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MD.JAKARIA
SESSION 2012-13
DEPARTMENT: OF SOCIAL WELFARE
UNIVERSITY OF DHAKA
Introduction
At independence in 1971, most observers of the newly emerged country took a pessimistic
view about the developmental prospect of Bangladesh. Many thought that the country would
remain permanently locked in a below poverty level equilibrium trap. Although there is
little room for complacency Bangladesh has come a long way from there. About two-fifths of
the economy is now connected with the global economy through exports, imports, and
factory and commodity markets.
The export-oriented readymade garments (RMG) sector in Bangladesh started its journey in
late 1970s as a small non-traditional sector of export. Bangladesh exports 35 types of garment
products to about 31 countries around the world. The RMG sector is a 100% export-oriented
industry. There are now approximately 4,825 garment factories in Bangladesh employing
over three million people. Fully 85% of these workers are women. But there is no proper
human and socio-economic security system for women workers in RMG Industry.
The garment industry of Bangladesh has been the key export division and a main source of
foreign exchange for the last 25 years. National labor laws do not apply in the EPZs, leaving
BEPZA in full control over work conditions, wages and benefits. Garment factories in
Bangladesh provide employment to 40 percent of industrial workers.
Once the cloth of Bangladesh achieved worldwide fame specially Muslim and jamdani cloth
or our country was used as the luxurious garments of the royal figures in Europe and other
countries. The British rulers in India didnt develop our cloth industries at all. Rather they
destroyed them and imported cloths from England. Garment Industry Large-scale production
of readymade garments (RMG) in organized factories is a relatively new phenomenon in
Bangladesh. Until early sixties, individual tailors made garments as per specifications
provided by individual customers who supplied the fabrics. The domestic market for
readymade garment, excepting children wears and men's knit underwear was virtually nonexistent in Bangladesh until the sixties
Since the late 1970s, the RMG industry started developing in Bangladesh primarily as an
export-oriented industry although; the domestic market for RMG has been increasing fast due
to increase in personal disposable income and change in life style. The sector rapidly attained
high importance in terms of employment, foreign exchange earnings and its contribution to
GDP.
Most importantly, the growth of RMG sector produced a group of entrepreneurs who have
created a strong private sector. Of these entrepreneurs, a sizeable number is female. A woman
entrepreneur established one of the oldest export-oriented garment factories, the Baishakhi
Garment in 1977. Many women hold top executive positions in RMG industry. The hundred
percent export-oriented RMG industry experienced phenomenal growth during the last 15 or
so years. In 1978, there were only 9 export-oriented garment manufacturing units, which
generated export earnings of hardly one million dollar. Some of these units were very small
and produced garments for both domestic and export markets. Four such small and old units
were1. Reaz Garments;
2. Paris Garments;
3. Jewel Garments and
4. Baishakhi Garments.
Reaz Garments, the pioneer, was established in 1960 as a small tailoring outfit, named Reaz
Store in Dhaka. It served only domestic markets for about 15 years. In 1973 it changed its
name to M/s Reaz Garments Ltd. and expanded its operations into export market by selling
10,000 pieces of men's shirts worth French Franc 13 million to a Paris-based firm in 1978. It
was the first direct exporter of garments from Bangladesh. Desh Garments Ltd, the first nonequity joint-venture in the garment industry was established in 1979. Desh had technical and
marketing collaboration with Daewoo Corporation of South Korea. It was also the first
hundred percent export-oriented company. It had about 120 operators including 3 women
trained in South Korea, and with these trained workers it started its production in early 1980.
Another South Korean Firm, Youngones Corporation formed the first equity joint-venture
garment factory with a Bangladeshi firm, Trexim Ltd. in 1980. Bangladeshi partners
contributed 51% of the equity of the new firm, named Youngones Bangladesh. It exported its
Year
1983-84
1988-89
1993-94
1998-99
2003-04
2008-09
At present
Number
Industries
134
759
1839
2963
3957
4825
5600
of
Garment Employment
Workers
0.040
0.317
0.827
1.500
2.000
3.100
3.900
in
Million
Position as an exporter
Bangladesh is the second largest exporter of readymade garment products trailing China
according to the McKinsey report (2011). Bangladesh is now one of the 12th largest apparel
exporters of the world, the sixth largest supplier in the US market and the fifth largest
supplier of T-shirts in the EU market. At present there are about 5600 garment industries in
the country and 75 percent of them are in Dhaka. The rest are in Chittagong and Khulna.
These Industries have employed fifty lacks of people and about 85 percent of them are
illiterate rural women. About 76 percent of our export earning comes from this sector.
Bangladeshs garment exports during July-June 2012-13 period climbed by about 12.7
percent to US$ 21.515 billion over exports of US$ 19.089 billion made during the
corresponding period of 2011-12. In 2012-13, the top three export destinations for
Bangladesh garments were Europe, which accounted for US$ 12.56 billion, followed by the
US and Canada, which accounted for US$ 4.99 billion and US$ 980 million, respectively.
