Return of political, labour unrest casts shadows on apparel export

Return of political and labour unrest casts shadows on export industry as owners already lament production and freight disruptions amid labour upheaval that left one worker dead in Gazipur.
Identified as Rasel Hawlader, 26, the worker died from shotgun-pellet wounds suffered during massive wage protests and preventive police action in Gazipur's Bason area on Monday.
Rasel, hailed from Jhalakathi district, worked as an electrician at Design Express Limited, according to police and witnesses.
Mossaraf Hossain, additional superintendent of police of Gazipur Industrial Police, said the apparel workers started agitating around 10 am. A group of workers ransacked multiple locations, ignited tires, and set a jeep ablaze, causing a two-hour standstill in traffic along the Dhaka-Mymensingh highway.
"Shotguns, teargas shells and water cannon were used to bring the situation under control," said Mr Hossain about the outbreaks of unrest and arson.
Dhaka Medical College Hospital Police Outpost in-charge (Inspector) Md. Bachchu Mia confirmed the matter and said Rasel's body was kept in the morgue for autopsy.
As the industrial unrest sparked worries, incidentally at a time when a political standoff and opposition agitations over the upcoming polls are at their height, government side came up with a call for calm.
State Minister for Labour and Employment Begum Monnujan Sufian called upon the agitating apparel workers to refrain from any violence in the industrial belts as the minimum wage for them has not been finalised yet.
The state minister said a vested group has been "hatching conspiracy to instigate the workers" towards a massive-scale violence through spreading rumours that the minimum wage board fixed Tk 10,400 as pay for an entry-level worker.
"It is not true. Minimum monthly wage of Tk 10400 was just a proposal placed by the owners. The board is working to fix the wage, and it has until November 30 this year to finalise it," the state minister said at an emergency press conference at the ministry later in the day.
The urgent press meet came when hundreds of angry workers in the Gazipur Industrial Belt took to the streets, clashed with law enforcers and torched vehicles in a spate of violence that left one worker dead and many injured.
The state minister urged the workers to remain calm and resume production at the factories by assisting the law enforcers in maintaining order in the industrial hubs.
The owners' representative to the board has proposed Tk 10,400 as the minimum monthly salary for the apparel industry. On the other hand, the workers' representative has sought Tk 20,393 as the minimum wage.
"So, nothing is finalised yet. Let the minimum wage board work reach a decision. Please don't put your (workers) feet on any trap," she added.
Ruling-party lawmaker Shahjahan Khan said the country has been witnessing labour unrest in apparel-industrial hubs for the last three to four days and it turned severe on Monday because of the canards over fixation of minimum wage.
"Members of the wage board sat four times but no decision was reached yet. Despite the fact, we're observing violent protests. Our workers need to be well aware as a vested group wants to instigate them to violence to destabilize the country," said Mr Khan, also president of Bangladesh Garment Tailors and Workers League.
The emerging political situation and labour unrest might take a toll on the country's largest foreign-currency-earning sector--readymade garment exports, industry people said.
Production of apparel items and their timely shipments would be affected leading global garment buyers and retailers to place less work orders and switch to other destinations, they apprehended.
Meanwhile, a three-day blockade from today (Tuesday) follows a daylong hartal enforced on Sunday by BNP and its allies to protest their Saturday's foiled anti-government demonstrations over election issue.
Five people, including a policeman died and numerous vehicles were torched or vandalized during the last two days' troubles on pre-election confrontational political landscape of the country.
On the other hand, garment workers had staged demonstrations for wage hike to TK 23,000 for the seventh consecutive day on Monday since October 23 and the garment worker died Monday during Gazipur protests.
Talking to the FE, SM Khaled, managing director of Snowtex Group, said uncertainty exists as to what is going to happen.
One of his US buyers, who is currently visiting Bangladesh, finished his meeting within half day on the hartal day on Sunday while it is uncertain whether he would visit factory on Tuesday, he said.
Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said: "We are worried very much."
Placement of work orders by global buyers has slowed for several months and the good thing among the bad is that this is the peak time of production for next summer season, he said.
"Buyers might also be worried in placing work orders here in Bangladesh in such a situation as to whether we could make timely shipment," he noted, adding that such a situation is not desirable.
Fazlul Hoque, managing director of Plummy Fashions Ltd, says hartal, blockade and labour unrest would make buyers cautious.
"Our anxiety will increase further as exporters getting less work orders," he said.
Talking to the FE, Sheikh HM Mustafiz, managing director of Cute Dress Industry Ltd, said the twin-trouble from political and labour unrest would spell a setback as it would give a negative message to the global buyers.
He claims exporters are getting 30-percent lower work orders compared to that of last year.
"October to December is the peak season and shipments will start from November onwards. Buyers might shift work orders to our immediate competitors like India, Vietnam and even Myanmar," he says on a note of concern about business upset.
Export and internal transportation would be affected which might cause loss of buyers' confidence, says Asif Ashraf, managing director of Urmi Group.
He urged keeping the export-oriented RMG sector and its other linkage industries out of the purview of hartal and blockade.
Talking over labour unrest, Mr Hatem claimed that their demand for Tk 23,000 as minimum wage is 'illogical'. The minimum wage board is working in this regard which will take inflation and other issues into consideration before making their recommendations.
He said many garment factories would be closed down if Tk23,000 is fixed as minimum wage.
The factory owners' representative on the wage board, Siddiqur Rahman, on October 22 proposed Tk 10,400 as monthly minimum wage for an entry-level garment worker against workers' representative's proposal for Tk 20,393.
Different rights organizations have been demanding Tk 23,000 to Tk 25,000 as minimum wage for garment workers.
Some 100 leaders from trade unions and federations of unions at a meeting Sunday with the state minister for labour, Monnujan Sufian, said the agitated workers came out from factories as the owners' proposal frustrated them while six months have elapsed since the minimum wage board was formed in April.
They also said that workers are also agitating as they can't meet the daily necessities because of high prices of basic commodities.
Some factories have sacked workers on excuse of movement and closed the factories without any prior notice, they alleged, adding that sometimes the executives of garment factories hurl abuses at the workers, beat the workers and also cut the portion of salary for slightest offences during the work.
A section of people are also disseminating rumours and inciting workers to get involved in agitation, they noted.
The minister asked the union leaders to make the workers understand that the wage board has time until November 30 to make its recommendations and the new wage would be implemented from December 01 next.

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