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Apparel leaders demand cash incentives until 2032

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RMG Bangladesh
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The apparel trade bodies believe some of the FY25 budget proposals will support the textile and apparel industries, while others will not

Apparel industry leaders have called on the government to extend the cash incentives on export receipts until 2032. Photo: TBS

Apparel industry leaders have called on the government to extend the cash incentives on export receipts until 2032. Photo: TBS

Apparel industry leaders have called on the government to extend the cash incentives on export receipts until 2032, aligning with the World Trade Organisation’s (WTO) decision to maintain LDC trade benefits for graduating countries until that year.

“As per WTO rules, the government has scope to continue cash incentives after LDC graduation,” said Abdullah Hil Rakib, vice president of the Bangladesh Garment Manufacturers and Exporters Association, held this morning (8 June) at the BGMEA building in the capital’s Uttara.

At the event organised jointly with the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMEA), BGMEA President SM Mannan Kochi said several developed countries have provided incentives to support their industries and make them competitive.

“India has been providing some incentives – 30% on land price, 40% on worker payment, and 5% on bank interest. We want such alternative incentives after LDC graduation,” he added.

The BGMEA president said the apparel trade bodies believe some of the FY25 budget proposals will support the textile and apparel industries, while others will not.

Talking about the proposals that would support the textile and apparel industries, he said 20% of the demanded amount had to be deposited previously for VAT appeals, which has now been reduced to 10%.

Kochi added that import facilities at concessional rates have been given for 17 different textile products, and the total tax incidence on importing chillers with a capacity of 50 tonnes or more for factories has been reduced from 104.68% to 10%.

However, he said the concessional import rate for chillers was previously set at 1% and requested the government put it at the same rate again.

He also said the special allocation of Tk100 crore in the FY25 budget to encourage renewable energy sources would help the industry.

“The government also reduced the import duties on two raw materials used in the production of polyester fibre (PSF) and PET chips (Textile Grade) from 10% and 25% to 1%, which will undoubtedly aid the industry,” he continued.

In a written statement, the BGMEA president mentioned some proposals from the FY25 budget that they believe will not help create investments and employment.

He said the proposals to increase the import duty on construction materials and capital machinery, the VAT on energy-saving lights, and bond license fees will not help the industry.

“Under Section 171 of the Customs Act 2023, there are provisions for a fine of 200%-400% if the HS code of imported goods is incorrect. We are requesting to withdraw this because charging such high fees for mistakes is unreasonable,” said Kochi.

He also requested consultations with all stakeholders before implementing the new Customs Act.

He said the industry faced a global slowdown and high inflation due to geopolitical reasons, just as it was recovering from the Covid-19 pandemic. These factors reduced consumers’ purchasing power.

“Moreover, in the last five years, local production costs have increased by about 50%, putting the industry in a crisis,” he added.

Kochi said the apparel export growth has alarmingly decreased in the past seven months, with a 17% decrease in May alone.

“We have increased wages by 56%, but our prices have not. Instead, the prices of our main products have dropped by 8%-18% in the last nine months,” he added.

“At a time when the industry is in such a crisis, what was needed the most was to support the apparel industry, which earns a significant portion of export revenue, and through this support, to increase reserves and control inflation,” the BGMEA president said.

Apparel export growth is 2.86% in July-May period

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As single month, May saw a major shock in apparel exports

In the 11th month of the current fiscal year (July-May), apparel exports were worth $43.85 billion, which is 2.86 percent higher than the same period of the previous fiscal year 2022-23. This information is known from a report of the Export Promotion Bureau (EPB) published on Wednesday (May 5).

Apparel export growth is 2.86% in July-May period

According to EPB data, knit products exported during this period were worth $24.70 billion. In this case, the growth is 6.15 percent. On the other hand, the export of woven garments was $19.14 billion, which is 1.09 percent less than the previous year.

However, as single month, May saw a major shock in apparel exports. Apparel export in May of the current fiscal year is $3.36 billion which is 17.03 percent less than $4.05 billion of same period of last fiscal year.

