Workers will get monthly wages and bonuses before factories go on Eid holidays — industries previously agreed upon the decision taken by the government.
But the reality does not go with the promise as more than half, or 51 percent, garment and textile factories outside Dhaka metropolis across the industrial belts are yet to clear March salaries.
Only 49 percent of garment and textile factories outside Dhaka city paid March wages as of Monday, according to Industrial Police data. However, around 81 per cent of the factories have already paid Eid bonuses.
Industrial Police data shows that 1,766 industrial units out of a total of 9,469 had not paid the festival allowance by Monday evening.
The data covers 9,469 factories under the Industrial Police’s jurisdiction. By Monday evening, 4,620 factories had paid March wages, and 7,703 had paid the festival allowance.
These factories are located in six Industrial Police zones: Ashulia, Gazipur, Chattogram, Narayanganj, Mymensingh and Khulna.
Among registered members, some 920 factories with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), 435 knitwear factories with the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and 170 textile mills with the Bangladesh Textile Mills Association (BTMA) are yet to pay March wages.
A total of 76 Bangladesh Export Processing Zones Authority (BEPZA) units and 18 jute mills also have not paid March wages. The Industrial Police data also lists 3,230 non-garment manufacturing units that have not paid March wages.
Regarding the festival allowance, 181 BGMEA members, 144 BKMEA members, 26 BTMA mills, nine BEPZA units, 10 jute mills and 1,396 non-garment manufacturing units listed with the Industrial Police did not pay the allowance.
An Industrial Police official told The Financial Express that many factories are expected to make payments today (Tuesday).
The official said some factories announced the Eid holiday after making partial wage payments, having discussions with their workers beforehand. Around 100 factories have a history of irregular wage and allowance payments.
According to Industrial Police data, some 1325 textile and garment factories out of 2957 under its jurisdiction announced the Eid holiday while 29 will remain open with an additional six remaining partially open.
Some 114 textile and garment factories remained shut for several reasons.
Some 3381 factories including jute mills and non-RMG announced the Eid holiday on Monday while 116 units would remain open and some 71 will remain partially open, according to police data.
Bangladesh’s export earnings experienced a year-on-year (YoY) negative growth of 0.99% of $3.92 billion in April of FY24, slightly lower from $3.96 billion in the same month of FY23.
After positive growth for three straight months, exports experienced a very narrow negative growth in April, according to the Export Promotion Bureau (EPB) data published on Thursday.
The export earnings target for April this year was $4.7 billion, meaning the earnings were 16.78% lower than the target.
The RMG sector, the highest export earner of the country, bagged $3.29 billion in April of FY24.
This means it fetched a slight negative growth of 1% from $3.33 billion in April of FY23, EPB data stated.
According to EPB data, the earnings in the first 10 months (July-April) of the current FY24 experienced a narrow YoY growth of 3.93% to $47.47 billion, higher than $45.68 billion in the mentioned period of the last FY23.
However, the July-April export figure is 6.87% lower than the target of $50.97 billion, EPB data stated.
During the first ten months of FY24, the RMG sector bagged $40.49 billion, fetching a narrow YoY growth of 4.97% from $38.58 billion in the same period of FY23.
Export breakdown
Among apparel products, knitwear export reached $22.88 billion, while export from woven items was $17.61 billion with 9.11% and 0.03% positive growth respectively, compared to FY23.
Industry insiders said that the country enjoyed Eid-ul-Fitr in April, and the factories enjoyed about 10-12 days of holiday, which led the factories to produce less items, receive less orders, and shipped less goods considering the other months.
For this very reason, merchandise exports also lowered, and businesses said this is a normal issue for the country during every lengthy holiday like Eid.
After a depressive October-December quarter in FY24 in terms of export growth, the RMG sector bounced back to positive growth, and continued till January-March quarter.
But the sector again witnessed negative export earnings growth in April of this fiscal.
However, industry insiders said that although the RMG sector witnessed negative earnings for four individual single months of this FY, it will be able to retain positive growth at the end of FY24, as current order flow is good.
BGMEA Vice-President Khandoker Rafiqul Islam said that they are receiving a decent volume of orders in recent times, but price is still tight.
“Hopefully, overall year-on-year export growth in this FY will be positive,” he added.
Negative growth persists in non-RMG sectors
Except for a narrow positive growth of the RMG sector, the major export earners of the country experienced negative growths in the July-April period of FY24.
Among other notable sectors, leather and leather goods experienced a negative growth of 13.32% to $872.45 million, which was $1 billion in the first ten months of FY24.
A once-promising sector, home textile, marked an increasing negative growth of 25.32% to $702.56 million, down from $940.8 million in the mentioned period of last fiscal.
In the July-April period of FY24, the export earnings from agricultural products, however, saw a positive growth of 6.12% to $774.49 million, higher from $729.8 million in the same period of last fiscal.
