The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) has set an ambitious target for the textile sector to reach US$50 billion exports by 2021. Similarly, the leather sector expects that relocation of tanneries to the Savar Industrial Estate could boost their export revenues from $1.0 billion to $5.0 billion in the next five years. All these targets are achievable if policies are favourable to address structural deficiencies so that efficient use of resources is ensured. Development of export industries and increase of production, with strong impacts on environment and especially on water resources, are now the concerns.  Experts have agreed that in order to maintain long-term impact on the economy and continuing operation of heavy industries in such a small land, water resources have been posing a challenge. Water resources governance needs supporting actions, among others, for maintaining health of communities in and around production areas. A recent study done by 2030 Water Resources Group (WRG) shows that if business-as-usual continues, this will result in an additional water demand of over 9,500 megaliters (one megalitre is equivalent to one million litres) per day by 2030 which is equivalent to the annual water needs of a population of approximately 75 million in Bangladesh. We would need to think about an increase in water demand with a rise in population in the country to the extent of 27 million by 2030. Environmental management and pollution in the industrial sector, especially in textile and leather sectors, would be at high risk in the absence of efficient water use. Growth of these sectors would compound the problem. Simple and low-cost measures could reduce water use by up to 20 per cent which will lower future infrastructure investment and operational expenditure by up to $7.0 billion. Keeping an eye on all these issues, setting up of central effluent treatment plants (CETPs), public-private partnerships, engaging policy-makers and commercial banks to improve Green Fund are some of the prescriptions. Some studies have also suggested for reducing or waiving duties on import of water metres and water minimisation/conservation equipment, increasing competition in water market and reducing cost of water and effluent treatment plants. In respect of finance and environmental sustainability, an effort is going on to create a task force in this respect. The task force will help take stock of all important legal acts/policies and to recommend strict enforcement for compliance as well as rationalising water use, use of ETPs, differentiated water tariffs, etc. WATER ACT 2013: What are the relevant laws, rules and regulations taking care of water issues? The main law is the Water Act 2013 which is the most important water policy in the country. It supersedes all previous policies. Other overlapping and interconnected policies  for taking care of water are the Disaster Management Act 2012, the Coastal Development Strategy 2006, the Coastal Zone Policy 2005 and the Bangladesh Forests Act.   There is a National Water Resources Council (headed by the Prime Minister). An executive committee is working for this council. The Ministry of Local Government, Rural Development and Cooperatives and the Ministry of Water Resources are also the other ministries to take care of these issues. The Water Resources Planning Organisation (WARPO) is under the Ministry of Water Resources. Different departments, authorities, and commission are working under the Council.  Besides, the Ministry of Planning, the Ministry of Industries, the Department of Environment, the Bangladesh Agricultural Development Corporation and the National River Protection Commission are other institutions/ministries connected to water resource maintenance and governance. Policy documents are sometimes not clear about the mandate and powers of individual water institutions. There are scopes for conflicts where it is not clear which agency is responsible for implementation of particular activities. The Ministry of Industries (MOI) is almost absent in water policy discussion.  In respect of penalties, the PRI studies also have shown that penalties for non-compliance are too low to be effective, and the mechanisms for pursuing penalties have opportunities for improvement. In that respect review of the penalties could be an issue. COORDINATED EFFORTS: Agriculture as the number one user of water needs stronger regulation for its efficient use.  While the government support for CETP and ETP investment is important for industrial sectors, there is a serious need for coordinated efforts to address these very important issues. Mandate, scope of work and responsibilities should be clear to all. In a recent seminar, all these issues were discussed. It was observed that the WARPO lacks the status and mandate for necessary coordination among all relevant ministries. The Ministry of Industries is not included in the  National Water Resources Council (NWRC). Representatives from the private sector like FBCCI, BGMEA and BKMEA are also not included. The Board of Investment (BOI) could have a role to play in this committee. Metering has been mentioned as another alternative for firms to restrict wastage of water resources. Without entrepreneurial will to take care of environment, metering will not be able to provide better results. In several developed and developing countries, they are planned for zero-wastage and moving towards a ‘Circular Economy’, meaning a zero-waste programme through recycling and preventing losses.  The ‘Circular Economy’ considers the whole value chain potentials and it requires supports from all research and innovation chain, integration of science and society for the second life of a product. We need to have a legislative proposal  to review re-cycling and other waste related targets. We would need to use more surface water (now 30 per cent only) instead of going for underground water (70 per cent). Presently water of only one river is treated; more rivers should come under this purview. In order to cover the whole country, area of the authority of the WASA could be increased. Its technical capacities should be enhanced and appointment of its Chairman not be politically motivated. Some studies show, water treatment cost is 5-10 times higher in China than ours while cost of waste water treatment is about 2-3 times higher. A PRI study suggested differential water pricing based on location as has been practiced in China.  It could be done based on industrial concentration, because it simply determines that more concentration of industrial firms in a specific place can cause more harm to the environment. The PRI has come up with a very important topic to address structural deficiencies of our textile sector which is our pride. Inefficient resource use (water and power) and poor environmental practices are some of the  common areas.  In order to address all these issues and attain long term sustainability of the industrial sector, a platform is required where other stakeholders and professionals can come together to recommend actions for efficient use of resources specially water which presently seems to be abundant but if we are not cautious, our industries will suffer for its inefficient use.

