[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

EU garment import rose by 1.43pc in Jan-Oct period

Importantly, unit prices declined for most suppliers in 2024 compared to 2023, reflecting competitive pressures within the global apparel industry

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EU garment import rose by 1.43pc in Jan-Oct period

Worker efficiency in the garment sector has been affected by external inefficiencies, such as power shortages and port and road congestion, industry insiders said. Photo: Star/file

The European Union's garment import from Bangladesh grew by 1.43 percent in the January-October period, despite a modest increase in quantity at 6.68 percent, indicating 4.92 percent decline in prices.

Importantly, unit prices declined for most suppliers in 2024 compared to 2023, reflecting competitive pressures within the global apparel industry.

The EU's import price from China declined by 8.63 percent in the mentioned period, according to data from the Eurostat.

The data suggests that while the EU's overall demand for apparel remains strong, the competitive landscape is shifting, with some suppliers gaining ground while others, including Bangladesh, are experiencing challenges.

The EU's apparel imports during January-October 2024 shows sign of recovery despite price pressures.

From January to October 2024, the EU's apparel imports experienced a mixed trend. The EU's apparel imports totalled USD 77.78 billion during this period, a slight increase year-on-year by 0.58 percent.

This brings EU's year-to-date clothing import to a positive side, from negative 2.02 percent growth in January-September 2024.

While overall import value and quantity increased slightly, a closer look reveals a complex picture across different sourcing countries.

China, a major supplier, saw a slight increase in the value of apparel imports to the EU in the mentioned period, which is 1.14 percent suggesting a potential shift in the global apparel market.

Other major suppliers like Vietnam and Cambodia experienced growth by 3.31 percent and 20.66 percent respectively.​

 

[Saif]

Automation replaced 31% of garment workers: study

Automation has reduced the need for human labour in the production process of the garment sector by nearly 31 percent by mostly replacing helpers, according to a study.

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Automation replaced 31% of garment workers: study

Worker efficiency in the garment sector has been affected by external inefficiencies, such as power shortages and port and road congestion, industry insiders said. Photo: Star/file

Automation has reduced the need for human labour in the production process of the garment sector by nearly 31 percent by mostly replacing helpers, according to a study.

Sweater factories saw the highest decline of 37 percent, while woven factories 27 percent per production line, it said.

Automation in the cutting process led to the highest reduction of 48 percent, while sewing 26.57 percent, it added.

Solidaridad Network Asia, Bangladesh Labour Foundation, and BRAC University jointly conducted the study titled "Assessment of Technological Transition in the Apparel Sector of Bangladesh and Its Impact on Workers".

The findings were made public through a programme at Amari Dhaka yesterday.

Automation does bring several positive impacts on workers, said Shahidur Rahman, a professor of the economics and social sciences department of BRAC University, at the programme.

It also poses significant challenges to workers, especially women and those who are past their prime, have low literacy, are unskilled, and lack confidence, he said.

The advent of semi and fully automatic machines led to some job losses while others were trained to operate those machines or shifted to other sections to undertake new roles, he added.

Reassignment to other sections is commonly seen only in large factories, while others cannot afford to do so, said Rahman.

As factories rely on automation, workers are finding that their previous skills are no longer as valuable, raising concerns over job security, he said.

Adoption of automation has already begun, Sultan Uddin Ahmed, chairman of a recently formed Labour Reform Commission, said at the event.

"Now, it is time to think about how to cope with the process and become competitive among peer countries," he said.

"So, we need proper planning and the first step of our preparation is finding out the number of workers we can retain in this sector," he added.

"It won't be fair to say that our workers would not be able to cope with the arrival of the machines.

Rather, we have to take preparations on how to utilise the existing workforce," he added.

The entrepreneurs, governments, and trade unions can jointly contribute to this process, he added.

He also underscored the importance of research for utilising the country's workforce.

"Now many reputed NGOs (non-governmental organisations) are setting up resorts in Gazipur on huge areas despite there being an opportunity of establishing jackfruit research centres," said Ahmed,

"By setting up more industries, we have to ensure a close relationship between automation and workers," he said.

Miran Ali, a member of the Bangladesh Garment Manufacturers and Exporters Association's support committee, echoed this sentiment, saying that automation does not come about overnight.

"We have to move gradually through partial automation as well as work to improve worker efficiency," he said.

