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RMG imbroglio

It was no coincidence that the simmering discontent of garment workers burst into full blown labour unrest to synchronise with the July-August mass uprising. Workers who could not press home their demands earlier under a repressive regime known for patronising crony capitalism considered it was their best chance to align their protests with the anti-discrimination mass movement spearheaded by students. The country was in turmoil and labour unrest continued to deteriorate with both management and workers refusing to see to the greater interest of the RMG industry. Notably, of the more than 4,500 apparel factories, there are 229 LEED-certified green garment factories—highest in the world. These and some other factories boast sound labour-management relations because the authorities there have been considerate enough to pay higher wages and provide various facilities deemed fit to keep workers contended. Unfortunately, the owners of the rest of the garment factories are not equally smart in running their factories.

An incisive government report prepared to identify where things have gone wrong and suggest how the malaise can be addressed does the job more or less comprehensively. The lead story prepared on the basis of the report titled, ‘special report on labour unrest in garment sector’ and published in The FE’s Sunday issue presents quite a disconcerting picture. As if the 1108 incidents of labour unrest that took place between August and December were not enough, there is apprehension of more to come. Of the several reasons that have soured management-workers relations, unpaid wages, retrenchment and refusal to regularise jobs stand out. On the part of management, presumably the smaller and not so well run, the problems stem from shortage of raw materials and work orders. In a competitive market, the smaller units are always at a disadvantage. When industries are restive, their disadvantages compound with dollar crisis leading to limited import of raw materials.

Yet good management tries not to accumulate arrears of wages. As many as 67 factories were closed sine die and 77 temporarily during the period, according to the report. The fact is unrest in the RMG belts never got defused —even notwithstanding the higher wage agreed upon. Many of the factories did not comply with the payment of outstanding dues to their workers within the stipulated time. Then the termination of thousands of workers’ jobs from the closed factories owned by some disgraced industrialists of the past regime has not helped the matter. Its socio-economic implications, as hinted at the report, may be dangerous. At a time when industries in general are facing difficulty, such closures have to be avoided at any cost. Getting the mechanism right to run those would be wiser.

The report has indicated instigation by some labour leaders as one of the factors responsible for the unrest. Well, if workers do not get their overdue arrears and wages regularly on a fixed date, they cannot help taking to the street. In this time of outrageous market volatility, even their regular wages hardly prove more than a pittance. If the industry falters, the sign of which is there, both management and workers will suffer. The country’s economy will be affected as well because RMG is the number one foreign exchange earner. Before it makes its downhill slippery journey when rivals like Vietnam and India are gaining grounds, let every stakeholder cooperate to realise the high potential of the garment industry.

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