President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) SM Mannan (Kochi) said that recently due to inflation in the world economy and increase in interest rates to control it, the purchasing power of consumers has decreased. As a result, apparel retail sales and imports declined. US global apparel imports fell by 7.18 percent and Europe by 12.84 percent in the January-March period.

Mohammad Hatem, Executive President of BKMEA, said that the growth in export earnings is expected to be negative, because now the work orders are low. On the other hand, we are not able to accept the work orders due to increase in production cost. On the one hand, buyers are not paying fair prices for the products. The cost of production has increased due to the increase in the price of electricity, gas and other services. As a result, we cannot survive in price competition.

He said, because of the dollar crisis, it takes a long time to open the LC. As a result, global buyers are placing fewer orders due to increased lead times. Apart from this, it is difficult to deliver our products on time due to customs harassment.

Declining apparel exports in May hit overall export earnings. In May, exports of goods totaled 4.07 billion dollars, which is 16 percent less than the same period last year. However, in the first 11 months (July to May) of the current fiscal year, overall exports worth $51.54 billion which is 2.01 percent higher than the export of $50.30 million in the same period of the previous fiscal year.

BTMA calls for removal of 7.5% VAT on scrap RMG fabric, 15% on recycled fibres

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BTMA president said the recycling mills in Bangladesh cannot use these RMG scraps to make fibres due to the 22.5% VAT, which turns the scraps into waste and pollutes the environment

Recycling all textile waste locally could save Bangladesh nearly $500 million in imports. Photo: Rajib Dhar

Recycling all textile waste locally could save Bangladesh nearly $500 million in imports. Photo: Rajib Dhar

Bangladesh Textile Mills Association (BTMA) has demanded that the 7.5% VAT levied on scrap RMG fabrics [jhut] and 15% VAT on fibres made using such scraps be removed from the budget for FY25. 

“We are required to pay a 7.5% VAT on the scrap RMG fabrics and 15% VAT on fibres made using them. The recycling mills in Bangladesh cannot use these RMG scraps to make fibres due to the 22.5% VAT, which turns the scraps into waste and pollutes the environment,” said Mohammad Ali Khokon, president of BTMA, during a press conference on the FY25 national budget in the capital today (8 June).

Noting that the industry can produce 1,200 million kilograms of fibre using these scraps worth $4 billion each year, he said, “We are currently importing such fibre from abroad using foreign currency. International buyers often set conditions for producing 30%-40% of clothes using recycled fibres.”

The BTMA chief called on the authorities to withdraw the VATs on RMG scraps, considering the sustainability of the products.

During his speech, the BTMA president also demanded the withdrawal of the 5% VAT on man-made fibre, and 5% advance tax, as well as 5% advance income tax on flax fibre. 

“Chillers are essential to maintaining proper humidity levels inside textile mills. They are necessary machinery,” he said, noting that textile mills typically use chillers with a capacity of 50 tonnes or more. 

“The government already reduced the total tax incidence on chillers from 104.68% to 10%. However, we believe it should go back to 1% considering chillers as capital machinery,” Khokon said.  

He also requested that the RMG source tax be reduced from the current 1% to 0.5% and remain at that rate for the next five years, considering it the final settlement.

During his speech, the BTMA president said the textile and clothing industry faces issues due to the dollar crisis, inadequate energy supply, and the interest rate hike. 

“In this situation, we demand keeping the same corporate tax until 2030,” he said. 

“The 171 clause of the Customs Act-2023 states that any slight error in HS code would result in a 200%- 400% fine,” Khokon said, requesting the prime minister to withdraw this fine before the next budget.

Reducing apparel imports to boost Bangladesh’s local garment industry

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Bangladesh, the world’s second-largest apparel exporter, paradoxically imports ready-made garments worth approximately Tk 5 billion annually, primarily from India, Pakistan, and China.

Reducing apparel imports to boost Bangladesh’s local garment industry
Figure: Reducing apparel imports to boost Bangladesh’s local garment industry.

