Two months have gone, but the Pangaon-bound container vessel Pangaon Express is yet to be salvaged that sank in the bay near Noakhali’s Bhasanchar on July 6 with 72 import-laden containers.
Officials of the private firm that operates the ship and the salvage firm it engaged blamed persisting adverse weather and turbulent sea for the delay in salvaging the ship and the goods it was carrying.
Upon request from the importers, the Chittagong Port Authority (CPA) last week sat in a meeting with the ship’s operating and salvage firm to expedite the operation.
In the meeting, the salvage firm assured the CPA that they would start shifting the onboard containers from September 10 aiming at reducing the ship’s weight.
However, the officials of the salvage firm told The Daily Star that they need one more week to start the job as the sea is still rough.
Around 70 per cent work of passing wire ropes beneath the ship is complete, which was required to make it steady as part of efforts to salvage it, they said.
And a relatively calm sea is needed to start shifting the onboard containers with the help of barge mounted crane, the officials added.
Fearing that at least 22 loaded containers might have been washed away by this period, officials of the ship’s operating firm said the rest 50 containers carrying heavy items, including steel goods, which were stacked inside the hatch are still on board.
They believe a portion of these steel goods can be recovered for use.
The Pangaon Express owned by the CPA was transporting 72 import-laden containers from the Chattogram port to Dhaka’s Pangaon Inland Container Depot when it tilted to one side due to strong waves around 12 nautical miles off Bhasanchar on July 6 noon when three containers fell off into the sea.
As water started entering into the vessel, the crewmembers managed to ply the ship around 4 to 5 nautical miles towards the coast.
However, it finally grounded and submerged near Bhasanchar coast.
The ship’s private operating firm, Sea Glory Shipping Agency, earlier sought help from Bangladesh Inland Water Transport Authority (BIWTA) to engage its salvage ships Rustam and Hamza, but BIWTA said it cannot rescue the ship for the lack of logistics capacity.
Salvage ships Rustam and Hamza are not fit to cross the bay, said Md Sabur Khan, joint director of BIWTA Chattogram.
Sea Glory initially engaged a private salvage firm Motaleb Enterprise, but it also did not have the capacity to do the job.
Sea Glory Manager Mainul Hossain said they later approached two other firms Glascow Exxon and Prantik Bengal Salvage and Diving.
Exxon demanded a huge amount of money while Prantik opted to wait until October for the sea to become calm to initiate the salvage operation.
Sea Glory finally signed a Tk 4 crore deal with private firm PS Salvage on July 18 for salvaging the ship in 45 days.
Hossain claimed PS Salvage has prior experience of salvaging at least 17 lighter vessels from the same area.
He said the salvage operation faced obstacles and got delayed as there were cautionary signals in every week in the last two months.
It needs to pass five to six heavy wire ropes beneath the sunken ship with the help of divers to hold the ship and make it steady, Hossain said.
It will be possible to shift the onboard containers from the ship once it becomes steady, he said.
The containers need to be shifted to reduce the weight of the ship so that it can be towed to the shore, he said.
Ashraful Alam, managing partner and representative of PS Salvage, said they so far managed to pass five heavy wire ropes with the help of a winch barge.
Claiming to finish 70 per cent of the salvage operation, Alam hoped to start lifting the containers within a week.
Informing that the onboard containers can be shifted with barge-mounted crane, Alam said calm sea and favourable weather are required for the job otherwise the barge carrying the crane may face same accident.
Bangladesh’s garment exports to the US market have not recovered so far this year. Entrepreneurs of the country have exported $4.57 billion worth of apparel to the USA in seven months from last January to July. This export is 19.82 percent less than the same period last year.
US is the single largest market for Bangladesh’s manufactured garments. This market is the destination of one-fifth of the garments exported from Bangladesh. Last year, the country exported $9.73 billion worth of ready-made garments. Currently, US traders import the third largest amount of clothing from Bangladesh.
However, overall US apparel imports are down 22 percent compared to the same period last year. In the first seven months of this year, US merchants imported a total of $45.76 billion worth of clothing from various countries. These data were obtained from the latest statistics of the Office of Textiles and Apparel (OTEXA) of the US Department of Commerce.
