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RMG makers, buyers in fresh row

Monira Munni | March 10, 2014 00:00:00


Local apparel manufacturers and buyers have been locked in a fresh row over payment of wage benefits to workers during the suspension of productions in non-compliant factories following the ongoing safety assessment initiative, industry insiders said.

Labour leaders and a section of manufacturers, however, fear a fresh labour unrest in the readymade garment (RMG) sector unless the issue is resolved shortly.

The present dispute has emerged following the suspension of production of a garment factory Softex Cotton Pvt Ltd, for at least three months as per instruction of the Accord's inspection team and official review committee.

The workers of the Softex Cotton staged demonstration Saturday demanding payment after they found a notice hung at the factory gate declaring the unit closed on the ground of risky state of its building.  

Apparel leaders claimed that the factory owners are not in a position to pay wage benefits for three months while the Accord representative said the factory owner is responsible for payment of its workers' wages.

The Accord, the largest platform of retailers, brands, trade unions and companies, in its assessment found serious structural flaws in Softex Cotton building and later the official review committee including representative from the Accord, last week asked the factory owner to suspend production in its four floors until retrofitting.

The committee also asked another garment unit located at the same eight storied building at Mirpur to reduce its load and suspend the production during the process of load reduction.

Earlier on March 04, the Accord asked Jeans Care Ltd for immediate evacuation of the factory while the review committee gave green signal provided the factory load is reduced.

"Owners are panicky now over the factory assessment programmes as what would happen to a factory with its existing orders if it is asked for suspension and who will pay the workers and bear the cost of remedial measures". Md Shahidullah Azim, vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told the FE Sunday.

Factory owners are already burdened with the hartals, blockades, high cost of production due to recent hike in workers' wages and meeting different safety related issues, he stated.

"In such a situation, how manufacturers will pay the workers during suspension of production," Mr Azim further said adding manufacturers are facing troubles in paying the single month's wages and how they will bear the wage burden for three or more months.

Quoting the Accord's article 13, Rob Wayss, Executive Director, Bangladesh Operations of the Accord said, "The factory owner is required to pay the workers."

According to the article, signatory companies shall require their supplier factories that are inspected under the Programme to maintain workers' employment relationship and regular income during any period that a factory (or portion of a factory) is closed for renovations necessary to complete such Corrective Actions for a period of no longer than six months.  Failure to do so may trigger a notice, warning and ultimately termination of the business relationship, the article adds.

A total of nine floors of both the front and back parts of building, that accommodate the Softex Cotton, is able to run production while the rest six floors can resume production after removing the additional load and strengthening columns, Rob Wayss explained adding discussion has taken place with the engineers concerned to help the factory owner carry out speedy remedial work.

The Accord has so far assessed at least 75 factories and in most cases the common problems are: the factory floors are overloaded, faulty power lines with weakly placed wires on the walls and mess in switch boards and lack of proper maintenance of those, Mr Rob said adding in case of fire the factories require to install fire doors.  

Following the factory assessments by different retailers' groups, many issues including unified standards and setting up of sprinklers still remain unresolved while new ones are coming to light one after another like the latest one over the workers' payment during any suspension period, manufacturers said expressing their concern.

They also fear, if the issue is not resolved shortly, it would lead to an unwanted but huge labour agitation.

However, Roy Ramesh Chandra, secretary general of the Industrial Bangladesh Council said, "The concerned brands have to ensure that salary of workers are being paid during the period of suspension of production or renovation takes place."

Permanent mechanism should be established in this regard before occurrence of the same thing, he said adding otherwise demonstration might continue to happen.

Replying to a question, he said the prime responsibility lies on the factory owners while brands have to come forward to find out a mechanism to assist the factory owners by offering business opportunities either increasing order volume, raising products' price or other financial supports.


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