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Is RMG industry ready for \\\'transformation\\\'?

Shamsul Huq Zahid | February 24, 2014 00:00:00


The country's apparel industry, undoubtedly, is at a crossroads. All stakeholders are unanimous that the industry needs a transformation, at the earliest, in terms of workplace safety, workers' rights and technological upgradation not only to retain its current ranking as the second largest exporter but also to reach the top slot.

The government policymakers are optimistic that the country could fetch nearly $50 billion a year from apparel exports within a decade or so provided it gets necessary support at home and also from international buyers. But without going through a well-crafted transformation, it is unlikely that the sector would ever meet such high expectation.

It does appear from the statements from the leaders of the apparel sector that they are at odds with the buyers' platforms now engaged in ensuring compliance with workplace safety and workers' rights issues in Bangladesh. One such issue relates to the relocation of apparel units housed in 'shared' buildings. The garment unit owners are also reluctant to comply with conditions and standards, set by the Western retailers and brands, which do not conform to the country's laws and rules.

The owners as usual have sought the government intervention to resolve the problems they are facing with the international buyers on compliance issues. The national tripartite committee held a meeting in Dhaka last week ostensibly to bridge the gap between the buyers' platforms-the Alliance and the Accord---and the local apparel makers.

The moot issue discussed at the meeting was the installation of fire sprinklers in a number of RMG units. The buyers want the units to install the sprinklers at their own factory premises, but the latter are opposed to it for it would involve lots of hassles, including closure of factories for sometime and large investment. The issue has remained unresolved until now. Inclusion of local experts in the ongoing process of factory inspection on behalf of the international buyers is yet another condition that the RMG exporters have been pressing for.

In fact, the apparel owners are now under constant pressure to upgrade the status of their industrial units. And coming under pressure from all directions, they tend to pass the buck on to the government.

The incumbent and a former president speaking at a dialogue organised by the Centre for Policy Dialogue (CPD) Thursday last in Dhaka blamed the government for not doing enough for the improvement of infrastructure of the industry and sought special fund for extending planned support to them.

But many tend to believe that the RMG owners themselves have not done much to upgrade the industry or improve the conditions of their workers. There is no denying that all RMG units are not equal in terms of business performance. But the factories which have done well and secured good business over the years have not invested much to upgrade their own infrastructure and improve the conditions of the workers. Rather they have created more factories of equivalent standard or invested in other businesses.

The twin tragedy, the Tazreen fire and the Rana Plaza collapse, has come as a wake-up call for all stakeholders at home and abroad. Side by side with the local exporters, the international buyers also had come under strong criticism from the consumers of their respective countries. The buyers' response to such criticism was unlike to that of Bangladesh RMG owners. The formers had to plunge into actions immediately and mobilise funds to ensure compliance with the workplace safety requirements.

The state of compliance by the apparel unit owners as far as workplace safety is concerned would be known at the end of the ongoing factory inspection being carried out by the experts - local and foreign. But pilot inspections by the Accord people have produced dismal report, according to a recent report published in the Washington Post. The inspectors have reportedly detected gross flaws in fire, electrical safety and potential structural problems in their initial sample inspection in Dhaka. The inspectors have already begun 'systemic' look at some 1800 RMG factories used by 150 international retailers and clothing brands.

But the errant apparel factory owners are unlikely to get away with their indifference to workplace safety and workers' welfare this time. US Ambassador Dan Mozena the other day rightly advised the errant RMG makers who were not willing to meet the international safety standards and labour rights 'to shut their factories and quit business'.

Ambassador Mozena, who always speaks high of Bangladesh and its 'resilient' people, requested the BGMEA to see to it that all its members became a part of the apparel sector's transformation and help Bangladesh become a global model for apparel production and export. But are the BGMEA members willing to be a part of that much-needed transformation?

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