The country’s apparel makers are in a difficult situation to successfully carry out their ongoing factory remediation programme, for which the industry needs around US$ 2.0 billion, following poor response from foreign stakeholders to this effect, insiders said.
Although pledges were initially made by various corners to help the country’s apparel manufacturers in conducting their required factory remediation activities, any positive response from them is yet to be visible, they said.
The remediation programme started last year after the completion of initial inspections by the western retailers.
Garment factory inspection was launched to identify the workplace safety risks and ensure the safety compliances after the country’s worst industrial incident – Rana Plaza building collapse — that killed more than 1,100 workers.
Some 3,000 garment factories have so far been assessed by the three parties – Accord, Alliance and national initiative — though the last is yet to be completed.
Both the Accord and the Alliance on separate occasions termed the ongoing remediation activities ‘slow’ quoting the unwillingness of a good number of factory owners to repair the flaws, non-availability of safety equipment including fire doors, sprinklers and experts to install them and the recent political instability.
On the other hand, industry leaders and apparel makers claimed that most factory authorities have already fixed a good number of the identified flaws while the rest could not do it mainly for want of necessary funds.
According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), on an average a factory needs to spend Tk 30 to 50 million for fire, electrical and structural safety.
On the other hand, Alliance for Bangladesh Workers Safety estimated that a factory might need US$ 250,000 to $ 350,000 to remediate the safety concerns.
According to BGMEA and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), some 3,500 factories are in operation though industry people say the number is higher as there are many units that are not affiliated with the two trade bodies and they mostly do sub-contracting.
“My factory has recently been assessed by the ILO nominated firm. But I am not in a position to make new investment worth millions of taka needed for the remedial work,” a Narayanganj-based factory owner said. “I want to fix the problems but I have not enough money and none has come forward with any help,” he said.
He feared that he might have to shut down the unit that started operation in 2001 as he might fail to do the necessary repair works.
“We are seriously concerned over the financing needed for carrying out the remediation activities in line with the inspection prescription,” former president of BKMEA Fazlul Hoque told the FE.
There are many small and medium factories, especially those inspected under the national initiative, and they don’t have the capacity to make fresh investments of hundreds of millions of taka, he noted.
Industry insiders alleged that production cost has significantly gone up following the wage hike and other utility costs while the products’ prices are gradually declining. The improvement programme is going slowly because many are unable to spend money while the fresh investments do not guarantee bringing any additional return for them as buyers are not increasing prices of products, they alleged.
A group of people expressed the opinion that some apparel makers are unwilling to spend their own money for improvements rather they are looking for financing sources, either from Accord or Alliance or others.
“If fund is not available, proper remediation might not be possible,” vice president of BGMEA Shahidullah Azim said.
Many factories have remediated a good number of prescribed issues, he said adding that the rest remained incomplete as it involves money. Each and every factory is prescribed to install so many fire doors while some recommended installing sprinklers.
Manufacturers have to do the work but at the same time they also need money which is not available, he said adding that there are pledges of funding only in papers not in reality. Only a few availed the support.
“The industry might need $ 2.0 billion to invest for relocation and remediation while it got promises for a negligible amount,” he claimed explaining that some 700 to 800 factories need to be relocated costing $1.5 billion and the rest for repairing the existing ones.