Among the top 5 apparel exporters to the US, the apparel exports of other countries have declined more than Bangladesh. China is the largest apparel exporter in this market. Their exports fell by 29 percent in the first seven months of this year. Last January-July, Chinese entrepreneurs exported $9.12 billion worth of clothing to the United States. At this time last year, their export amount was $12.81 billion.
Vietnam is the second largest apparel exporter to the US market. In the first seven months of this year, the country exported $8.21 billion worth of clothing to the United States. During the same period of last year, their export amount was $10.91 billion. As such, Vietnam’s exports have decreased by 25 percent this time.
According to OTEXA data, the fourth apparel exporters in this market, India exported $2.92 billion worth of garments to the US market in the first seven months of this year. The country’s exports fell by 21 percent. During the same period last year, they exported garments worth $3.69 billion.
Exports of fifth-ranked Indonesia fell by 27 percent. The country exported $2.47 billion worth of ready-made garments to the US market in the first seven months of this year which was $3.38 billion during the same period last year.
Basically, inflation in the United States rose above 9 percent in July 2022, five months after the Russia-Ukraine war began in late February, the highest in the country in 40 years, although inflation in the country eased to 3.2 percent in July this year.
Bangladeshi entrepreneurs have been saying for several months that the purchasing power of the common people in the United States has decreased due to high inflation. Because of that, they have reduced the purchase of products other than daily products. It has also reduced the purchase order of clothes. However, the country’s exporters are indicating that orders for ready-made garments have started to increase over the past two months.
Some 73 Bangladeshi garment factories have been recognized by the RMG Sustainability Council (RSC) as compliant and safe production facilities.
RSC provideded them Letters of Recognition (LoRs) after correcting the non-compliance faults identified during the initial inspections of the council formed by the buyers to monitor workplace safety in RMG establishments.
Figure: 73 garment factories receive ‘Letters of Recognition’ from RMG Sustainability Council (RSC) (Photo: Collected).
The RSC was set up by three incorporating members representing each of the three constituents from the industry, global fashion brands and global and local trade unions.
Currently, the RSC is covering 1,913 factories, out of which 534 factories have completed all the initial safety findings and 73 factories from the list received their LoR certificates.
“At the RSC, we take a pragmatic, solutions-based approach, without compromise to safety and standards, to find solutions to outstanding issues. But the most important thing that drives us to play the role of catalyst is collaboration,” said Abdul Haque, Managing Director of RSC, in a statement on the day.
RSC is a private national tripartite initiative to carry forward the significant accomplishments made in workplace safety in Bangladesh.
On June1 of 2020, the RSC inherited the operations, staff, policies and infrastructure of the local Bangladesh Accord office.
The RSC conducts safety inspections and training and operates an independent occupational safety and health complaints mechanism available to workers in covered RMG factories.
George Faller, Chief Safety Officer of RSC said that the RMG industry invested major resources in creating a safe industry and was now promoting awareness that continual efforts were needed to maintain those safety standards to ensure a more competitive business environment.
The Letter of Recognition is an important milestone in that journey. The advancements made by this sector sets the benchmark for safety in all other industries.
The LoR is not a certification of safety but rather a recognition to factories that have addressed all the initial assessment findings and in doing so have made great strides towards ensuring safety at the workplace.
Achieving the LoR indicates that the factory management has reached an important milestone in the journey towards ensuring safety which in turn makes the business more sustainable, the statement also said.
After leaving the Accord and Alliance, the RSC was formed to monitor the progress of the remediation of the safety of the garment factories.
M Kabir Hossain, the joint general secretary of the National Garment Workers Federation’s Central Committee, rubbished the allegations, calling it a move to harass workers.
The authorities of Dipta Apparels Ltd, a garment factory of DIRD Group in Savar, have filed a lawsuit against a labour leader and 27 other workers of various ranks in connection with a labor unrest that occurred in the factory last Thursday (7 September). Mustafa Kamal, the administrative officer of the factory, lodged the case with the Savar Model Police Station on Friday (8 September).
File Photo: TBS
M Kabir Hossain, the joint general secretary of the National Garment Workers Federation’s Central Committee, has been named as the prime accused.
Kabir, however, rubbished the allegations, calling it a move to harass workers.
Additionally, 100/120 unnamed individuals have also been implicated in the case.
Savar Model Police Station Officer-in-Charge (OC) Deepak Chandra Saha, confirming the filing of the case, told The Business Standard that the allegations are currently under investigation.
“No one has been arrested in connection with the case yet,” the OC added.