Export receipts from jute and jute goods again experienced negative growth of 7.05% to $716.44 million, down from $770.82 million in July-April of FY23, EPB data stated.
Another potential export sector, engineering products, again fetched a negative growth of 0.4% to $436.35 million, down from $438.11 million in the same period of last FY.
Former Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan said that in April, the month of Eid, factory productions generally went down as workers enjoyed a lengthy holiday.
“But overall RMG export order volume is not bad. I think the earnings will turn around this May,” he added.
Hassan, also a director of FBCCI, also said that export performance on non-RMG has been very poor from the last two fiscal years, and the government should focus on it.
“We have to understand that Bangladesh will graduate from LDC in 2026, and after this, the country will face many obstacles. To tackle this, we have to prepare from now on, and product diversification is one of the key solutions for this,” he added.
According to EPB data, Bangladesh bagged $55.56 billion in export earnings in FY23, posting a narrow 6.67% year-on-year growth.
The global apparel industry is moving towards sustainability to make it more environmentally friendly through traceability and circularity, which is also guided by a number of legislative initiatives, said brand representatives and experts at a programme today.
They, however, said there are some challenges to increasing awareness among consumers and expanding circularity initiatives – passing costs to customers, understanding and capabilities of implementing a circular model, and the price of recycled textile materials.
Most brands and importer countries have also set targets to make their supply chains traceable, the speakers said at the discussion organised by the Cotton Council International (CCI) at the International Convention City Bashundhara in Dhaka.
Addressing the discussion, Amit Gautam, chief executive officer and founder of Textile Genesis, said the fashion industry is undergoing a structural shift from unregulated to more than 30 regulations across the value chain, from sourcing to retail.
He mentioned three factors driving the move towards a sustainable and traceable fashion industry: increasing regulatory compliance, responsible sourcing targets, and authenticating product claims to mitigate supply chain and reputational risks.
He further stated that there are over 30 emerging legislations in the EU and the US focused on supply chain due diligence, consumer claims, and transparency, requiring brands to invest in traceability.
Gautam said responsible sourcing targets to achieve 80-100% sustainable materials by 2025, and the ability to authenticate product claims at scale, as well as identifying and mitigating supply chain risks (company or country) across the full value chain and addressing any reputational risks.
Melissa Bastos, director of Corporate Strategy and Insights at Cotton Incorporated, said Sourcing Journal and Cotton Incorporated’s 2023 Industry Circularity Survey found that 1 in 3 US consumers have heard the term circularity.
The survey also found that 69% of consumers are informed about the carbon-neutral term and 78% are informed about the zero-waste term. However, 62% of industry professionals say circularity describes company sustainability.
She also mentioned that the Cotton Incorporated survey found some challenges to expanding circularity initiatives – passing costs to customers, understanding and capabilities of implementing a circular model, and the price of recycled textile materials.
Ali Arsalan, CCI representative for Bangladesh, delivered the welcome remarks, while Stephanie Thiers-Ratcliffe, director of European Brands and Retailers at Cotton Council International, and Arif Razzaque, Country Leader at Kiabi International Supply Services Ltd, Bangladesh, spoke among others.
Bangladesh’s exports fell in April of 2024 because of slowing shipments of garments and a continuous downturn in the other major sectors.
The nation shipped $3.91 billion worth of items in April, down 0.99 percent from $3.95 billion a year ago, according to data released by the Export Promotion Bureau (EPB) today.
However, shipments rose 3.93 percent year-on-year to $47.47 billion in the July-April period of 2023-24 fiscal year.
Moreover, exports of readymade garments, which typically account for 85 percent of the total receipts, grew 4.97 percent year-on-year to $40.49 billion in the 10 months to April this year thanks to buoyancy in knitwear demand.
Growth of woven garment exports remained almost flat while other major exporting sectors — leather and leather products, jute and jute goods, home textile, frozen and live fish — registered fall in shipments, according to the EPB data.
May Day, a day to recognize the movement and struggle of working people worldwide. The day is celebrated around the world on May 1 every year to honor the workers’ demands. After the independence of Bangladesh, a lot of changes took place in the labor rights as the industries grew over the last 52 years.
Bangladesh has already ratified 36 Conventions including core ones and one protocol of the International Labor Organization (ILO) and still a lot of improvements are underway under the government’s commitment to the ILO’s roadmap for labor rights from 2021 and 2026.
Figure: The workers have also contributed a lot to the economy over the years with their labor and with their valuable contribution Bangladesh is all set to be graduated to a developing nation in 2026 from the Least Developed Country (LDC).
At the same time, the workers have also contributed a lot to the economy over the years with their labor and with their valuable contribution Bangladesh is all set to be graduated to a developing nation in 2026 from the Least Developed Country (LDC).
