumption and carbon emissions in comparison to cotton fibers. This increasing popularity of MMFs is helping exporters prepare for upcoming sustainability compliance regulations. Leading MMF-supplying countries like India and Vietnam are significantly ahead of Bangladesh in incorporating MMFs into their apparel production processes.


The recycling potential of man-made fibers (MMFs) offers a significant advantage for apparel manufacturers, enabling them to incorporate non-cotton raw materials into their production processes. This shift allows apparel leaders to capture a larger market share in the global apparel market. Consequently, in 2021, global exports of man-made and blended apparel reached USD 271 billion, surpassing cotton exports, which stood at USD 219 billion. Over the past decade, the relative significance of cotton garments has declined, while apparel made from man-made fibers has more than doubled.5

Global Landscape in the Production of MMF​

The growing global population also presents a significant challenge for the apparel industry. The United Nations estimates a population of 8.1 billion by 2025, leading to a substantial rise in food consumption. This, in turn, is expected to put a strain on arable land, potentially limiting the availability of natural fibers like cotton.

Figure 6: Global Trend of Fiber Consumption

In response to this looming resource scarcity, the share of natural fibers in the apparel industry has declined from 41% to around 27% in 2020. This shift is driven by changing consumer preferences, as people worldwide become more conscious of the environmental impact of the fashion industry. Consumers increasingly prefer garments made from eco-friendly raw materials to reduce carbon footprints and minimize the use of virgin materials.


Producers are aligning their production processes with these consumer preferences, prompting suppliers to shift towards more non-cotton apparel, particularly MMFs. These fibers are favored for their durability, versatility, and ability to blend with other materials to create innovative fabrics. Over the past five years, non-cotton fiber production has grown at a compound annual growth rate (CAGR) of 2.5%, in contrast to a -1.4% CAGR decline in cotton production.


The global fashion industry is facing a pressing need for sustainable practices, and international brands are leading the charge in promoting a shift towards recycled man-made fibers (MMFs), particularly recycled polyester, among others. This strategic move capitalizes on the inherent recyclability of MMFs, offering a significant advantage over natural fibers like cotton and wool when it comes to post-consumer life. Recycled polyester, primarily derived from PET bottles, offers a compelling alternative to virgin polyester. Reusing PET bottles to create recycled polyester for garments embodies the circular economy principle within the fashion industry with approximately 99% of recycled polyester feedstock made from PET plastic bottles. Traditionally, garments made from virgin polyester rely on new petroleum resources. By diverting used PET bottles for clothing production, dependence on fossil fuels is reduced, and the overall carbon footprint is

lowered, implementing circular practices within the textiles value chain. But the innovation doesn’t stop there, international brands are actively exploring the potential of other post-consumer plastics like ocean waste and packaging scraps, alongside pre-consumer waste like fabric offcuts. This closed-loop system keeps plastic waste out of landfills and oceans, preventing pollution and environmental damage.

Recognizing the immense potential, leading brands like Adidas, H&M Group, and the Inditex Group have joined forces to significantly increase the use of recycled polyester in garments. Their ambitious target of 45% by 2025 is just the first step, with an ultimate goal of reaching 90% by 2030. Among the global brands, Nike took the initiative to make India’s national cricket team jerseys made from recycled polyester. Similarly, Adidas made the jerseys for the Indian team entirely from recycled polyester. By utilizing recycled polyester for these jerseys, India is harnessing the inherent environmental benefits of synthetic fibers like polyester.

(Cont'd in the next post)​

 

[Bilal9]

(Cont'd from previous post)​

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Navigating the Footsteps of the Peer Economies​

Vietnam

Vietnam’s “Strategy for the Development of Vietnam’s Textiles and Clothing, Leather and Footwear Industries to 2030, with a vision to 2035 emphasizes moving towards higher value-added products within the textile and garment industry. MMFs are often used in technical textiles, functional apparel, and activewear, which tend to have higher profit margins compared to basic cotton garments. Increased demand for these products could stimulate domestic MMF production to meet those needs.5 The government of Vietnam (GoV) is planning to establish specialized industrial parks centering on the textile, clothing, and others. As a result, it may become an attractive destination for the factories to set up, encouraging domestic production of MMF along with foreign direct investment (FDI) in their economy.