However, worker efficiency in the garment sector has been affected by external inefficiencies, such as power shortages and port and road congestion, he said.

"Our workers are paying the price for the inefficiencies from other issues. This is not actually fair. They should be compensated for their contributions," added Ali.

"If we can address these issues, worker efficiency will be better than the current level," he added.

"I agree that our workers' payment scale is quite low. But our other input costs are much higher than that in other countries," he said.

Ali also suggested that the government focus on introducing automation not only in production processes but also within its own bodies, including the labour ministry, to enhance overall efficiency in the sector.

"We have no option to avoid automation. If we don't embrace it, the country will suffer. The garment sector will suffer," AHM Shafiquzzaman, secretary to the labour and employment ministry, said as the chief guest.

He also called upon workers to stay aware of automation.

The ministry is planning to establish an "Employment Department" to address fluctuations in the labour market's demand and supply, he said.​

 

[Saif]

Union leaders demand emergency fund for laid-off RMG workers

They made the demand in a meeting with the Labour Reform Commission

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Union leaders demand emergency fund for laid-off RMG workers
They made the demand in a meeting with the Labour Reform Commission

A group of union leaders of the garment sector today urged the government to form an emergency fund to provide financial benefit to the laid-off workers, as many are still deprived.

The union leaders made the demand at a meeting with the members of the Labour Reform Commission at the Department of Labour in Dhaka.

To press home their multiple demands, the leaders gave an example of over 40,000 laid-off workers of 16 textile and garment factories of Beximco Group.

They said the Beximco workers will now face trouble in obtaining the service benefits as the group has been struggling to pay the workers since the arrest of its vice chairman, Salman F Rahman.

The Beximco management announced the termination of workers, citing a lack of international work orders as the reason.

Many other factories may also lay off workers amid the current economic situation, the leaders said.

Uncertainty about accessing service benefits increases when workers are laid off in such circumstances, and an emergency fund could be of great help in ensuring these workers receive their deserving service benefits, they said.

The leaders emphasised that neither the government nor the owners alone can fully cover the service benefits; instead, a fund jointly formed by the government and the owners can serve this purpose.

The Labour Reform Commission has been holding a series of meetings with the workers, and 12 meetings have so far been held, said Syed Sultan Uddin Ahmed, chairman of the commission.

The commission will hold 60 meetings with different sectors to receive recommendations for the legal protection of workers of all sectors and setting a national minimum wage, he said.

In today's meeting, the union leaders said the workers are not properly getting help from the central fund, which was set up for garment workers' welfare in 2016 where the country's apparel makers contribute 0.03 percent of their export proceeds in each fiscal year.

The leaders also spoke about establishing a better working environment and introducing a rationing system for the workers, said the chief of the commission, the tenure of which will come to an end in mid-February next year.

The labour law should be reformed to ensure that workers receive justice, he said.

Closing factories is not a solution, and established factories need assistance to remain operational, he also stated.

The government should also be aware that many may close factories and terminate workers in order to receive bank loan waivers, Ahmed said.

The government should identify whether the owners are laying off the workers willingly or there is any valid reason, he said.

In the meeting, Montu Ghosh, president of Garments Workers' Trade Union Centre, suggested introducing strong provision in the labour law so that the workers get payments in time and their jobs remain secured even if they get involved in trade unionism.

Kazi Md Ruhul Amin, general secretary of the Bangladesh Trade Union Centre, recommended ensuring the safety of workers' lives at the workplace, improving industrial relations, and developing labour laws that meet global standards.​

 

[Saif]

How our RMG sector can thrive in 2025

Beximco's problems are evidence of a number of ongoing problems in the garment industry.

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How our RMG sector can thrive in 2025

Workers of 16 factories owned by Beximco block the Nabinagar-Chandra highway in Gazipur for five hours on December 21, 2024, demanding the reopening of the factories. PHOTO: COLLECTED

The recent layoffs of approximately 40,000 workers across 15 apparel units of Beximco Group, one of Bangladesh's largest garment manufacturers, have sent shockwaves through the industry because of their timing and sheer scale. Such a significant workforce reduction, attributed to a lack of work orders and difficulties in opening letters of credit for raw material imports, is evidence of the ongoing challenges in the country's ready-made garment (RMG) industry. There are also, however, some issues that are unique to Beximco, so it would be a mistake to be too alarmed by this news, as concerning as it might be to many.

