Why do RMG workers always get a raw deal?

Since its inception, the ready-made garment (RMG) industry has gone through many ups and downs over the last four decades. Now the industry has reached a stage where it can take pride in its achievements as the world's second-largest garment supplier as well as the main source of foreign income for Bangladesh. While Saudi Arabia, Venezuela, and Iran among others may take pride in their petroleum exports, Bangladesh is up there with RMG exports.
The apparel sector accounts for over 84 per cent of the country's total export earnings and employs around four million workers directly and many more millions indirectly. While the overall economy of Bangladesh has significantly benefited from the growth of the RMG sector, resulting in the emergence of a nouveau riche class, millions of workers who have contributed to the industry's success through their hard work, blood, sweat and tears remain trapped in a cycle of poverty and exploitation.
Their occasional outbursts of frustration for drawing attention to meet their needs are manifestations of the growing unrest in the RMG sector. Issues such as salary arrears, reluctance to pay mandatory festival bonuses, non-implementation of labour laws etc., plague many of the approximately 3,500 RMG factories in the country. A research report published by the Centre for Policy Dialogue (CPD) shows that Bangladeshi garment workers get the lowest monthly wages compared to other garment-producing countries like Cambodia, China, India, Indonesia and Vietnam.
That is understandable in many respects to keep prices down and to maintain international competiveness, but, seemingly, it is always at the expense of the garment workers - who get the short end of the stick and that cannot be right.
Of late, the International LabourOrganisation (ILO) has identified five key issues troubling Bangladesh's readymade garment (RMG) industry, and recommended reforms. These include amending the wage structure, labour law revisions, and establishing mechanisms for dispute resolution.
In 2023, during the latest minimum wage negotiations, workers demanded Tk 25,000, while owners proposed Tk 10,400. A comprehensive cost-of-living study by the Bangladesh Institute for Labour Studies (BILS) had shown that workers need at least 23,000 taka to stay above the poverty line. And yet, Tk 12,500 was finalised as minimum wage and workers were apparently forced to accept that through violence, lawsuits, and even gunfire. Four workers lost their lives, challenging the decision.
In 1994, the first wage board for Bangladesh garment sector was established, setting the minimum wage at Tk 930 per month. After 30 years and many substantial increases in the cost of living, this has been increased to a mere Tk 12,500, while revenue from garment exports surged from $223 million to over $40 billion during the same period.
Making profit is nothing bad and the industry would not exist without profit, but it seems to lack fair play when considering the plight of the workers. Repeated incidents of unrest and violence in RMG sector raise numerous questions. Why must workers continually risk their life and limb to press their demand for the implementation of minimum wages? Why is it not automatic, perhaps once yearly? Why does the demand for increase in pay and perks lead to severe consequences in the industrial sector? Why are owners permitted to suppress workers' demands by using violent force? As the RMG industry keeps Bangladesh afloat, why is not the government doing more to protect all those involved? Why, for example, are not the workers benefitting through a profit-share scheme?
Workers have every legitimate reason to be angry about the various injustices in wages and working conditions. It is said there is no organisation or independent trade union through which they can properly voice their concerns and grievances. Workers, many of whom are illiterate, find it extremely hard to express themselves and have their grievances addressed.
Following the horrific Rana Plaza collapse in 2013, international pressure led to the relaxation of the registration process to allow for the formation of trade unions in the garment industry. To date, 1,300 trade unions have been registered in this sector. A majority of these unions or committees are led by individuals loyal to the owners or an offshoot of the factory itself. Those who are not loyal face various forms of harassment after every movement. Most factory owners, understandably, are averse to the concept of unions, because they fail to recognise that healthy union activity is key to maintaining stable industrial relations. On the other hand some of the unions allegedly serve the interests of political parties rather than those of the workers, further undermining the workers' ability to seek fair treatment.
Lack of an effective labour court system in Bangladesh is another problem. The few labour courts that exist are ill-equipped to provide justice for workers. Institutional support for workers is virtually non-existent, and without a proper mechanism for addressing grievances, workers are left with little recourse but to take to the streets and risk life for their rights.
As the RMG industry is the mainstay of the economy, the government must show a greater interest and offer much better protection for the workers. The government and industry leaders must prioritise the establishment of a strong and effective institutional framework for setting wages and resolving disputes. Wage increases should be predetermined and enforced over fixed periods to prevent workers from resorting to protests. The practice of wage arrears, fraud, and deceit must be eradicated. ILO calls for amendments to the Bangladesh Labour Act to align with international standards, expanding coverage to all workers and simplifying trade union registration. In addition, the ILO urges the establishment of an alternative dispute-resolution institution and reform of the labour court system.
For the RMG industry to remain competitive on the global stage, ensuring workers' rights is not just a matter of moral obligation and justice, but an economic necessity. International trade is becoming more increasingly influenced by concerns about human rights and environmental sustainability. Consumers are forcing brands to become more selective, prioritising ethical supply chains. While everyone seeks quality garments cheap, they do not want to wear the guilt it was made in a sweatshop. Therefore, the industry must take proactive steps to improve workers' wellbeing and safety, moving beyond merely fulfilling basic obligations.

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