The case alleges that on the day of the incident, under the directive of labour leader Kabir Hossain, the accused workers of the factory began a protest over the schedule of salaries and allowances, subsequently locking the factory. They then entered the room of DGM (Marketing) Nasir Uddin and physically assaulted him.
The case statement affirms that at least 9/10 workers, including Nasir Uddin, factory quality manager, Shri Pradeep, compliance assistant manager Maruf Hossain, and security guard Samrat, sustained serious injuries during the protest.
Furthermore, the workers are accused of vandalising various pieces of furniture and causing damages to apparels as well as looting of 50,000 shirts resulting in a total loss of Tk3,20,50,000.
However, Kabir Hossain, the primary accused, said the case filed in connection with the workers’ unrest over unpaid wages was ill-motivated.
He asserted that the case is an attempt to intimidate the workers and undermine their ongoing movement for a wage increase.
“Moreover, I was not present at the site; I was attending an event at another garment factory that day. How can I be accused?” he added.
He called for an immediate withdrawal of the case, insisting that no worker should face arrest or harassment in this matter.
Regarding the filing of the case, administrative officer Mustafa Kamal told The Business Standard that the regular workers have no outstanding dues, and their salaries are not overdue.
He noted that, according to the law, seven working days are specified for payment.
Kamal said, on the day of the incident, labour leaders and workers deliberately attacked their staff, causing serious harm to at least 9/10 personnel with the intent to murder.
However, Kamal declined to provide further details to TBS.
Earlier on Thursday morning, the factory workers initiated a strike to demand the settlement of outstanding wages by the 10th.
“At least 5/6 workers, including two human resource department officials and one security worker, were injured after agitated workers launched an attack,” Asad, the security inspector of Savar zone for the company, confirmed this to The Business Standard.
The factory workers said, on 4 September, when the factory authorities announced that August wages would be disbursed on the 18th, unrest arose among the workers.
On that day, amidst the chaos in the factory, the authorities declared a two-day holiday.
Subsequently, upon the reopening of the factory on 7 September, the workers began protesting when they approached the management to demand salary payment by the 10th.
Additionally, various mid-level workers of the factory confirmed having five months’ worth of salary arrears.
Best of Bangladesh (BoB) recently held in the Gashouder Westergas in Amsterdam – focuses on innovative and sustainable practices from the garment and textile sector.
Organized by the Bangladesh Apparel Exchange (BAE), with support from the Embassy of Bangladesh, Commerce Ministry, Export Promotion Bureau of Bangladesh and in association with PDS on 04 and 05 September – looked to transform the image of the key manufacturing industries of Bangladesh and to stage a country with a thriving economy and massive potential.
Figure: Best of Bangladesh panel discussion highlighted innovative and sustainable practices from the garment and textile sector.
A representative from the International Apparel Federation (IAF) said to media, “Bangladesh is now putting on its own event. I think that statement is strong.”
Campaign Coordinator at SKC, Christie Miedema said to media, “A lot has changed in the factories falling under the International Accord in terms of safety since 2013.”
Best of Bangladesh provided a true and comprehensive depiction of progress in Bangladeshi apparel production. With a clear message to address the systemic challenges of the clothing industry, governments, brands, suppliers, and unions must continue to collaborate.
For instance, a renowned denim manufacturer in the country, Denim Expert highlighted of an in-house recycling facility that allows 30% (pre-consumer) blending.
“It is slightly more expensive, but many of our customers still choose this option – including the big mass-produced brands,” they said to media.
While Hasan Rahat of Pacific Jeans – one of the leading denim manufacturer with a production of 120 thousand pairs per day – said to media that brands like Inditex and H&M sometimes drop out due to the price disparity.
Mohammad Monirozzaman of Jamuna Denims Weaving said positively about Jeanologia’s innovative Ozone, Eflow, and Laser machines, which assist the denim supplier in saving water and energy.
While on the second-panel session of the Best of Bangladesh, “Sustainable Sourcing Realities: Challenges, Achievements & Next Steps,” sheds light on the challenges, triumphs, and future prospects of ethical sourcing. Distinguished speakers engaged in a dynamic discourse, revealing insights into how Bangladesh has been shaping the landscape of fostering a responsible ecosystem.
