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Working together for sustainable RMG sector growth

The envious economic performance of Bangladesh backed by industrial growth, increasing flow of remittance and exports, strong foreign currency reserve and improvement in many social indicators testify to the fact that Bangladesh is on the right track of development and prosperity. A steady industrial growth would be a key to achieving the vision 2021. So far the industry that has established itself as a mighty pillar of the Bangladesh economy and demonstrated promising growth is its ready-made garment (RMG) industry that has been making immense contribution to it. While the export-oriented RMG industry is moving ahead to achieve its US$ 50 billion target, it has witnessed many challenges including the tragic building collapse. Many apprehended that the Rana Plaza accident might mark the end of RMG industry in Bangladesh; on the contrary, the industry has found the turning point to transform. So far it has been a story of unique efforts by entrepreneurs, workers, government agencies, global brands and retailers, international bodies including International Labour Organisations (ILO) and other actors to ensure that the tragedies that occurred in the apparel sector are not repeated. Inspection of around 3660 export-oriented factories by the teams of local and foreign safety experts have been completed: around 99 per cent were found safe, and many which require safety overhaul are carrying out the prescribed repairs. This transformation is expected to lead the country’s RMG industry to excellence and sustainability. Buyers who engaged themselves in this partnership of fixing decade-old compliance flaws should not stop right here. They have to now take an extra step forward and take ownership of the changes made, promote the progress at the consumers’ end across the globe. Lest we forget, Bangladesh is the only country in the world to have faced the challenge thrown to it by the global brands and the developed world. It is thus the moral obligation of the developed world to not just inform the world of this success story but also ask the rest of countries to learn from this example. The global players should ensure through their action, that all stakeholders receive an equitable share while building a sustainable value chain. Only then the journey of transformation will be completed. Safety is not the only issue to ensure sustainability of the apparel industry. Besides safety we have to place importance to skilled and motivated workforce which is the key strength of our apparel industry. Improved rights of the workers to freely associate and collectively bargain are inevitable for the sustainable growth of the industry in line with its vision for $50 billion by 2021. The Constitution and the laws in Bangladesh protect the right of the workers including freedom of association and collective bargaining. Bangladesh has ratified most of the core conventions of ILO. After the Rana Plaza accident the labour law was further amended making it more favourable for the workers. As a result, significant progress has been achieved in new trade union registration. Since January 2013, as many as 337 new trade unions have been registered. Though the growth in registration of new unions has decreased a bit in recent times, there may be a number of reasons contributing to this slow-down. In cases where workers could normally negotiate for higher wages, allowances and benefits, hours of work, etc., they may not find interest in joining trade unions in near future. On the other hand, in a number of cases trade union registration applications are being rejected by the authority due to false information such as fake names, non-existence of workers in a particular factory, etc. It is commonly observed that the workers tend to migrate frequently between factories for slightly higher pay, but they are not mindful enough to care about benefits accrued over their service period, like provident fund, etc. At the time of verification when the inspectors of the Directorate of Labour find such fake names and non-existence of workers due to migration, the applications get disqualified. There may be several other reasons behind slowdown of union registration in recent times, but the fact remains that formation of trade union is at the sole discretion of workers, it cannot be formed by others. As part of the regulatory reform and capacity building, Bangladesh Labour Rules have been promulgated that made it mandatory to provide 0.03 per cent of export earnings to the Workers Welfare Fund. The government has taken a number of steps to build the capacity of Department of Inspection for Factories and Establishment, Fire Department, Rajdhani Unnayan Kartipakkha (RAJUK) and other such agencies. Training programme for workers and newly appointed inspectors are also going on. To ensure transparency of the inspection process all the inspection reports are made publicly available. The progress is significant, yet we have to go a long way. Moreover, the tragic accidents have caused a serious paradigm shift in entrepreneur’s mindset on safety, well-being and rights of the workers, we can feel from the efforts they have made and the progress made already. Still the instances of unfair labour practices are reported and need to be addressed sincerely. Workers should be allowed to freely exercise their rights of freedom of association without fear of intimidation. We must remember that the workers are the lifeline of the industry. They run the factories, so their well-being and dignity need to be ensured above all. This is in the interest of the continued growth of the industry. At the same time it is true that majority of our workers, who migrated from rural areas, are not adequately educated; they do not have sufficient knowledge about their legitimate rights and responsibilities. This is a major challenge to propel trade unionism in Bangladesh. This is also a root cause behind how these simple-minded and loyal workers are being provoked by the vested quarters. So, to enable the industry to have a safe and proper functioning of the trade union and for an improved workers rights situation in Bangladesh, the first and foremost prerequisite is to educate the people, increase awareness, train and motivate the workers on their rights and responsibilities. While our workers are entitled by the law to enjoy their rights, they are also bound by legislation to discharge their responsibilities. So it is imperative for stakeholders concerned, including Bangladesh Garments Manufacturers & Export Association (BGMEA), Bangladesh Knitwear Manufacturers & Export Association (BKMEA), government, ILO and other development partners to impart proper training to the workers to raise awareness about their rights as well as responsibilities. It is equally important to train mid-level officers in workers’ rights for better industrial relations. At the same time, the owners need to be trained up and educated on global practices and should be trained to think like global players. We have to admit the fact that there is still a huge trust gap between workers and management. We cannot change it overnight, but the stakeholders and all corners of the society have to work more closely to remove the fear and trust gap. More social dialogue, group discussions, roundtables, etc., need to be organised to flow dialogue toward real and productive trade union and harmonious industrial relations. Only then the industry and its workforce will be mutually benefited. It requires to be mentioned that only an integrated effort of all stakeholders, including development partners and human rights activists can achieve the above. Mere criticism of the owners will only result in shut-down and severe level of unemployment. This will not only take the country backward, but will tear apart the hard-earned empowerment earned by the women of this country. To look into the whole paradigm from a holistic view demands some lights on responsible business conduct. As we talk about safety, compliance, workers’ welfare and responsible business, in the end all are linked to cost & profit-based business model. While we can hear the hue and cry globally for protecting human rights and the worker welfare, the price dimension brings it all to a paradox. The World Trade Organisation (WTO) is calling for equitable value chain, Organisation for Economic Cooperation & Development (OECD) has been tirelessly working for responsible business conduct, ILO striving for decent job creation; but we are still living in the age of price cuts! We must remember that cutting prices can never take us to a winning situation; rather, it only cuts the corner and results in a commodity trap. Moreover, one should not expect to cut prices under circumstances when the buying countries face recession and Bangladesh not only improves on the wage structure of the workers but spends a huge amount on revitalising the working conditions. Respect has to be given to fair pricing and end the price war. Let us also be reminded of the fact that Bangladesh, over the years, has provided clothing at the most competitive prices to ensure that all is within the consumers’ reach. We are sure that the world will not forget this unique contribution.