RMG subcontractors go unregulated

No effective step has yet been taken to bring the subcontracted garment factories under a regulatory framework despite their poor working condition and safety.
A large number of such factories are members of neither Bangladesh Garment Manufacturers and Exporters Association (BGMEA) nor Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
The commerce ministry has drafted a policy to bring those factories under a regulation, but it is yet to be finalised, though more than one year has elapsed since the move was taken.
On the other hand, the apparel trade bodies have declined to take responsibility of those units saying they are not affiliated with them.
The Alliance for Bangladesh Workers Safety, comprising 26 North American retailers and brands, in a recent statement said that the government of Bangladesh must decide whether it would be responsible for the country's readymade garment (RMG) subcontractors.
It also added that the government should decide how the RMG subcontractors would be regulated and how action would be taken against them.
According to the Department of Inspection for Factories and Establishments (DIFE), about 800 factories, out of 3,500 now in operation, are neither members of BGMEA nor BKMEA.
The majority of these units are small and medium enterprises and are doing subcontracting jobs for big factories.
These factories are rife with irregularities, including non-payment of wage and non-compliance with the government-announced wage structure, issuance of appointment letters, identity cards and allowing other rightful benefits including maternity leave and allowance. The situation is worse in those factories which are not members of any of the trade bodies BGMEA and BKMEA, officials have said.
When contacted, DIFE Inspector General Syed Ahmed agreed that performance of the non-member factories in terms of safety and other compliance issues as well as payment of wage and overtime bills was poor compared to the BGMEA and BKMEA member units.
"DIFE has already directed its officials to hold meetings with those factory authorities in presence of DCs to resolve the issues," he added.
But sources said the DIFE preferred mutual dialogues to convince the owners to be members of any of the two associations, as any lengthy legal process would not yield any immediate result in this connection.
Replying to a question, Mr Ahmed said a common platform would help the concerned factory authorities to go for necessary measures to avert any unwanted situation or resolve any problem.
Commerce ministry officials said the policy would get a final shape shortly.
"All the factories have to be compliant but it would take some time," a senior official said. All needed to work together including the foreign buyers to that end, he added.
BGMEA vice president Md Shahidullah Azim said it was the responsibility of the concerned ministry to identify the non-member factories as the government issues different business certificates.
He said if any member factory does subcontracting, it has to comply with the requirements including proper inter-bond permission from the BGMEA, approval from the buyers or buying houses, mandatory group insurance coverage for its workers and regular payment of premiums.
"But we can't impose anything on them who are not our members," he added.
Nazma Akter, president of Sommilito Garments Sramik Federation, said the majority of the units were doing subcontracting jobs for the big factories which are members of either BGMEA or BKMEA.
"So BGMEA or BKMEA can't shirk their responsibility, as their member factories provide work orders to these units," she said demanding strict government monitoring and bringing them under a regulatory framework.
However, experts and labour leaders called upon both the apparel trade bodies and the government to take immediate measures to make the units compliant. Most of the units do subcontracting, and the government should also strictly monitor the issue.
They also called upon the foreign buyers to take their responsibility as they are also involved in the supply chain and do business.

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