Apparel trade groups have not stopped issuing utilisation declaration (UD) to their non-compliant members yet, despite the government order, people familiar with the situation said. In September last year, the state-run Department of Inspection for Factories and Establishments (DIFE) had requested two groups representing the woven and knitwear sectors to stop providing the facility to more than 200 factories. The progress of post-inspection remediation in these units is below the mark. Of the units, some 142 are registered with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and 74 with the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). Eleven are members of both trade bodies. In November last year, the BGMEA told the Department that it would not be appropriate to stop issuing the UD before January 2019 as there were some export orders in the factories. In a letter, the BGMEA said that it had meeting with the factory owners on September 27 where they sought more time to make the required remediation work. “The BGMEA feels that it will be appropriate to take decision on discontinuing UD through further discussion with the factories in January 2019,” said the trade body letter. But till date, no further action was taken by the trade bodies, sources said. The Department officials said that the BGMEA was reluctant to suspend UD to errant factories citing national elections, export orders in the factories and possible labour unrest as reasons. Since the issue has remained pending for months, the Department is likely to go for the next step shortly, an official said. Asked, the newly-elected BGMEA president Dr Rubana Huq Wednesday told the FE that the trade body would comply with DIFE instructions. “The decision on suspending UD would be taken within seven to 10 days,” she added. Responding to the FE’s question, BKMEA vice president Fazlee Shamim Ehsan said more than 30 factories were closed down after the trade body served notice on them. He, however, said they will sit with the rest of the factories shortly. Replying to another question, he claimed that the DIFE-listed factories do not have life-threatening safety hazards and they are fixing the flaws. Immediately after the Rana Plaza building collapse in April, 2013, three initiatives had been launched in the country’s readymade garment industry to improve workplace safety. A total of 3,780 garment factories underwent safety audits under three initiatives-European retailers’ platform Accord, North American buyers’ platform Alliance and the government and ILO-supported national initiative. Over 90 per cent remediation progress has been recorded in Accord and Alliance listed factories while the progress under the national initiative is relatively poor, industry people said.
