Security of RMG sector
Saturday, 6 September 2008
A.H. KhanbrDifferent quarters continue to blame the RMG owners for the troubles in the apparel industry. It is very common to blame the owners. A section of the society always take the opportunity of gaining cheap popularity by blaming the owners. Everyone would agree that RMG is the thrust sector of the economy. As the economy is yet to achieve export diversification, the dependence on the RMG sector would continue for sometimes more whether one likes it or not. All related agencies must try to improve the atmosphere in this sector.brHow insecure are the RMG units!brThe story of Meem Garments would frighten any investor in the sector. In front of two platoons of police force, only three miscreants, burned the sweater yarn worth Tk 500 million or so. The factory's lady security personnel tried to halt these three miscreants from destroying this factory, while the police force remained silent spectators. Is it not the responsibility of the state and its police to provide protection to industry against such heinous acts brWho instructed the police force to behave in this way All the workers were busy receiving or disbursing salaries at that time. If 5000 employees of the unit knew that some miscreants were destroying their daily bread definitely the situation would be different. Did the government question the police personnel who failed in their duty Who were behind the plot Who benefited out of itbrSimilar destruction is going on and on without any action to stop them. An intelligence agency and the BGMEA inquiry committee identified the group of people, responsible for making unrest in big and compliant RMG units, in and around Dhaka city, but no one was punished. Those who were arrested was released immediately. Who are behind these destructive acts Why does the government fear to take action against thembrIt is the responsibility of the government to protect this sector from destruction. Millions of people depend on this sector, directly or indirectly for sustenance. The demise of the sector would cost the nation badly.brLike the employees of many private organisations, RMG employees are also the victims of the government's fault. These employees also need adjustment of pay because the government failed to manage the economy and control the prices What facilities RMG units got from the government bra) did the government facilitate them to increase their income brb) did it reduce their burden on security costbrc)did it give them uninterrupted electricitygaswater supplybrd) does the government know how much the RMGs are paying for using of emergency generatorbre) has transportation cost been reducedbrf) are the prices of materials used by RMG units fallingbrThe answer would be a big zero.brTaka has appreciated. As a result the RMG owners lost somewhat. Production cost has gone up, world market is very competitive and recession in the developed countries leaves hardly any scope for RMG owners to increase their income. But the employees need higher pay to buy essentials. brThe government advised the owners to increase salary of the employee. But the government needs to show the way. You created the problem -- you have to absorb the shock! Are the RMG owners, by any means, responsible for the price hike of essentials brNot many in the media share the views of RMG owners. Those who attained success in this business are really talented. Can anyone, who has the money, own a factory and make money No. If so, there would not be 1500 sick industries in the sector. In the last three decades many investors failed though they had the reputation of capable entrepreneurs.brSome columnists concluded that it would just cost an extra 0.8 per cent of the FOB cost, if the owners' increase workers' salary, as proposed by BKMEA. But there can be no flat rate of costing for different types of garments. Cost calculation varies from item to item, factory to factory, customer to customer. For many woven items, owners have to import various items up to the 80 per cent FOB cost of garment. It can become difficult to save even 2.0 per cent of FOB value of garment. brWhen an order is cancelled or an RMG unit is forced to ship by air at owner's cost, what happens No one knows except the exporter. The media people, whether a columnist or a reporter need to understand the implications of these liabilities before passing their opinions. If the imported raw materials are of low quality, or they are stolen from the port who takes the burden It becomes the owner's liability. The so-called cost calculation could be useless in such and other situation involving risks.brIt is not easy to maintain a huge workforce on regular payment. Those who can do it deserve some credit.brWhy and who are out to destroy the industries One are the welfare organisers!brYou can find dozens of workers' welfare organisations. They locate themselves in close proximity to these industries. They influence the workers and take regular donations from them. In turn, they provide wrong advice to them.brThese organisations try to blackmail the owners and misguide the workers. Sometimes they achieve success. Some law professionals are with them. Some local and foreign NGOs show keen interest in these activities. A similar situation arose in Indonesia, a couple of years back to destroy the potentials of this sector in that country.brA look back into the country's jute industries would show the activities of trade union leaders, who destroyed the whole sector. Now may jute industries of Bangladesh had to be closed down, the workers are jobless, their family members are starving. But now jute mill are coming up on other side of the border.br When a new RMG industry comes one can see several welfare units springing up centering the factory. So many wellwishers rush to the scene. They try to black mail the owners, workers, general mass and tries to create a negative publicity against the industry.brThe common people are misled by their crocodile tear. The nation suffers. We have to decide whom to support -- those who are providing the opportunity of employment or those who are trying to fill their pockets through dubious means. The BGMEA has decided not to set up any new industry in next three years. It is a courageous decision, though it may contribute to unemployment. The government should think and listen to the grievances of the owners also before passing executive orders. Both the country and the people will suffer out of an adverse situation. Governments will come and go, but the industrialists will remain. For the benefit of the nation the industries need to be protected.