With Eid-ul-Fitr approaching, the familiar specter of unrest looms over the ready-made garment (RMG) sector. This has almost become an annual ritual before Eids, where workers take to the streets demanding their wages, arrears, and Eid bonuses, while factory owners use the situation as a bargaining tool to extract additional facilities from the government.
Last week, a garment owner-who is also a film star and producer-seemingly played the same old trick to get some additional benefits from the government. He said, "The workers will have to be paid their salaries for February, half of their March salaries, and Eid bonuses. Where will the owners get so much money?" The implication seemed to be that garment owners were somehow unfairly burdened, even though they continued to earn hefty profit, lead a lavish life, while the workers have to struggle for their rightful dues.
He further claimed that "240 groups of garment factories had shut down and that closures were happening daily, leaving thousands unemployed". However, the Press Secretary of the Interim Government later dismissed this as a blatant lie. Citing industrial police sources, he stated that 99 per cent of factories in the country's major industrial belts were operational. Furthermore, official data showed that garment exports had grown by 11 per cent over the past seven months, contradicting any claims of widespread industry closure.
According to the latest Eurostat data, Bangladesh's RMG exports to the European Union (EU) recorded an impressive 61 per cent growth in January this year, surpassing major competitors such as China, Vietnam, Turkey, and India. Apparel exports to the EU market reached 1.91 billion euros in January, up from 1.18 billion euros in the same month last year. Similarly, garment exports to the US surged by 45.93 per cent year-on-year in January, reaching $799.65 million, according to data from the US Office of Textiles and Apparel (OTEXA). These figures suggest that, far from facing an existential crisis, the sector is thriving in global markets.
While the said garment owner's claim about factory closures may have been exaggerated, it has been reported that about 100 factories have been shuttered due to the lingering effects of the Russia-Ukraine conflict, political turmoil, and workers' unrest in the aftermath of the August 5 political changeover. However, if any factory owner genuinely finds it difficult to pay 15 days' salary for March before the month's end, there is no mandatory requirement to do so. Workers have never protested for advance salaries. As long as they receive their dues, they remain happy. However, factory owners have the option to secure loans of up to 80 per cent against the LC from banks, a widely accepted industry practice. Instead of utilising this facility, why do they expect the government to step in with bank loan arrangements and incentives? Other industrial sectors and businesses-many of which are not as successful as the RMG sector-do not make similar demands for special privileges.
Over the past four decades, Bangladesh's RMG sector has experienced remarkable growth, establishing itself as the world's second-largest apparel exporter. However, despite this impressive trajectory, it is perplexing that the sector remains heavily reliant on government support to maintain its competitiveness. This dependency is evident in the form of cash export incentives, tax benefits and so on. While government assistance can be crucial for fledgling industries, the continued reliance of a 40-year-old industry raises serious questions about its sustainability and maturity.
The RMG sector now resembles a 40-year-old child! It is high time sector stood on their own feet, took responsibility for its workers and maintained its competitiveness without government incentive. So, rather than entertaining irrational demands, the government must hold the RMG owners accountable if their factories fail to clear workers' wages and Eid bonuses in time. The prosperity of this sector cannot come at the cost of the very workers who sustain it.
aktuhin.fexpress@gmail.com
