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US brands for urgent action on RMG wages

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RMG Bangladesh
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Leading US clothing brands have written to the Bangladesh government recommending a hike in minimum wages for readymade (RMG) garment workers, to a figure that are sufficient to cover basic needs, provide discretionary income, and takes into account inflationary pressure.

To review the wages, these brands believe that consultations should be inclusive and include all relevant stakeholders, including a constructive dialogue among labour groups and trade unions.

Fifteen US-based apparel brands jointly sent the letter to the Bangladesh government on October 13, and a copy of the document can be found on the American Apparel and Footwear Association (AAFA) web portal.

These brands are Adidas, Gap Inc, Under Armour, Patagonia, Burton, Hugo Boss, Abercrombie & Fitch, Amer Sports, AEO Inc, Levi Strauss & Co, Lululemon, SanMar, KMD Brands, PVH Corp and Puma.

The undersigned companies urged a successful conclusion to ongoing negotiations under the minimum wage review mechanism that incorporates the views of all stakeholders, and reflects the economic realities in Bangladesh.

The letter read, “We acknowledge that apparel brands and retailers sourcing in Bangladesh have a role to play in enabling the above recommendations. We are committed to implementing responsible purchasing practices to fulfill that role.

“We note that the average monthly net wages for garment workers in Bangladesh has not been adjusted since 2019, while inflation has increased significantly over that time. We continue to recommend that the government of Bangladesh adopt an annual minimum wage review mechanism to keep up with changing macroeconomic factors.”

On April 9 this year, the government formed a six-member wage board for RMG workers, headed by senior district judge Liaquat Ali Mollah.

The board’s six months tenure already expired, and it received multiple extensions. But it has yet to put forward any proposal for the new wage structure for nearly four million RMG workers across the country.

This board’s fourth meeting is scheduled to be held on October 22 in the capital, and the chairman has asked both the RMG owners and workers’ representatives to submit their wage proposals there.

Workers and the trade unions of the RMG sector are demanding Tk 23,000 monthly minimum wages, while the apparel makers plan to propose Tk 9,000. If they propose this figure, it will be lower than the 2018 wage structure when comparing USD rates.

Bangladesh had fixed $100 or Tk 8,000 in 2018 as monthly wages for RMG workers. Due to depreciation of the local currency, the wages now amount to $74.5 per month, show central bank data.

An analysis of wages paid by different RMG exporter nations show that Bangladesh pays one of the lowest monthly wages to its RMG workers. China pays a minimum $161 in RMG worker wages, while India pays $165, Vietnam $191, Pakistan $110, and Cambodia $200.

In their letter, the US brands said, “The government can play an important role in facilitating new union registration, condemning violence, threats, or intimidation against union members, and overall fostering an environment that respects workers’ collective bargaining rights and empowers them as essential stakeholders in the nation’s progress.

“We strongly urge the government to ensure that there is no retaliation against participants both during and after the minimum wage review to foster and promote an atmosphere of open dialogue and inclusivity through the minimum wage negotiations, and beyond.”

EWM still sourcing goods despite massive dues

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RMG Bangladesh
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EWM and its subsidiaries owe Bangladeshi apparel suppliers around £27m

British clothing brand Edinburgh Woollen Mill (EWM) continues to source readymade garment products from Bangladesh through subsidiaries, despite not paying dues to local manufacturers for goods sourced during the Covid-19 crisis – even after three years.

Though the victimised manufacturers were able to get a temporary injunction imposed on Peacocks – a subsidiary of EWM – on May 19 against sourcing goods from Bangladesh, the company is still doing business in the country using another name.

These exporters later went to the Dhaka District Judge court for another injunction, but the court rejected their application. They then filed an appeal to the High Court, and it issued a rule in this regard on October 9.

Then, on October 17, the High Court imposed an injunction on EWM and their subsidiaries against doing business in Bangladesh till November 17. Justice Md Ashraful Kamal gave the order at a hearing on the appeal of Designtex Group.