According to the National Board of Revenue (NBR), Bangladesh legally imported 23.5 million pieces of ready-made garments last year, with a total value of nearly Tk 5.02 billion. This marked a decrease in volume but increase in value from 2022, when 26.3 million pieces were imported at a cost of Tk 4.66 billion. The higher costs despite the lower volume last year were attributed to the elevated exchange rate of the dollar, which increased import expenses.

In the first three months of this year alone, Bangladesh imported a staggering 7.5 million pieces of clothing, amounting to Tk 2.14 billion. Bangladesh imports three-piece suits and sarees for women, and panjabis for men mostly from India, while Pakistan supplies mainly three-piece suits. From China, imports include T-shirts, jerseys, and jackets.

The NBR reports that the average price per imported garment last year was Tk 214. After adding a 127% customs duty, this price increased to Tk 475.

Despite the strong presence of local fashion brands and boutique houses, this heavy reliance on imports undermines the potential of the domestic market. To reduce these imports and bolster local production, several strategic measures are necessary.

Strengthening local production capabilities

First and foremost, enhancing the capacity and quality of local garment manufacturing is crucial. Bangladesh’s garment sector is already a global powerhouse, exporting more than $47 billion worth of textiles in 2022. Leveraging this expertise, local manufacturers should focus on diversifying product lines to cater to domestic tastes and preferences. Investing in modern technology and skilled labor can further improve the quality and variety of locally produced garments, making them more appealing to Bangladeshi consumers.

Government incentives and support

Government support is pivotal in reducing apparel imports. Implementing policies that provide incentives for local manufacturers can significantly boost domestic production. For instance, increasing subsidies for locally produced garments and reducing taxes on raw materials would lower production costs. Additionally, providing low-interest loans and grants for technological upgrades and expansion projects can empower local businesses to scale up their operations.

The government should also consider increasing import duties on finished garments while providing tax breaks or incentives for using locally sourced materials. This dual approach would make imports less attractive while encouraging local production. Strict enforcement of import regulations is necessary to curb illegal imports that further undermine the local industry​ (The Business Standard)​.

Enhancing supply chain efficiency

Improving the efficiency of the local supply chain is essential. The Bangladesh textile industry often faces challenges related to raw material procurement and logistics. Addressing these issues through better infrastructure and streamlined processes can reduce production delays and costs. The establishment of textile hubs and industrial zones with integrated supply chains can facilitate smoother operations and lower logistical hurdles.

Promoting local brands

Raising awareness and promoting local fashion brands can also play a significant role in reducing imports. Marketing campaigns highlighting the quality, affordability, and unique designs of Bangladeshi garments can shift consumer preferences towards local products. Collaborations with local designers and fashion influencers can help create a stronger brand identity and increase the appeal of domestic apparel.

Reducing apparel imports to boost Bangladesh’s local garment industry

Moreover, initiatives such as fashion shows, trade fairs, and digital marketing can showcase the talent and creativity of Bangladeshi designers, fostering a sense of national pride and encouraging consumers to support homegrown brands.

Encouraging sustainable practices

Sustainability is becoming increasingly important in the global apparel industry. By adopting eco-friendly practices and emphasizing sustainable production, Bangladeshi manufacturers can attract environmentally conscious consumers. Government policies that promote sustainable practices, such as providing subsidies for eco-friendly materials and processes, can further enhance the competitiveness of local garments.

Addressing raw material challenges

One of the significant hurdles for the local textile industry is the dependency on imported raw materials. To mitigate this, the government should encourage the cultivation and production of raw materials within the country. Research and development in high-yield cotton varieties and other raw materials can reduce reliance on imports and stabilize the supply chain.

Additionally, fostering partnerships with local suppliers and investing in modern agricultural practices can improve the quality and availability of raw materials, thereby supporting the local textile industry.

In fine, reducing apparel imports and meeting domestic demand with locally made garments requires a multi-faceted measures. These measures will not only support the local economy but also create jobs and foster a robust, self-sufficient garment industry. The collaboration between the government, industry stakeholders, and consumers is crucial to realizing this vision and ensuring the long-term sustainability of Bangladesh’s apparel sector.