Bangladesh has already ratified the core convention of the ILO including the rights to freedom of association and collective bargaining at the factory level, whereas other countries like China, the largest apparel supplier globally, yet to ratify those two core conventions, according to ILO.
Roles of manufacturers and global brands
Bangladesh government, private sector employers and the union leaders have been trying to develop the workers’ rights and to improve their lives. Even the labor law has been amending to make it time befitting.
But the international retailers and brands have been putting pressure on the local manufacturer and exporters for lowering the prices of garment items.
The prices are so low that as many as 39 percent of the Bangladeshi garment exporters accept prices below their production costs for the sake of business relations with international retailers, according to a study by the Fair Wear Foundation (FWF) in 2019.
The pressure described isn’t confined to Bangladesh alone. An investigation by Anner in India revealed a similar pattern, where numerous brands drive prices down or resist adjusting for increased labor expenses, thereby fostering resistance among suppliers to raise wages. A comparative analysis conducted by the International Labour Organization highlighted how international brands exert significant price pressures on manufacturers in the garment industry.
Suppliers interviewed across Asia by Human Rights Watch echoed these sentiments, expressing immense strain regarding pricing. One supplier from Pakistan disclosed that international brands set unreasonably low pricing targets. Another representative from Pakistan noted that brands rarely engage in negotiation, instead dictating prices outright.
Furthermore, it was revealed by a third supplier that many brands, despite being informed of the costs associated with raising workers’ wages, have steadfastly refused to adjust their prices. A particularly illustrative case cited by this supplier involved a brand initially expressing interest in ensuring suppliers paid a living wage but retracting this commitment upon realizing the financial implications.
So, the role played by the international retailers and brands for more welfare to the workers is not adequate. The international retailers and brands need to pay better prices to the local exporters so that they can pay more wages to the workers.
Bangladesh is the only country in the world which factory buildings are inspected and remediated by the Accord and Alliance and strengthened the workplace safety.
Moreover, currently, Bangladesh is the global champion in environment friendly green garment factories at 215 having 81 platinum and 120 gold standard, but still the retailers and brands are not paying better prices to the local exporters.
Despite all good efforts and positive changes for improved labor rights still, Bangladesh has to face challenges in international forums.
For instance, the USA and EU frequently have been criticizing the poor labor rights, full freedom of association and collective bargaining rights by the workers and sometimes they are also threatening for withdrawing the trade benefit because of poor labor rights.
The USA suspended the generalized system of preferences (GSP) status for Bangladesh in June 2013 citing the poor labor rights and poor workplace safety.
Bangladesh has already applied to the United States Trade Representative (USTR) twice for reinstatement of the GSP status but the USA government suggested for doing more to establish the labor rights and to make the labor law to the international standard.
The international communities like International Labor Organization (ILO) and the EU have been frequently putting pressure on the government for making the country’s labor law to the international standards although the government is committed to the ILO to implement the roadmap of labor law between 2021 and 2026.
But, the international communities are not putting pressure on the international retailers and brands for increasing the per unit price of the locally made garment items so that both the exporters and workers are benefited.
What the union leaders say
Amirul Haque Amin, President of the National Garment Workers Federation (NGWF) and who has been engaged in trade union over the last 40 years, said in terms of workplace safety Bangladesh improved a lot, but in some cases the implementation of the labor rights needs more focus.
The workplace safety has been strengthened in the garment sector at the cost of many workers in the Tazreen Fashion fire and Rana Plaza building collapse and from the pressure of the international communities, he said.
This union leader also said the wage that has been hiked after a movement last year at Tk12500 per month. The retailers and brands should also pay more as they also committed for increasing the prices for per unit garment with the wage hike of the workers in December last year.
The workers and their children cannot have a good education and good food with this amount and this is scenario also in other sectors. Regarding the labor law this unionist said the labor law has been amended thrice so far, it is underway another amendment for making it more workers friendly.
The labor law should have been win win situation for a healthy industrial relations, he added. The labor law should target three important factors including labor rights, wage for the labor and dignity of the workers.
The labor law should be amended in consultation with the representatives of the Tripartite Consultative Committee (TCC) so that all recommendations can be incorporated in the law.
Md. Towhidur Rahman, President of the National Apparels Workers Federation also echoed the views of Amin.
Rahman also said the labor law was amended under the pressure from the international communities, but many of the provisions of the law needs to be implemented for establishing the labor rights in the country.
Bangladesh needs a time befitting labor law for establishing a warm industrial relation so the country can achieve the goal of industrialization, he said.
Nazma Akter, President of Sammilito Garment Sramik Federation also said the building safety improved and also to some extent the stopping of harassment of workers improved, but still need more to be improved in these areas.
Bangladesh should amend the labor law through Tripartite Consultative Council (TCC) and make it as an international standard by 2026 as committed to the ILO, she added.
