RMG sector needs proper support
Sunday, 5 December 2010
Anu Mahmud
The smouldering discontent among garment workers is manifesting itself in the form of demonstrations, often degenerating into violence, in different RMG units from time to time. This is weakening the country's premier foreign earning sector and lowering its productivity.
At least 30 people were hurt when workers of two garment factories in Gazipur and Naryanganj demonstrated few days ago for immediate payment of their arrear salaries and implementation of the wage structure. In Gazipur, the situation took a serious turn when musclemen, allegedly hired by the owners, pounced on the workers. The workers, too, turned violent and at one stage the on-duty members of Ansar opened fire on them.
A devastating fire led to deaths of the workers and injury of 30 others. As the factory gate remained under lock and key even after the fire broke out, the workers could not come out and died of suffocation few months ago. Two inquiry teams have been formed to investigate the incident. The BGMEA will reportedly give Tk 2,00,000 to each of the victims' families.
Accidents are not altogether avoidable in industries. But deaths of so many workers that could apparently be avoided indicate that something is seriously wrong with factory management and deserves to be addressed immediately. The dead workers are victims of factory owners' criminal negligence to their safety and security. The factory did not have sufficient number of fire extinguishers. Persons responsible for such neglect should be given stringent punishment to bring others back to their senses. There were several incidents of fire during the last two decades that led to the death of more than 240 workers. But security situation at RMG factories still remains neglected.
More than thirty lakh workers are engaged in some 4,800 garment factories. Thanks to their hard work, the RMG sector is one of the highest foreign exchange earners for the country. Safety at the work place is an inalienable right of the workers. The government and other stakeholders should first ensure their safety. The death of a single worker means severe economic hardship for the victim's family of five. After-death compensation cannot be the answer to the problem. Casualties for neglect of duty in ensuring safety of workers should be dealt with an iron hand, so that such neglect does not recur.
So, it was nothing but a repetition of what usually happens in circumstances like this. The workers give vent to their grievances through protest demonstrations. Unfortunately, the situation almost always goes out of control when workers decide to arrange such rallies. So far, no troubleshooting mechanism could be developed and production in the factories is often obstructed by such labour unrest.
The owners usually try to resort to the law and order approach, as their factories become the target of vandalism. It has been reported that outsiders are often found involved in such subversive activities. For obvious reasons, workers are blamed for turning violent. However, it is not evident why the owners fail to clear the workers' dues and adopt the new salary structure. The truth of the matter is that creating a situation where production grinds to a halt amounts to violation of the law, but so does non-implementation of the wage structure approved by the government.
The situation is quite complicated. The owners have to deal with labour unrest on their own, and when law enforcers are summoned they commit excesses like opening fire that further complicate the issue.
So, conflict resolution remains a sore point. There may be a host of issues on which dispute may arise. This is part of industrial relations and factory management. But in our context any dispute or unfulfilled demand is blown out of proportion and that can only create chaos and confusion.
The owners who fail to fulfil the just demands of workers are not living up to the true spirit of entrepreneurship. Similarly, the workers who cannot do anything better than going on the rampage are doing a great disservice to the industry. We believe the two parties, namely the owners and the workers, have to go by what they have agreed on and refrain from doing anything that will cause irreparable damage to the industry.
The RMG sector of the country has created a large number of jobs and helped in making people self-reliant despite not being a major contributor to the national exchequer, Finance Minister Abdul Muhith indicated when he was speaking at the annual fair 'Bangladesh Appareland Textile Exposition (BATEXPO)-2010.
He assures the BGMEA members that the government would provide all necessary support to the readymade garment sector and the stimulus packages for the RMG sector would be continued. The government was considering a further Tk 100 crore stimulus package for the RMG industry.
He also expressed the hope that the existing power shortage would ease between January and March of 2011 with installed capacity of additional 2000 MW to be added to the national grid. Despite the global recession, the country's RMG exports rose by 4.0 per cent during the last financial year. The growth rate was low but it has been maintained by BGMEA.
The government will offer a stimulus package of US$1.0 billion (100 crore) for the small and medium entrepreneurs to diversify and explore new markets around the globe. The government is providing little support for market diversification and in this aspect it will give a package worth $1.0 billion for the small and medium entrepreneurs. These entrepreneurs will be free from the bonded warehouse facility and they will enjoy all the facilities entitled for them till June 30 next year (2011). The demand of the industry for power generation and dormitory is under government consideration. Besides, a decision for withdrawal of 15 per cent VAT on house rent of RMG factories would be taken next year. The government had made necessary arrangements for captive power generation and offered stimulus packages for RMG owners. Despite challenges like erratic supply of gas and electricity, high interest rates, a sharp rise in the price of cotton and other accessories in the international market. But productivity has gone up compared to other countries.
The government should implement its announced package as early as possible as it becomes a big challenges for 60-65 per cent small and medium entrepreneurs to implement the new wage structure. Bangladesh exported knitwear worth $42.88 billion in the first four months of the current fiscal year, 29.63 per cent higher than the export goal and 37.97 per cent higher than the corresponding period of last fiscal year.
Woven garment worth $2.34 billion were exported in this period, 13.70 per cent higher than the target and 39.45 per cent higher than last year's export during this period.