But now it has received bad news.
Stopping GSP
As a result of the collapse of the Rana Plaza garment factory building, the President Barak
Osama-led US government in June in 2013 suspended Bangladesh from the Generalized
System of Preferences (GSP), which allows duty-free entry of over 5000 goods to the US
market from least developed countries.
Now, RMG products (which make up most of the US import from Bangladesh) are not
included in the list of duty-free products in GSP, there will an export fall of about $40
million. At present, Bangladesh exports about $5 billion worth of goods (mostly RMG
products) to the USA every year and hence, the suspension from US GSP will account for a
fall in export of about 0.8%.
In December, the European Parliament has threatened to withdraw GSP, the duty and quotafree access to EU market that Bangladesh enjoys. The European Union buys more than $12
billion in Bangladeshi garments each year, or roughly three-fifths of the countrys production.
If the EU were to withdraw or suspend the facility, the price per unit of garment will rise and
this may lead to many European buyers turning their backs on our products. So, Bangladesh
would suffer a huge setback.
Losing the GSP facility will cost Bangladesh millions of dollars in taxes. It is also influence
the European Union to take similar action, which would have a much bigger impact on
Bangladesh and its garment sector.
Garment Disaster
More than 276 factories have faced incidence since 1990. Most of the industries were lost
because of fire, labor unrest and political unrest. Recent incidents like fire in the Tazreen
Fashions factory in November, 2012 that killed more than 110 and the collapse of the Rana
Plaza garment factory building in April, 2013 that killed over 1,100 people and more than
2,500 were injured in the disaster. It may be the second biggest industrial accident in recent
history. Some women of Toba garment are injured by the clashes with police after the
demand of salary and bonuses in recent time.
Labor Unrest
In August, in 2013 Garment factory workers clashed demanding a Tk 8,000 minimum
monthly wage. Many factories closed for clashing. The owners finally agreed to pay Tk 5,300
as prescribed by a government-endorsed wage board on Nov 4 in same year.
In November, 18,800 people lost their work for fire in Standard Group. The factory was
among the ten biggest in the country and it was the biggest supplier of Gap in Bangladesh.
The loss to the firm could run into more than US$100-million.
Political Unrest
Due to the recent political unrest, Bangladesh RMG sector losses in billions of taka every
day. The blockades have put the garment sector in a tight corner as exporters are counting
losses from order cancellation and rising transport costs.
Buyers are cancelling orders as exporters fail to meet the lead time due to transport crisis.
Some buyers are also imposing penalties in case of delayed shipment, cutting prices of
garment products and transport costs have surged by around 30 percent due to expensive air
shipment. Many factories have halted production as they cant bring imported raw materials
from ports.
The BGMEAs research and development team has collected three-day data (December 1-3)
from 10 exporters to assess the overall losses caused by the blockade. Orders worth $3.96
lakh were cancelled during the period, while the exporters spent $3.08 lakh on air shipment.
Many small factory owners may go bankrupt due to failing shipment on time. So thats the
trap: the golden goose is caught between a rock and a hard.
In rich and poor countries alike, economic security is under threat. Sixty year ago, the
universal declaration of human rights affirmed that everyone should have access to a standard
of living adequate for their health and well-being, including food, clothing, housing, and
medical care and necessary social services and the right to security in the event of
unemployment, sickness, disability, widowhood, old age or other lack of livelihood in
circumstances beyond his control.
According to Wikipedia, the free encyclopedia
Human security is an emerging paradigm for understanding global vulnerabilities whose
proponents challenge the traditional notion of national security by arguing that the proper
referent for security should be the individual rather than the state. Human security holds that
a people-centered view of security is necessary for national, regional, and global stability. It
can be defined as freedom from want, freedom from fear, freedom from food security.
Absence of this satisfaction is called human insecurity
Number of respondents
Percent
54
2
62
89
79
67
68
6
60.0
2.2
68.9
68.9
87.8
74.4
75.6
6.7
Types of diseases:
Type of diseases and illnesses
Number of respondents
Percentage
63
34
30
33
19
15
29
24
25
14
29
42
14
26
70.0
37.8
33.3
36.7
21.1
16.7
32.2
26.7
27.8
15.6
32.2
46.7
15.6
28.9
Headache
Musculoskeletal pain
Ear ache
Physical weakness
Eye pain
Less appetite
Chest pain
Fainting
Diarrhoea
Jaundice
Skin disease
Gastritis
Typhoid
Others
empowerment. It is most important at this moment to ensure a safe working environment for
the women workers where they can exercise their rights fully and satisfactorily.
There is no human right for garment workers as well as women workers. In 1948, 10
December, some rights were written for workers by the United Nation that is called Universal
Declaration of Human rights. In present world Human Rights also exist as well as in
Bangladesh. But majority of the portions are neglected in case of women worker in our
country.