As I see it, Beximco's problems are evidence of a number of ongoing problems in the garment industry. The layoffs have resulted in significant labour unrest, with workers protesting for unpaid wages and job security. Such disruptions not only affect the immediate workforce but could also potentially deter international buyers concerned about ethical labour practices.

On this front, my hope is that we are through the worst of the worker unrest, and now we can, as an industry, put these issues behind us in 2025.

The political upheaval following the ouster of Sheikh Hasina's regime has led to disruptions in factory operations and supply chains. Such instability risks eroding buyer confidence, resulting in order cancellations. It is difficult to say how much impact this situation has had on the economy as there are many variables at play in the global economy.

However, it was recently reported that Bangladesh's RMG sector recorded export earnings of $35.88 billion in the calendar year of 2023, according to the revised data from the Export Promotion Bureau. Initially reported at $47.38 billion, this correction points to an $11.50 billion decrease in export earnings compared to what was previously published.

For context, the garment exports hit $46.99 billion in FY2022-23, an increase from $42.613 billion in FY2021-22 and $31.456 billion in FY2020-21.

The FY2020-21 figure is an outlier as it reflects the tail-end of the pandemic when orders were down across the board. What we are looking at is a fall of around $11 billion over a 12-month period, which is clearly a cause for concern. In this context, the job losses at Beximco come as no surprise.

It should be noted that in the past year we have seen a change of president in the US, a key market, as well as major political and economic instability in many European countries such as Germany, France and the UK. While not in recession, the European Union has witnessed sluggish growth in the past 12 months. Many countries are implementing net zero plans which are causing short-term pain as countries attempt to balance growth with environmental commitments.

Despite these issues, I still believe there are ample opportunities for Bangladesh to grow substantially in 2025. But to capitalise on these, the government and the industry must take proactive steps.

The government's decision to provide liquidity support to Beximco for wage payments demonstrates a welcome commitment to stabilise the industry. Such interventions can prevent immediate crises and provide a buffer for companies to restructure and adapt. More support like this may be required if other flagship companies find themselves in a short-term liquidity crisis.

Moving beyond basic garment manufacturing to high-value products, such as technical textiles and sports apparel, will ultimately be key to opening new markets and reducing dependency on traditional buyers. This shift requires investment in technology and skills development but promises higher profit margins and market stability.

Strengthening industrial relations will also be critical moving forward. The International Labour Organization (ILO) has proposed key reforms to resolve labour unrest, emphasising the importance of constructive social dialogue. Implementing these reforms can lead to a more harmonious industrial environment in Bangladesh, enhancing productivity and worker satisfaction.

In summary, while it is always difficult to see job loss at a major manufacturer, there are steps we can take to mitigate its impact while ensuring that it does not become endemic across the industry. The year 2024 as a whole has been something of an annus horribilis for Bangladesh—a year in which political instability combined with an uncertain global economy have combined to create the perfect storm for garment manufacturers. We must hold our nerves as we approach the end of this intense period. The fundamentals of our industry—our safe factories, our capable workforce, and world-class production methods—remain robust.

Let's all work together—industry, government and global stakeholders—to bounce back stronger than ever in 2025.

Mostafiz Uddin is managing director at Denim Expert Limited. He is also the founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE).​

 

[Saif]

Garment exports to EU rise slightly

The revenue generated from Bangladesh’s garment sales to the European Union (EU) in the January-October period was 1.43 percent higher than that in the same period last year.

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Garment exports to EU rise slightly

Although garment exports from Bangladesh to the European Union were 1.43 percent higher year-on-year in the January-October period, prices declined by 4.92 percent. Photo: Star/file

The revenue generated from Bangladesh's garment sales to the European Union (EU) in the January-October period was 1.43 percent higher than that in the same period last year.

However, a larger amount of goods was exported, specifically 6.68 percent more year-on-year.

This indicates that prices had declined by 4.92 percent.

Unit prices declined for most suppliers this year, reflecting competitive pressure within the global apparel industry.

In case of imports from China, the EU had availed 8.63 percent lower prices, according to Eurostat, the country group's statistical office.

The data suggests that while the EU's overall demand for apparel remains strong, the competitive landscape is shifting, with some suppliers gaining ground while others, including Bangladesh, are experiencing challenges.