Bangladesh’s garment industry is moving forward, aiming to reach an export target of $50 billion by 2021, when the country will celebrate its golden jubilee of Independence.In fiscal 2013-14, the apparel industry exported goods worth $24.49 billion, the amount being 81.16 percent of the country’s total export earnings.However, let’s take a moment to look back. The Rana Plaza building collapse was a tragic incident in the history of the country’s garment industry. Before that, there was the Tazreen Fashions accident in 2012. These incidents remind us of how a lack of safety can take the lives of so many, and account for the loss of machinery, buildings and other assets.However, the industry is undergoing a transformation as these incidents made all the stakeholders aware of the significance of safety issues.As the industry is labour-intensive, thousands of families depend on the incomes of garment workers. Meanwhile, the materials used in garment factories are flammable. So, all the parties associated with the industry want to ensure safety. Sufficient safety equipment reduces the rate of accidents.Two aspects are notable while talking about safety — one is building and fire safety and the other is workers’ safety.At present, there are initiatives being taken from three sides. One is from the national level, which is known as the National Tripartite Plan of Action (NTPA).The NTPA agreement on fire safety and structural integrity in the garment sector is signed by the government, employers and workers. Bangladesh University of Engineering and Technology (Buet) is also involved in measuring safety standards in the buildings or workplaceThe second initiative has been taken by 100 retailers, mainly European, known as ‘Accord’, which is working on building and fire safety. Thirdly, there is the ‘Alliance’ of North American buyers that is working to ensure workers’ safety.Now the question comes, how these three parties will work on a combined platform if they have different requirements.Thus, there are the ‘minimum common standards/parameters’ that have been finalised considering the three parties’ requirements, which have to be followed by the factories.The common standards will be implemented one by one in collaboration with the International Labour Organisation, Alliance, Accord, experts from Buet, and the NTPA.By 2014, the Accord and Alliance have completed their first phase of inspection. The good news is, less than 1.5 percent of factories were found to be unsafe among all the factories inspected. Those factories have been closed down for relocation.On the other hand, the NTPA is conducting inspection and it will continue to do so as it is a continuous process. Out of 3,500 plus factories, a total of 2,325 have been inspected by the NTPA. In their inspection, they found most factories to be safe and they need fewer corrective action plans.Implementing the plan involving fire safety equipment is a costly one. Thus, the issue of financing is still important for the remediation process. There was strong pressure from the private sector entrepreneurs to reduce import tax on fire safety equipment.The high import tax discourages factory owners in terms of ensuring fire safety. For example, the tax on fire extinguishers was 15.32 percent, while it was 154.74 percent on emergency lights and exit signs. But imports of fire doors, emergency exit lights and other safety equipment were announced duty-free in the last budget. So, this change will definitely accelerate the process of ensuring safety.Another effective approach was from Bangladesh Garment Manufacturers and Exporters Association (BGMEA). It arranged a big gathering styled the Apparel Summit along with the Safety Expo, which were very effective in terms of future guidance. For example, questions like what steps should be taken next and what improvements and modifications are needed were answered.At the Apparel Summit, BGMEA President Atiqul Islam mentioned that Bangladesh’s present share of the global garment market is 5 percent and if the country wants to materialise its Vision 2021, it needs to grab 8 percent of the global market. He expects the industry to grab a further 3 percent of the market share with the help of enthusiastic entrepreneurs and the workforce.To sum up, we can say that ensuring safety for the workers and workplace is a continuous process. The government, foreign stakeholders, and garment entrepreneurs are performing their duty. At the same time, we need safety awareness among the workers as well.
Source: https://www.thedailystar.net/business/workplace-safety-ensure-better-future-apparel-sector-77956