In conclusion, Bangladesh has already ratified all the important conventions of the ILO committing a better labor proactive. Workers’ rights to proper wage and dignity should be ensured by the state by establishing the proper labor rights in the country.
Bangladesh should get ready for recycled fashion as the major international clothing retailers and brands are focusing more on the circular fashion to save the environment and for the mother earth from pollution.
Globally the circular fashion has been getting popularity as the end consumers in the western world are leaving the fast fashion mainly to reduce the consumption.
Figure 1: Globally the circular fashion has been getting popularity as the end consumers in the western world are leaving the fast fashion mainly to reduce the consumption.
In fast fashion it needs more fabrics, more cultivation of cotton and more transportation of goods and so many factors all of which are related to more consumption of water, more carbon emission and more pollution of environment.
But the recycled fashion means less carbon emission, less water consumption and less environmental pollution because of reuse, reduce of waste materials and recycle of the waste of clothing.
In the recycled fashion, the old clothes are collected and those are washed and reused by making them renewed.
Moreover, the wastages of garment fabrics are also recycled and made yarn from these items to make new garment items.
Why the recycled fashion is growing
The recycled fashion is growing worldwide mainly to reduce the environmental pollution and for saving the Mother Earth.
So almost all the international clothing retailers and brands have also started rethinking about the global fashion and business.
The European Union (EU) the largest exporting bloc for Bangladesh, has already adopted a policy for shifting their fashion consumption to recycled fashion from fast fashion.
The EU has announced that by 2030, all of its garment items would have to be sourced from recycled yarn.
Accordingly, the Swedish retail giant H&M has already asked the local garment suppliers to shift production to recycled materials from fast fashion.
The H&M has a target to have 24 percent of its apparel sourced from recycled or sustainable materials by 2025.
So, the company has already suggested the local suppliers to go for recycled fashion.
The German government has also made a policy as German due diligence for recycled fashion so that the world can be made pollution free by reusing reducing and refusing of materials.
A big number of end consumers have already started leaving the fast fashion and adopting their purchasing behavior to recycled fashion.
Status of global recycled fashion
The BGMEA, Global Fashion Agenda (GFA), Reverse Resources, and P4G have partnered in an initiative “Circular Fashion Partnership” that aims to achieve a long-term, scalable transition to a circular fashion system.
Over 30 renowned fashion brands, manufacturers and recyclers are collaborating in the new initiative to capture and reuse textile waste in Bangladesh, according to a statement from the BGMEA.
Global Fashion Agenda announced the participants of the Circular Fashion Partnership, including the global brands Bershka, Bestseller, C&A, Gina Tricot, Grey State, H&M Group, Kmart Australia, Marks & Spencer, OVS, Pull & Bear, Peak Performance and Target Australia, the BGMEA said in the statement.
The partnership facilitates circular commercial collaborations between major fashion brands, textile and garment manufacturers, and recyclers to develop and implement new systems to capture and direct post-production fashion waste back into the production of new fashion products.
It plans to facilitate a decrease in textile waste and increase the use of recycled fibres, distributing value throughout the fashion value cycle and generating economic benefits in Bangladesh by accelerating the fiber recycling market.
The initiative is focusing on Bangladesh as it arguably possesses the most in-demand and recyclable waste of any garment producing country, but the majority of its waste is currently being exported and/or downcycled.
Globally, annual sales of recycled yarn are projected to grow from $4,553.4 million in 2023 to $5,500.7 million by 2029 at a compound annual growth rate of 3.2 percent, according to QY, a California-based global research organization.
China accounts for about 60 percent of the trade followed by the US with a share of about 16 percent, it said.
Status of recycled fashion in Bangladesh
Bangladesh is still lagging behind competitors in the production of recycled yarn and transit to recycled fashion although the international retailers and brands are putting pressure on them for recycled fashion.
Currently, there are five to six local mills in Bangladesh manufacturing recycled yarn for export because it costs a lot of money to set up a recycled unit and in some cases it may take an investment of $10 million, to produce nearly 15 tonnes of recycled yarn per day.
Nearly 60 tonnes of recycled yarn are produced by some mills meant for the domestic market, such as mattresses and curtains, according to industry insiders.
The recycled yarn prices are also lower than the cotton yarn. For instance, while cotton yarn cost is $3 to $3.5 per kilogramme in the international market, recycled yarn can fetch as much as $1.5 to $2.5.
Industry insiders said four more projects are under construction with an investment of $40 million and are set to come into production within the next one year. They are expected to take the daily output of exportable recycled yarn to 100 tonnes, they said.
Md. Abdur Rouf, Executive Director of Bhaluka based Simco Spinning and Textile Ltd said his mill can produce 16 tonnes of yarn from waste of fabrics in a day although the capacity is 20 tonnes in a day. He cannot use his full capacity because of export of waste from the county.