Bangladesh is the world’s second-biggest exporter of readymade garments (RMG). Almost 80% of the country’s total annual export earnings come from the RMG industry – in which Europe plays a big role. With a volume of 1.33 billion kilograms of RMG sent to the EU last year, Bangladesh surpassed China (1.31 billion kilograms), the previous number one.
Bangladesh’s economic growth has everything to do with its favorable trade position. Bangladesh is one of the ‘Least Developed Countries’ (LDC), but it will leave that status behind in 2026.
Rensje Teerink, European Union Deputy Director EEAS Asia-Pacific said, “Currently, the Everything but Arms (EBA) rule allows the country to export anything but arms to Europe without tariffs and quotas. No country has benefited as much as Bangladesh: at least 60% of all merchandise entering Europe under EBA comes from Bangladesh and that is mostly textiles.
“If they ‘graduate’ to a developing country, they are no longer allowed to participate in EBA and those will be lost. After a three-year phase-out period, they then have to join the Generalised Scheme of Preferences Plus (GSP+) which will also make it harder for them to export. We still need to see the exact rights they will receive because that legislation is not yet finalized, but the conditions are stricter, especially in the area of human rights,” Rensje Teerink added.
EU delegates highlighted that to continue getting support from the EU under GSP+, Bangladesh must also obey to regulations.
Bangladesh – the second-largest apparel exporter to the EU after China – exported $22.89 billion worth of apparel to the EU market in 2022, showcasing a remarkable 35.69% year-on-year growth. And over the last 5 years, the value of the EU’s RMG imports from Bangladesh has demonstrated a Compound Annual Growth Rate (CAGR) of 9.42%. This growth overtook the EU’s average annual apparel imports growth rate of 4.31% from the rest of the world.
Between 2015 and 2020, European brands ordered 14% more annually from Bangladeshi apparel suppliers. The major buyer was Germany with 7.28 billion in orders in 2022, followed by Spain (3.27), France (2.74), Italy (2.01), Poland (1.83), and the Netherlands (1.7).
The event was flooded with experts from diverse sectors to hail five decades of trade between Europe and Bangladesh.
Bangladesh’s ready-made garment (RMG) industry has experienced a significant challenge during the first 10 months of fiscal year 2023. Data from the Bangladesh Bank (BB) reveals a substantial decline of nearly 21 percent in capital machinery imports for the RMG sector during this period. This decline is mirrored by broader economic challenges both domestically and globally, including decreasing import and export volumes. As a result, many factories are operating at 30%-40% below capacity due to high inflation and reduced demand in key export markets such as Europe and America.
Figure: Investment initiatives transforming Bangladesh’s RMG industry in FY2023.
However, amidst these economic hardships, certain textile companies in Bangladesh have chosen to embrace the difficulties and invest significantly in diversification and new technologies. Collectively, these companies plan to invest a substantial Tk12,000 crore over the next two years, with a focus on cutting-edge machinery for man-made fibers, recycled fibers, automated equipment, and robotic technology for garments and accessories production.
These investments are expected to not only reshape the industry landscape but also expedite production processes and diversify the sector’s offerings. In total, these initiatives are projected to create employment opportunities for approximately 50,000 individuals across apparel, textile, and accessories units.
Ha-Meem Group
One of the leading exporters in the garment industry, Ha-Meem Group, currently commands an impressive 80% of the market orders. Traditionally specializing in woven bottom products, the company has recently embarked on a diversification journey. Their foray into diversification began with the establishment of a jacket manufacturing facility just three months ago. This strategic move is aimed at capturing the attention of three major clientele: Hugo Boss, Ralph Lauren, and Tommy Hilfiger.
Notably, this garment industry segment is relatively new in Bangladesh, prompting Ha-Meem Group to seek technical expertise from an Indonesian partner. The brands have already conducted their primary inspections, with the second inspection scheduled for September.
Ha-Meem Group’s commitment to this endeavor is underscored by a substantial investment of 400 crore taka. Furthermore, the group has taken a step towards sustainability with the inauguration of a recycling plant six months ago, primarily focused on producing recycled yarn.
They are now poised to expand into fabric production, capitalizing on the growing trend among international brands to transition to recycling methods by 2027-2030. It’s worth noting that fabrics derived from recycled yarn typically command a higher cost, approximately 3-4 times than that of conventional materials, and Ha-Meem Group is strategically leveraging this opportunity.
