RMG sector faces a serious threat
Saturday, 18 October 2008
Md. Masum Billah
GARMENTS industry in Bangladesh stands as the largest foreign exchange earner. It is striving to retain its leading position in this field and the people concerned are working untiringly. Government is also working hard to reach the goal. But some unhappy events have emerged as potential threats to this sector. It calls for more attention in the greater interest of our national economy. Discontentment and frustration among the ready made garments (RMG) workers have been prevailing for long and there might be an outburst any time paralysing the whole sector. Necessary steps need to be taken before it is destabilized beyond repair.
Following the recent developments, the Bangladesh Garments Manufacturers & Exporters Association (BGMEA) has reportedly decided to monitor whether all the garments have the capability to fulfil the tripartite contacts signed in 2006. If otherwise, the workers working in those factories will be apprised of the actual condition and asked if they are ready to work in this situation. The question of manipulation and deception should be erased from this sector. When the workers agree to work in the real situation having explained to them, no third party could intervene. They will work for the betterment of the industry. When the industry will see better days, the workers will also enjoy more facilities. The owners will not be allowed to employ new people throwing the existing ones out. The BGMEA will also have to monitor the situation to ensure that the thriving garments units pay the salary and benefits to the workers as per job conditions. The security reasons must be established from three points of view. First, the garments itself should arrange ample security, second, the BGMEA and third, the government, should also do the same. There must be intelligence units from the government to see why and how the unruly incidents in RMG units occur.
Due to security reasons 870 garments were on the verge of closure in the month of September that would have sent 1.0 million workers out of job, (70 per cent of them being women). On September 6, 91 garment owners of Gazipur met the BGMEA president and told him about their decision to close down the industry. "To corner the government, this decision was taken", some worker leaders opined. If it had been done, it would have an adverse impact on politics. Arrear bill, salary, overtime, piece rate, dismissal of workers, high price of essentials, entitlements to leave, bonus, tiffin etc., stand as the main reasons of anarchy in the garments sector. Some of these issues are small which could be resolved easily. If one of them is big enough, it should merit intervention by the BGMEA and government. Combined Garments Labour Federation president, Nazma Akter said, "Closing garment industries will not provide the solution." Out of 2.5 million garments workers in Bangladesh, 1.0 million are at Gazipur. Due to incidents of burning in many garment factories during the month of September, many foreign buyers took back 50 per cent of their order, involving substantial amounts of money in foreign exchange everyday.
We think everybody's interest is involved here. The President of Bangladesh Jano Swadhin Garment Worker Advocate Delwar Hossain Khan said, "Owners have taken this decision just to create pressure on the government and to get several benefits from it. Fulfilling the rights of labourers and not to suppress them is the way to the solution." All concerned must give consideration to the interest of the workers, owners and, above all, of the nation.
According to Export Promotion Bureau, Bangladesh earned from this sector $5.17 billion in fiscal 2007-08. But 40 per cent of garments units across the country are already closed due to various problems. During the first six months of this calendar year, 155 garment units were closed down, giving an ominous signal about our economy. Experts have already given their opinions that both exogenous and endogenous forces are inciting anarchy in this sector. If that is the case, the intelligence operations must be stepped up by the government here to find out the exact and right clues to the falling.
Banks are showing, of late, their disinclination to extend funding supports to the sector. The prices of garments in the international market are falling. Our neighbouring country's currency exchange rate vis-à-vis US dollar has become more attractive for their exporters. There are problems with regard to supply of gas and electricity to our industrial units. Besides, there are other problems in the RMG sector. Garment owners are to depend on various ministries. That is proving to be too onerous. They clamour for a new ministry. Of course, developing a new ministry does not necessarily mean any qualitative change in our context. In this respect, we can cite the example of the ministry of jute. It has failed to retain the glorious past of jute, though the ministry was established with this objective.