Duty cut on textiles’ raw materials; tariff hike for finished fabrics to protect local industry

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Industry insiders, however, said their demand was not reflected in the budget as the waiver included the least-used categories, leaving out most-used fibres from their list of 27

Represenattaional image. Picture: Collected

Represenattaional image. Picture: Collected

In a bid to help local textile industries diversify their export basket, the government will now offer a 1% import duty on 18 types of non-cotton fibre, down from 10-31%. 

“As per the recommendation of Bangladesh Textile Mills Association [BTMA], I propose to include some raw materials related to the import of machinery, spare parts and raw materials for the textile industry,” said Finance Minister Abul Hassan Mahmood Ali during the budget speech today (6 June).

Industry insiders, however, said their demand was not reflected in the budget as the waiver included the least-used categories, leaving out most-used fibres from their list of 27. 

“We welcome the inclusion of some non-cotton fibre in the list of raw materials with reduced import duty. However, the rest should also be included if we want to diversify our export basket,” said Mohammad Ali Khokon, president of the BTMA. 

During his budget speech, the finance minister proposed increasing the minimum value of imported cotton from $3 to $4 per kg. 

He also proposed increasing the minimum value of imported polyester and synthetic fabrics from $3 to $4.5 per kg.

‘Labour Information Management System’ will be launched to improve workers’ living standards

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The government set a target to achieve compliance in 1,550 factories within the ready-made garment (RMG) sector, to ensure a decent work environment, Finance Minister Abul Hassan Mahmood Ali said

The process of developing a database by incorporating information from 3,00,000 workers in the first phase is currently underway through a software called “Labour Information Management System (LIMS)” during FY2024-25, to improve workers’ living standards.

In the proposed budget for FY25, placed in the parliament today (6 June), Finance Minister Abul Hassan Mahmood Ali said the government set a target to achieve compliance in 1,550 factories within the ready-made garment (RMG) sector, to ensure a decent work environment.

A target has also been set to provide free primary healthcare services to 3.76 lakh workers and recreational services to 4.55 lakh workers. Apart from this, to protect the fundamental rights of workers, a target has been set to provide training to 49,500 workers.

বাজেটে শ্রমিকদের রেশনের জন্য বরাদ্দের দাবিতে পদযাত্রা

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২০২৪-২৫ অর্থবছরের বাজেটে শ্রমিকদের জন্য রেশন বরাদ্দ বৃদ্ধিসহ আট দফা দাবিতে সংসদ অভিমুখে পদযাত্রা করেছে বাংলাদেশ টেক্সটাইল গার্মেন্টস শ্রমিক ফেডারেশন। সংগঠনটি বলেছে, শ্রমিকদের রেশনিংয়ের জন্য বাজেটের ১০ শতাংশ বরাদ্দ রাখতে হবে।

আজ বুধবার বিকেলে জাতীয় প্রেসক্লাবের সামনে শ্রমিক সমাবেশ শেষে এ পদযাত্রা করে সংগঠনটি। এ সময় সংসদের স্পিকার বরাবর একটি স্মারকলিপিও দিয়েছে তারা।

পদযাত্রার আগে শ্রমিক সমাবেশে সভাপতিত্ব করেন বাংলাদেশ টেক্সটাইল গার্মেন্টস শ্রমিক ফেডারেশনের সভাপতি মাহবুবুর রহমান ইসমাইল। তিনি বলেন, জাতীয় বাজেট, শিল্প, কৃষি, স্বাস্থ্য, শিক্ষা, প্রতিরক্ষা প্রভৃতি খাতে আলাদা বরাদ্দ থাকলেও শ্রমিকদের জন্য এমন কোনো পৃথক বরাদ্দ নেই। মোট দেশজ উৎপাদনে (জিডিপি) প্রায় ছয় কোটি শ্রমিকের অবদান সবচেয়ে বেশি। অথচ এই শ্রমিকদের জন্য কোনো রেশনিং ব্যবস্থা নেই। শ্রমিকদের স্বাস্থ্য সুরক্ষা, চিকিৎসা ও সন্তানের লেখাপড়ার ভালো সুযোগ নেই। বাস্তবে শ্রমিকদের ভবিষ্যৎ বলতেই কিছু নেই।

