Garment industries should be protected from vandalism
Sunday, 28 September 2008
Shahiduzzaman Khan
THE garment sector, largely hit by relentless labour unrest in recent times, is getting into more trouble these days as garment workers are going on rampage demanding festival bonus, pay hike and arrear salaries. In fact, rising prices of essentials, unpaid salaries, the government's inaction and absence of responsible trade unions are behind recent unrest in garment factories.
The latest flare-up, in which at least 40 vehicles were damaged, is a clear indication of too many things going wrong between the owners and the workers. The public suffered much due to vandalism of workers that is reprehensible. The managements have been blamed for not showing tolerable attitude towards the workers' legitimate demands. If the developments in the sector are considered as a whole over the last couple of years, it may be said that workers were agitating for arrear salaries and overtime bills quite very often. The owners must have to fulfill the legitimate demands of the workers, while the workers must refrain from turning violent on hearing news of atrocity or rumour of fatality without verifying the truth of such accounts. There were no legitimate representations from amongst the workers to interact and negotiate with the owners on a continuing basis. That is a void, which needs to be filled.
The global financial crisis is likely to hit the country's ready-made garments (RMG) sector in the days ahead. Unfortunately, the local industry is finding it hard to run smoothly when enhancing productivity and diversifying products are needed to save the industry from any negative impact. However, the list of causes for the prevailing unrest in a sector that exported $10.699 billion worth of products last year is many. Absence of good relations between workers and owners, misbehaviour of mid-level officials and deferred payments to workers are some other problems that dog the RMG sector. Administrative failures of the government, 'conspiracy' from outside and lax implementation of law and order are also to blame.
On many occasions, garment owners and leaders demanded exemplary punishment to the 'real culprits' and introduction of industrial police to bring peace to the RMG sector. But unrest could not be stopped as yet in a sector that is considered one of the main pillars of the economy. Unrest in sweater factories originated from anomalies in the count of sweater items made by workers and the records of some mid-level officials. Officials attempted to pay less by forging the actual production list of items produced over the month. This is really deplorable.
In the quest for a solution to the seemingly never-ending dilemmas, there is no alternative to increasing the salaries of workers, as the prices of essential commodities went beyond their reach. The minimum wage of Tk 1,662.50 per month for the workers is so meagre that workers cannot make their ends meet. The workers have to spend about 60 percent of their monthly earnings on food. The government, trade union leaders, garment owners and leaders should call immediate meetings to settle the issues, once and for all. There is a need for an effective platform comprising government agencies, owners and leaders to resolve the issues of labour unrest through negotiations. However, both Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) reached a consensus recently to increase the salary of the workers.
The BKMEA said the causes for most of the recent labour disputes were not solely due to demand for salary increments. The nature of the unrest clearly indicates that there was an involvement of outsiders. It claimed that the compliant factories, worst affected by the violence, actually paid higher wages than competitors. According to BGMEA, the sweater factories accounted for 90 percent of the recent labour unrest. It said the sweater factory workers were young and easily agitated with the slightest provocation. The owners voiced their concern over a well-articulated conspiracy against the country's RMG sector. Due to this conspiracy, reputed and big factories were coming under attacks. The miscreants are not only damaging the accessories and furniture, they are also looting the properties as well.
At a recent meeting between the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the BGMEA, it was revealed that 147 of the 4,500 garment factories across the country had been affected from January to August 19. In most cases, groups of outsiders vandalised the factories -- sometimes in the presence of law enforcers -- in the name of workers. It was also observed that the workers often stage demonstrations being provoked by a number of so-called workers' organisations. These organisations sometimes even pay workers to carry out their plans to create unrest in garment factories cashing on which they earn huge benefit. A few participants stressed the need for keeping vigil on workers who can make trouble.
The country's RMG sector has been facing a stiff competition in the world market since 2004. There is a need for developing forward linkage as well as backward linkage industries for sustaining in the competitive markets. The reality is that the overall situation in the garment sector is much better than in the past. But the improvement in social sector had not been highlighted enough. The attacks on garment factories are not only a bad indication for the RMG sector but also for the national economy.
Today, the RMG sector accounts for more than 70 percent of the country's total income from export. However, the huge labour force that is the backbone of this sector has been the subject of continuous exploitation and neglect. To this day the right to form unions remains an issue to which the owners are not yet ready to give the nod. In the absence of a platform from where they would be able to voice their demands, the workers of the RMG sector have been mired in unmitigated crisis since the beginning.