Speaking to The Business Post, Designtex lawyer Barrister Imtiaz Moinul Islam said, “We had sought injunction against EWM and their all subsidiaries in a lower court. But the District Judge had rejected our application.

“Later, we appealed to the High Court and our plea was granted.”

Designtex Group, one of the victims, had exported goods worth around $0.48 million to the British clothing brand. Designtex had hoped that the temporary injunction issued on May 19 against Peacocks would help local clothing manufacturers get paid, but this is yet to happen.

Speaking to The Business Post, Designtex Managing Director Khandaker Rafiqul said, “After the injunction on Peacocks, the group is now continuing business through an alternative name.

“A case is now pending in the High Court. To secure our due payments, we do not have any alternatives to creating legal pressure on EWM and its subsidiaries.”

The owner of another victimised company, preferring anonymity, said, “We are facing a severe financial crisis due to low export orders, but the brand still did not pay us. When they announced bankruptcy, we were navigating troubled waters due to the pandemic crisis.

“We are surprised to learn that after committing such a big scam, this brand is still doing business in Bangladesh, and some exporters are receiving their orders.”

What exactly happened?

During the Covid-19 period, the EWM filed for bankruptcy to avoid paying dues to the sourcing companies, reportedly.

Later, the company was acquired by Peacocks – a subsidiary of the same brand and continued sourcing from Bangladesh. After the takeover, Peacocks declined to pay EWM dues. Bangladesh’s exporters claimed that this is a trick of EWM for not repaying their dues.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) claims that the EWM and its subsidiaries owe Bangladeshi apparel suppliers about £27 million.

BGMEA leaders say that the EWM is involved in unethical business practices during the early pandemic period, and cancelled work orders worth $8.2 million without any warning.

Amid the situation, two apex bodies of the apparel sector – BGMEA and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) – wrote jointly to the EWM owner Philip Day.

After receiving no answer, the BGMEA threatened to ban EWM, as well as its affiliates and third parties, such as agents, importers, and full-service suppliers, who do business with them directly or indirectly.

Bank information shows Philip and EWM made Tk 2,670 crore and Tk 12,950 crore in profits respectively till March 2 of 2019. But the EWM did not pay the dues and continued business through Peacocks.

Amid the situation, four victimised exporters – Designtex Knitwear, Designtex Fashion, Knit Bazaar, and Bottoms Gallery – filed a claim on March 14 last year, seeking Tk 5.98 crore in payments from EWM for the items they had delivered.

Joint District Judge (in-charge) Kazi Mushfiq Mahbub Robin of the Dhaka District and Sessions Judge Court had imposed a temporary injunction on Peacocks from doing business with any garment factories in Bangladesh using the brand name “Peacocks.”

The court said if that injunction was not imposed, the defendant would continue to defraud and harm Bangladesh’s garment sector.

Southern Designers, a clothing manufacturer in Bangladesh, owe nearly $1 million to that company. An official of the apparel marker said, “We tried to get paid, but both the EWM and Peacocks are unresponsive. They however continue to do business in Bangladesh.”

Workers dismayed by RMG owners’ wage proposal

POST BY
RMG Bangladesh
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Readymade garment workers have expressed utter disappointment as the apparel sector owners’ representative proposed Tk 10,400 as monthly minimum wage at the fourth meeting of Minimum Wage Board on Sunday.

Since the beginning of last year, workers have been demanding Tk 23,000 as monthly minimum wage considering high inflation in the country, but their representative has proposed Tk 20,390 as minimum wage.

Both the parties, however, agreed to reduce the grade from existing seven to five in the new wage structure, which is likely to be announced this November and it will be effective from next January for five years as per the Bangladesh Labour Act.

“It is disappointing to us that the owners have proposed Tk 10,400 as minimum wage at a time when the prices of almost all commodities rise two-threefold. In the 2018 wage structure, the government hiked wage by 60 per cent than earlier. But now they proposed a 30 per cent hike,” Robiul Islam, a senior operator of a Dakshin Khan area’s garment factory, told The Business Post.