The EU's apparel imports in the 10 months showed mixed trend, including signs of recovery, despite price pressures.

It totalled $77.78 billion, which was 0.58 percent higher year-on-year.

This brings EU's clothing imports since January this year till date in the positive, from a negative 2.02 percent growth in the January-September period.

While overall value and quantity of the imports increased slightly, a closer look reveals a complex picture across different sourcing countries.

China, a major supplier, saw a slight increase in the value of apparel exports to the EU in the mentioned period, 1.14 percent to be precise, suggesting a potential shift in the global apparel market.

Other major suppliers like Vietnam and Cambodia experienced growths of 3.31 percent and 20.66 percent respectively.​

 

[Saif]

Top 10 foreign companies that source garments from Bangladesh

Thousands of foreign buyer companies and brands purchase ready-made garments from Bangladesh. Among them, the top ten account for nearly 29 per cent of the exported ready-made garments. Sweden's multinational retail company H&M leads the list of buyers, followed by Spain's Inditex and Ireland's...

en.prothomalo.com

Top 10 foreign companies that source garments from Bangladesh
Masud Milad &
Shuvonkar Karmokar
Published: 23 Dec 2024, 14: 39

RMG workers at a factory File photo

Thousands of foreign buyer companies and brands purchase ready-made garments from Bangladesh. Among them, the top ten account for nearly 29 per cent of the exported ready-made garments. Sweden's multinational retail company H&M leads the list of buyers, followed by Spain's Inditex and Ireland's Primark in second and third places, respectively. In the outgoing fiscal year, these three companies together purchased nearly $6 billion (600 crore USD) worth of ready-made garments from Bangladesh.

This list of top garment buyers for the 2023-24 fiscal year was compiled by Prothom Alo after analysing data from the National Board of Revenue (NBR) and buyer information. The analysis covered approximately 2.1 million shipments exported in the previous fiscal year, including details of imports by both parent companies and their affiliates. The data included information from 1,264 affiliate companies of the top 10 buyers, but did not account for garments purchased through buying houses or agents.

According to NBR data, Bangladesh exported $3.637 billion worth of ready-made garments to thousands of buyers in the last fiscal year. Of this, the top ten buyers purchased garments worth $1.05 billion, which accounts for 29 per cent of total exports. These multinational companies primarily sell the garments in major markets, with the United States being the largest market for Bangladeshi garments.

After H&M, Inditex, and Primark, the remaining buyers in the top ten list include Bestseller from Denmark, Marks & Spencer from the UK, C&A from the Netherlands, Uniqlo from Japan, LPP from Poland, Next from the UK, and Pepco from Poland. One of the world's largest buyers, Walmart, purchased $400 million worth of garments from Bangladesh in the past fiscal year. However, Walmart also buys a large amount through buying houses, which could not be tracked. The US company has chosen not to disclose its purchasing information, meaning it did not make it to the top ten list.

When asked about this, Walmart's Director of Corporate Affairs (Global Communication and Sourcing), Blair Cromwell, stated in an email that they do not publicly release statistics. However, he emphasized that Bangladesh has been a crucial supplier for Walmart for many years, and the strategy for purchasing garments from Bangladesh remains unchanged.
Bangladesh's factories mainly export low-cost garments, which is why the top ten multinational companies typically purchase relatively inexpensive products from the country. On average, these companies pay $3 per piece of clothing. Among the top ten buyers, Uniqlo paid the highest, at $5.41 per piece.

No direct data was found for high-end brands like Louis Vuitton, Dior, Chanel, Gucci, or US's Nike purchasing garments from Bangladesh in the last fiscal year. However, Adidas, a German sportswear brand, did buy garments from Bangladesh, spending $25.6 million. The average price per garment was $23.5 (Tk 2,834). Though in smaller quantities, other well-known buyers like Ralph Lauren from the United States and Lululemon from Canada also sourced garments from Bangladesh. These luxury brands purchase limited garments, with export prices ranging from $300 to $500 per piece.

Prothom Alo has contacted senior executives from five of the top ten buyers, all of whom confirmed the accuracy of the direct garment purchase data, although they declined to comment officially due to company headquarters' restrictions.