মাহবুবুর রহমান জানান, ৫২ বছরে বাজেটের আকার ৯৬৭ গুণ বৃদ্ধি পেয়ে প্রায় ৮ লাখ কোটি টাকা হয়েছে। তবে সরকারের উন্নয়ন আর জিডিপি বৃদ্ধির ঘটনায় শ্রমজীবী মানুষের ভাগ্যের কোনো উন্নতি হয়নি। বাংলাদেশ ইতিমধ্যে নিম্ন আয়ের দেশ থেকে নিম্ন মধ্যম আয়ের দেশে উন্নীত হয়েছে। সে কারণে শ্রমিকদের জীবনমান দারিদ্র্যসীমার নিচে থাকতে পারে না।

সমাবেশে সংহতি জানিয়ে বক্তব্য দেন শ্রমিক নেতা সালাউদ্দিন স্বপন, শহিদুল ইসলাম, লাভলী ইয়াসমিন, শবনম হাফিজ, সুলতানা আক্তার, কে এম মিন্টু, রাজু আহমেদ, এফ এম আবু সাঈদ, হারুন সরকার, আবদুল করিম শেখ। আরও বক্তব্য দেন ঢাকা রাইড শেয়ারিং শ্রমিক ইউনিয়নের সভাপতি সজীব হোসেন, সাধারণ সম্পাদক হালিম তালুকদার, কেন্দ্রীয় নেতা কামরুল ইসলাম প্রমুখ।

বক্তারা বলেন, টাকার অঙ্কে শ্রমিকের মজুরি বাড়লেও দ্রব্যমূল্য বৃদ্ধির কারণে শ্রমিকেরা আজ অভাব-অনটনে দিন যাপন করছেন। রেশনিং ব্যবস্থা চালু থাকলে সিন্ডিকেট কালোবাজারি ব্যবসায়ীরা দ্রব্যমূল্য বাড়িয়ে শ্রমিকদের পকেট থেকে অর্থ লুটে নিতে পারতেন না।

News sources :prothomalo

Pay workers’ wages, bonuses before Eid-ul-Adha: NHRC urges factories

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The National Human Rights Commission (NHRC) has urged all factory owners to pay their workers’ wages for May and bonuses before the Eid-ul-Adha holidays.

In a statement issued today (4 June), the commission said it is important to pay the workers’ dues before Eid to prevent any disruption of law and order and protect their rights.

The commission noted that on 1 June, various organisations held a protest rally in front of the Jatiya Press Club on behalf of garment workers demanding their due salaries for May and Eid bonuses.

The NHRC’s statement comes in the wake of protests by garment workers every year, usually before Eid.

In this context, the NHRC has called for the timely payment of workers’ wages and allowances to maintain a peaceful environment.

In the statement, NHRC Chairman Dr Kamal Uddin Ahmed said, “Article 23 of the Universal Declaration of Human Rights, adopted in 1948, speaks of the right to fair and favourable remuneration.

“In this case, we also have a constitutional commitment and legal obligation.

“Ensuring timely payment of the wages is a fundamental responsibility of every establishment. There is no alternative to this for safeguarding workers’ rights and maintaining a peaceful environment,” he added.

On 1 June, the Industrial Police urged the manufacturers of the country’s readymade garment (RMG) and textile sector to clear wages and allowances of their workers before the start of Eid-ul-Adha holidays as per the government’s decision.

Garment accessory makers seek tax cuts, revised import rules in budget proposals

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The Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association submitted their budget proposals for the fiscal year 2024-25, outlining measures they believe will strengthen the industry’s contribution to the country’s garment sector.

The association, representing a crucial segment of the garment industry’s supply chain, proposed a decrease from the current 1% tax to 0.25%, arguing that this aligns with previous government initiatives to encourage exports.

Additionally, they seek a fixed rate for at least five years to provide predictability and stability for businesses planning their investments.

