The RMG BRIDGE: The ultimate test of our conscience

Rubana Huq I am only one of the 4800 in this country. I have no control over what is written in the media. I have no idea how to reach out to the millions in the West to tell them that we are not a blood-sucking community with qualms about labour. I have no tool to convince local media not to hound us down. But I do have the sanity to claim responsibility for all that we have done so far. That includes the growth and the tears. But I know one fact for sure. If we lose this industry, we give up on our tomorrow. Apart from the US$20 billion that we refer to when we speak of the readymade garment (RMG) exports, there are many supporting industries that thrive on RMG and many other sectors that are direct beneficiaries. For example, only in fiscal year (FY) 2010-2011, from the garments sector, the banking sector received $141.5, shipping businesses- another $254 million, inland transport industry: $107.5 million, and $102 million were spent as office and garage rent only. How do we also calculate the lipsticks, the plastic bangles, slippers, and saris that make their way into the home of a garment worker? The RMG sector has added a new dimension of survival for many workers. Then again, has also had its share in tragedies as well. As a manufacturer, I can vouch for a few simple facts starting with customers' reaction. Customers will not walk away from this country if politics stays out of this trade and if, as owners, we oursevesget involved with labour. The first one maybe difficult considering we have trade organizations which cater to the interest of the voters and also because governments react only when a tragedy strikes. On top of this, when a government representative overreacts without having ample resources in hand and when a government really thinks that easiest solution would be settling for just a hike in minimum wage and simply announcing reforms of Labour Law, 2006 with clauses that will rather make forming unions difficult, then the industry does not and will not take off. On top of everything, understanding the interests of the workers is a point we can consider, manage and promote in all our units. As manufacturers, the time has come for us to invest in labour and also claim our returns in the process. There are a few quick suggestions I would like to promote through this piece. But the central focus is one: bridging with labour. Besides BGMEA scrutinizing the the factories, classifying them into three tiers basing on the level of the compliance of the factory, and suggesting relocation of the Tier 3 factories in special garment zones or so, there is a central issue that we need to also consider and incorporate into our corporate agenda. We need to BRIDGE. The workers and the owners must bond now. I have had the experience of spending a new year's celebration in one of our factories a few years back. Those memories of celebration have stayed with me. I have not been able to get over watching them dance on top of our cutting tables. I have not experienced excitement up to that extent in any of the social engagements I have attended so far. Point is, we need to bond and therefore, we need a scheme that we can safely call: BRIDGE. What will BRIDGE do? And what can we do for the workers under BRIDGE and how much is it going to cost? In a factory of 500 workers, where there is a participatory committee or a trade union, the owner would have to go at least once every fortnight to attend meetings of the WPC(Workers Participatory Committee)/ Trade Union. Under the scheme: mutual interests would be discussed including increase in productivity and quality, financial assistance, training programmes, monthly cultural programmes and contests, etc. Since there is a trust deficit between the workers and the owners, we need to understand that this is a time for the manufacturers to invest and we shouldn't be looking back at all. To begin, manufacturers could think of a low cost housing scheme for the workers. If the government can give us raised land at a subsidized rate, construction of a housing project for 500 workers could be set up for Taka 60 million 6.0 crore. The project could include two types of accommodation: dormitories for accommodating four in a room of 100 sq ft and Family Accomodation could be arranged within 150 sq ft. If we were to build 350 apartments of 100 square feet and 150 apartments of family size, i.e 150 sq ft, and if we were to cost based on a 800/sq ft as construction cost (depending on being able to import the pre-fabricated material from abroad which is offered to industries at low prices) then the total cost would come to around Taka 46 million (4.6 crore). If we could just charge the workers for and utilities, and a subsidized rent, not only would be have lesser migration in our production floor, but we would win hearts and loyalties of our workers, our retailers and our civil society. What else does a worker need? A worker often needs quick access to credit. If under the BRIDGE scheme, the manufacturers decided to deposit all the 'jhut' money to a workers' welfare fund, then that would at least display a gesture of goodwill. This would be in addition to and separate from the value that we could build up through the joint contribution of the retailers and the manufacturer on per piece basis. Under BRIDGE, the manufacturers could easily run schools that would cost around Taka 67000.00 for 100 students belonging to the garment workers. A school that we run incurs a monthly house rent of Taka 15000.00 in Khilkhet area, utilities come to around Taka 2300, stationery accounts for another Taka 3000.00 (books are provided by the government free of cost), and staff salaries total Taka 46000.00. The amount isn't all that much considering the smiles it brings to the little faces, looking pretty in those blue uniforms. BRIDGE could also focus on productivity and skill development. At a small scale, every factory can afford to set up a Training Center which would train workers and staff on various issues including technical training, building awareness on occupational hazard, health and safety issues and teaching labour laws. A small training center of 2500 sq ft would mean paying a rent for Taka 40,000. It could mean purchasing 30single needle lock stitch (plain sewing machines) costing 650 dollars each totaling Taka 15,21,000.00, one over lock machines costing: 800 dollars and two feed of the arm machines: $3200 and multi needle chain stitch:$1800, two needle chain/lockstitch machines: $3000, three vacuum tables : $1500; one button stitch and hole machines: $4900 dollars. Apart from the machinery cost, the other costs would include the trainee workers' salary @Taka 5000 each (5000x30=Taka 150,000.00); furniture would mean another Taka 0.2 million 2.0 lakhs, electricity and other utilities would mean another Taka 10000. If we were to spread the machinery cost and furniture to the monthly expenses based on 360 days deferred payment, then the additional cost would come to around Taka 250,000.00. On top of this, instructor would have to be given Taka 30,000.00. Electrical set-up would take up another Taka 144500.00 and if spread out over a year would come Taka 12041.00 (85 feet @ Taka 1700.00 including lighting and cable). In total, in the first year, per month the training center would cost approximately Taka 350,000.00. BRIDGE could also evaluate the workers based on their performance and accordingly wages could be fixed upon successful completion of their courses. This would take care of the basic requirement of training labour. If we are then to stretch our plans to branding ourselves to the outside world, then we could run this training center from 6.0 am to 2.0 pm and then from 3.0pm till 11.00 pm (transport could be provided by the company) for running a separate sewing line to produce products that the manufacturers could export 80% with their own branded labels, then we could efficiently brand Bangladesh that we have so wanted to do for long. The rest 20% could be sold locally. The local and the export proceeds could be split between the worker and the owner. This would probably be an ideal profit sharing project. If that one sewing line could produce 400 pieces of shirts per day, we would then have to bear only the additional salary of the second shift, which would come to around Taka 750,000.00 @ Taka 10000.00 per 75 workers. At a time when the whole world is reevaluating the price of labour in our country, the manufacturers must have the spirit to resiliently battle these challenges and make sure that everyone around the community understands that we value our workers as much as we value our own lives. Until we reach that point, no degree of compliance, no set of rules, no impositions or sanctions, no threats will work. We alone must take the step to BRIDGE with our labour force and no mediation will work here, except our own awakening. (The write is Managing Director, Mohammadi Group. E-mail: rubanahq@gmail.com)