Top buyer H&M

H&M is the largest buyer of Bangladeshi-made garments. In the last fiscal year, this company sourced "Made in Bangladesh" garments from over 1,000 outlets across 44 countries. While people in 60 countries can purchase H&M garments online, the highest sales of Bangladesh-made garments are in Poland, Germany, and the United States.

Last year, H&M bought $259 million worth of garments from Bangladesh. The company sourced these garments from over 200 factories in the country. Every day, H&M's garments are part of the shipments exported from Bangladesh. On average, 2,042 shipments of H&M products are loaded onto ships or planes daily. These shipments include clothing for people of all ages, from newborns to adults.

H&M, which started with a single store in 1947, now operates 4,298 sales centres worldwide. Last year, the company sold products worth $21.32 billion. The company is listed on the NASDAQ Nordic Exchange, and its main brands include H&M, Cos, Weekday, Monki, Cheap Monday, Afound, and & Other Stories.

According to H&M's published list, they source garments, home textiles, shoes, and cosmetics from 916 suppliers across 41 countries. H&M has been sourcing ready-made garments from Bangladesh for three decades and has been one of the leading buyers for many years. In the 2021-22 fiscal year, H&M purchased the most garments from Bangladesh, totaling $290 million. Although the amount slightly decreased the following year, they remain among the top buyers.

When contacted, H&M's Global Communications Press Officer and Communications Specialist Albin Nordin in an email told Prothom Alo, "Bangladesh is an extremely important garment-producing country for us. Since 1983, H&M Group has had a presence in Bangladesh with our own production office. Having a dedicated team in our key product-producing country is always advantageous."

When asked if they plan to expand their business in Bangladesh, he did not give a direct answer but mentioned, "Bangladesh is a very important market for us."

Inditex surpasses $2 billion in purchases

Inditex, the second-largest buyer of Bangladeshi-made garments, is a Spanish multinational company. They have been increasing their garment purchases from Bangladesh every year. Last year, they bought $2.18 billion worth of garments from Bangladesh. This is the first time they purchased garments worth more than $2 billion in a fiscal year.

Inditex ships garments to sales outlets in 13 countries, with Spain being the largest market, receiving $1.87 billion worth of garments. The company's main brands include Zara, Pull & Bear, Bershka, Stradivarius, Oysho, and Massimo Dutti. Their purchases from Bangladesh include everything from underwear to overcoats. The garments are supplied by 250 factories in Bangladesh.

Primark purchases low-cost garments

Primark, an Irish multinational retailer, is listed among the buyers of Bangladeshi-made garments who purchase over $1 billion million annually. Last year, the company bought $1.12 billion worth of garments from Bangladesh, making it the third-largest buyer.

Primark has 451 sales outlets in 17 countries. In the fiscal year ending in September, the company generated €9.44 billion in revenue. Primark's main markets are Europe and the United States. They purchase a significant portion of their garments for the UK market from Bangladesh.
A Primark official, speaking on the condition of anonymity, informed Prothom Alo that the company plans to expand its business in Bangladesh.

Bestseller purchases garments at $4.50 each

Bestseller, a Danish multinational company, is the fourth-largest buyer of Bangladeshi-made garments. Last year, they bought garments worth nearly $790 million from Bangladesh. The average price per piece was $4.66, the second-highest among the top ten buyers.
These garments were supplied by 95 factories in Bangladesh and are sold in 11 countries where Bestseller operates.

Marks & Spencer expands business

British multinational company Marks & Spencer (M&S) is the fifth-largest buyer of Bangladeshi-made garments. Last year, they purchased $780 million worth of garments, totaling 210 million pieces. The average price per garment was $3.74.

The main brands of the company are Marks & Spencer and Autograph. Ninety-one per cent of the garments bought from Bangladesh are sent to M&S's sales outlets in the UK. Last year, the company sourced garments from 51 factories in Bangladesh. Like other British brands, M&S is increasing its garment purchases from Bangladesh, according to a company official.

C&A sources half of its garments from Bangladesh

C&A, a retail company based in the Netherlands, has significantly increased its share of garments sourced from Bangladesh. In 2020, 36 per cent of their total garment purchases came from Bangladesh. By 2022, this figure had risen to 51 per cent. According to the company's sustainability report, C&A buys 13 per cent of its garments from China, the second-largest source.

Founded in 1841 by two brothers in the Netherlands, C&A is the sixth-largest buyer of Bangladeshi-made garments. Last year, they bought nearly $720 million worth of garments, totaling 20 million pieces. The average price per piece was $3.62, and the garments came from at least 50 factories in Bangladesh.