Donations, offered mainly by global retailers, have overshadowed the issue of ensuring compensation to the surviving Rana Plaza workers and the families of their deceased colleagues.The issue was raised yesterday by the Bangladesh Garment Sramik Sanghati (BGSS), which said that the money handed over to the workers and families of the dead workers by the Rana Plaza Donor Trust Fund came from both public and private sectors as donations and not as compensation that workers are legally entitled to.The organisation, citing the Rana Plaza Arrangement, said nowhere in the English version of the ‘Rana Plaza Agreement Terms and Conditions of Donor Trust Fund’ does it contain the word compensation.Instead, there is a mention of the words ‘financial support’. There is also no mention of compensation in payment letters, sent by Rana Plaza Claim Administration to the victims. The letters of payment receipts contain the words grant, it said.“So, it is clear that the Rana Plaza victims are not getting any compensation,” said Taslima Akhter, coordinator of the BGSS while presenting a paper at a discussion at Dhaka Reporters Unity.The programme was arranged to mark the two-year anniversary of the Rana Plaza collapse, which claimed at least 1,138 lives and injured hundreds, making it the worst industrial disaster in the nation’s history.Following the disaster, the $40 million-Rana Plaza Trust Fund was formed to provide financial support and medical care, as per the International Labour Organisation (ILO) convention.However, not all the global retailers have footed the amount they had committed to the fund.Akhter said 70 percent of the amount put in to the fund so far has been handed over by the authorities to the survivors and families of dead workers.But, the victims are getting varying amounts of financial support in absence of a minimum floor. As a result, a division has emerged among the families of the victims, she said.The BGSS also wanted to know what happened to the donations put in by different persons and organisations into the prime minister’s fund after the disaster.Over Tk 100 crore has been collected by the PM’s fund but only Tk 22 crore has been disbursed so far, said BGSS, referring to the labour ministry’s disclosure a year ago.“We are yet to see any explanation regarding the rest of the amount in the fund,” said Anu Muhammad, professor of economics at Jahangirnagar University.Muhammad, also a member secretary of National Committee to Protect Oil, Gas, Mineral Resources, Power and Ports, demanded formulation of a compensation policy for workers, not only of the garment industry but all sectors, including construction.Citing the highest amount of compensation mentioned in the labour law, which is Tk 125,000, he said the government should be ashamed how such a small amount can be passed off as just compensation.He also demanded establishing public hospitals, especially for industrial workers.A minimum standard should be established for compensation, a minor revision is required in the law in this regard, said Syed Sultan Uddin Ahmed, assistant executive director of the Bangladesh Institute of Labour Studies.He said two years have gone by since the Rana Plaza collapse, but the victims’ workers and their families have so far received 70 percent of the amount they were pledged, be it compensation or financial support.“It is our failure,” he said, adding that owners are responsible for compensating workers and it is the responsibility of the government to see it through.Barrister Sara Hossain expressed dissatisfaction over the delay in ensuring justice for the victims of Rana Plaza. She said all the cases, beginning from Spectrum Garments to Rana Plaza, are still pending.
Source: https://www.thedailystar.net/business/compensation-still-eludes-rana-plaza-victims-77962

