RMG: A propeller of inclusive growth and equality

Over the last four decades the ready-made garment (RMG) industry of Bangladesh facilitated millions of women's financial independence and social wellbeing. The sector acted as a catalyst of women's empowerment breaking all the stereotype social norms and gender roles. This industry has been instrumental in generating formal employment for a vast number of unskilled and barely literate women of the country. Unfortunately, out of total employed women, 96.6 per cent are employed informally. RMG is the gateway to formal employment for 94 per cent women in the workforce in Bangladesh. There is no other alternative sector which could accommodate such a large pool of grassroots level women from rural areas. The women who're working in informal sectors are visibly under the poverty threshold, getting low wages, doing jobs in hazardous conditions and are not protected by any labour legislation.
In contrast, Bangladesh claims having more than 225 factories with the Leadership In Energy and Environmental Design (LEED) demonstrating its commitment towards state-of-art working conditions and environmental sustainability. As a crucial part of global apparel supply chain, the RMG factories are adhering to the code of conduct for customers which has been developed by following the UN guiding principles of business and human rights. Each factory encounters their respective social audits to re-inforce fair working conditions, occupational safety, wages, working hours, and many other responsible business practices. Women in informal employment are unrecognised, unregistered, victims of wage discrimination, harassment and long working hours.
More than half the RMG workers are under digital payment system which allows them to receive wages, remit money and pay bills through digital financial services. Banks are providing them digital wallets, mobile banking apps and helping them with ATM booths. But many workers face significant challenges in accessing those services on the digital financial landscape. They're provided financial literacy training so that they can have better control on their income and expenses. Those trainings encourage them to save a certain amount of money from their wages every month for contingency and make them aware about various financial services. This is how RMG is fostering financial inclusion of women in the formal financial sector.
The apparel industry is transforming low skilled women into valuable human capital by providing on-the-job training on hard skills and life skills. Various programmes are undertaken to develop their communication, negotiation and decision-making skills and how to address sexual harassment and boost their confidence to take up bigger challenges in future. Males and females both are educated about gender-sensitive behaviour in work places to make an enabling environment for women.
Some factories also offer literacy programmes and vocational training, further advancing their capabilities and future employment prospects. Throughout apparel supply chain, women's leadership development programmes are proven very effective to increase the number of women in supervisory and managerial positions.
The gender norms and social sentiment pose a great challenge to women aspiring to enter formal employment. In a patriarchal society where women's capabilities are undervalued, RMG workers broke all the barriers, shifting the social perception of gender roles and deviating from the traditional role of caregiving. Women working in the industry gained confidence, self-esteem and dignity by becoming active financial contributor in the family and community. They play a vital role in the decision-making of their own life and the family. The financial independence allows them to live a life of their choice and give aspiration for better career opportunity. It provides a sheer sense of empowerment and greater control on their lives. They are envisioning a brighter future of their family by equipping their children with better education, nutrition and raising the quality of life of the family.
When women gain access to financial resources, it boosts household well-being, catalyzes national economic growth and contributes to aggregate Human Development Index (HDI) of the country. The multiplier effect of gender equitable income distribution has a long-lasting developmental benefit enjoyed by the entire nation.
As Bangladesh celebrates the achievement of RMG sector which has been built on the power of women.It is a moral imperative that the industry invests on capacity building of women. We observe a declining trend of women's ratio in the workforce of RMG due to automation, digitalisation and advent of fourth industrial revolution technology. Rigorous upskilling and reskilling programmes are needed to enhance the participation of women in the industry and increase their competence to meet the global benchmark. Investing in women is the smartest thing to do for long term sustainability and growth of the sector. Nurturing the latent potential of women, Bangladesh will continue moving towards a brighter, inclusive and equitable future where everyone will have equal opportunities regardless of gender.

Luthmela Farid is a director of Pacific Jeans Ltd.
luthmela@pacificjeans.com