Barriers to recycled fashion in Bangladesh
Several barriers are impending the growth of recycled fashion in the country. Primarily, the availability of raw materials is the main barriers.
The country does not produce so big amount of clothing and fabrics waste from where the required quantity of recycled garment can be produced.
Different studies shows that Bangladesh can export $6 billion worth of garment items if it can locally process the 400,000 tonnes of recycled yarn and fabrics the local garment makers produce every year.
But in many cases, a lot of waste is used for landfill and many are engaged in export of the clothing waste. As a result, many millers are not getting adequate amount of clothing waste for producing recycled garment.
Figure 2: Bangladesh should get ready for recycled fashion as the major international clothing retailers and brands are focusing more on the circular fashion to save the environment.
Gas crisis is another major challenge for the industry as a whole. Many entrepreneurs are not neither investing afresh nor expanding their capacity because of shortage of gas in the industrial belts.
Higher tariff on import of fabrics waste is a major challenge for the growth of recycled fashion. Also the high tariff like VAT on sales of yarn made from clothing waste is another challenge.
Zahid Hossain Khan, controller – Finance and Operations of RBD Fibers Limited said that a 7.5 percent VAT on procurement and 15 percent VAT on sale of such yarn has been hindering investment in this sector.
The VAT is too high for making profit in this difficult time of business when the profit is too low as the international retailers and brands are paying low prices, Khan said.
The waste of clothes is expired from the country and the local millers are not getting adequate amount for recycling the materials for making the garment, he also said.
The government should discourage the export of this valuable materials of recycled fashion industry, he added.
What leaders say
Faruque Hassan, ex-President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said the future of Bangladesh’s garment business is recycled fashion products as the international retailers and brands are moving towards this direction.
The BGMEA has been working on this issue so the local suppliers can follow the instruction of the buyers to catch the global business of recycled fashion.
Morten Lehmann, CSO, Global Fashion Agenda in a BGMEA statement says, “To establish a circular fashion system we need to reimagine the production process so that it appreciates the value of textile waste. It is encouraging to see so many prestigious companies sign up to the Circular Fashion Partnership and, with their help, I am confident that we can demonstrate a strong business model for circularity that can be mirrored by others in the future.”
Miran Ali, former Vice President of the BGMEA, in the BGMEA statement says; “Circular economy is not merely just a concept, it is the future! Fashion industry is historically following the linear model of business “take-make-dispose” but now we stand at such a critical juncture where we cannot afford to continue this linear model.
Concluding remarks
Bangladesh has a target to export garment items worth $100billion by 2030 and the recycled fashion products are major items for fulfilling the target. The government should facilitate this target with giving some tariff benefit on import of raw materials and reducing the VAT to some extent.
The buyers are also moving their purchasing trend to circular fashion from the traditional fashion business. The businessmen have taken such move to reduce carbon emission and for making the business pollution free. We should respond to these initiatives.
May Day, a day to recognize the movement and struggle of working people worldwide. The day is celebrated around the world on May 1 every year to honor the workers’ demands. After the independence of Bangladesh, a lot of changes took place in the labor rights as the industries grew over the last 52 years.
Bangladesh has already ratified 36 Conventions including core ones and one protocol of the International Labor Organization (ILO) and still a lot of improvements are underway under the government’s commitment to the ILO’s roadmap for labor rights from 2021 and 2026.
Figure: The workers have also contributed a lot to the economy over the years with their labor and with their valuable contribution Bangladesh is all set to be graduated to a developing nation in 2026 from the Least Developed Country (LDC).
At the same time, the workers have also contributed a lot to the economy over the years with their labor and with their valuable contribution Bangladesh is all set to be graduated to a developing nation in 2026 from the Least Developed Country (LDC).
Bangladesh has already ratified the core convention of the ILO including the rights to freedom of association and collective bargaining at the factory level, whereas other countries like China, the largest apparel supplier globally, yet to ratify those two core conventions, according to ILO.
Roles of manufacturers and global brands
Bangladesh government, private sector employers and the union leaders have been trying to develop the workers’ rights and to improve their lives. Even the labor law has been amending to make it time befitting.
But the international retailers and brands have been putting pressure on the local manufacturer and exporters for lowering the prices of garment items.
The prices are so low that as many as 39 percent of the Bangladeshi garment exporters accept prices below their production costs for the sake of business relations with international retailers, according to a study by the Fair Wear Foundation (FWF) in 2019.
The pressure described isn’t confined to Bangladesh alone. An investigation by Anner in India revealed a similar pattern, where numerous brands drive prices down or resist adjusting for increased labor expenses, thereby fostering resistance among suppliers to raise wages. A comparative analysis conducted by the International Labour Organization highlighted how international brands exert significant price pressures on manufacturers in the garment industry.