Atiqul Islam, President, Reaz Bin Mahmood, Vice-Presdent (Finance) of BGMEA, Ali Hossain Akbar Ali, Chairman of BSRM Group of Companies, Dr. Ruksana Haider, Chairperson, TAHN Foundation and Selim R F Hossain, Chief Executive Officer and Managing Director of IDLC Finance Limited, seen at a MoU signing ceremony at BGMEA Bhaban in Dhaka Thursday.
With a view to raising awareness among female garment workers in caring their children and breast feeding, a memorandum of understanding titled “Enhancing Infant Care & Breastfeeding Skills of Female Garment Workers” was singed. As per the MoU, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), BSRM Foundation, TAHN Foundation (Training and Assistance for Health and Nutrition), and IDLC Finance Ltd will implement the project. The MoU was signed at the BGMEA building in the capital on Thursday. Chaired by Atiqul Islam, President, BGMEA, Reaz Bin Mahmood, Vice-Presdent (Finance) of BGMEA, Ali Hossain Akbar Ali, Chairman of BSRM Group of Companies, Dr. Ruksana Haider, Chairperson, TAHN Foundation and Selim R F Hossain, Chief Executive Officer and Managing Director of IDLC Finance Limited were rpesent at the event, among others.

Source: https://www.daily-sun.com/print/business/2015/04/18/498534#sthash.wjMZl3Ok.dpuf

Apparel makers have stepped forward with practices of green technology which is consequently retaining manufacturing of eco-friendly products, making the images of the country’s apparel sector brighten before the world. The sector leaders, however, expressed hope of making the entire industry awarded with green certificate within few years. According to sources, 12 garment factories have received green certificate award from United States Green Building Council (USGBC). USGBC is a standard authority to provide green certificate in four categories — Leed, Leed Platinum, Leed Gold and Leed Silver. Twelve factories got the awards while 50 factories are in the queue to achieve it, BGMEA sources said. It was learnt that the fresh investors are preferring establishment of green building with green production to maintain eco-friendly manner in industrialisation. Reducing harmful emissions, improving energy efficiency, recycling byproducts and bettering waste management are the main criteria of receiving USGBC certificate. Among others, water and energy savings through the increased uses of solar power and the daylight are the main features of eco-friendly factories. It was learnt the renowned brands put emphasis on the factory environment and working condition. The Western consumers would also prefer buying products manufactured in factories sensitive to the environment. The retailers also prioritise the green products while advertising their products. As a result, the buyers also prefer the factories that are environment-friendly. Keeping it in mind, the investors have started setting up factories which are friendly with environment. The BGMEA leaders said around 150 factories will join in the queue of USGBC award by making the garment industry green and preferable for the buyers and consumers. Buyers in future will prefer placing work order to them that have compliance and hold green certificate, sadi Shahidullah Azim, Vice-President of BGMEA. Azim, who already established a green garment factory named Classic Fashion Concept Limited and received Leed Platinum certificate from USGBC, said such turning into green practices will put the industry into a new height. The sector insiders said the garment industry should start practicing green concept as the buyers in near future will prefer placing order to those who exercise green concepts. Khandakar Rafiqul Islam, Managing Director of Golden Refit Garments Limited and Director of BGMEA, said he has been taking preparation to apply USGBC for green certificate. He said establishing a green factory is much costlier than the traditional installation. But he is planning to establish green garment factory for the greater interest of being included to those that are getting preference.