Sounding a warning that they will take to the streets if they are deprived of labour rights, he said, “The owners must have to consider our demand. We came to know from our union leaders that their proposal is less than the existing wage considering foreign currency [government fixed $100 as minimum wage in 2018 when the rate was Tk 80 which is now Tk 110.5].”

On April 9 this year, the Ministry of Labour and Employment formed a four-member permanent new wage board, headed by Senior District Judge Liaquat Ali Molla, to review RMG workers’ wages.

The other members of the board are: Employers’ representative Moksud Belal Siddiqui, workers’ representative Sultan Ahmed, and independent member Professor Md Kamal Uddin. Former BGMEA President Siddiqur Rahman and worker leader Sirajul Islam Rony are non-permanent members of the board and representing the owners and workers respectively.

The proposal

As both the parties failed to propose wage structure in the first three meetings, owners and workers’ representatives put forward their proposal on Sunday.  All the six members of the board were present in the meeting.

Meanwhile, trade unions individually submitted wage proposal to the wage board and demanded Tk 23,000-25,000 as minimum salary considering high inflation and workers’ better life.

Besides, the Centre for Policy Dialogue (CPD) recently recommended Tk 17,568 as monthly minimum wage for the RMG workers against the backdrop of skyrocketing inflation.

The think tank said that it will be possible for a garment factory to execute this plan if the buyers hike the cost of manufacturing (CM) by just $0.07.

In the written wage proposal to the wage board, workers demanded Tk 12,462 as basic and Tk 20,393 as gross salary for an entry level worker. The figures were Tk 4,100 and Tk 8,000 in the last wage structure respectively.

They also demanded Tk 13,708 as basic and Tk 22,262 as gross salary for grade 4 such as ironman and cutter man. The wages were Tk 4366 and Tk 8,399 in the 2018 wage structure. For grade 3, they demanded Tk 15,079 as basic and Tk 24,319 as gross salary which were Tk 4,670 and Tk 8,855 in the last wage structure.

For grade 2, workers demanded Tk 16,586 as basic and Tk 26,579 as gross salary, which were Tk 4,970 and Tk 9,245 in the last wage structure. For grade 1, workers demanded Tk 18,245 as basic and Tk 29,068 as gross salary. The amount was Tk 5,152 and Tk 9,578 in the last wages structure.

In addition, workers’ representative demanded 10 per cent yearly increment which is now 5 per cent, auto grade promotion after every two years, 6-month maternity leave instead 4 months, two festival bonuses every year and the amount will be minimum one month basic salary for more than six months’ working period, and 15 days’ basic for less than six months.

They also demanded implementation of rationing system for RMG sector workers, providing education bonus for workers’ children, and gratuity for RMG workers.

On the other hand, owners proposed Tk 5,330 as basic and Tk 10,400 as gross salary for grade 5, Tk 5,700 as basic and Tk 10,955 as gross salary for grade 4, Tk 6,090 as basic and Tk 11,540 as gross for grade 3, Tk 6,500 as basic and Tk 12,455 as gross for grade 2, and Tk 6,930 as basic and Tk 12,800 as gross salary for grade 1.

In the written paper, owners’ representative Siddiqur Rahman said that the wages should be set considering owners and workers’ interests. Due to the Covid-19 pandemic and ongoing Russia-Ukraine war, the world faces severe economic crisis, and these impacted their business. They made the proposal, and believed that this will help protect the interests of both the parties.

Workers’ representative Sirajul Islam Rony told The Business Post, “Wages should be set based on workers’ livelihood. Our labour law’s section 141 states that during the fixed wages, the board must consider workers’ life expense and living standard. We submitted our proposal assessing everything.”

Citing the owners’ proposal contradictory of the labour law Rony said, “Owners must have to increase their proposed figure. I think that they will do this.”

Owners’ representative Siddiqur Rahaman also said, “We have already proposed to increase wages by 30 per cent assessing inflation in last five years. And how much we can afford?”