Suppliers interviewed across Asia by Human Rights Watch echoed these sentiments, expressing immense strain regarding pricing. One supplier from Pakistan disclosed that international brands set unreasonably low pricing targets. Another representative from Pakistan noted that brands rarely engage in negotiation, instead dictating prices outright.
Furthermore, it was revealed by a third supplier that many brands, despite being informed of the costs associated with raising workers’ wages, have steadfastly refused to adjust their prices. A particularly illustrative case cited by this supplier involved a brand initially expressing interest in ensuring suppliers paid a living wage but retracting this commitment upon realizing the financial implications.
So, the role played by the international retailers and brands for more welfare to the workers is not adequate. The international retailers and brands need to pay better prices to the local exporters so that they can pay more wages to the workers.
Bangladesh is the only country in the world which factory buildings are inspected and remediated by the Accord and Alliance and strengthened the workplace safety.
Moreover, currently, Bangladesh is the global champion in environment friendly green garment factories at 215 having 81 platinum and 120 gold standard, but still the retailers and brands are not paying better prices to the local exporters.
Despite all good efforts and positive changes for improved labor rights still, Bangladesh has to face challenges in international forums.
For instance, the USA and EU frequently have been criticizing the poor labor rights, full freedom of association and collective bargaining rights by the workers and sometimes they are also threatening for withdrawing the trade benefit because of poor labor rights.
The USA suspended the generalized system of preferences (GSP) status for Bangladesh in June 2013 citing the poor labor rights and poor workplace safety.
Bangladesh has already applied to the United States Trade Representative (USTR) twice for reinstatement of the GSP status but the USA government suggested for doing more to establish the labor rights and to make the labor law to the international standard.
The international communities like International Labor Organization (ILO) and the EU have been frequently putting pressure on the government for making the country’s labor law to the international standards although the government is committed to the ILO to implement the roadmap of labor law between 2021 and 2026.
But, the international communities are not putting pressure on the international retailers and brands for increasing the per unit price of the locally made garment items so that both the exporters and workers are benefited.
What the union leaders say
Amirul Haque Amin, President of the National Garment Workers Federation (NGWF) and who has been engaged in trade union over the last 40 years, said in terms of workplace safety Bangladesh improved a lot, but in some cases the implementation of the labor rights needs more focus.
The workplace safety has been strengthened in the garment sector at the cost of many workers in the Tazreen Fashion fire and Rana Plaza building collapse and from the pressure of the international communities, he said.
This union leader also said the wage that has been hiked after a movement last year at Tk12500 per month. The retailers and brands should also pay more as they also committed for increasing the prices for per unit garment with the wage hike of the workers in December last year.
The workers and their children cannot have a good education and good food with this amount and this is scenario also in other sectors. Regarding the labor law this unionist said the labor law has been amended thrice so far, it is underway another amendment for making it more workers friendly.
The labor law should have been win win situation for a healthy industrial relations, he added. The labor law should target three important factors including labor rights, wage for the labor and dignity of the workers.
The labor law should be amended in consultation with the representatives of the Tripartite Consultative Committee (TCC) so that all recommendations can be incorporated in the law.
Md. Towhidur Rahman, President of the National Apparels Workers Federation also echoed the views of Amin.
Rahman also said the labor law was amended under the pressure from the international communities, but many of the provisions of the law needs to be implemented for establishing the labor rights in the country.
Bangladesh needs a time befitting labor law for establishing a warm industrial relation so the country can achieve the goal of industrialization, he said.
Nazma Akter, President of Sammilito Garment Sramik Federation also said the building safety improved and also to some extent the stopping of harassment of workers improved, but still need more to be improved in these areas.
Bangladesh should amend the labor law through Tripartite Consultative Council (TCC) and make it as an international standard by 2026 as committed to the ILO, she added.
In conclusion, Bangladesh has already ratified all the important conventions of the ILO committing a better labor proactive. Workers’ rights to proper wage and dignity should be ensured by the state by establishing the proper labor rights in the country.
The global apparel industry is moving towards sustainability to make it more environmentally friendly through traceability and circularity, which is also guided by a number of legislative initiatives, said brand representatives and experts at a programme today.
They, however, said there are some challenges to increasing awareness among consumers and expanding circularity initiatives – passing costs to customers, understanding and capabilities of implementing a circular model, and the price of recycled textile materials.
Most brands and importer countries have also set targets to make their supply chains traceable, the speakers said at the discussion organised by the Cotton Council International (CCI) at the International Convention City Bashundhara in Dhaka.
Addressing the discussion, Amit Gautam, chief executive officer and founder of Textile Genesis, said the fashion industry is undergoing a structural shift from unregulated to more than 30 regulations across the value chain, from sourcing to retail.
He mentioned three factors driving the move towards a sustainable and traceable fashion industry: increasing regulatory compliance, responsible sourcing targets, and authenticating product claims to mitigate supply chain and reputational risks.