However, that there is a need for an immediate looking into the issues of worker's discontentment has hardly ever been acknowledged by the garment factory owners. The apex trade body is yet to acknowledge the fact that disgruntled labourers of the sector have legitimate grounds to take to street agitation, and even resort to violence, to protest against the gross anomalies and continuous ill treatment. While the BGMEA is in denial, the leaders of the workers are unequivocal in pointing out the fact that the agitation has been the result of long-term abuse and exploitation.
In the absence of a responsible trade union, the enraged workers have gone on a rampage. The destruction that followed amounted to millions of takas, but it is not monetary loss that one should mull over at this point. There are more pressing issues to be resolved. Such violent outburst of pent-up anger might get repeated if rightful demands of workers are not taken seriously.
Bangladesh earned $14.110 billion in exports in fiscal 2007-08, registering growth of 15.87 percent over the previous fiscal year, according to the Export Promotion Bureau (EPB). Exports were boosted mainly by a rebound in readymade garment sales, the EPB data showed. Of the total export earnings, only woven and knitwear, the two sub-sectors of RMG, fetched $10.699 billion during the last fiscal year, the EPB data showed. Of the total RMG products, the knitwear sub-sector fetched $5.532 billion in the July-June period, up 21.50 percent over the past fiscal year.
In 2006-07, knitwear exports were worth $4.553 billion. In 2007-08, woven garments fetched $5.167 billion, registering growth of 10.94 percent over the same period of 2006-07. The export target for woven garments was set at $5.400 billion in 2007-08 while the total exports of woven in 2006-07 were $4.657 billion. A relatively peaceful political environment, appreciation of currencies in many countries against the dollar and aggressive marketing drives helped the RMG sector maintain the export boom.
While there is no sufficient proof of any third country's involvement in the so-called conspiracy to destroy the country's garments sector, the government and the private sector must keep vigil on the developments in the industry. The situation stemming out from the workers' unrest must be addressed with minute attention. The lifeline of the country's exports - Chittagong port - must be kept operational round the year. Due attention must be given to the workers so that they never remain hungry and exploited to vent their anger.
................................................................
szkhan@thefinancialexpress-bd.com
THE garment sector, largely hit by relentless labour unrest in recent times, is getting into more trouble these days as garment workers are going on rampage demanding festival bonus, pay hike and arrear salaries. In fact, rising prices of essentials, unpaid salaries, the government's inaction and absence of responsible trade unions are behind recent unrest in garment factories.
The latest flare-up, in which at least 40 vehicles were damaged, is a clear indication of too many things going wrong between the owners and the workers. The public suffered much due to vandalism of workers that is reprehensible. The managements have been blamed for not showing tolerable attitude towards the workers' legitimate demands. If the developments in the sector are considered as a whole over the last couple of years, it may be said that workers were agitating for arrear salaries and overtime bills quite very often. The owners must have to fulfill the legitimate demands of the workers, while the workers must refrain from turning violent on hearing news of atrocity or rumour of fatality without verifying the truth of such accounts. There were no legitimate representations from amongst the workers to interact and negotiate with the owners on a continuing basis. That is a void, which needs to be filled.
The global financial crisis is likely to hit the country's ready-made garments (RMG) sector in the days ahead. Unfortunately, the local industry is finding it hard to run smoothly when enhancing productivity and diversifying products are needed to save the industry from any negative impact. However, the list of causes for the prevailing unrest in a sector that exported $10.699 billion worth of products last year is many. Absence of good relations between workers and owners, misbehaviour of mid-level officials and deferred payments to workers are some other problems that dog the RMG sector. Administrative failures of the government, 'conspiracy' from outside and lax implementation of law and order are also to blame.
On many occasions, garment owners and leaders demanded exemplary punishment to the 'real culprits' and introduction of industrial police to bring peace to the RMG sector. But unrest could not be stopped as yet in a sector that is considered one of the main pillars of the economy. Unrest in sweater factories originated from anomalies in the count of sweater items made by workers and the records of some mid-level officials. Officials attempted to pay less by forging the actual production list of items produced over the month. This is really deplorable.