Refuting the claim that proposed wages are less than previous wage structure considering the USD rate, he said, “We are receiving our export proceeds through taka, not USD. So, assessment should be based on local currency.”

Wage scenario in Bangladesh

An analysis of wages paid by different RMG exporter nations show that Bangladesh pays one of the lowest monthly wages to its workers. China pays a minimum $161 in RMG worker wages, while India pays $165, Vietnam $191, Pakistan $110, and Cambodia $200.

Bangladesh had fixed $100 or Tk 8,000 in 2018 as monthly wages for RMG workers. Due to depreciation of the local currency, the wages now amount to $74.5 per month, show central bank data.

Bangladesh’s development partners had earlier said the country should move away from the low wage trap after graduating from Least Developed Country (LDC) status, as the existing minimum pay for RMG workers is not nearly enough to cover skyrocketing living costs.

Leading 15 US clothing brands, have written to the Prime Minister of Bangladesh recommending a hike in minimum wages for readymade (RMG) garment workers, to a figure that are sufficient to cover basic needs, provide discretionary income, and takes into account inflationary pressure.

Besides, on September 12, the Action, Collaboration, Transformation (ACT), a joint initiative between 19 international garment brands and retailers and IndustriALL Global Union, sent a letter to the BGMEA, EPB and Minimum Wages board to support the development of living wages in the RMG sector.

RMG workers propose Tk 20,400 as minimum salary, owners for Tk 10,400

POST BY
RMG Bangladesh
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The representative of readymade garment workers on Sunday proposed Tk 20,400 as minimum monthly salary while the owners representatives proposed increasing their minimum salary by Tk 2,400 to Tk 10400.

President of Jatiya Garment Sramik Kormachari League (JGSKL) Sirajul Islam Rony, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and representative of garment owners Md Siddiqur Rahman submitted their proposals from their respective sides to Liakat Ali Mollah, Chairman of the Minimum Wage Board at his office in Palatan in the capital on Sunday.

Employees work at at a garments factory in Gazipur, Bangladesh on 7 February 2021.
Reuters file photo

After receiving the proposals from both sides, Liakat Ali said that the workers’ side is asking for Tk 20,400 and the owners’ side is asking for Tk 10400. “There is quite a gap in the proposals of both parties.”

“The fifth meeting of the wage board will be held on 1 November. The meeting will propose reducing the gap,” he said.

Former president of BGMEA Siddiqur Rahman said there is always a difference in the proposals of the workers and the owners.

He said, “Keeping in mind the state of the global economy and the various contexts of industrial entrepreneurs, we have made this proposal.”

Highlighting the rationale of the proposal, he said that after the Covid-19 pandemic, the Russia-Ukraine war, and then the Israel-Hamas war started. All things considered, wages should be increased.

However, “Since the Chairman has asked to reduce the wage proposal of the workers and owners, we will discuss with the owners as soon as possible and inform them in the next meeting,” he added.

In addition, private research organisation Center for Policy Dialogue (CPD) proposed to make the minimum salary Tk 17,565 after evaluating the quality of life of the workers.

RMG makers plan Tk9,000 monthly wages

POST BY
RMG Bangladesh
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The readymade garment (RMG) makers are planning to propose Tk 9,000 monthly wages for grade 7 workers to the Minimum Wages Board, despite the workers’ demand for Tk 23,000 per month.

If they propose this figure, it will be lower than the 2018 wage structure when comparing USD rates. During that period, the Minimum Wages Board had fixed Tk 8,000 or around $100 for workers – the lowest figure compared to competitor nations, including Pakistan and Sri Lanka.  

The USD rate has since then rose from Tk 80 to Tk 110. So, this means the RMG owners are going to propose around $82 per month as minimum wages for garment workers.

On April 9 this year, the government formed a six-member wage board for RMG workers, headed by senior district judge Liaquat Ali Mollah.

The board’s six months tenure already expired, and it received multiple extensions. But it has yet to put forward any proposal for the new wage structure for nearly four million RMG workers across the country.