The association’s President Al Shahriar Ahmed, during a media briefing today, said that considering the current global economic climate, they hope the government will consider revising the tax rate again to further stimulate exports.

The manufacturers and exporters association also seeks a level playing field for both tariff and non-tariff-bonded establishments.

Currently, there are limitations on the import availability for non-tariff bonded establishments compared to those located within designated tariff zones.

These zones, often managed by authorities like the Bangladesh Export Processing Zone Authority or Bangladesh Economic Zones Authority, offer certain benefits like tax breaks and simplified customs procedures. Businesses operating within these zones are considered bonded establishments.

The manufacturers and exporters association requested a three-year import availability period specifically for the accessories sector. This would allow manufacturers to manage their raw material needs more effectively and avoid delays caused by slow audits, which can be a particular issue for non-tariff bonded establishments.

The organisation also pointed out that 15-18% of the final price of a garment product is attributed to accessory components. Furthermore, the domestic accessories sector currently fulfils nearly 100% of the demand for the country’s major export-oriented apparel industry.

Streamlining imports, protecting domestic production

Another key demand concerns the import process for export-oriented businesses. The association urges the government to eliminate the requirement for bank guarantees on imported goods, which can be a financial burden and cause delays.

Furthermore, they propose the exclusion of all local purchases made by export-oriented industries from the existing 15% value-added tax (VAT). This would significantly reduce production costs for the industry.

To bolster the domestic garment accessories industry and ensure its continued support for the readymade garments sector, the manufacturers and exporters association proposes a ban on the import of finished garment accessories and packaging products under bond.

This would incentivise local production and enhance the overall competitiveness of Bangladesh’s export sector in the international market.

The organisation’s president, Al Shahriar, urged to ban the import of finished products of garments accessories and packaging under the bond in order to sustain the domestic industry and to keep the direct export sector competitive in the international market.

The association underscored its role as a 100% export-oriented industry, supplying vital components to the readymade garment sector, a major contributor to Bangladesh’s export earnings.

They believe that the proposed reforms are essential to maintain Bangladesh’s position as a leading garment exporter and ensure the continued growth of both the accessories sector and the RMG industry as a whole.

‘Better Work’ helped raise RMG production line efficiency by 5%: Study

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Better Work, a collaboration between the United Nations ILO and the International Finance Corporation (IFC), aims to enhance working conditions through compliance and boost the productivity and profitability of RMG factories.

The government has expanded the coverage of its pilot employment injury scheme by including compensation for accidents that may occur when workers are commuting to and from work. Photo: Rajib Dhar

The government has expanded the coverage of its pilot employment injury scheme by including compensation for accidents that may occur when workers are commuting to and from work. Photo: Rajib Dhar

Apparel factories enrolled in the Better Work programme have experienced a 5% increase in production line efficiency, according to an International Labour Organisation (ILO) study.

Better Work, a collaboration between the United Nations ILO and the International Finance Corporation (IFC), aims to enhance working conditions through compliance and boost the productivity and profitability of RMG factories.

Moreover, these factories have advanced in promoting women to supervisory positions and raised female supervisors’ wages by 39%, leading to improved quality control through heightened confidence and capabilities demonstrated by trained staff, finds the study.

At a roundtable at the national daily Samakal’s office in the capital today (1 June), Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), shared these findings of the study during his keynote presentation titled “Responsible Business Conduct in the RMG Industry: Achievement and Way Forward,” which drew upon research conducted by the ILO.

The roundtable was jointly organised by Better Work Bangladesh, Samakal, and The Business Standard, with the backing of Japan’s Ministry of Economy, Trade, and Industry (METI).

Syed Fazle Niaz, team leader of the Better Work Programme Bangladesh and Zakir Hossain, associate editor of Samakal, moderated the event.

The CPD research director said participation in Better Work correlates with the capacity to negotiate higher prices for products, with Better Work-affiliated firms obtaining an average premium of 5% on export product prices.