Safety Problems
Because of the carelessness of the factory management and for their arrogance factory doors
used to be kept locked for security reason defying labor act
Safety need for the worker is mandatory to maintain in all the organization. But without the
facility of this necessary product a lot of accident is occur incurred every year in most of the
company. Some important cause of the accident are given below Routes are blocked by storage materials
Machine layout is often staggered
Lack of signage for escape rout
Sexual Harassments
Sexual harassment at work place as well as garment industry can have very serious
consequences both for the harassed individual as well as for other working women who
experience it secondhand.
The consequences to the individual employee can be many and serious. In other situations,
the unwelcome sexual conduct of co-workers makes the working conditions hostile and
unpleasant- putting indirect pressure on her to leave the job. Sometimes, the employee is so
traumatized by the harassment that she suffers serious emotional and physical
consequencesand very often, becomes unable to perform her job properly. According
to data complied by Equal Rights Advocates, a womens law center in the U.S., 90 to 95% of
sexually harassed women suffer from some debilitating stress reaction, including anxiety,
depression, headaches, sleep disorders, weight loss or gain, nausea, lowered self-esteem and
sexual dysfunction.
unionists in Bangladesh, the minimum wage for garment workers was raised in 2010 for the
first time in four years and 5300 taka have raised per month from 2013 . Sometimes, receipt
of wages in the garment industry depends on meeting an assigned production target. That
amount is inadequate in meeting the minimum living standards in the urban areas. Besides
the above, they get no other benefits or festival allowances.
Wages Discrimination
The government of Bangladesh sets minimum wages for various categories of workers.
According of Minimum Wage Ordinance 1994, apprentices helpers are to receive Tk500 and
Tk930 per month respectively. Apprentices are helpers who have been working in the
garment industry for less than three months. After three months, Apprentices are appointed as
helpers. Often female helpers are discriminated against in terms of wages levels, and these
wages are also often fixed far below the minimum wage rate. A survey conducted by ILO, 1
December, 2013 showed that monthly minimum wages (or lowest relevant rate) in the
garment industry apparel-exporting countries, in us dollar
Bangladesh has the cheapest unit labor cost in South Asia. It costs only 11 cents to produce a
shirt in Bangladesh, whereas it costs 79 cents in Sri Lanka and 26 cents in India. Clearly,
Bangladeshs comparative advantage lies in having the cheapest unit labor cost.
Country
China
Pakistan
India
Vietnam
Sri Lanka
Bangladesh
[http://dol.gov.bd]
D) Department of Inspection for Factories and establishments is a department under the
ministry of labor and employment its functions are:
1. Ensuring welfare, safety and health of the workers.
2. Creating a safe and healthy work culture
3. Improving the quality of the wage earners.
4. Providing legal information and advice to the workers.
5. Enhancing occupational safety and health for all workers by appropriate working
conditions and environment.
6. Who working for ensuring the human and socio- economic security for women
workers in the RMG sectors.
[www.dife.gov.bd]
Beside BGMEA, BKMEA, Labor appellate tribunal.
6. Social workers also are trained in the art of effective communication and negotiation,
skill that lend themselves well to advocating for employee needs or working to
improve condition with a workplace and increase the understanding between
employees and employers.
7. Advocacy or lobbying for implementing the labor law for the welfare of the workers.
8. Addressing issues such as violence in the workplace.
9. Collaboration with others to identify and address issues of workplace health and
safety.
10. Assisting workers in accessing vocational and educational opportunities.
Conclusion
The Ready-Made Garments (RMG) industry occupies a unique position in the Bangladesh
economy. But now-a-days that good will is absent here. It is the largest exporting industry in
Bangladesh. It is already mentioned that which experienced phenomenal growth during the
last 25 years. But foreign direct investment leapt from a mere $2.4 million in 1986 to more
than $1,000 million in 2008. We may go back previous situation by ensuring a safe and
secure working environment as the fundamental right of the garment workers especially
female workers. From the international human rights instruments to our domestic laws
workers rights are protected but in our country due to lack of the enforcement mechanisms
and unwillingness of some people these problems remain unsolved. The study revealed some
of the aspects of existing situation of occupational safety and health in Bangladesh. The
constitution of Bangladesh recognizes productivity as basic need for development and covers
right to work and reasonable wages, Medicare and, disease and disablement. This
constitutional policy direction did not turned into a formal national occupational health and
safety policy.
References
1. www.dife.gov.bd
2. bgmea.com.bd
3. http://textilebulletin.com/present-situation-rmg-sector-bangladesh-2013/
4. www.ilo.com
5. www.blf-bd.org
6. www.mwb.gov.bd
7. en.wikipedia.org/.../Bangladeshi
8. http://www.scribd.com/doc/14270128/Problems-and-Prospect-of-Garments-Industryin-Bangladesh-and-the-Supportive-Policy-Regime-Current-State-of-Affairs
9. dol.gov.bd