This board’s fourth meeting is scheduled to be held on October 22 in the capital, and the chairman has asked both the RMG owners and workers’ representatives to submit their wage proposals there.

Industry insiders say the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) held a board meeting on October 8, which was presided over by board President Faruque Hassan.

In the meeting, the BGMEA directors discussed what amount should be proposed to the wage board for an entry level worker.

Preferring to be anonymous, an official who was present at the meeting said, “Directors said that it will be tough to increase wages for entry level workers under the current business atmosphere.

“It is required by the law to increase wages every five years, and the government has already formed a wage board for this purpose. But the minimum wages for workers should not cross Tk 9,000.”

The directors, however, agreed to hike the general operators’ wages from Tk 8,399 to Tk 11,000, and reduce the number of grades – which is now seven.

Speaking to The Business Post on condition of anonymity, a BGMEA director said, “We will propose the figure to the board, despite the workers demanding Tk 23,000 or more. Some factories will not be able to pay such a salary due to bad business.”

When asked whether the workers will accept this amount, he said, “If we propose Tk 23,000, the workers will demand even more. We cannot make everyone happy. People will always want more.”

Since early 2022, RMG workers have been holding demonstrations seeking a hike in wages to tackle skyrocketing inflation. Though several trade unions are demanding different minimum wages, most of them are proposing Tk 23,000 as monthly minimum salary.

On the other hand, the Centre for Policy Dialogue (CPD) on Sunday recommended Tk 17,568 monthly minimum wages for readymade garment (RMG) workers on the backdrop of skyrocketing inflation.

The think tank said it will be possible for a garment factory to execute this initiative if the buyers hike the cost of manufacturing (CM) by just $0.07.

An analysis of wages paid by different RMG exporter nations show that Bangladesh pays one of the lowest monthly wages to its workers. China pays a minimum $161 in RMG worker wages, while India pays $165, Vietnam $191, Pakistan $110, and Cambodia $200.

Bangladesh had fixed $100 or Tk 8,000 in 2018 as monthly wages for RMG workers. Due to depreciation of the local currency, the wages now amount to $74.5 per month, show central bank data.

Bangladesh’s development partners had earlier said the country should move away from the low wage trap after graduating from Least Developed Country (LDC) status, as the existing minimum pay for RMG workers is not nearly enough to cover skyrocketing living costs.

They pointed out that along with the government and industrialists, brands and buyers also have the responsibility to help Bangladesh leave behind the trend of low wages.

Bangladesh Garment Sramik Samhati President Taslima Akhter said, “In the last five years, minimum living expenses nearly doubled, and RMG owners’ income also increased by a lot. But our wages have stagnated.

“A four-member family needs to spend at least Tk 40,000 per month to cover living expenses. But taking into account the situation, we are proposing Tk 25,000. If the board does not consider our demand, we will take to the streets for our rights.”

At a recent CPD programme, Charge D’affaires at the Netherlands Embassy in Bangladesh Thijs Woudstra said, “Bangladesh (should] move away from the low wage trap when graduating [from the LDC status]. There are no alternatives to improving working conditions and wages.”

At the same event, European Union (EU) Ambassador and head of delegation in Dhaka HE Charles Whiteley said, “It is very important to take into cognizance the workers’ health complaints. It is hard to avoid the wage issue. We are now at a very pivotal moment.

“It has been five years since the last wage revision, and the minimum pay stands at only TK 8,000. By any stretch of the imagination, it is not a very healthy way to live on, particularly if you have kids to feed.

Besides, on September 12, the Action, Collaboration, Transformation (ACT), a joint initiative between 19 international garment brands and retailers and IndustriALL Global Union, sent a letter to the BGMEA, EPB and Minimum Wages board to support the development of living wages in the RMG sector.

The ATC letter reads, “We sincerely hope and urge that the RMG Minimum Wages Board members reach a negotiated consensus that allows the setting of a new minimum wage in Bangladesh that will cover the minimum income necessary for a worker to meet the basic needs of himself/herself and his/her family including some discretionary income.