India

India has been incentivizing new start-ups in the textile segment to boost private investment in the economy, allocating research grants of up to USD 59,904.50 (50 lakh rupees) specifically targeting startups and individuals working with technical textiles. Moreover, India is heavily promoting the production of man-made fibers (MMFs) through its ‘Make in India’ initiative, which includes revoking anti-dumping duties on purified terephthalic acid (PTA), viscose staple fiber (VSF), and acrylic. This initiative encourages domestic manufacturers to integrate MMFs into their production processes and increase production capacity, as evidenced by India’s use of MMFs in their national cricket team’s jersey production.


As the data depicts, India experienced a robust rise in its compound annual growth rate for man-made filament yarn (MMFY) by 9.2% in 2021-22, indicating a rising demand for MMFY, which translates to increased production of polyester, viscose, and other synthetic apparel. Strategically capitalizing on this trend, India has allocated USD 1.28 billion (10,683 crore rupees) to implement a product-linked incentive (PLI) scheme. This scheme provides incentives to firms based on their incremental revenue over five years and is designed to boost economies of scale in the MMF-based textiles and apparel segment. The initiative also aims to generate more employment in the economy.

Exploring the Potential of MMF Production in Bangladesh​

As Bangladesh nears its graduation from the Least Developed Countries (LDC) category, the diversification of the ready-made garments (RMG) sector, becomes increasingly crucial. While it signifies noteworthy development progress, it also means losing preferential trade benefits that provide privileges associated with LDC status. Without these advantages, the RMG industry’s heavy concentration on specific product lines could threaten the industry’s position in the global apparel market and weaken its ability to negotiate competitive prices with global brands.

Figure 10: Comparison of Price Difference Between Bangladesh and Highest Recipients due to Lack of Negotiating Power

The figure illustrates the price disparity between Bangladesh and other competing countries, with Bangladesh receiving lower prices for its cotton-based apparel. For instance, Peru receives 83% more for men’s cotton shirts, and Thailand secures 79% higher prices for women’s cotton jackets than Bangladesh. Additionally, men’s woven cotton trousers from Bangladesh were sold for USD 7.01 per piece in 2020, which is 9.20% below the global average of USD 7.72. However, to help the RMG leaders negotiate for higher prices, Bangladesh is diversifying its production basket, with the share of man-made fibers (MMF) increasing from 21.8% in 2021 to 28% in 2022, to cater to the growing demand for sustainable clothing in the major buyer destinations.

Figure 11: ITC trade map and PwC analysis

To facilitate fiber mix diversification, RMG manufacturers are strategically navigating their production processes to move up the value chain and expand their product lines. Industry leaders are incorporating man-made fibers (MMFs) into their production, following the example of peer nations, to be able to deliver high-value-added products such as blazers, denim wear, and activewear. These kinds of products are high-priced in the global market due to their technical properties and higher market value.

Note:

Following the MMF-based apparel export basket, woven dresses for women grew at a compound annual growth rate of 27% from 2017 to 2022 in Bangladesh as illustrated in the graph above. This growth indicates that Bangladesh is diversifying its apparel product line beyond cotton production to include MMF production for value addition. Woven dresses, in particular, hold a higher value than knitted dresses, making them a strategic focus for RMG exporters aiming to produce high-value-added products. In alignment with the previous Export Policy for 2021-24, which emphasizes the need for such high-value products like men’s and women’s blazers, leather jackets, and MMF items, Bangladesh has been actively investing in MMF-based suits and blazers (HS Code 620333), with a CAGR of 20% in 2022. This targeted investment depicts the sector’s intention to tap into the potential of MMF and achieve product line diversification within the RMG sector.