He further stated that there are over 30 emerging legislations in the EU and the US focused on supply chain due diligence, consumer claims, and transparency, requiring brands to invest in traceability.
Gautam said responsible sourcing targets to achieve 80-100% sustainable materials by 2025, and the ability to authenticate product claims at scale, as well as identifying and mitigating supply chain risks (company or country) across the full value chain and addressing any reputational risks.
Melissa Bastos, director of Corporate Strategy and Insights at Cotton Incorporated, said Sourcing Journal and Cotton Incorporated’s 2023 Industry Circularity Survey found that 1 in 3 US consumers have heard the term circularity.
The survey also found that 69% of consumers are informed about the carbon-neutral term and 78% are informed about the zero-waste term. However, 62% of industry professionals say circularity describes company sustainability.
She also mentioned that the Cotton Incorporated survey found some challenges to expanding circularity initiatives – passing costs to customers, understanding and capabilities of implementing a circular model, and the price of recycled textile materials.
Ali Arsalan, CCI representative for Bangladesh, delivered the welcome remarks, while Stephanie Thiers-Ratcliffe, director of European Brands and Retailers at Cotton Council International, and Arif Razzaque, Country Leader at Kiabi International Supply Services Ltd, Bangladesh, spoke among others.
When it comes to the fashion business on a worldwide scale, sustainability has become an increasingly important topic in recent years. Consumers are expecting more apparel that is made in an ethical manner and is friendly to the environment as their awareness of social and environmental concerns continues to rise simultaneously. This trend towards sustainability is particularly crucial in China, which is the largest consumer market in the world. As a result of the country’s fast economic expansion and urbanization, the fashion industry is confronted with several difficulties and possibilities in terms of implementing sustainable practices. Within the scope of this report, the path of sustainable fashion in China is investigated, with a focus on the most important trends, efforts, and prospects
The Increasing Popularity of Eco-Friendly Fashion in China:
Rising incomes and shifting preferences among consumers have been the driving forces behind the exponential expansion that the fashion business in China has witnessed over the past few decades. On the other hand, this fast expansion has resulted in negative consequences for both society and the environment. Although it is one of the largest in the world, the textile and garment industry in this nation is also one of the most polluting. It is responsible for substantial amounts of pollution in both the air and water, and it also has problems with respecting workers’ rights.
Sustainable fashion is becoming increasingly popular among Chinese customers, fashion designers, and companies as a means of addressing the difficulties that have been presented. They are reevaluating conventional manufacturing techniques, locating materials that are favourable to the environment, and advocating for Labor practices that are ethical. This movement is being driven by several causes, including a growing awareness of the environment, restrictions imposed by the government, and shifting views held by consumers.
Principal developments in eco-friendly clothing:
Materials that are friendly to the environment: Sustainable materials like as organic cotton, bamboo, hemp, and recycled textiles are becoming increasingly popular among Chinese fashion manufacturers now.
Since they use fewer pesticides, chemicals, and water during the manufacturing process, these materials have a smaller impact on the environment in comparison to standard textile designs. There is a rising emphasis on openness and accountability in the fashion supply chain, which helps to ensure that ethical supply chains are in place. Chinese companies are making efforts to guarantee that their goods are manufactured in a manner that is both safe and fair to workers, and that they respect the rights of workers.
One example of this is forming partnerships with manufacturers that have been accredited and applying ethical sourcing methods. In China’s fashion sector, the notion of a circular economy, in which items are meant to be reused, recycled, or repurposed, is gaining support. This indicates that the circular economy is becoming increasingly popular. Repair, rental, resale, and recycling programs are some of the alternatives that brands are investigating to find new methods to extend the lifespan of apparel. The result is not just a reduction in waste but also the creation of new prospects for company.
Technology and Innovation:
Technology is an essential component in the process of promoting sustainable fashion through innovation. Artificial intelligence, blockchain, and other digital tools are being utilized by Chinese businesses to monitor and trace the whole lifespan of clothing, enhance resource efficiency, and optimize production processes. Change-Inducing Initiatives which are:
Government rules: To encourage environmentally responsible practices within the fashion sector, the Chinese government has enacted several rules and regulations. Laws that preserve the environment, measures that save energy, and financial incentives for environmentally conscious firms are all included in this category. Further encouraging the adoption of sustainable practices is the fact that China’s 14th Five-Year Plan contains objectives for lowering carbon emissions and supporting green development. These aims will further boost the adoption of sustainable practices
Industry Collaboration: One of the most crucial factors in expediting the transition to sustainable fashion in China is collaboration and cooperation. A collaborative effort is being made by industry groups, non-profit organizations, and academic institutions to disseminate best practices, conduct research, and increase awareness about challenges related to sustainability. The Shanghai Fashion Week Sustainability Forum is one example of an event that serves as a forum for engaging in conversation and collaborating with many stakeholders.