In the quest for a solution to the seemingly never-ending dilemmas, there is no alternative to increasing the salaries of workers, as the prices of essential commodities went beyond their reach. The minimum wage of Tk 1,662.50 per month for the workers is so meagre that workers cannot make their ends meet. The workers have to spend about 60 percent of their monthly earnings on food. The government, trade union leaders, garment owners and leaders should call immediate meetings to settle the issues, once and for all. There is a need for an effective platform comprising government agencies, owners and leaders to resolve the issues of labour unrest through negotiations. However, both Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) reached a consensus recently to increase the salary of the workers.
The BKMEA said the causes for most of the recent labour disputes were not solely due to demand for salary increments. The nature of the unrest clearly indicates that there was an involvement of outsiders. It claimed that the compliant factories, worst affected by the violence, actually paid higher wages than competitors. According to BGMEA, the sweater factories accounted for 90 percent of the recent labour unrest. It said the sweater factory workers were young and easily agitated with the slightest provocation. The owners voiced their concern over a well-articulated conspiracy against the country's RMG sector. Due to this conspiracy, reputed and big factories were coming under attacks. The miscreants are not only damaging the accessories and furniture, they are also looting the properties as well.
At a recent meeting between the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the BGMEA, it was revealed that 147 of the 4,500 garment factories across the country had been affected from January to August 19. In most cases, groups of outsiders vandalised the factories -- sometimes in the presence of law enforcers -- in the name of workers. It was also observed that the workers often stage demonstrations being provoked by a number of so-called workers' organisations. These organisations sometimes even pay workers to carry out their plans to create unrest in garment factories cashing on which they earn huge benefit. A few participants stressed the need for keeping vigil on workers who can make trouble.
The country's RMG sector has been facing a stiff competition in the world market since 2004. There is a need for developing forward linkage as well as backward linkage industries for sustaining in the competitive markets. The reality is that the overall situation in the garment sector is much better than in the past. But the improvement in social sector had not been highlighted enough. The attacks on garment factories are not only a bad indication for the RMG sector but also for the national economy.
Today, the RMG sector accounts for more than 70 percent of the country's total income from export. However, the huge labour force that is the backbone of this sector has been the subject of continuous exploitation and neglect. To this day the right to form unions remains an issue to which the owners are not yet ready to give the nod. In the absence of a platform from where they would be able to voice their demands, the workers of the RMG sector have been mired in unmitigated crisis since the beginning.
However, that there is a need for an immediate looking into the issues of worker's discontentment has hardly ever been acknowledged by the garment factory owners. The apex trade body is yet to acknowledge the fact that disgruntled labourers of the sector have legitimate grounds to take to street agitation, and even resort to violence, to protest against the gross anomalies and continuous ill treatment. While the BGMEA is in denial, the leaders of the workers are unequivocal in pointing out the fact that the agitation has been the result of long-term abuse and exploitation.
In the absence of a responsible trade union, the enraged workers have gone on a rampage. The destruction that followed amounted to millions of takas, but it is not monetary loss that one should mull over at this point. There are more pressing issues to be resolved. Such violent outburst of pent-up anger might get repeated if rightful demands of workers are not taken seriously.
Bangladesh earned $14.110 billion in exports in fiscal 2007-08, registering growth of 15.87 percent over the previous fiscal year, according to the Export Promotion Bureau (EPB). Exports were boosted mainly by a rebound in readymade garment sales, the EPB data showed. Of the total export earnings, only woven and knitwear, the two sub-sectors of RMG, fetched $10.699 billion during the last fiscal year, the EPB data showed. Of the total RMG products, the knitwear sub-sector fetched $5.532 billion in the July-June period, up 21.50 percent over the past fiscal year.
In 2006-07, knitwear exports were worth $4.553 billion. In 2007-08, woven garments fetched $5.167 billion, registering growth of 10.94 percent over the same period of 2006-07. The export target for woven garments was set at $5.400 billion in 2007-08 while the total exports of woven in 2006-07 were $4.657 billion. A relatively peaceful political environment, appreciation of currencies in many countries against the dollar and aggressive marketing drives helped the RMG sector maintain the export boom.
While there is no sufficient proof of any third country's involvement in the so-called conspiracy to destroy the country's garments sector, the government and the private sector must keep vigil on the developments in the industry. The situation stemming out from the workers' unrest must be addressed with minute attention. The lifeline of the country's exports - Chittagong port - must be kept operational round the year. Due attention must be given to the workers so that they never remain hungry and exploited to vent their anger.
................................................................
szkhan@thefinancialexpress-bd.com