Uniqlo purchases expensive garments

Uniqlo, a Japanese multinational company, bought garments worth $715 million from Bangladesh last year, totaling 132.1 million pieces. The average price per garment was $5.41, the highest among the top ten buyers.

Uniqlo's parent company, Fast Retailing, operates seven brands, including Uniqlo, GU, Theory, and J Brand, with 3,595 sales outlets worldwide. The garments sourced from Bangladesh are sold in 24 countries. Last year, 26 factories in Bangladesh supplied garments to Uniqlo, with 32 per cent of the supply coming from Pacific Jeans Group.

LPP sources garments from 250 factories

Polish multinational company LPP purchased $654.4 million worth of garments from Bangladesh in the last fiscal year. These garments were supplied by nearly 250 factories in Bangladesh. LPP opened its branch office in Dhaka in 2015.

According to information on LPP's website, the company sells garments from its five brands in 40 countries worldwide. These brands are Reserved, Cropp, Mohito, House, and Sinsay.

Next purchases half a billion dollars' worth of garments

UK-based multinational company Next, which is 160 years old, buys half a billion dollars' worth of garments from Bangladesh each year. Last year, they purchased 160 million pieces of clothing worth $530 million, meaning Next paid an average of $3.24 per piece.

Pepco purchases low-cost garments

Polish multinational retailer Pepco purchases garments from Bangladesh at the lowest prices among the top buyers. In the last fiscal year, Pepco bought $460 million worth of garments, totaling 260 million pieces. The average price per garment was just under $1.75, the lowest among the top ten buyers.

Pepco operates over 4,500 sales outlets across 21 European countries. The main countries where Pepco sources its garments are Bangladesh, China, and India. The company markets garments under four brands: Pepco, Poundland, PGS, and Dealz.

When asked, Faruk Hassan, the former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told Prothom Alo, "Bangladesh produces garments for over 1,000 buyer companies, both large and small. This is what strengthens our garment industry. Since, except for a few, most buyers source garments from Bangladesh, it can be considered a strong branding asset. In addition to garments, there is a great opportunity to sell other products from Bangladesh to these buyers."​

 

[Saif]

Impact of automation in apparel sector

The latest development in the readymade garment (RMG) factories of the country, courtesy of limited automation, has sent mixed signal to all concerned. Particularly, the workers are alarmed, for it means loss of their livelihood. Already close to 31 per cent workers, mostly helpers, in the producti

thefinancialexpress.com.bd

Impact of automation in apparel sector
FE
Published :
Dec 24, 2024 22:04
Updated :
Dec 24, 2024 22:04

The latest development in the readymade garment (RMG) factories of the country, courtesy of limited automation, has sent mixed signal to all concerned. Particularly, the workers are alarmed, for it means loss of their livelihood. Already close to 31 per cent workers, mostly helpers, in the production process of the RMG units, have reportedly lost their jobs as a result of automation. Similarly, the cutting section of the RMG units have experienced the biggest (nearly 50 per cent) job cut. In comparison, the sewing process suffered the least with about 27 per cent retrenchment. But factory owners, on the other hand, are elated since automation has enhanced the industry's productivity. No doubt, higher productivity is the most sought-after development of the RMG industry in the interest of gaining competitive edge of its products in the international market. However, one cannot also be oblivious of the plight of the workers who have already lost jobs including those who are going to face similar reality in the future due to increased automation in this industry. The emerging realities in the RMG sector call for striking a balance between these two mutually conflicting developments.

These are the findings of a recent study, titled "Assessment of technological transition in apparel sector in Bangladesh and its impact on the workers" conducted by local and international non-profit organisations and a local private university. The study brought to light how different segments of the apparel sector such as the sweater factories saw the highest number of job cuts followed by the woven factories. In a similar vein, the study also show women, who overwhelmingly dominate the workforce in the apparel industry, are getting a raw deal in terms of job-loss at 62 per cent as the fallout from automation. However, in the case of some larger apparel factories, the women risking automation-related unemployment have been reassigned, that is, transferred to other sections. But this is a temporary answer to the challenge for some of the female workers who are already in employment. But those women, especially from the countryside, who have been looking for employment in the garment industry will now be left with fewer opportunities.