Alongside, to enhance the MMF backward linkage, Bangladesh is collaborating with Chinese engineering firms to locally manufacture PET and PSF chips. Furthermore, in the recent FY 2024-25 budget, the government reduced import duties on MMF raw material polypropylene yarn from 10% to 5% to support local carpet manufacturing industries. This reduced import duty on polypropylene will also aid textile and RMG manufacturers in producing sportswear, undergarments, and medical gowns locally. Similarly, with the ongoing collaboration with the Chinese engineering industries, Bangladesh can integrate updated technology and transfer skills to bolster the production of MMF-based garments. This formation of joint ventures with international brands and retailers facilitates foreign direct investment (FDI) within the country. FDI holds the potential to catalyze transformative outcomes, such as increased exports and seamless integration into the global value chain (GVC). Hence, the forthcoming collaboration and influx of FDI can empower the RMG factory owners in Bangladesh to leverage their global reputation, enabling them to negotiate higher unit prices for export items.

Way Forward: Exploring Other Non-Cotton Raw Materials​

While diversifying Bangladesh’s apparel exports by incorporating man-made fibers (MMF), it is crucial to recognize the associated environmental concerns. Although MMF materials like polyester and viscose reduce carbon footprints and address the issue of fast fashion due to their durability, they are predominantly made from non-renewable resources. These materials, while durable, are also non-biodegradable. To mitigate over-reliance on a single type of raw material, it is essential to integrate other non-cotton materials such as wool and silk into the production mix.

Potential for other non-cotton materials​

In 2022, Bangladesh achieved the highest market share in the outerwear category of non-cotton apparel, capturing 38% compared to other leading nations. This category includes suits, blazers, and coats, among others, made extensively from MMF, wool, cashmere, silk, and other non-cotton fabrics. Despite this achievement, the country’s share of exports across the upstream non-cotton value chain remains minimal, with the overall non-cotton apparel export share at just 5% in 2022.

Figure 13: Non-cotton export countries market share in 2022

Diversifying into other non-cotton raw materials allows RMG manufacturers to expand their market reach. For instance, in 2022, Bangladesh successfully exported its non-cotton apparel to destinations for instance, European Union (EU), France, Germany, and Spain, as well as the USA.

Exploring the potential of wool and silk fiber​

Amongst the various types of fibers, wool and silk have a lower environmental impact unlike cotton, which requires significant water resources and pesticide use. On the other hand, wool and silk are derived from animals and don’t necessitate large-scale land cultivation. Both wool and silk are naturally biodegradable, compared to synthetic MMFs derived from fossil fuels, which can take centuries to decompose and contribute to microplastic pollution.

Besides being environmentally friendly, wool is also used to make high-value apparel, such as suits, shirts, pants, and knitwear sweaters for export. As shown in Figure 7, recycled wool holds a 7% market share in the global apparel industry, following recycled polyester. To boost the market for wool-based products, industry leaders in Bangladesh plan to import wool from Uruguay besides Australia, and China. Importing wool from Uruguay would enable industry leaders to explore the Mercosur market, a trade bloc that facilitates the free movement of goods, capital, and services, among its member countries, thereby expanding the consumer base to include countries like Brazil, Argentina, and Paraguay.

Furthermore, to build a diplomatic relationship with Uruguay, a bilateral free trade agreement is being drafted that will allow Bangladesh to enjoy tax reductions or reduced duties on exported items.

By focusing on other non-cotton fibers, particularly those with high value-added potential, the industry can achieve a two-pronged approach: diversifying fiber production and exploring new market destinations to strengthen its position within the existing market. Addressing climate concerns, garments made from fibers like wool, linen, or high-performance synthetics not only reduce the dependence on a single type of raw material but also contribute to a more balanced and environmentally responsible apparel production strategy. Similarly, offering high-value-added products will qualify Bangladesh for the GSP+ scheme, enabling the country to retain its competitive advantage and allow RMG leaders to strengthen their brand image in the global apparel market.

