Sellers have little choice in buyers' market. Exporters of readymade garments (RMG) or any other products have to accept terms offered by importers who bargain against the ready availability of the same from other sources - in varying quality and prices. If the buyers do not get the items of their choice at lower prices, they desert them to go elsewhere to purchase the same. It is the case with exporters and importers in the global market.
No browbeating by sellers can cow down the buyers. If Bangladesh cannot offer quality and cheaper clothes, global retailers will simply go to India or Sri Lanka or Pakistan or any other producer for their merchandise. Money that the sellers need badly lies with the buyers. It's indeed cutthroat competition. 'Have-it-or-leave-it' - is the order of the world market.
When the United States suspended the Generalised System of Preferences (GSP) for Bangladesh for its failure to comply with global standards in workers' safety and rights, it was very clear to analysts that nothing short of full compliance with the US roadmap will help. The roadmap was endorsed by President Barack Obama.
What was the US action plan, really?
A statement of the United States Trade Representative (USTR) said on June 27, 2013:
"Today, the (Obama) Administration is making this action (suspension of the GSP facility on all products except RMG) public as a means to reinforce and support the efforts of all international stakeholders to promote improved worker rights and worker safety in Bangladesh.
"On the basis of this action plan, the United States looks forward to continuing to work with Bangladesh on the actions it needs to take in relation to possible reinstatement of GSP benefits."
The US roadmap was divided into three sections - addressing government inspection for labour, fire, and building standards; labour law and other related reforms, particularly for workers in the ready-made garments (RMG)/knitwear sector; and strengthening those laws that affect export processing zones (EPZ), which are not traditionally under the national labour legislation.
Dhaka was urged to develop and implement a plan to increase the number of government labour, fire, and building inspectors, along with establishing clear inspection procedures and improve training for inspectors. The Bangladesh government should also increase fines and other sanctions for failure to comply with labour, fire, or building standards, the US said.
As for labour law, the US called upon Bangladesh to enact reforms that would address key concerns regarding freedom of association and collective bargaining. Bangladesh approved a series of changes to its national labour law that would, among other things, allow workers to establish unions without requiring factory owners' permission. Some labour rights activists criticised the amendments to the law as not going far enough.
The US set its sight on labour conditions in the export processing zones (EPZs). It demanded that laws applying to the export processing zones should be brought in line with international standards, along with providing workers the same benefits that extend to factories outside such zones.
The US asked to improve labour conditions in Bangladesh's shrimp processing sector. The right to freedom of association was also contained in the US guidelines.
The US roadmap did not come as a bolt from the blue. The Rana Plaza collapse, preceded by several horrible fire incidents in RMG factories, only added fuel to the fire. Deaths of thousands of poor workers in Bangladesh hit the headlines of the newspapers across the world. The very number of casualties was hair-raising. Most of the victims were charred beyond recognition as they failed to escape due to congested factories having no fire equipment or easy exits. The usual stampede in this kind of situation also made things worse.
People were shocked at the recurrent disasters in RMG factories taking place one after another. Owners of such factories too were concerned. The leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) did their best to help the workers in distress.
But it is also true that only a few entrepreneurs took the industry seriously. Many had set up factories in buildings without examining whether the places where hundreds of workers would sew and stitch clothes were strong enough to withstand the load of heavy machineries and other instruments.
Many simply ignored the need for adequate fire safeguards. Even the exits in such factories were clogged with bundles of cloths and machinery. Wages were poor. Female workers were frequently subjected to harassment. The workers were not even allowed to form unions so that they could ask for fair wages in a disciplined way. Musclemen were engaged to throttle any voice of dissent there.
It is unfortunate that many RMG factory owners simply ignored what the US roadmap wanted them to follow. Making supra-profits are their sole targets.
After the disasters, the RMG entrepreneurs were quick to respond to grave concern of the international community. They joined hands with two global retailer groups, Accord and Alliance, in meeting the US roadmap guidelines.
However, some responsible quarters are now blaming a section of labour leaders and the US for what the RMG industry faces today. Conspiracy theories are being floated. But the fact is the factory owners are busy implementing the US roadmap, although slowly.
On Monday, the cabinet finally approved of the draft of a law that allows the workers in EPZs the right to form associations, though not in the name of trade unions. Harsh comments will only complicate the ongoing reforms in the RMG sector, analysts opine adding that quick implementation of the guidelines brooks no delay.
Bangladesh should comply with the US roadmap. Full execution will turn the country into a top leader of apparel exporters in the world. It can easily earn a projected US$50 billion from apparel exports in the not-too-distant future.
arjayster@gmail.com
RMG: Roadblocks versus roadmap
Rahman Jahangir | Published: July 12, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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