“This should be earned during legal normal working hour limits.”

In response to these concerns, BGMEA President Faruque Hassan had sent individual letters to all stakeholders, including brands, buyers, trade unions and consumers, seeking their support to implement the upcoming new wage structure for the readymade garment sector.

News Sauces :businesspostbd

RMG workers block road in Gazipur for 3rd consecutive day

POST BY
RMG Bangladesh
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Workers from five garment factories in Gazipur’s Kaliakair upazila on Wednesday blocked the highway for the third consecutive day, demanding a minimum basic salary of Tk 23,000.

They started their protest march around 11:30am on Wednesday.

The garment workers staged a protest march and blocked the Dhaka-Tangail highway several times in the Mouchak Telirchala area.

Workers from five factories, including those in the shoe and medicine industries, took part in protest marches and highway blockades.

The workers of Karim Textile of Purbani Group in the Telirchala area of the upazila began their third day’s protest at 11:30am on Wednesday, demanding a minimum basic salary of TK23,000.

Workers from nearby Logos Apparels Ltd., Hydroxide Knitwear Ltd., APS Apparels Ltd., and Bay Footwear Ltd. joined the protest with the same demand.

At one point, the workers blocked the Dhaka-Tangail highway, which disrupted traffic heavily in both directions. Vehicular movement on the Dhaka-Tangail highway remained suspended.

Shahidul Islam, inspector of Mouchak Police Station, said the workers created a blockade on the road demanding the wage hike.

Later in the afternoon, the situation was brought under control, he said.

Garment export earnings up nearly 8% in 9 months

POST BY
RMG Bangladesh
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In the first 9 months of this year (January to September), Bangladesh’s garment exports have earned $35.61 billion. During the same period last year, apparel exports earned $32.99 billion. That is, compared to the previous year, the export income of clothing has increased by 7.96 percent in 9 months.

Table 1: Percentage of total export, export volume & export growth of Bangladesh apparel export market during Jan-Sept ‘2023.

BGMEA President Faruque Hassan said that the export growth is positive due to the positive image in the global market, innovation, new markets, increase in exports of high-value garments, although the quantity and work orders are low.

He said, overall, the entrepreneurs of the country’s garment sector are doing better than our competing countries. However, government policy support is needed to deal with the crisis ahead.

According to the Export Promotion Bureau (EPB) data for the last 9 months, during January-September this year, Bangladesh’s exports to EU countries increased by 6.40 percent to $17.52 billion, which was $16.47 billion in the same period of the previous year.

However, Germany, the EU’s main market, has continued to decline for months. Exports to Germany in the first 9 months of 2023 fell by 12.58 percent to $4.68 billion from $5.35 billion in the same period of 2022.

Table 2: Export growth of other significant market during Jan-Sept ‘2023.

Exports to France, Spain and Italy increased by 13.22 per cent, 20.72 per cent and 27.02 per cent to $2.15 billion, $2.91 billion and $1.60 billion respectively. On the other hand, exports to Denmark crossed $1 billion with a growth of 15.26 percent.

During the same period, countries such as Latvia, Romania, Finland and Croatia also achieved strong growth.

Exports to the United States, the main market of Bangladesh, fell by 7.18 percent from $6.79 billion in January-September 2022 to $6.30 billion in the same period in 2023.

In 9 months, there has been a positive growth of 14.92 percent in UK and 6.27 percent in Canada. Apparel exports to the UK and Canada during this period reached $4.07 billion and $1.12 billion respectively.

In addition to traditional markets, Bangladesh’s garment exports to non-traditional markets increased by 28.63 percent to $6.57 billion from $5.11 billion in January-September 2022.

Among the major non-traditional markets, exports of Japan reached $1.29 billion, an increase of 45.23 percent year-on-year, 54.69 percent in Australia, 13.87 percent in India, 20.93 percent in South Korea, 46.32 percent in China and 35.11 percent in Turkey.