Hammem Group
· Substantial investment of 400 crore taka.· Committed to sustainability with a recycling plant.· Expanding into fabric production with recycled materials.
DBL Group
· Invested 650 million dollars in Srihatta Economic Zone.· Largest investor in the economic zone.· Focus on textile production and recycling.· Secured financial support from British sources.· Received a boost of 52 million dollars from foreign sources.
Windy Group
· Invested 400 crore taka.· Self-financing expansion.· Aiming to double annual exports.· Doubling investment for ambitious growth by 2026.
Team Group
· Expanding operational capacity with multiple projects.· Focus on knit composite capacity and accessories.· Aiming for platinum-grade green factory status.· Establishing yarn dyeing facilities and working on backward integration.
Pacific Jeans
· Investing 35 million dollars with a focus on sustainability.· Ambitious plans for further expansion.· Targeting a billion-dollar status by 2027.
Nipa Group
· Ambitious project worth 400 crore taka.· Production of cloth from man-made fibers.· Four different shades and administrative building.· Targeting revenue of 190 million and export turnover of 250 million dollars by 2024.
Shasha Denim
· Active in garment and washing production with a sustainable approach.· Investment commitment of 200 crore taka.· Expanding capacity in denim mill and knit composite sector.
Renaissance Group
· Establishing a new manufacturing facility in Gazipur.· Anticipating the need for 4,000 additional workers.· Focused on meeting buyer demands with the new factory.
DBL Group
DBL Group has made a significant investment of 650 million dollars in the expansive Srihatta Economic Zone, which stands as the largest economic zone in the country. Notably, DBL Group holds the distinction of being the foremost investor in this economic zone, where they are poised to establish a total of 10 operational units.
The initial focus is on textile production, with a strong emphasis on recycling practices. Furthermore, their strategic plans encompass the production of tableware and glassware. Interestingly, DBL Group has opted for financial support from British sources, a choice influenced by the relatively high-interest rates offered by domestic banks. Their funding has received a significant boost with an infusion of 52 million dollars from foreign sources.
Windy Group:Windy Group has provided employment to a workforce of 4,000 individuals and has made an investment of 400 crore taka. They have a consistent track record of self-financing their expansion endeavors. Currently, their annual export stands at 190 million dollars, and they have set an ambitious goal to double this figure. In the upcoming year, Windy Group is embarking on a substantial project, doubling their investment compared to previous initiatives, with the intention of achieving a twofold increase in exports by 2026.
Team Group:Team Group is strategically expanding its operational capacity, with two ongoing projects and the addition of two new ones. One of these projects is dedicated to backward linkage, a concept they planned in the previous year. The ongoing project focuses on enhancing their knit composite capacity, accompanied by the opening of letters of credit (LCs) and the arrival of new machinery. They are optimistic about achieving full commercial operation by either the end of the current year or the beginning of the following year.
Simultaneously, they are initiating a project related to accessories, situated at Tongi Industrial Area. The construction of this structure, spanning G+10 floors, has already reached an advanced stage. This project will also encompass denim production, featuring a zero-discharge washing plant, aligning with environmentally sustainable practices. Team Group’s commitment to environmental consciousness is further demonstrated by their aim to achieve platinum-grade green factory status for both of these initiatives.
As part of their plans, they intend to establish yarn dyeing facilities within one floor of their outerwear factory. To facilitate this endeavor, they are working towards backward integration, importing man-made fiber-based fabric and processing it on-site. Although this represents the third phase of their expansion, construction is actively progressing. Additionally, they are in discussions with a Taiwanese company to provide technical support, a collaboration that will not involve a joint venture.
Pacific Jeans Ltd: Pacific Jeans Ltd. stands as one of the largest companies specializing in single-item production and holds a notable position as a top exporter in this category. Within the Bangladesh EPZ, they are classified as a C category industry and have earned numerous accolades, including Gold, Silver, and Bronze awards, within this category on multiple occasions. Their primary focus lies in the production of outerwear and formal attire. Notably, construction work in Chittagong EPZ has been completed, and they are anticipating the commencement of production by September.
Pacific Jeans has allocated an investment of 35 million dollars for this endeavor, and in line with sustainability principles, they are concurrently establishing a recycling factory. This facility aims to address the imperative of managing cutting waste responsibly, given the limitations of disposal.