Consumer Awareness: When it comes to the social and environmental repercussions of their purchase decisions, Chinese consumers are becoming more aware of the implications of their choices. Increasingly, they are looking for apparel that is manufactured in an ethical and sustainable manner, which is boosting demand for fashion labels that are environmentally friendly. Influencers on social media, celebrities, and fashion bloggers all play an important part in melding the opinions of consumers and encouraging lifestyles that are more environmentally friendly.
The future of sustainable fashion in China appears to be bright, but there are still many obstacles to overcome. Even though there is a rising awareness and momentum surrounding sustainability, widespread adoption of environmentally friendly practices will require continuous investment, innovation, and cooperation throughout the sector. The following are critical issues that will be the focus of future attention:
Scaling Up: Within the fashion industry, sustainable fashion projects need to be scaled up to have a real impact. To do this, increased investments are required in areas such as research and development, infrastructure, and capacity building. Continued efforts are required to educate consumers, businesses, and legislators about the significance of sustainability in the fashion industry. Education and awareness are an essential component of this process. In this context, “raising awareness” refers to the process of bringing attention to the environmental and social implications of clothing manufacture and consumption, as well as the promotion of the advantages of environmentally friendly alternatives.
Policy Support: The policies and regulations of the government play a significant part in the process of setting the conditions under which sustainable fashion businesses operate. The implementation of policies that provide incentives for environmentally responsible activities, increase the enforcement of Labor and environmental standards, and establish a fair playing field for environmentally conscious enterprises is essential.
Collaboration and Innovation: The two most key factors that will push forward success in the field of sustainable fashion are collaboration and innovation. The development of innovative technology, business models, and supply chain solutions that contribute to the advancement of sustainability goals may be accomplished through collaborative efforts between corporations, governments, and civil society.Currently, sustainable fashion is not only a fad; rather, it is an absolute requirement for the future of the earth and the people who live on it. The transition towards sustainability is gaining speed in China, which is the largest fashion market in the world. This movement is being driven by a rising awareness of environmental and social concerns, legislation implemented by the government, and shifting preferences offered by consumers. Even though there are still obstacles to overcome, there are enormous potential for invention and cooperation. By cooperating with one another, the fashion industry in China has the potential to lead the way for a future that is more responsible and environmentally friendly.
Garment exporters are fed up with being harassed by VAT and customs officials, who have been imposing abnormal fines alleging a lack of documents, said an exporter yesterday.
The VAT and customs officials are imposing fines up to 400 percent, said Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
He added that in places like Sanarpar and Rupganj upzila in Narayanganj, officials are levying fines of Tk 2 lakh to Tk 5 lakh due to an alleged lack of documents.
He further said that officials often detain goods-laden trucks and it takes a few days to release them. But by then it is too late to take the goods to the factories.
As a result, exporters either face a cancellation of work orders or send goods through air, which is very expensive.
Hatem was speaking at a pre-budget discussion on “highlighting income tax, VAT, customs duty, sector-wise allocation of budget, external debt, etc” organised by the Institute of Chartered Accountants of Bangladesh (ICAB) in collaboration with the Economic Reporters’ Forum (ERF).
Former ICAB President Md Humayun Kabir moderated the discussion, featuring economists, businessmen, accountants, and journalists.
Ashikur Rahman, senior economist at the Policy Research Institute (PRI), highlighted the need to address inflation, the foreign currency reserve situation, the deficit in development allocation, and the problematic banking sector while preparing the next budget.
He also suggested merging a number of ministries.
PRI Executive Director Ahsan H Mansur reminded to keep internal and external economic shocks in mind while preparing the next budget.
The government should also aim to ensure macroeconomic stability by reducing inflation, Mansur added.
He suggested imposing more tax on land as many are not cultivating their land, which is unproductive.
Mansur said if customs duty, supplementary duty, and customs procedures are not reformed, Bangladesh will face difficulties signing Free Trade Agreements (FTAs) with other countries. Other nations will not show interest because of high duties, he said.
Md Saiful Islam, former president of the Metropolitan Chamber of Commerce and Industry, suggested tightening the belt by not approving unnecessary projects in the next budget.
Abdul Haque, former president of Japan Bangladesh Chamber of Commerce and Industry, stressed the need to provide more facilities for cottage, micro, small and medium enterprises so they can develop and contribute more to the economy.
ICAB President Mohammad Forkan Uddin said VAT and taxes are often exempted to control the market when prices of specific goods increase in the local market. As a result, the government loses revenue. Instead of doing this, they should go for market management, he said.
Former State Minister for Planning Shamsul Alam said no major reforms to the National Board of Revenue and Internal Resources Division have been made so far, due to which complaints of harassment persist.
The tax-GDP ratio in Bangladesh is still lower than its South Asian peers like Nepal, Pakistan, India, and Sri Lanka, he said.