As a single country, the United States is Bangladesh’s largest market, accounting for 17.70 percent of total exports and EU about 49.22 percent. It reached 11.45 percent and 3.16 percent of total apparel exports for the UK and Canada.

In the first nine months of 2023, the share of non-conventional markets was recorded at 18.47 percent of total exports, the sources said. The increase in non-traditional market share is definitely a positive sign for the apparel industry. With the dream of exporting $100 billion by 2030, the diversification of the market should continue in the days to come.

Garment and Textile Machinery Expo BIGTEX to kick off on 26th October

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RMG Bangladesh
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The 7th Bangladesh International Garment and Textile Machinery Expo (BIGTEX) is going to start from Thursday, October 26 at Dhaka’s International Convention City, Bashundhara. The three-day international exhibition will continue until Saturday, October 28.

All types of machinery, technology, accessories manufacturers, suppliers and importers involved in textile and clothing industry, digital printing, sign industry, paper printing and packaging industry from 12 countries of Asia and Europe are participating in this exhibition.

Figure: Garment and Textile Machinery Expo BIGTEX to kick off on 26th October.

Industry Minister, Nurul Majid Mahmud Humayun, MP is expected to inaugurate the expo.

These informations were given in a press conference at the office of Economic Reporters Forum (ERF) at Paltan Tower in Vijayanagar of the capital on Sunday (October 22). The exhibition is organized by Red Carpet Global. Ahmed Imtiaz, Chief Executive Officer of the organization, gave details about the exhibition.

It was informed in the press conference that digital printing of textiles will be given special importance in this exhibition. Because now with the change in people’s taste and fashion worldwide, it will be difficult to survive in business through traditional textiles and clothing. The aim of the exhibition is to familiarize local entrepreneurs with these issues and to increase communication between buyers and suppliers.

Bangladesh Garments Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) are associate partners of this exhibition. The exhibition is powered by Image Group and supported by Bangladesh Paper Mills Association, Bangladesh Sign Materials and Machinery Importers Association and Bangladesh Digital Printers Owners Association.

Textile Today is one of the exhibitors and media partners of the 7th BIGTEX.

The exhibition will be open for visitors daily from 10.30 am to 7.30 pm.

HT&K Chemicals is expanding its business in Bangladesh

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RMG Bangladesh
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Colour Chemistry has been serving Bangladesh’s textile and Garments industry with quality products for more than 6 years with strong chemical background and a leading pigment supplier from Thailand. Working closely with customer, their R&D and technical sales team identify customer needs, offer solution and products in timely, efficient, and economical.

Colour Chemistry is committed to the development of environmental protection-related products. Understanding modern-day competition, overall cost effectiveness high throughput and efficiency are crucial for customer success. Colour Chemistry listens to customer needs, modify and develops new products to keep its customers competitive. Colour Chemistry products are in compliance with Green Screen, Oekotex, ZDHC regulations and GOTS certification.

Figure 1: Md. Salahuddin Sarker, Managing Director, Colour Chemistry.

Colour Chemistry is the sole distributor of HT & K Group in Bangladesh.

HT&K Chemical – An international manufacturer of textile auxiliaries. HT&K covers in this field the whole supply chain, integrating R&D, Pilot Plant scale-up, large volume production, customer service, marketing and sales. HT&K is rated by the government as ‘high-tech enterprise’. It has existing sales offices in Guangdong, Jiangsu, Zhejiang and other Chinese regions like Pakistan, Bangladesh, Vietnam and other main textile countries.

Textile Today interviewed with two representatives of both Colour Chemistry and HT&K respectively Md. Salahuddin Sarker, Managing Director, Colour Chemistry and Nathan Wang, Managing Director, HT&K Group.

Textile Today: Colour Chemistry is a renowned brand in Bangladesh. Please briefly tell us about your company products.

