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Economy

Bangladesh’s Garment Sector: Championing Labor Rights for Sustainable Growth

by Press Xpress May 11, 2024
written by Press Xpress May 11, 2024
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Amnesty International in a report on May 1 alleged that Garment workers in Bangladesh continue to face a climate of fear and repression as ‘corporate impunity’ for human rights abuses in business operations remains ‘unchecked’.

The report however ignored Bangladesh’s recent transformative shift in labor rights protection, propelled by the government’s concerted efforts to enhance labor rights across various sectors, notably within the ready-made garment (RMG) industry. These initiatives not only reflect a commitment to social justice but also underscore Bangladesh’s journey towards sustainable development.

You can also read: How Plastic Industry Thrives in Bangladesh?

The International Rights Organization stated that garment workers are paid poverty wages and face innumerable obstacles including harassment, intimidation, and violence, as well as legal hurdles when attempting to voice their demands for justice, wages, adequate safeguards, and working conditions. The report also mentions the collapse of Rana

 Plaza and Tazreen Fashions Factory fire and points out the ‘negligent workplace monitoring’.

Amnesty International relies on unverified and one-sided information instead of factual evidence when making statements. 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 report ‘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.

Bangladesh is now the world’s second-largest exporter of ready-made garments, with a 7.90% share of the global market. This sector contributes 9.25% to Bangladesh’s GDP and generates over 80% of its export earnings. Bangladesh aims to reach $100 billion in annual ready-made garment exports by 2030.

Despite its growth from a sub-million-dollar industry in the 1980s to Bangladesh’s largest export sector contributing $47.39 billion in 2023 and 82% of export earnings, the garment industry faces pressure from domestic and foreign groups fueling labor movements, questioning wages, and raising environmental concerns.

Foreign buyers demand lower prices instead of increases, neglecting rising production costs like raw materials and minimum wages.

RMG Sectors Progress on Worker Safety

Historically, the RMG sector has been both a boon and a bane for Bangladesh. However, the government’s proactive measures have led to tangible improvements. 

Bangladesh passed the Labor Act in 2006 and it was amended in 2018 to update with the contemporary world. The amended Act makes it mandatory to form a Safety Committee and an Elected Participation Committee in every factory. Subsequent amendments have set the groundwork for safeguarding workers’ rights, ensuring fair wages, reasonable working hours, and improved safety standards. In 2022, Bangladesh’s Ministry of Labor and Employment launched a pilot for an employment injury scheme in collaboration with the International Labour Organization for ready-made garment (RMG) workers.

In addition, the minimum wage in the garment industry has been increased by 381 percent, from Tk 8,000 to Tk 12,500 in 2023. Even during the COVID-19 pandemic, the government continued financial assistance to unemployed and distressed workers in the export-oriented garment and leather goods and footwear industries.

The establishment of the Accord on Fire and Building Safety and the Alliance for Bangladesh Worker Safety, in response to the Rana Plaza tragedy in 2013, exemplifies Bangladesh’s commitment to enhancing workplace safety. These initiatives, in collaboration with international stakeholders, have resulted in significant improvements in building safety and structural integrity, fostering a safer working environment for millions of garment workers.

A Central Fund has also been constituted for the welfare of the workers, to which the entrepreneurs of the garment industry are contributing. About $12 million has been given to this fund from the garment sector in the last financial year, which will continue to grow simultaneously with the increase in garment exports in the coming days. From this fund, financial assistance is regularly provided from the central fund for the treatment of the workers, for the higher education of their children, and for the families of the workers who have suffered accidents at work.

National Labor Policy-2012, National Child Labor Elimination Policy-2010, National Occupational Health and Safety Policy-2013, Bangladesh Labor Rules-2015, and Domestic Workers Protection and Welfare Policy-2015 have been formulated to ensure the social status, health, and safety of workers. A round-the-clock toll-free helpline (16357) has been launched to receive complaints, redress complaints, and provide necessary advice to workers regarding any problem.

Bangladesh has already successfully achieved the Millennium Development Goals (MDGs) and is working towards achieving the Sustainable Development Goals (SDGs) by 2030. BGMEA’s significant social ambition is to create employment opportunities for around 6 million people by 2030. This will have a direct impact on SDG 1: No poverty and SDG 2: Zero hunger.

BGMEA’s target for SDG goal by 2030.

BGMEA is working towards achieving 100% gender equality in industry by 2030. It will help with ‘SDG 5-Gender Equality’ and ‘SDG 10: Reduced of Inequalities’. BGMEA wants to ensure a 100% safe workplace and decent work environment by 2030. This will have a direct impact on SDG 8: Decent Work and Economic Growth.

Good health and welfare of workers is a prerequisite for a sustainable industry. Hence BGMEA wants to ensure a 100% health and welfare system for workers by 2030. It is directly related to ‘SDG 3: Good health and well-being’.

Meanwhile, Bangladesh is globally acclaimed as one of the safest and most eco-friendly garment manufacturing countries in the world. The apparel industry is leading the way in green industrialization today. Home to the largest number of green factories certified by the USGBC, Bangladesh now has 214 lead green factories.

According to a recent survey of 500 workers at various levels from 100 factories by researchers at the Institute of Business Administration (IBA), Dhaka University, 84.2 percent of garment workers feel safe at their workplace. 93 percent of workers are interested in working in the industry for at least 5 years. 91.2 percent of workers get bonuses on time and 94 percent of employees are satisfied with their work.

Caption: IBA survey on RMG worker satisfaction

The IBA survey also revealed that 80 percent of participating workers were satisfied with their salaries. About 95 percent of workers reported high satisfaction regarding workplace facilities like toilets, sanitation, lunch hour and canteen, clean drinking water, and transportation facilities. An average of 75 percent of workers receive paid maternity and sick leave. 69.4 percent received fire drill training from their workplace.

Bangladesh has also made commendable strides in empowering labor unions and promoting collective bargaining rights, essential components of a democratic labor market. The government’s recognition of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) as legitimate entities for representing workers’ interests has facilitated constructive dialogue between employers and employees, leading to the resolution of grievances and the implementation of equitable labor practices.

As Bangladesh nears graduation from Least Developed Country status by 2026, it must address labor market and employment issues to avoid stagnation. The government’s efforts have shown progress, but policy formulation and timely implementation are crucial for sustainable growth.

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