Home Apparel RMG sector future hinges on better worker-owner ties

RMG sector future hinges on better worker-owner ties

171 rmg factories make zero progress on remediation works

Speakers at a dialogue in the capital on Sunday pressed for improving relation between the workers and the factory owners as well as ensuring fairness in the supply chain for a sustainable readymade garment (RMG) sector. Experts, diplomats, employers and workers’ representatives at the dialogue titled “Catalyzing Social Dialogue in the RMG Sector of Bangladesh” also emphasised good governance, ensuring workers’ rights including freedom of association, and implementation of labour act in the export processing zones (EPZs). Their recommendations also included ensuring job for the Rana Plaza survivors, follow up treatment of the injured workers, getting fair prices of apparel products, and launching social dialogue in the sourcing countries. Center for Policy Dialogue (CPD) and International Labour Organization (ILO) jointly organized the dialogue on the eve of the fourth anniversary of Rana Plaza building collapse. Labour secretary Mikail Shipar was the chief guest of the programme, moderated by CPD distinguished fellow Debapriya Bhattacharya. CPD chairman Rehman Sobhan, among others, was also present. Rehman Sobhan said workers have to be made fundamental stakeholders in the enterprises where they work and seen as business partners in order to establish a balanced relationship between the employees and the employers. He said the central element of the RMG sector is that it operates in a deeply unjust global value chain, where a Bangladesh-made $5.0 shirt is sold at $25 at Wal-Mart stores or at much higher prices in countries such as Sweden. “Where exactly does the $20 go? Is this a natural working of the market mechanism or a manifestation of an unjust global order?” He also said the current business model forces the suppliers to squeeze their workers as much as they can as they would have to produce the shirt at $5. The Rana Plaza disaster brought to light the whole weakness in the governance system, shedding light on a complete lack of oversight and a politically-influential property owner, who could use his influence to ensure that the enforcement mechanism is not put in place. Though four years have passed since the Rana Plaza tragedy, there was no discussion in the parliament to evaluate what progress has been made as well as what level of accountability has been achieved and exercised by the government, he added.   He called on the top political power of the land and the related apex body to concern itself and engage the highest bodies to constantly address the issue and exercise political oversight to sort out problems at the heart of the Rana Plaza disaster. ILO Bangladesh Country Director Srinivas Reddy said the recent Ashulia labour unrest highlighted that there is a need to move from the situation of mistrust and miscommunication between the workers and the owners to a high-quality partnership where the shared goals can be achieved. Social dialogue can be helpful in this regard, as it is beneficial for the businesses, the workers and the government, he opined. Terming social dialogue crucial for inclusive growth and an important pillar of Sustainability Compact, he said such dialogue has many benefits – it provides a tool to build trust and inclusion and resists labour unrest. He stressed on addressing the issues raised in the last International Labour Conference, including revising the labour act and the EPZ law along with ensuring smooth legislation of trade union and effective resolution of unfair labour practice. The labour secretary mentioned that developing confidence between the workers and the owners is a challenge, and the recently-formed tripartite consultative committee will help address the labour-related issues. He also informed the dialogue that the government withdrew the draft of EPZ law from the parliament to review it further following the recommendation of the ILO and the EU. “A significant progress has taken place, as the draft EPZ law was withdrawn from the parliament for the PM’s review.” Chowdhury Ashikul Alam, general secretary of Bangladesh Trade Union Sangha, said values of labour are in peril in the country due to lack of democratic norms and values. He also recommended a dignified relationship between the workers and the owners to solve the problems of various industrial sectors. Labour leader Nazma Akter opined that there is corruption in supply chain. She also focused on capacity building of the workers, the owners and the government officials, and allowing trade union with respect for labour rights. Babul Akhter, another labour leader, said much talk has taken place in so many meetings and seminars, but with very poor development for the injured Rana Plaza workers. Terming social dialogue a ‘nice term’ he alleged that social dialogue failed to address the issues related with the recent Ashulia incident, and raised question what to do once such social dialogue fails. Mahmud Hasan Khan, vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), opined that the buyers might shift their orders to other countries, like Ethiopia, if the local manufacturers put pressure on them to raise products’ prices. Trade unions have been registered in some 591 factories, of which only 260 are in operation, he said, recommending conducting research to find out the reasons. He also suggested formulation of an effective mechanism for holding successful social dialogue and forming sector-based central trade unions. Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), also called for launching social dialogue in the sourcing countries. He also recommended putting both buying and selling prices at the products’ price tag to ensure transparency and fair price in the supply chain. Vidiya Amrit Khan, a former BGMEA director, opined that getting fair prices of products helps ensure things discussed in social dialogue. CPD research director Khondaker Golam Moazzem while presenting his keynote on ‘Strengthening Social Dialogue Mechanism under Weak Enabling Environment: Case of RMG Sector” said DIFE should develop its action plan for ensuring remediation with proper financial plan. Terming 2017 crucial to set strategies for monitoring and inspection during post-2018 period, he recommended developing a public-private partnership initiative in this regard. His other suggestions included ensuring better management at factory level to avoid workers’ concern, buyers’ role for ensuring proper functioning of financial and HR management, and better functioning of arbitration process. He also called on the buyers to ensure fair prices that would facilitate maintaining decent work environment in the factories.