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National

Refuting the Detractors: Bangladesh’s Apparel Sectors Green Growth

by Press Xpress March 26, 2024
written by Press Xpress March 26, 2024
Bangladesh’s Apparel Sectors Green Growth
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The American Apparel and Footwear Association’s (AAFA) letter has attempted to raise concerns about worker rights and safety in Bangladesh’s apparel sectors. However, it would be remiss not to acknowledge the substantial strides Bangladesh has taken since the Rana Plaza tragedy to enhance workplace safety and uphold workers’ rights. Contrary to what the letter ‘attempts’ to vaguely insinuate (and those using the letter as fuel to cry wolf), Bangladesh’s government has been steadfast in its efforts to ensure worker rights and safety.

You Can Also Read: WHY SUSTAINABLE SUPPLY CHAIN  CHALLENGES BANGLADESHI GARMENTS?

True, the industry’s strategic responses to these adversities have been nothing short of admirable. By 2021, it had regained its position as the second-largest global RMG exporter, showcasing a strong recovery with a 24% annual growth in exports. This rebound was particularly crucial after a temporary setback in 2020 when it had ceded its position to Vietnam as the third-largest exporter.

The AAFA Letter Desiccated:

Screenshot of the Original Letter

The letter’s request was straightforward. As Stephen Lamar, AAFA’s CEO, stated, “On behalf of AAFA’s members, we request an end to the arrests and threats to arrest thousands of workers involved in last year’s minimum wage movement.” He went on to demand investigations into incidents of violence, injuries, and worker deaths during the labor unrest, calling for the culprits to be brought to justice.

While the statement itself was simple, some Bangladeshi media outlets like Prothom Alo and The Daily Star took liberties in reporting on topics beyond the letter’s scope. This corresponded with the recent 350th session of the ILO in Geneva, where the labor situation in Bangladesh was reviewed.

At that session, ILO Governing Council members praised Bangladesh’s initiatives so far, while also calling for further improvement. Several countries, including the U.S., U.K., Canada, and E.U., raised questions about persistent labor issues. Bangladesh’s Law Minister Anisul Haque requested that pending matters not be treated as formal complaints against the country’s ILO commitments. The request was obliged and the concerns were withdrawn based on legal grounds presented by the law minister.

AAFA’s latest letter can be seen as an extension of the concerns raised in Geneva. Specifically, it demands the prosecution of those responsible for violence and deaths during last year’s worker demonstrations over minimum wage increases. However, Bangladesh’s legal system differs from the U.S.

 In Bangladesh, accused persons are held in prison unless proven innocent, often without trial for years. On the other hand, in America, if the accused is not proven guilty, in many cases the accused cannot be prosecuted.

Whether all those detained for setting fire and vandalizing garments during the workers’ agitation demanding higher wages at the same time as BNP’s boycott movement, will not be told whether they are all guilty or convicted until the trial is over. Therefore, Bangladesh’s request to the ILO not to complain about pending matters is equally applicable to AAFA.

The letter acknowledged Bangladesh’s rising apparel and footwear exports to America, expressing hope that worker welfare would continue improving under Prime Minister Sheikh Hasina’s leadership. But it also contained contradictions, like referencing a past letter about the murder of a worker named “Shahidul,” while this time raising the case of “Jewel Mia.”

In a letter addressed to the Prime Minister on July 27th, 2023, AFFA protested the Murder of Shahidul Islam, excerpt from the 2023 letter states a much: “His (Shahidul’s) killing is not only an immeasurable loss for his family and friends but also represents a setback for workers’ rights and the overall welfare of workers in Bangladesh.

“We join the US Government in calling for the pursuit of justice to hold accountable those responsible for his death and to send a strong message that such heinous acts will not be tolerated.”

On June 26, 2023, Kalpana Akhter, who is the central president of the Bangladesh Garments and Industrial Workers Federation (the organization that Shahidul belonged to), filed a case at the Tongi West police station. In this case, she accused six identified individuals and seven unidentified persons of being involved in a crime. Jewel Mia, has been arrested in connection with the murder of Shahidul.