Author​

This article was authored by Sadia Karim, a Business Analyst at LightCastle Partners. Advisory and editorial support was provided by Samiha Anwar, Senior Business Consultant at LightCastle Partners. For further clarifications, contact here: samiha.anwar@lightcastlepartners.com

References​

1. What Do We Know About Bangladesh’s Proposed FY 2024-25 Budget? | LightCastle Partners
2. Achieving $110b export target by FY27 is difficult | The Daily Star
3. Bangladesh RMG exports to USA decline by 14% in Jan-Apr 2024 amidst growing challenges | Textile Focus (2024)
4. Closing the loop: Increasing fashion circularity in California. (2021). Mckinsey and Company.
5. Upscaling the RMG Sector (2024) | RAPID
6. Beyond Cotton: A Strategic Blueprint for Fibre Diversification in Bangladesh Apparel Industry | BGMEA
7. The Role of Recycled Polyester in the Indian Apparel Industry | JBECOTEX
8. Government announces up to Rs 50 lakh grant for startups to promote technical textiles (2023) | The Economic Times
9. AR_Wazir-Advisors-Annual-T_A-Industry-Report-2023
10. India Aims to Claim Higher Shares in MMF & Technical Textiles | Fibre2Fashion
11. International Trade Center (ITC) report
12. Bangladesh gets up to 83% lower price than rivals (2022)| The Daily Star
13. From Shirts to Shores: Blueprint for Bangladesh RMG Industry (2024) | BGMEA
14. Exploring Opportunities in Market and Product-Line Diversification in Bangladesh’s RMG Industry | LightCastle Partners
15. Data Source – UN Comtrade and Wazir Analysis

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WRITTEN BY:​

At LightCastle, we take a systemic and data-driven approach to create opportunities for growth and impact. We are an international management consulting firm which creates systemic and data-driven opportunities for growth and impact in emerging markets. By collaborating with development partners and leveraging the power of the private sector, we strive to boost economies, inspire businesses, and change lives at scale.

For further clarifications, contact here: info@lightcastlepartners.com

 

[Saif]

Reforming wage structure, policy in RMG sector

Against the backdrop of spiralling workers' unrest with attendant violence in the Readymade Garment (RMG) units in Ashulia, Savar, Gazipur and elsewhere, the UN agency dealing with labour-related issues, ILO, has identified five key areas that demand urgent attention. Evidently, the international l

thefinancialexpress.com.bd

Reforming wage structure, policy in RMG sector
Published :
Oct 01, 2024 22:02
Updated :
Oct 01, 2024 22:02

Against the backdrop of spiralling workers' unrest with attendant violence in the Readymade Garment (RMG) units in Ashulia, Savar, Gazipur and elsewhere, the UN agency dealing with labour-related issues, ILO, has identified five key areas that demand urgent attention. Evidently, the international labour body has been closely monitoring the escalation of agitation among the garment workers, their grievances and the complexities involved that reflect systemic problems requiring speedy redress. The key issues identified by the ILO and the suggested remedies include wage structure, policy and labour law reform and strong social and legal protections and industrial relations, and occupational safety and health (OSH).The first step towards addressing the issues causing destabilisation in the garment and other industries is to acknowledge those by all the stakeholders involved. The next step would be to conduct constructive dialogues between the RMG factory owners, workers and government officials in a spirit of collaboration and good faith so that workers' rights are recognised and protected, while the sustainability of the RMG industry is also ensured.

Admittedly, workers must be motivated to develop a sense of ownership of the factories they work for a healthy industrial relations system in the RMG sector or any other industry. Continued unrest in the country's highest foreign exchange earning sector is only indicative of a trust deficit between workers and employers. The ILO's input in this case is definitely timely and welcome for riding out the crisis. Notably, the international labour body did highly commend the September 24 agreement reached between the RMG workers and employers as a 'landmark' accord. But hardly a week had passed since that agreement when violent clashes between workers and law-enforcers erupted on Monday last in the Ashulia area leading to the death of one worker and critical injuries to several others. Clearly, the situation appears to be grave since following the latest violence, owners of the Ashulia area has sought protection of their factories, their staff and workers against what they termed 'outsiders' who are out to destroy the industry.