Sramabikash Kendra, a platform of RMG workers formed a human chain in front of the High Court on September 24, demanding implementation of a tripartite agreement among the government, RMG workers and garment owners signed in 2006. About 70 per cent of RMG units, totalling 4500 across the country, pay Tk 1200 as monthly wages to the workers, instead of Tk 1662.50 which was fixed under the deal. If workers demand wages as per the deal, the owners of the factories threaten to lay off the factories. Worker leaders demanded steps by the government to sell the property of the factory owners who laid off their factories without paying workers' dues. Worker leaders must be pragmatic and considerate enough. They must not incite the workers, nor should they be guided by the non-committed worker leaders as those in the former Soviet Union. The worker leaders of the former USSR contributed a great deal to close down many of its industries. The leaders of National Alliance for Protection of Garment Workers and Industries at Dhaka Reporters' Unity pressed home for acceptance of their seven-point demand -- payment of 50 per cent dearness allowance until the minimum wages are fixed for the RMG workers by the wage board, lifting all sorts of restrictions on trade union activities, arrest of, and punishment to, the garment owners who violated the labour and other laws of the land and payment of arrear bills of workers. Only receiving benefits through the exploitation of cheap labour is a crime. So, extending maximum and relevant opportunities to the workers is a must.
If possible, there should be provision for contributory provident fund for the workers and gratuity. The already-established garments industries may make it easily. If it is done, the workers will love their work; otherwise, they will work just for work. And they will do so in the sick ones, too.
The BGMEA may take the initiative to introduce such kinds of facilities for the workers. Their monetary contribution could be deployed for further developing and improving the industries. If the industry is sick and non-profitable and the workers continue to extract more facilities from the owners, it will just invite closure of the industries and bring rainy days for the workers and their families. And it also happens that some owners try to bother about their interests only, ignoring the facilities for the workers. In order to mediate between these two parties, there is need for existence of trade unions. If the trade union leaders remain busy with making their own fortune at the cost of workers' interests and loss of the industry, it will bring another disaster and this thing unfortunately happened where trade union developed. And that experience encourages the people concerned in this sector not to favour establishment of trade unions. But it is also not reasonable. In the absence of trade union or such kinds of platform, an autocracy develops. This is not desirable. Workers, owners, the BGMEA and the government must get involved in resolving the ongoing crisis of RMG sector. Other business communities, economists, intellectuals and all concerned need to take interest and contribute to this sector at least with their good and pragmatic suggestions as it is the country's most vital foreign exchange earning sector today.
The writer is Senior Manager, Brac Education Programme, PACE. He may be reached at
email: mmbillah2000@yahoo.com
GARMENTS industry in Bangladesh stands as the largest foreign exchange earner. It is striving to retain its leading position in this field and the people concerned are working untiringly. Government is also working hard to reach the goal. But some unhappy events have emerged as potential threats to this sector. It calls for more attention in the greater interest of our national economy. Discontentment and frustration among the ready made garments (RMG) workers have been prevailing for long and there might be an outburst any time paralysing the whole sector. Necessary steps need to be taken before it is destabilized beyond repair.
Following the recent developments, the Bangladesh Garments Manufacturers & Exporters Association (BGMEA) has reportedly decided to monitor whether all the garments have the capability to fulfil the tripartite contacts signed in 2006. If otherwise, the workers working in those factories will be apprised of the actual condition and asked if they are ready to work in this situation. The question of manipulation and deception should be erased from this sector. When the workers agree to work in the real situation having explained to them, no third party could intervene. They will work for the betterment of the industry. When the industry will see better days, the workers will also enjoy more facilities. The owners will not be allowed to employ new people throwing the existing ones out. The BGMEA will also have to monitor the situation to ensure that the thriving garments units pay the salary and benefits to the workers as per job conditions. The security reasons must be established from three points of view. First, the garments itself should arrange ample security, second, the BGMEA and third, the government, should also do the same. There must be intelligence units from the government to see why and how the unruly incidents in RMG units occur.
Due to security reasons 870 garments were on the verge of closure in the month of September that would have sent 1.0 million workers out of job, (70 per cent of them being women). On September 6, 91 garment owners of Gazipur met the BGMEA president and told him about their decision to close down the industry. "To corner the government, this decision was taken", some worker leaders opined. If it had been done, it would have an adverse impact on politics. Arrear bill, salary, overtime, piece rate, dismissal of workers, high price of essentials, entitlements to leave, bonus, tiffin etc., stand as the main reasons of anarchy in the garments sector. Some of these issues are small which could be resolved easily. If one of them is big enough, it should merit intervention by the BGMEA and government. Combined Garments Labour Federation president, Nazma Akter said, "Closing garment industries will not provide the solution." Out of 2.5 million garments workers in Bangladesh, 1.0 million are at Gazipur. Due to incidents of burning in many garment factories during the month of September, many foreign buyers took back 50 per cent of their order, involving substantial amounts of money in foreign exchange everyday.