However, in the latest letter to the Prime Minister (dated March 18th, 2024) AAFA mentioned the name of Jewel Mia (accused in the murder of Shahidul) and called on the government to drop charges against him. Excerpt from the latest letter:

We also call on your government to drop criminal charges brought against labor organizers, such as Jewel Miya, who was arrested last year for advocating for higher wages. Further, the violence that led to the deaths and injuries of workers during the protests must be investigated and those responsible must be held to account.

Such a contradiction display’s AAFA’s lack of information and knowledge about the current events regarding Bangladesh’s RMG sector. It also suggests AAFA relies on unverified, faulty information rather than factual evidence when making its statements.

There are further complexities like U.S. buyers having slashed prices for Bangladeshi goods by 20-25% amid the talk of worker rights – potentially undercutting AAFA’s moral standing. Ultimately, the letters amplify labor voices, but their impact is shaped by realities on the ground.

If one examines the Bangladesh Government’s Policies, it becomes apparent that AAFA’s concerns are without basis as the Government has proved through its policy implementation that it stands with all workers; including those working within the RMG sector.

A flowchart that depicts the contradicton in AAFA’s two Letters

Government Has Taken Strong Steps to Ensure Worker Safety

The Ready-Made Garments Industry of Bangladesh went through sweeping reforms after the tragic Rana Plaza building collapse in 2013. Despite these efforts, the sector found itself grappling with unprecedented challenges during the COVID-19 pandemic, the recent dollar crisis, the Ukrainian war, and obstacles in exports and operational shutdowns – a true test of its mettle.

Organizations like the Alliance for Bangladesh Worker Safety and the Accord on Fire and Building Safety in Bangladesh were established to set rigorous safety standards for factories. These efforts have led to the inspection and improvement of numerous garment factories across the country.

The concerted push for worker safety hasn’t gone unnoticed. Significant progress has been made in auditing factories, implementing safety measures, and shuttering unsafe facilities. The industry has transformed towards a safer and more sustainable working environment – a pivotal shift for maintaining Bangladesh’s status as a leading exporter of ready-made garments.

Minimum Wage Increase

In November 2023, Bangladesh responded to widespread protests by raising the minimum monthly wage for garment workers from 8,000 taka to 12,500 taka – a substantial 56.25% increase. This marked the first minimum wage adjustment since 2019, implemented with the goal of improving living standards for workers in an industry critical to the country’s economy.

However, workers and labor activists argue that the new rate still falls short of covering basic living costs, especially amid soaring inflation rates. The dissatisfaction stems from the gap between the increased wage and the actual cost of living, with workers highlighting that the raise is insufficient to make ends meet as prices for essentials continue to climb.

Wage Board Discussions

The discussions around the new wage structure have been spearheaded by the Minimum Wage Board, involving representatives from factory owners and worker groups. There were expectations of finalizing a structure to set the minimum salary for entry-level workers between Tk 14,000-16,000. However, concerns were raised about the affordability of such increases for subcontracting factories, highlighting the delicate balance between ensuring fair wages and maintaining operational viability.

Rationing System Considered

In the wake of the unrest and wage increase, the Bangladesh government, guided by the Ministry of Labour, has started considering implementing a rationing system for garment workers. This initiative, endorsed by Prime Minister Sheikh Hasina, aims to ease the financial strain on workers by allowing them to purchase essential commodities at subsidized rates.

The proposal for a rationing system signifies a broader attempt to address the economic hardships faced by garment workers, reflecting the government’s recognition that comprehensive measures beyond wage adjustments are needed to ensure the well-being of this critical workforce.

Conclusion:

Both the minimum wage increase and the proposed rationing system represent pivotal steps in Bangladesh’s ongoing efforts to strike a balance between economic growth and social equity within its garment industry – a significant employer within the national economy.

While strong indicators of the government’s sincerity, these measures also heavily highlight the complexities of achieving a living wage in a globalized market, where external factors such as a war between Ukraine and Russia can cause energy prices to spike and inflation. As Bangladesh navigates these challenges, the welfare of its garment workers remains a top priority, driving continued efforts to create a more sustainable and equitable industry and this healthy progress could be called Green Growth.

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