E-mail : anumahmud@yahoo.com
The smouldering discontent among garment workers is manifesting itself in the form of demonstrations, often degenerating into violence, in different RMG units from time to time. This is weakening the country's premier foreign earning sector and lowering its productivity.
At least 30 people were hurt when workers of two garment factories in Gazipur and Naryanganj demonstrated few days ago for immediate payment of their arrear salaries and implementation of the wage structure. In Gazipur, the situation took a serious turn when musclemen, allegedly hired by the owners, pounced on the workers. The workers, too, turned violent and at one stage the on-duty members of Ansar opened fire on them.
A devastating fire led to deaths of the workers and injury of 30 others. As the factory gate remained under lock and key even after the fire broke out, the workers could not come out and died of suffocation few months ago. Two inquiry teams have been formed to investigate the incident. The BGMEA will reportedly give Tk 2,00,000 to each of the victims' families.
Accidents are not altogether avoidable in industries. But deaths of so many workers that could apparently be avoided indicate that something is seriously wrong with factory management and deserves to be addressed immediately. The dead workers are victims of factory owners' criminal negligence to their safety and security. The factory did not have sufficient number of fire extinguishers. Persons responsible for such neglect should be given stringent punishment to bring others back to their senses. There were several incidents of fire during the last two decades that led to the death of more than 240 workers. But security situation at RMG factories still remains neglected.
More than thirty lakh workers are engaged in some 4,800 garment factories. Thanks to their hard work, the RMG sector is one of the highest foreign exchange earners for the country. Safety at the work place is an inalienable right of the workers. The government and other stakeholders should first ensure their safety. The death of a single worker means severe economic hardship for the victim's family of five. After-death compensation cannot be the answer to the problem. Casualties for neglect of duty in ensuring safety of workers should be dealt with an iron hand, so that such neglect does not recur.
So, it was nothing but a repetition of what usually happens in circumstances like this. The workers give vent to their grievances through protest demonstrations. Unfortunately, the situation almost always goes out of control when workers decide to arrange such rallies. So far, no troubleshooting mechanism could be developed and production in the factories is often obstructed by such labour unrest.
The owners usually try to resort to the law and order approach, as their factories become the target of vandalism. It has been reported that outsiders are often found involved in such subversive activities. For obvious reasons, workers are blamed for turning violent. However, it is not evident why the owners fail to clear the workers' dues and adopt the new salary structure. The truth of the matter is that creating a situation where production grinds to a halt amounts to violation of the law, but so does non-implementation of the wage structure approved by the government.
The situation is quite complicated. The owners have to deal with labour unrest on their own, and when law enforcers are summoned they commit excesses like opening fire that further complicate the issue.
So, conflict resolution remains a sore point. There may be a host of issues on which dispute may arise. This is part of industrial relations and factory management. But in our context any dispute or unfulfilled demand is blown out of proportion and that can only create chaos and confusion.
The owners who fail to fulfil the just demands of workers are not living up to the true spirit of entrepreneurship. Similarly, the workers who cannot do anything better than going on the rampage are doing a great disservice to the industry. We believe the two parties, namely the owners and the workers, have to go by what they have agreed on and refrain from doing anything that will cause irreparable damage to the industry.
The RMG sector of the country has created a large number of jobs and helped in making people self-reliant despite not being a major contributor to the national exchequer, Finance Minister Abdul Muhith indicated when he was speaking at the annual fair 'Bangladesh Appareland Textile Exposition (BATEXPO)-2010.
He assures the BGMEA members that the government would provide all necessary support to the readymade garment sector and the stimulus packages for the RMG sector would be continued. The government was considering a further Tk 100 crore stimulus package for the RMG industry.
He also expressed the hope that the existing power shortage would ease between January and March of 2011 with installed capacity of additional 2000 MW to be added to the national grid. Despite the global recession, the country's RMG exports rose by 4.0 per cent during the last financial year. The growth rate was low but it has been maintained by BGMEA.
The government will offer a stimulus package of US$1.0 billion (100 crore) for the small and medium entrepreneurs to diversify and explore new markets around the globe. The government is providing little support for market diversification and in this aspect it will give a package worth $1.0 billion for the small and medium entrepreneurs. These entrepreneurs will be free from the bonded warehouse facility and they will enjoy all the facilities entitled for them till June 30 next year (2011). The demand of the industry for power generation and dormitory is under government consideration. Besides, a decision for withdrawal of 15 per cent VAT on house rent of RMG factories would be taken next year. The government had made necessary arrangements for captive power generation and offered stimulus packages for RMG owners. Despite challenges like erratic supply of gas and electricity, high interest rates, a sharp rise in the price of cotton and other accessories in the international market. But productivity has gone up compared to other countries.
The government should implement its announced package as early as possible as it becomes a big challenges for 60-65 per cent small and medium entrepreneurs to implement the new wage structure. Bangladesh exported knitwear worth $42.88 billion in the first four months of the current fiscal year, 29.63 per cent higher than the export goal and 37.97 per cent higher than the corresponding period of last fiscal year.
Woven garment worth $2.34 billion were exported in this period, 13.70 per cent higher than the target and 39.45 per cent higher than last year's export during this period.
E-mail : anumahmud@yahoo.com