We think everybody's interest is involved here. The President of Bangladesh Jano Swadhin Garment Worker Advocate Delwar Hossain Khan said, "Owners have taken this decision just to create pressure on the government and to get several benefits from it. Fulfilling the rights of labourers and not to suppress them is the way to the solution." All concerned must give consideration to the interest of the workers, owners and, above all, of the nation.
According to Export Promotion Bureau, Bangladesh earned from this sector $5.17 billion in fiscal 2007-08. But 40 per cent of garments units across the country are already closed due to various problems. During the first six months of this calendar year, 155 garment units were closed down, giving an ominous signal about our economy. Experts have already given their opinions that both exogenous and endogenous forces are inciting anarchy in this sector. If that is the case, the intelligence operations must be stepped up by the government here to find out the exact and right clues to the falling.
Banks are showing, of late, their disinclination to extend funding supports to the sector. The prices of garments in the international market are falling. Our neighbouring country's currency exchange rate vis-à-vis US dollar has become more attractive for their exporters. There are problems with regard to supply of gas and electricity to our industrial units. Besides, there are other problems in the RMG sector. Garment owners are to depend on various ministries. That is proving to be too onerous. They clamour for a new ministry. Of course, developing a new ministry does not necessarily mean any qualitative change in our context. In this respect, we can cite the example of the ministry of jute. It has failed to retain the glorious past of jute, though the ministry was established with this objective.
Sramabikash Kendra, a platform of RMG workers formed a human chain in front of the High Court on September 24, demanding implementation of a tripartite agreement among the government, RMG workers and garment owners signed in 2006. About 70 per cent of RMG units, totalling 4500 across the country, pay Tk 1200 as monthly wages to the workers, instead of Tk 1662.50 which was fixed under the deal. If workers demand wages as per the deal, the owners of the factories threaten to lay off the factories. Worker leaders demanded steps by the government to sell the property of the factory owners who laid off their factories without paying workers' dues. Worker leaders must be pragmatic and considerate enough. They must not incite the workers, nor should they be guided by the non-committed worker leaders as those in the former Soviet Union. The worker leaders of the former USSR contributed a great deal to close down many of its industries. The leaders of National Alliance for Protection of Garment Workers and Industries at Dhaka Reporters' Unity pressed home for acceptance of their seven-point demand -- payment of 50 per cent dearness allowance until the minimum wages are fixed for the RMG workers by the wage board, lifting all sorts of restrictions on trade union activities, arrest of, and punishment to, the garment owners who violated the labour and other laws of the land and payment of arrear bills of workers. Only receiving benefits through the exploitation of cheap labour is a crime. So, extending maximum and relevant opportunities to the workers is a must.
If possible, there should be provision for contributory provident fund for the workers and gratuity. The already-established garments industries may make it easily. If it is done, the workers will love their work; otherwise, they will work just for work. And they will do so in the sick ones, too.
The BGMEA may take the initiative to introduce such kinds of facilities for the workers. Their monetary contribution could be deployed for further developing and improving the industries. If the industry is sick and non-profitable and the workers continue to extract more facilities from the owners, it will just invite closure of the industries and bring rainy days for the workers and their families. And it also happens that some owners try to bother about their interests only, ignoring the facilities for the workers. In order to mediate between these two parties, there is need for existence of trade unions. If the trade union leaders remain busy with making their own fortune at the cost of workers' interests and loss of the industry, it will bring another disaster and this thing unfortunately happened where trade union developed. And that experience encourages the people concerned in this sector not to favour establishment of trade unions. But it is also not reasonable. In the absence of trade union or such kinds of platform, an autocracy develops. This is not desirable. Workers, owners, the BGMEA and the government must get involved in resolving the ongoing crisis of RMG sector. Other business communities, economists, intellectuals and all concerned need to take interest and contribute to this sector at least with their good and pragmatic suggestions as it is the country's most vital foreign exchange earning sector today.
The writer is Senior Manager, Brac Education Programme, PACE. He may be reached at
email: mmbillah2000@yahoo.com