The second anniversary of the Rana Plaza disaster on April 24 evoked, once again, grief from those who suffered from the tragedy. This also occasioned re-evaluation by safety experts and analysts as to whether those involved with the RMG (ready-made garment) sector in Bangladesh have been able to move forward in ensuring better security for the workforce in the thousands of factories in this sector – both woven and knitwear. We were reminded, most unfortunately, of the greed, corruption, abuse of socio-metric connections, deliberate flouting of regulatory requirement, improper planning and poor structural engineering. The media and seminars deplored the culture of denial and lack of accountability among RMG factory owners. There were references to the criminal failure of governance. There was disappointment that many guilty of manslaughter and murder did not received exemplary punishment. Three sectors of Bangladesh economy have prospered over the years. These are readymade garments, manpower export, and pisciculture and shrimp farming. The success in these sectors has come from the drive and enterprise of private sector entrepreneurs. They have kept the country afloat and have also been the force behind the creation of employment opportunities for millions of people in diverse sectors of the economy.
RMG SECTOR: The RMG sector in particular, has been the source of employment for nearly three million women. That, in turn, has indirectly helped in gender empowerment, female literacy, better nutrition and family planning. This has happened despite challenges that exist within the Bangladeshi RMG paradigm. In this context, one can note the following: the industry’s rickety infrastructure, lack of accountable supervision pertaining to security of workers and growing shortage of skilled manpower in mid-management. There is also the problem of inadequate gas and power supply, higher freight charges in the local and international markets, yarn price hike, higher transport costs and increase in prices of requisite capital machinery. In addition, there are continuing problems due to the current trend of economic downturn in the USA and Europe. This has assumed greater seriousness given the fact that the price index for exportable local apparel items appear to have declined over the last fiscal year.
Another area that continues to affect profitability in the RMG sector is the exploitation by international buyers of the relative inexperience of our manufacturers in the area of international marketing. Despite evolving success, our RMG business, even today, is mostly done through middlemen. Our marketing network still leaves a lot to be desired.
The absence of ‘living wages’ in the RMG sector is creating frustration, unhappiness and making the workers susceptible to external provocation. One wonders why the owners in the RMG sector cannot pay the equivalent (in Taka) of at least US$ 4.0 per day to their workers. How can they expect workers to perform without this minimum salary — given the steep rise in the prices of basic necessities, not to speak of milk, fish or other sources of protein? It is important that employers in the garments industry understand that workers are expected to work efficiently, but they also have human rights and a right to personal security.
COMMITMENT REITERATED: As anticipated, the European Union (EU), the United States (US) and the International Labour Organisation (ILO) have taken the opportunity of the second anniversary of the Rana Plaza tragedy to express their continued support to help Bangladesh in its efforts to protect the rights and upgrade safety of the workers in the garment sector. This commitment was reiterated in keeping with the promises made earlier by the Sustainability Compact for Bangladesh and its pledge to bring about a lasting transformation in this sector. They also noted some of the important steps undertaken by the Bangladesh government in this regard: amendment of the Labour Law, strengthening certain aspects of freedom of association, collective bargaining and occupational health and safety, recruitment and training of new factory inspectors, structural safety assessments and posting online factory safety information. The establishment of a hotline to report labour concerns and setting up 300 new trade unions in the RMG sector were also noted.
The Japanese government has indicated that they are willing to take initiatives to make vulnerable buildings of garment factories safe for the workers through retrofitting, a technology that makes vulnerable buildings more jolt-resistant.
The statement of these international partners reflected their anxiety with regard to speedier implementation of some of the objectives that would advance health, safety and labour rights even further. In this context, the EU Trade Commissioner Cecilia Malmstrom has cautioned Bangladesh that failure on the part of the Bangladesh government, the related agencies and the owners of the garment factories to move forward at a quicker pace might affect the continued availability of highly preferential market access for our garment products in Europe. That is a dire prospect indeed.
The government could possibly be slightly more pro-active in its engagement. That would meet the expectations of the EU. It might like to adopt a more hands-on approach with the leadership of the RMG sector in one particular area — dispute resolution. With the agreement of all parties, they could initiate the formation of an arbitration facility through which disputes could be settled without workers resorting to violence. This facility could be a modified version of a workers’ association in each factory. The workers need also understand that they have to behave more responsibly and stop unnecessary vandalism based on rumours and external instigation.
The media highlighted past week the allegation that the government and other relevant authorities have failed to live up to their promises regarding providing financial support and necessary long-term healthcare to facilitate the rehabilitation of workers who were seriously injured in the Rana Plaza tragedy. That has been very correctly disputed by both the Prime Minister’s Office (PMO) and other relevant agencies. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have also claimed that suitable steps have been taken by them in this regard.
Nevertheless, it’s time the Human Rights Watch, the TIB and others involved with humanitarian work asked whether promises of support from the buyers have been kept consistent with the principles of corporate social responsibility (CSR). It appears that this has not happened.
Dalia Hashad, campaign director of the advocacy group Avaaz.org., in a comment on the occasion of the second anniversary of the Rana Plaza tragedy has brought up some significant points. She has drawn attention of the readers of her blog to the fact that Benetton’s CEO Marco Airoldi has finally announced his company will contribute $1.1m to the Rana Plaza victims in Bangladesh. It may be recalled here that for two years Benetton had persistently refused to pay any compensation at all. After two months of pressure by more than one million Avaaz.org members, the company was finally persuaded to step forward. It has been noted that this course of action is expected by customers that companies take responsibility for all of the workers who touch their products, from those in the front offices and retails stores to the people on the factory floor. Dalia has also mentioned that the fund for the victims is still $6m short of fulfilling the needs of those deeply impacted by this disaster. It has also been highlighted that large companies are still refusing to pay their fair share. This list is supposed to include US’s JCPenney, France’s Carrefour, Germany’s NKD and Adler Modemarkte, and the UK’s Lee Cooper.
DIFFICULT TIMES AHEAD: We have difficult times ahead of us pertaining to the RMG sector. We will need greater perspective planning and coordination. The government will have to help the entrepreneurs as well as the workers so that they can survive and prosper in the emerging competitive environment. Constituting an effective high-powered cabinet committee to coordinate, guide and supervise the resolution of several existing challenges and issues in this sector might possibly create stability and compliance, particularly with regard to security for the workers.
It also needs to be noted that while the Human Rights Watch and the Human Rights Council have been urging the Bangladesh government to ensure a stronger system of workplace inspections and the right of workers to form trade unions, they have carefully refrained from urging the buying houses in Europe and North America to pay a fairer price for the products that they are sourcing from Bangladesh. The middle-men and buyers, involved in this matrix, also need to revise their profit margin downwards and create a special fund that can be used for ensuring better wages and facilities for the garment workers. This fund could then be administered jointly by the representatives from the manufacturers and the garment workers. Such an arrangement would facilitate transparency and subsequent accountability.
In conclusion, the land site of the infamous Rana property be levelled and requisitioned by the government so that a memorial can be built on the site in memory of the more than one thousand garment workers who have been sacrificed on the altar of greed and corruption. A hospital should also be built on the site to provide free medicare for garment workers who might need such assistance after their retirement. The writer, a former Ambassador, is an analyst specialised in foreign affairs, right to information and good governance.
Source: https://www.thefinancialexpress-bd.com/2015/05/04/91232
