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Deadline for addressing RMG compliance issues may be extended

Sunday, 26 August 2007


FE Report
The government is likely to extend deadline for addressing the compliance issues, including that for implementation of minimum wages, in apparel units for a further one-month period, sources said.
The current deadline for implementation of the compliance issues by the readymade garment (RMG) factories expires August 31. The first deadline was set for June this year, which was later extended at the request of the apparel factory owners.
Sources said the government taskforce on compliance monitoring will hold a meeting on August 28 to review the progress and discuss the matter about extension of deadline for a further period of one month.
"We are preparing a report on our findings to send it to the adviser concerned, after the meeting, with recommendations for further extension of the current deadline up to September 30," a high official of the ministry of commerce told the FE Saturday.

On October 21 last year, the government declared the minimum monthly wages at Tk 1662 for the workers in the apparel units of the country after a tripartite agreement.
When asked about the findings, he said the country's more than 2,936, out of a total of 3,235 running apparel factories, have so far addressed 90 per cent compliance issues, including implementation of minimum wages, on an average.
Over 730 out of 800 apparel factories affiliated with the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), fulfilled more than 95 per cent of compliance issues, including that for implementation of the minimum wage board, official source said.
Besides, only about 200 out of 2435 running factories, affiliated with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), could not yet implement the recommendations of the minimum wages board.
"The progress in implementation of the compliance issues, including the wage board award, is encouraging. This is why we are in favour of extending the deadline for a period of further one month," he said.
But, he said, the deadline for implementation of the minimum wages, one of the major criteria of the compliance issues, may not be extended by more than 15 days from expiry of the current deadline.
Official sources, however, said the government will go for legal action against the factories that will fail to implement the government declared minimum wages for workers after the fresh deadline expires.
"Currently, we're identifying the factories that have not implemented the minimum wage board award and have failed to follow any of the compliance issues, even partially," an official said.
Major criteria of the buyers' compliance include payment of the minimum wages and overtime, and maternity and festival allowances, annual leave, weakly holiday and ensuring emergency exit arrangement with fire extinguisher facility.