Source: https://www.daily-sun.com/print/business/2015/04/18/498530#sthash.ZwnvyXno.dpuf

Benetton Group has announced that it has contributed $11,00,000 to the Rana Plaza Trust Fund, doubling the sum recommended in an independent assessment of its contribution by PwC and endorsed by WRAP, an NGO focused on social compliance through global supply chains, the Italy-based fashion brand said at a news release on Friday. In fact Benetton’s payment of $11,00,000 follows a previous payment of $5,00,000 made through BRAC, before the Rana Plaza Trust Fund was established, said the release. This coincides with a commitment from Benetton to raise working conditions and living standards for workers in the international garment industry via several ‘people first’ sustainability initiatives rolling out across its global supply chain, it said. Benetton will progressively apply the principles of the Accord on Fire and Building Safety in Bangladesh to its producers in other global markets, it said. ‘We welcome the PwC report and WRAP’s contribution. We have decided to go further to demonstrate very clearly how deeply we care,’ said Marco Airoldi, chief executive officer of Benetton Group. ‘Whilst there is no real redress for the tragic loss of life we hope that this robust and clear mechanism for calculating compensation could be used more widely. For this reason, we decided to make the PwC report publicly available to all stakeholders’. ‘Benetton has a proud history of social commitment. We believe that by working closely with the right suppliers we can help to improve factory conditions for workers in Bangladesh and in many other parts of the world,’ he added. Benetton was one of 29 brands connected to companies operating in the Rana Plaza building. PwC based its report on an assessment from the International Labour Organisation that in total $30 million compensation should be paid into the Rana Plaza Trust Fund. PwC calculates Benetton Group’s contribution to be $5,50,000 based on the level of its commercial association with the Rana Plaza. However, PwC has not factored in contributions from other third parties, such as the Bangladesh government and the Bangladesh Garment Manufacturers Exporters Association, unions and others. This means that, if its mechanism were followed by all brands operating at the Rana Plaza, after payments from other third parties the total fund could significantly exceed $30 million, the release said. ‘Based on Benetton’s commercial association with Rana Plaza, we believe this is a fair basis to calculate payments to the Rana Plaza Trust Fund as quantified by ILO’ said Sudhir Singh Dungarpur, Partner PwC India. ‘With a tragedy of this scale, no financial compensation can ever really be enough, but we welcome Benetton’s decision to pay more than its calculated share of the fund based on the report published by PwC,’ said WRAP president and CEO Avedis Seferian. ‘If everyone took the same approach as Benetton, the overall fund could more than exceed its stated goals’. Benetton was one of the first signatories of the Accord on Fire and Building Safety, which has improved factory safety in Bangladesh in the wake of the Rana Plaza disaster. Now, in addition to applying the Accord globally, the company plans to work with its suppliers to raise workers’ living standards.

Source: https://newagebd.net/112425/benetton-doubles-compensation-for-rana-plaza-victims/#sthash.JnpbKS1N.dpuf

Muggers snatched Tk 426 thousand (4.26 lakh) from a garment factory official after beating him mercilessly at Miabazar on the Dhaka-Chittagong highway in Chauddagram upazila on Thursday. Sohrab Hossain Likhon, general manager of CD Acrylic Garments of Dragon Group, said Samaruzzaman Samrul, an official of the garment factory, withdrew Tk 426 thousand from the Miabazar branch of South East Bank in the afternoon for distribution of salary of workers. When he reached Miabazar after withdrawing the money, a gang of muggers in the guise of DB police, riding a microbus, intercepted him on his way to the factory. They snatched the bag containing the money from him and threw him from their microbus at Mogbari on the Comilla-Chandpur road in Sadar Dakkhin upazila.

Source: https://www.thefinancialexpress-bd.com/2015/04/18/89265