Obviously, this latest development flies in the face of the 'worker-employer agreement' termed 'landmark' by the ILO. Even so, the latest unrest only points to how germane the ILO inputs and suggestions are to the crisis-ridden RMG sector. Now that the overall atmosphere in the RMG industry is getting toxic for reasons yet to be identified, the interim government needs to put its foot down to protect this vital sector of the economy. At the same time, it should see to it that the measures suggested by the ILO to restore a healthy worker-employer relationship in the entire industry are implemented duly. In this context, the suggested move to reform the wage structure and policy towards a gender-responsive national wage policy as well as reforming the minimum wage mechanism (through inclusive consultations between workers and employers) should be started without delay. Similarly, amendment to the Bangladesh Labour Act, introduction of an independent alternative dispute resolution institution and reform of the labour court system should also be initiated. Also, for social protection of workers, the ongoing pilot scale 'Employment Injury Scheme'should be institutionalised and legalised. To ensure occupational safety and health (OSH) for workers, the government would be well-advised to ratify the related conventions nos. 155 and 187 for developing a comprehensive OSH system in the sector.

Finally, the owners of the RMG factories should take the leading role to keep their workers happy in the interest of improving industrial relations and establishing peace and stability in the sector.​

 

[Saif]

Why do RMG workers always get a raw deal?

Since its inception, the ready-made garment (RMG) industry has gone through many ups and downs over the last four decades. Now the industry has reached a stage where it can take pride in its achievements as the world's second-largest garment supplier as well as the main source of foreign income for

thefinancialexpress.com.bd

Why do RMG workers always get a raw deal?
Atiqul Kabir Tuhin
Published :
Oct 02, 2024 21:39
Updated :
Oct 02, 2024 21:39

Since its inception, the ready-made garment (RMG) industry has gone through many ups and downs over the last four decades. Now the industry has reached a stage where it can take pride in its achievements as the world's second-largest garment supplier as well as the main source of foreign income for Bangladesh. While Saudi Arabia, Venezuela, and Iran among others may take pride in their petroleum exports, Bangladesh is up there with RMG exports.

The apparel sector accounts for over 84 per cent of the country's total export earnings and employs around four million workers directly and many more millions indirectly. While the overall economy of Bangladesh has significantly benefited from the growth of the RMG sector, resulting in the emergence of a nouveau riche class, millions of workers who have contributed to the industry's success through their hard work, blood, sweat and tears remain trapped in a cycle of poverty and exploitation.

Their occasional outbursts of frustration for drawing attention to meet their needs are manifestations of the growing unrest in the RMG sector. Issues such as salary arrears, reluctance to pay mandatory festival bonuses, non-implementation of labour laws etc., plague many of the approximately 3,500 RMG factories in the country. A research report published by the Centre for Policy Dialogue (CPD) shows that Bangladeshi garment workers get the lowest monthly wages compared to other garment-producing countries like Cambodia, China, India, Indonesia and Vietnam.

That is understandable in many respects to keep prices down and to maintain international competiveness, but, seemingly, it is always at the expense of the garment workers - who get the short end of the stick and that cannot be right.

Of late, the International LabourOrganisation (ILO) has identified five key issues troubling Bangladesh's readymade garment (RMG) industry, and recommended reforms. These include amending the wage structure, labour law revisions, and establishing mechanisms for dispute resolution.

In 2023, during the latest minimum wage negotiations, workers demanded Tk 25,000, while owners proposed Tk 10,400. A comprehensive cost-of-living study by the Bangladesh Institute for Labour Studies (BILS) had shown that workers need at least 23,000 taka to stay above the poverty line. And yet, Tk 12,500 was finalised as minimum wage and workers were apparently forced to accept that through violence, lawsuits, and even gunfire. Four workers lost their lives, challenging the decision.

In 1994, the first wage board for Bangladesh garment sector was established, setting the minimum wage at Tk 930 per month. After 30 years and many substantial increases in the cost of living, this has been increased to a mere Tk 12,500, while revenue from garment exports surged from $223 million to over $40 billion during the same period.

Making profit is nothing bad and the industry would not exist without profit, but it seems to lack fair play when considering the plight of the workers. Repeated incidents of unrest and violence in RMG sector raise numerous questions. Why must workers continually risk their life and limb to press their demand for the implementation of minimum wages? Why is it not automatic, perhaps once yearly? Why does the demand for increase in pay and perks lead to severe consequences in the industrial sector? Why are owners permitted to suppress workers' demands by using violent force? As the RMG industry keeps Bangladesh afloat, why is not the government doing more to protect all those involved? Why, for example, are not the workers benefitting through a profit-share scheme?