As part of their broader expansion plans, they have displayed a remarkable appetite for investment, notably demonstrated during the challenging COVID-19 period when they initiated the establishment of two new factories. Their future aspirations include a move towards Dhaka, with a substantial investment of 500 million dollars earmarked for this year. They have set their sights on reaching a remarkable milestone, with a target to achieve a billion-dollar status by 2027.
Nipa Group: Nipa Group is embarking on an ambitious project valued at 400 crore taka. This initiative centers on the production of cloth derived from man-made fibers through spinning and dyeing processes, with a projected output of 2 lakh yards.
The project includes the creation of four different shades and the construction of an administrative building. Key preparations, such as the readiness of the shades, are already in place, and they are looking to initiate the process of opening letters of credit in September.
Their timeline includes plans for commercialization starting from June of the following year, with full-scale operations targeted for December. Nipa Group has set a revenue target of 190 million, with a goal to further elevate their export turnover to 250 million dollars by 2024.
Shasha Denim:Shasha Denim is actively engaged in the production of garments and washing, all while embracing a sustainable approach. They possess a denim mill and also operate within the knit composite sector.
As part of their expansion strategy, they are diligently working to enhance their capacity in both of these domains, including the augmentation of their existing denim mill. Their investment commitment includes 200 crore taka, and a subsequent phase will see an additional investment of the same magnitude.
Renaissance Group:Renaissance Group, which currently operates a factory in Kaliyakoir, is in the process of establishing another manufacturing facility in Gazipur. To meet the demands of their buyers, they anticipate the need to employ an additional 4,000 workers. As a strategic response to this requirement, they are taking steps to inaugurate a new factory this year.
In the face of economic challenges, Bangladesh’s garment industry is displaying resilience and determination to not only survive but thrive. These investments in diversification, sustainable practices, and advanced technologies signify a commitment to a brighter future. While uncertainties persist in the global market, these strategic moves position Bangladesh’s textile sector for long-term success and contribute to economic growth and job creation in the country.
The Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI) successfully concluded the 6th Showcase Malaysia 2023 in Dhaka, Bangladesh, featuring a series of seminars on contemporary issues. The event, which took place on September 6, witnessed the participation of prominent figures from both nations.
High Commissioner of Malaysia Haznah Md Hashim expressed her delight at the successful completion of the event and extended her gratitude to the BMCCI management and all stakeholders involved.
BMCCI’s program placed significant emphasis on contemporary seminars covering trade and business opportunities, healthcare, the Halal industry, employability, and the digital economy frontier.
Additionally, the event featured the BMCCI Business Excellence Awards, a modest fashion show, and an extravagant Grand Gala Night that included the exhibition of Malaysian products and services.
During the event, one of the seminars aimed to ignite the untapped potential in the economic relationship between Bangladesh and Malaysia, as highlighted in the official release.
This session, held during the Plenary Session of the 6th Showcase Malaysia, also delved into the existing trade patterns, investment flows, and bilateral engagements between the two nations.
The seminar was chaired by the Malaysian High Commissioner and moderated by Dr. M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh.
Furthermore, the event included seminars on healthcare and the Halal industry, featuring insights from AKM Sayadul Haq Bhuiyan, Head of Supply Chain and Export at Bengal Meat Processing Industries Ltd, BMCCI President Syed Almas Kabir, and Sami Ahmed, Managing Director of Startup Bangladesh Limited.
The programme received support from key organisations, including the Malaysia External Trade Development Corporation (MATRADE), the Malay Chamber of Commerce Malaysia (DPMM), the Malaysia South-South Association (MASSA), Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zone Authority (BEZA), the Bangladesh High Commission in Malaysia, and the High Commission of Malaysia in Bangladesh.
German industrial production fell for a third straight month in July, official data showed Thursday, adding to fears of a prolonged downturn in Europe’s largest economy.
Output fell by 0.8 percent compared with the month before, according to seasonally adjusted figures from statistics agency Destatis, following a 1.4-percent drop in June.
Analysts surveyed by FactSet had forecast a smaller decline of 0.35 percent.
The alliance further demanded justice for Shahidul Islam, an organiser for the Bangladesh Garment and Industrial Workers Federation (BGIWF), who was murdered on 25 June 2023 in front of the Prince Jacquard Sweater Ltd factory in Tongi after a meeting with its management staff.