“Better Work, on average, amplifies firms’ export revenues by 55% and volumes by 50% compared to firms not participating in the programme. Examination of customs data reveals that this extends beyond merely having a larger pool of buyers and higher order volumes,” he said.

Better Work Bangladesh started its operations in Bangladesh in 2014. Throughout its decade-long journey, it has enlisted 472 factories and partnered with 50 prominent global brands. Approximately 1.3 million workers have benefited from this programme, with 51% of them being female.

Golam Moazzem said Better Work affiliated factories have ensured a 5.4% increase in the base pay for workers, translating to an average additional income of Tk444 per month. 

Furthermore, he noted that the ILO study revealed that these factory workers are saving an extra Tk552 each month.

“We should institutionalise the lessons of Responsible Business Conduct to disseminate them to other key sectors such as leather, plastic, and the frozen food industry, thus enhancing their competitiveness,” he said, adding that there exist several legislative directives promoting responsible business practices.

Golam Moazzem pointed out that Bangladesh has ratified 36 Conventions and 1 Protocol, which cover various issues such as forced labour, freedom of association, the right to organize and engage in collective bargaining, equal remuneration, workplace discrimination, child labour, and working hours, among others.

Speaking as the chief guest, HM Ibrahim, chairman of the Standing Committee on the Ministry of Labour, said the government will take measures against factory owners involved in disputes regarding workers’ salary payments. Two such owners have already been barred from travelling abroad. 

Additionally, he announced plans to extend the validity of all licences from a minimum of five years to 10 years to facilitate business operations. This proposal will be discussed in the upcoming ministry meeting agenda.

Responding to a question from BKMEA Executive President Mohammad Hatem about the feasibility of providing rations to garment workers under a social safety programme, HM Ibrahim said he would consult with the relevant minister and secretary regarding this matter.

Mohammad Hatem said, “Discussions on workers’ wages are common both domestically and internationally. However, neither the ILO, trade unions nor buyers address the issue of fair pricing for products. This is deeply regrettable.”

During his opening remarks at the discussion, Tuomo Poutiainen, country director of ILO in Bangladesh, emphasised the ongoing reform programme in the garment sector, highlighting the importance of its continuity. 

He underscored the necessity for the private sector to persist in investing in cost-effective methods.

Ashraf Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI), said, “The Better Work programme has enhanced the management quality of factories, benefiting them significantly. Considering the low production costs and high profits, the program should be sustained.”

FBCCI Senior Vice President Amin Helaly said, “To sustain the current economy of the country, we must transition towards a sustainable economy. Bangladesh currently holds the second position in ready-made garment exports, with many new industries emerging around this sector. It is crucial to ensure compliance in these industries.” 

He said that over the past 15 years, Bangladesh has made significant progress and aims to achieve developed country status by 2041. However, achieving this goal requires the formulation of distinct policies for small, medium, and large industries.

Laetitia Weibel Roberts, deputy programme manager of Better Work, said, “Responsible business conduct in the apparel industry hinges on mutual trust among brands, buyers, governments, and factory worker-owners. Coordination and collaboration are indispensable.”

Regarding the Better Work programme, she said, “The programme’s foundation lies in partnership. Its continuity is imperative for safeguarding workers’ rights and ensuring their security.”

Matiur Rahman, joint inspector general of the Department of Inspection for Factories and Establishments (Dife), expressed concern, stating that unemployment among workers signifies insecurity. He suggested that Better Work could address this issue.

Bangladesh Trade Union Songgho President Chowdhury Ashiqul Alam said, “Workers are facing unfair pressure to enhance productivity, potentially leading to the erosion of their rights. Neglecting this issue may result in labour unrest, causing significant repercussions for both the state and stakeholders in this sector.”

Shah Mohammad Abu Zafar, president of the Bangladesh Labour Federation (BLF), said workers’ wages remain remarkably low given the prevailing market conditions. Consequently, while factory owners and buyers prosper, workers do not.

ZM Kamrul Anam, president of the Bangladesh Textile and Garment Workers League, said according to the law, workers have the right to form trade unions in industries and factories. If the industry thrives, both the owners and the country will thrive.

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