Workers have every legitimate reason to be angry about the various injustices in wages and working conditions. It is said there is no organisation or independent trade union through which they can properly voice their concerns and grievances. Workers, many of whom are illiterate, find it extremely hard to express themselves and have their grievances addressed.

Following the horrific Rana Plaza collapse in 2013, international pressure led to the relaxation of the registration process to allow for the formation of trade unions in the garment industry. To date, 1,300 trade unions have been registered in this sector. A majority of these unions or committees are led by individuals loyal to the owners or an offshoot of the factory itself. Those who are not loyal face various forms of harassment after every movement. Most factory owners, understandably, are averse to the concept of unions, because they fail to recognise that healthy union activity is key to maintaining stable industrial relations. On the other hand some of the unions allegedly serve the interests of political parties rather than those of the workers, further undermining the workers' ability to seek fair treatment.

Lack of an effective labour court system in Bangladesh is another problem. The few labour courts that exist are ill-equipped to provide justice for workers. Institutional support for workers is virtually non-existent, and without a proper mechanism for addressing grievances, workers are left with little recourse but to take to the streets and risk life for their rights.

As the RMG industry is the mainstay of the economy, the government must show a greater interest and offer much better protection for the workers. The government and industry leaders must prioritise the establishment of a strong and effective institutional framework for setting wages and resolving disputes. Wage increases should be predetermined and enforced over fixed periods to prevent workers from resorting to protests. The practice of wage arrears, fraud, and deceit must be eradicated. ILO calls for amendments to the Bangladesh Labour Act to align with international standards, expanding coverage to all workers and simplifying trade union registration. In addition, the ILO urges the establishment of an alternative dispute-resolution institution and reform of the labour court system.

For the RMG industry to remain competitive on the global stage, ensuring workers' rights is not just a matter of moral obligation and justice, but an economic necessity. International trade is becoming more increasingly influenced by concerns about human rights and environmental sustainability. Consumers are forcing brands to become more selective, prioritising ethical supply chains. While everyone seeks quality garments cheap, they do not want to wear the guilt it was made in a sweatshop. Therefore, the industry must take proactive steps to improve workers' wellbeing and safety, moving beyond merely fulfilling basic obligations.​

 

[Saif]

Apparel exporters demand $10m in Debenhams dues

A platform representing three dozen local apparel manufacturers has demanded over $10 million payment for fashion items they supplied to the UK retail giant Debenhams.

www.thedailystar.net

Apparel exporters demand $10m in Debenhams dues

PHOTO: REUTERS

A platform representing three dozen local apparel manufacturers has demanded over $10 million payment for fashion items they supplied to the UK retail giant Debenhams.

At a press conference at the Economic Reporters Forum (ERF) in Dhaka yesterday, they said they will file a case against the local forwarder of the now-bankrupt British store chain unless the payment is made within 15 days.

Md Zahangir Alam, convener of the Debenhams vendors' community platform, said that due to the negligence of the forwarder Expo Freight Limited (EFL), they have not received the payment to date.

The 36 vendors were supplying readymade garments (RMG) to Debenhams, a 150-year-old UK-based public limited company.

As Debenhams was a highly reputable company in the UK and other Western markets, Alam said they were selling the goods through sales contracts.

"The payment terms were to surrender the bill of lading to the nominated forwarder, EFL in this case, after receiving the export proceeds in the bank," he said.

"We have been supplying the goods for the past decade following these terms," he added.

Alam said the 36 companies supplied garments worth $70 million before Debenhams went bankrupt due to the Covid-19 pandemic. "Out of the $70 million, the suppliers have received nearly $60 million over the last four years, but $10 million remains unpaid."

"Now, Expo Freight Limited is legally responsible for paying the arrears to the suppliers as it handled the shipments to the now-bankrupt British retailer Debenhams," he said.

"We have relentlessly tried to resolve this matter and to some extent, we have succeeded. But due to the negligence of the EFL, we have not received the export value to date," said Alam.

On April 9, 2020, Debenhams filed for liquidation in the UK and the court appointed an administrator.