Against this backdrop, since the RMG sector gained a global reputation as a model job creator for women in Bangladesh, it has a stake in continuing in that role. In that case, the RMG industry needs to find ways to avoid firing workers, more particularly the female among them, to maintain its positive image. There is yet another group of workers who are also the victims of automation. They are the aged, the unskilled, the less educated workers. While there is no question of opposing automation which is but the way forward for industries in the future, one cannot also leave the retrenched workers in the lurch. To get around this dilemma, the best way is to upskill workers, both women and men, who are already in employment in the apparel sector so they may keep up with the pace of automation at their workplaces. At the same time, both the government and the industry should create training facilities where members of the new generation of workforce might learn the skills required for jobs in the automated apparel factories.

What is important to note here is that it is not only the apparel industry that is facing this transformational challenge. In fact, the trend is all-embracing. In that event, preparations should be there for the government and the industry so the working class might tide over the crisis automation is going to bring with it.​

 

[Saif]

Automation but no wastage of human capital

It is indeed a good development that the country's labour-intensive apparel industry is advancing along the path of automation to accelerate the production process and reduce the cost of production. Automation has gained greater importance for Bangladesh when its competitors such as China and Vietn

thefinancialexpress.com.bd

Automation but no wastage of human capital
Sarker Nazrul Islam
Published :
Dec 24, 2024 22:03
Updated :
Dec 24, 2024 22:03

It is indeed a good development that the country's labour-intensive apparel industry is advancing along the path of automation to accelerate the production process and reduce the cost of production. Automation has gained greater importance for Bangladesh when its competitors such as China and Vietnam are far ahead in the introduction of robotics and artificial intelligence in the production of readymade garments. The more Bangladesh advances in adopting automation, the more it is likely to remain on a par with or gain competitive edge over its rivals. But automation is not all about development of the sector; innovative fashion designs and switch over to manmade fibre are vitally important to achieve the objective. Upskilling workers, as demanded by new technology, is a formidable challenge before the apparel sector.

Apparel industries have started reaping benefits of automation. Quoting survey findings conducted by Solidaridad Bangladesh, Bangladesh Labour Foundation and BRAC University, The Financial Express reports that because of introduction of advanced machines, efficiency has increased by 3.0 per cent to 5.0 per cent; knit polo shirts productivity also increased to 140 from 90 per hour and rejection reduced from 10 per cent to zero per cent, which is no doubt a remarkable achievement that substantiates the benefits of automation. Weekly overtime has also dropped from 20 hours on an average to 11 hours mainly due to faster production cycle enabled by automation. A factory now requires only one person for spreading fabrics instead of seven in times of manual process. Data automation also enables manufacturers to track production metrics, energy use and maintenance schedules.

Production automation has already proved to be a boon for the industry. But, despite a host of positive impacts of automation on overall productivity in this industry, this is not a case of unmixed blessing, particularly for millions of unemployed girls. Upgrading of technology has eliminated more than 30 per cent jobs from the country's apparel industries. The cutting section of the RMG industries saw more than 48 per cent job cut, the highest in the sector, while it is about 27 per cent in the sewing section where majority of the workers, especially women are employed.

Due to data discrepancies, it is very difficult to find the exact number of unemployed youth in Bangladesh. The number of the unemployed aged between 15 and 29 is likely to be around 2.6 millions. Their number is swelling with the joining of around 2.0 to 2.2 million working-age people to the job market every year. But generation of employment opportunities is far below the demand level due to stagnancy or sluggish growth of industries and the service sector. Introduction of automation is likely to further aggravate the unemployment situation. However, this is not an argument against the necessity of automation in industrial production. Despite introduction of automation, the situation of unemployment must not be allowed to worsen; it must be averted through adoption of pragmatic strategies aimed at reaping the benefit of demographic dividend.

Women are still the majority of RMG workers. Employment in the garment factories created an opportunity for them to live a worthy life. Their participation in production was a significant step in the direction of women empowerment. But, with the introduction of automation, they are going to be more affected than their male counterparts. According to the above survey, in the process of automation women were replaced either by reassigning to different roles or, in some cases, dismissed. Alternative job opportunities should be created for them instead of retrenching them and thus depriving them of their financial liberty. Automation is a must for faster growth of the economy but surely not at the cost of demographic dividend.​