Representational image. Photo: TBS
The Clean Clothes Campaign, the garment industry’s largest alliance of labour unions and non-governmental organisations, has urged the BGMEA and the Bangladesh government to institute a Tk23,000 minimum wage for garments workers.
At a protest in Amsterdam outside the Best of Bangladesh expo on Monday, it also urged brands sourcing clothes to demand fairer wages for workers.
The alliance further demanded justice for Shahidul Islam, an organiser for the Bangladesh Garment and Industrial Workers Federation (BGIWF), who was murdered on 25 June 2023 in front of the Prince Jacquard Sweater Ltd factory in Tongi after a meeting with its management staff.
The alliance urged the factory and brands sourcing from the factory to ensure compensation of at least Tk24,934,830 (211,000 EUR) for Shahidul Islam’s family.
The Clean Clothes Campaign event registration was not granted, and thus they resorted to public actions.
The organisers of the action stressed the desire for dialogue but also noted that none of the panels in the Best of Bangladesh event featured any form of independent trade representatives.
In a statement published on the alliance’s website, it spurred the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to ensure a zero-tolerance policy for violence and retaliation against trade unionists, among a number of other demands.
“Without these measures, justice for this brutal murder, with widespread implications for Bangladeshi society and the rights of garment workers, will remain elusive. The organisers and participants of the event can make a stand today by speaking out for a 23,000 BDT minimum wage to show they are serious when they say they want change for the industry. For the sake of the garment industry and its workers, the government of Bangladesh, the BGMEA, and brands sourcing from Bangladesh must ensure that workers’ rights are upheld,” the statement said.
The first-ever “Best of Bangladesh” exposition in Europe – exhibiting only Bangladeshi products– started in Amsterdam, Netherlands on Monday, against the backdrop of Shahidul’s murder and the ongoing negotiations about renewing the minimum wage for garment workers.
The two-day national branding event was organised by Bangladesh Apparel Exchange (BAE), with support from the Embassy of Bangladesh, Ministry of Commerce, Export Promotion Bureau (EPB) of Bangladesh, and in association with PDS.
The RMG wage board was formed in 2018 and that year the minimum wage was fixed at Tk8,000, which was Tk5,300 earlier.
However, due to the increase in commodity prices, RMG workers could not wait for another five years for a new wage structure and took to the streets demanding a raise on several occasions.
Finally, the new wage board was formed in early April this year, including Sirajul Islam Rony as the representative of the workers and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) former president Siddiqur Rahman as the factory owners’ representative.
After the formation of the board, the first meeting was held on 24 May. Senior District Judge Liaquat Ali Molla is the chairman of this minimum wage board.
People, including nearly 40 lakh workers in the garment industry, have been struggling with high inflation for the past year.
According to the Bangladesh Bureau of Statistics (BBS), inflation stood at 9.94% last May, which was the highest in the last 11 years. Overall, average inflation was above 9% in the fiscal year 2022-23, compared to the average inflation of 6% in the fiscal year 2021-22.
According to Section 141 of the existing Labor Act of Bangladesh, while formulating any recommendation (of wages), the wage board shall take into account the cost of living, standard of living, cost of production, productivity, cost of goods produced, inflation, type of work, risks and standards, business potential, country and area concerned. Socio-economic status and other relevant factors should also be considered.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Circle Economy have entered into a partnership to accelerate the transition of Bangladesh’s garment and textile industry towards circular economy, said a press release.
Figure: Faruque Hassan, President, BGMEA and Hilde van Duijn, Head of Global Value Chains, Circle Economy signed a Memorandum of Understanding (MoU) in this regard at the Amari Hotel in Dhaka on September 3.
Faruque Hassan, President, BGMEA and Hilde van Duijn, Head of Global Value Chains, Circle Economy signed a Memorandum of Understanding (MoU) in this regard at the Amari Hotel in Dhaka on September 3.
The collaboration between both parties aims to enable greater coordination in regard to sharing expertise, raising awareness and disseminating knowledge to enable BGMEA members to adopt and implement circular strategies.
The parties aim to collaborate within the context of the SWITCH2CE project, specifically on the creation and dissemination of the capacity building programme.
Areas of cooperation identified in the capacity building programme include exchanging knowledge, sources and insights on the value chain for (post-industrial) textiles in Bangladesh, and disseminating the Circularity Game as the tool to assess current awareness and knowledge on circularity amongst BCMEA members.