Md. Salahuddin Sarker: We are a renowned textile chemical company in Bangladesh. We are currently trying to give a certain value addition to the market by producing Pigment Dyes General Series, Pigment Dyes Florescent Series, Printing Chemicals, Pretreatment, Dyeing, Enzyme, Finishing, Denim & Washing Auxiliaries, Special finishing Chemical etc. We are working from 2016 with a certain goal with being the sole agent and authorized distributor of HT&K Chemicals.

Figure 2: Nathan Wang, Managing Director, HT&K Group.

Textile today: Tell us something about your goal and planning regarding Bangladesh Textile market.

Nathan Wang: HT&K Chemicals is one of the largest auxiliary manufacturers in China. We are expanding our business in Bangladesh market. Bangladeshi market is so much important as the textile industry is growing here consistently. We will try to add value to the industry especially to the local industries.

We are trying to provide high value to the industry in the auxiliary market. I hope that textile industry should go towards greener and cleaner in overall process and structure. We are trying to give our potential products for sustainable use. We are trying to give enough support with our dedicated team to help in the time of need.

Garment industry in critical situation

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RMG Bangladesh
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The garment sector of the country is going through an extremely critical situation. The rising cost of fuel including gas, electricity is increasing the production cost of garment exporters. On the other hand, orders from international apparel retailers and brands have fallen due to record-high inflation in the West. Enterprenuers are unable to open LC in the bank due to dollar crisis. There is a fear of losing major markets in the world i.e., US and EU due to US ‘visa policy’ of and EU’s condition of maintaing ‘healthy electoral environment’.

Figure: The garment sector of the country is going through an extremely critical situation.

Meanwhile, the increase in minimum wage in the garment industry is making the situation more fragile. It is becoming difficult for small and medium-sized garment factories to sustain themselves due to these various crises.

The prices of gas, electricity and fuel oil have been increased in stages. But despite paying the increased price, gas, electricity is not available. The gas crisis has become more pronounced in the last few days. Forced by rising costs, many are trying to diversify clothing by reducing production.

The apparel industry is going through a worse situation internationally. Due to the chaos of the Russia Ukraine war, we have complications of low orders and low sales. Moreover, an unstable and fearful environment is expected from the businessmen and buyers side with the elections ahead. Now is the peak season for traders. Even during this peak season, factories are running at 40-50 percent less capacity, so the problem with banks is getting worse.

According to several sources, they are facing economic problems due to non-supply of raw materials on time, gas shortage, foreign exchange. Due to which it is not possible for the garment owners to pay the workers on time. Worker dissatisfaction is often seen here as garment owners are unable to pay salaries on time due to various issues.

Many small and medium factories have closed down in the face of losses. Some big factories have survived. Layoffs continue in silence. Many workers have gone back to their villages without getting their salaries and allowances for months. Many are changing professions. Many workers are trying to do something by themselves with the money they owe from the factory owner. Vacancies are not being filled due to retrenchment or voluntary departure of workers. Recruitment of new workers is almost stopped. Because, if there is no work, the factories are not in a position to sit and pay salaries.

In the meantime, some local labor organizations are raising various demands, including declaring a minimum wage of Tk 23,000, while the owners want to pay Tk 10,400. The Government of Bangladesh constituted the Wage Board for the purpose of increasing and implementing the wage structure. In the next few days, the Wage Board will determine the minimum wage for workers in the garment industry in consultation with employers, labor unions, and other stakeholders.

Leaders of garment organizations and garment owners said that most of the factories are not able to make minimum profit. On top of that, there are doubts about whether the garment industry will be able to take the pressure of new wage increases. Owners also fear that many factories may close as a result. And if the industry does not survive, there will be uncertainty about the livelihood of many workers in this labor intensive industry.

In this situation, on the one hand, the industry must be sustained; on the other hand, the respectable standard of living of the workers must also be ensured. Garment owners, government and buyers must take responsibility in this situation.

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Ready Made Garments sector is the key source of foreign currency and GDP for Bangladesh. Approximately 4.2 million people are dependent on the RMG sector for their bread and butter.
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