Subsequently, the Bangladeshi vendors came together and formed the platform called the Debenhams Vendors Community.

Alam said the main objective of this community is to negotiate, liaise, realise the dues and make collective decisions regarding the goods lying in the port and transit.

He said that among the 36 suppliers, whose total export value exceeds $5 billion annually, many are small and medium-sized companies that cannot absorb such losses.

"These companies will face unrecoverable losses if the arrears are not paid on time," he added.​

 

[Saif]

Faulty NIDs deprive garment workers of welfare fund benefits

Many garment workers have been facing challenges in accessing financial benefits from the Central Fund for the industry because of inaccuracies in their national identity (NID) cards, analysts said yesterday.

www.thedailystar.net

Faulty NIDs deprive garment workers of welfare fund benefits

Although workers in the garment industry are entitled to many benefits, they often fail to avail them due to a lack of awareness. Many of them cannot even access the central welfare fund due to inaccuracies in their national ID cards. Photo: Star/File

Many garment workers have been facing challenges in accessing financial benefits from the Central Fund for the industry because of inaccuracies in their national identity (NID) cards, analysts said yesterday.

The Central Fund for the welfare of garment workers was set up in 2016, with the country's apparel makers contributing 0.03 percent of their export proceeds to the fund each fiscal year.

As per the conditions of the fund, the workers must submit their NIDs to take financial benefits from the fund.

However, at the end of the day, not all workers can access the money as their NID cards are littered with mistakes, speakers said.

They made the comments at a roundtable discussion, titled "Social Protection for RMG Workers in Bangladesh", jointly organised by The Daily Star and the UN Capital Development Fund at The Daily Star Centre in Dhaka.

According to the ministry sources, there is around Tk 1,000 crore in the Central Fund at present.

Md Abdus Samad Al Azad, director of the Central Fund under the Ministry of Labour and Employment, said his ministry plans to remove barriers in fund disbursement by correcting complexities related to Mobile Financial Services (MFS) and finding an alternative to NIDs.

He said faulty NIDs are the biggest factor depriving workers of social protection measures.

Azad added that payments from the Central Fund would gradually be digitised so workers could avail funds easily and without hassle.

Government officials, senior officials from different garment factories, international cooperation bodies, union leaders and officials from different NGOs also participated in the discussion, which was moderated by Tanjim Ferdous, in-charge (NGOs and foreign mission) of The Daily Star.

The Central Fund is one of many social protection measures for garment workers. Other such schemes include the Social Protection Programme for Unemployed Workers by the European Union and Germany, the National Social Insurance Scheme, the Employment Injury Scheme, the Mental Health Initiative for RMG Workers, the Mother and Child Benefit Program, Child Daycare Centers and the Universal Pension Scheme.

Unfortunately, most workers cannot enjoy such benefits as they lack awareness about these facilities. Bureaucratic hassles and complex processes present other major barriers.

While presenting the keynote paper, Shariful Islam Chowdhury, project analyst of UNCDF Bangladesh, said most RMG workers are unaware of such programmes.

He recommended increasing awareness, collaborating with industry associations, integrating factories with the universal pension scheme, and digitising the central fund so workers can benefit from these measures.

Masing Newar, assistant field officer of the World Food Programme, echoed Chowdhury's views.

Newar said her office offered social protection measures for garment workers, such as child and mother and nutrition programmes. But many do not know about these measures, so they do not avail of them.

Joly Talukder, vice-president of the Bangladesh Garment Sramik Trade Union Kendra, urged the government to publish a white paper on the Central Fund for more transparency.

ANM Saif Uddin, chairman of the Standing Committee on the International Labour Organization and Labour Affairs of the BGMEA, said the BGMEA had built eight schools in Dhaka and one in Chattogram that offer free education for the children of garment workers.

But most of the workers do not know about these facilities.

This is also the case for the eight healthcare centres in Dhaka and a full-fledged hospital in Chattogram. These institutions are run by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), but workers are unaware of them.

Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, suggested bringing all social protection measures under a central framework.

Such a move would ensure that workers can enjoy benefits and enhance monitoring by the authorities, he said.​