Tk 80b new investment in RMG sector to meet compliance needs

Shah Alam Nur | Published: March 30, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

Country's readymade garment (RMG) industry is going to make Tk 80 billion new investments to meet the requirements of full compliance as being demanded by buyers, brands, labour and human rights organizations since Tazreen and Rana Plaza catastrophe, insiders said.
They said the sector has been under pressure from local and international stakeholders including Accord, Alliance, foreign buyers and International Labour Organization (ILO) now closely monitoring the sector.
According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), more than 2500 garment owners including woven and knitwear have agreed to make new investment of Tk 80 billion for fulfilling the compliances and fire safety conditions.
"We have no alternative but to improve the compliance and fire safety conditions and for that new investment is needed," Vice President of BGMEA Nasiruddin Ahmed Chowdhury, told the FE Saturday.
He said after the Rana Plaza tragedy and Tazreen Fashion fire incident the compliance issue has become a key one for export. The buyers' first demand is to fulfil compliances in the factory including working environment, wage, fire and disaster safety measures, building codes etc.
After the twin industrial disasters-Tazreen Fashions fire and Rana Plaza building collapse-the Accord and Alliance were formed to monitor and ensure factory safety in Bangladesh.Â Â
Faruque Hassan, Managing Director of Giant Group, a local leading woven garment and knitwear manufacturing company, told the FE "Our factory always maintains compliances issue but now we want to make new investment for improving fire safety conditions".
He said they are going to spend Tk 40 million to install fire safety equipment including fire doors, sprinklers and hydrant pumps for an eight-storied building.
Mohammad Hatem, vice-president of BKMEA, told the FE that the issue of fire and building safety including compliance came to the spotlight in 2013, following the tragic Rana Plaza building collapse that killed more than 1,100 workers and Tazreen Fashion fire incident which claimed the lives of 125 workers.
He said: "My company can meet most of compliances, but I'm ready to make it a standard one like any countries of the West".
Mr Hatem said for an eight-storied building they will have to spend more than Tk60 million to install sprinklers.
He said currently BKMEA has 1000 running factories and it needs to install sprinklers and fire doors.
Workers' safety system, fire-fighting equipment, evacuation mechanism, proper installation of machines and healthy work environment are among the social compliance issues, he added.
Managing Director of Eastern Apparels Ltd Nasir Uddin Chowdhury said they have decided to make new investment of Tk 50 million for setting up fire safety equipment ensuring better working condition at one of its factories.
"We've already made investment on compliance. Hopefully, we'll provide more facilities to our workers within the stipulated time," he said.
He said that garment makers are now bound to seriously look into the safety issues for their own survival.
According to the BGMEA research cell, nearly 1,857 garment workers have so far died in different tragic accidents from the year 1990 to 2013.
Major incidents were the Rana Plaza collapse, fire incidents at That's It Sportswear Limited, owned by Ha-Meem Group, and Tazreen Fashions Ltd, owned by Tuba Group, Spectrum Sweater Industries, Phoenix Garments, Smart Export Garments, Garib and Garib, Matrix Sweater, KTS Composite Textile Mills and Sun Knitting.