Post Breakfast
RMG industry in quandary
Muhammad Zamir
People all over Bangladesh have watched with horror the dark days that affected the RMG industry between 22 and 24 May. The trouble started with FS Sweaters Ltd at Sreepur and then spread to Ashulia, Gazipur and Mirpur. Later, over the next forty-eight hours, it also continued in Konabari, Malibagh, Tejgaon and Savar.Activists, allegedly workers, some wearing 'blue apparels', damaged factory buildings and burnt machinery, raw materials and finished products. Thousands participated in this mayhem, but significantly, it did not include more than a handful of women. This was particularly strange given the fact that almost ninety percent of the workers in this industry are women. Nevertheless, destruction, violence and vandalism have cost the RMG sector losses estimated at over Taka four billion. This sorry situation has been further compounded by the fact that most of the factory owners will have difficulty in obtaining suitable compensation from insurance companies. This will consequently affect restoration of required infrastructure. This latest episode of discontent will not benefit anybody other than 'agent provocateurs' who want to destabilise an economic sector that not only provides nearly 70 percent of our export earnings but also employs over two million workers, mostly women. The State Minister for Home Affairs has frankly admitted the lapses on the part of the police force and those responsible for maintaining law and order. Such an admission was probably the result of the wide coverage given to the incidents by the electronic media and the glaring examples of police inactivity. This has been linked to lack of coordination and also non-availability of trained police personnel. This in turn reflected poor planning and organisation. This was also particularly disappointing because available intelligence information indicated that greater violence was on the cards. However, I am an optimist and always believe in calling the glass half-full and not half empty. All is not lost. We have been able to acknowledge our faults. This is the first step towards redress. Such wanton destruction of private property will harm our image and also diminish future foreign direct investment. Activists within the RMG industry will have to understand that overall irresponsibility will not further their just demands. Killing the goose that lays the golden egg will not bring them nearer to their goals. On the other hand, many like us, on more than one occasion have pointed out the need for the BGMEA, the BKMEA, the government regulatory agencies and the workers' representatives to sit down, identify differences and resolve the existing problems. However, what we have seen is lack of seriousness in the consideration of the grievances of the workers. In many cases, questions related to safety of workers, non-payment of salaries on time, inadequate wages and medical support have been brushed underneath the carpet time and again. This ostrich syndrome and perceived exploitation has only exacerbated matters and permitted outsiders to profit from the prevailing confusion. To all of this has been added the significant question of what can be considered as a fair wage. Seminars held in Dhaka have pointed out that workers in this industry in Bangladesh are paid the equivalent of around 7 US cents per hour compared to 20 US cents in Pakistan, 23 US cents in China, 40 US cents in Sri Lanka and 78 US cents in Thailand. In effect, the salary structure over here is even below the per capita income. This is unacceptable. Despite the competitive environment, I believe that there is need for review and the setting up of a Wage Commission for the garment sector. This is a constructive suggestion and should be followed up through requisite consultations. The wage structure for this sector also needs to include he principles of regular payment of salary, weekly holiday and facilities like maternity leave with pay. Compliance of these points will bring working conditions in conformity with existing international principles of labour law. Otherwise there will be a sense of deprivation that can only harm the industry in the long run. We are talking here of skilled and semi-skilled personnel whose backs have been pushed to the wall. Their situation has further deteriorated because of the steep rise in the cost of living over the last four years. However, I agree that violence is not the answer. Both sides need to sit down and discuss it through. It has been alleged that some 'extraneous' force has been 'working behind the scene' to destablise the sector. The government has also hinted that elements from the opposition might have contributed towards what happened. Such allegations will not resolve this problem. It will only make it more complex. What we need is a bi-partisan approach, both with the owners as well as between them and the workers. I am referring to such a course of action within the owners because there are entrepreneurs within this industry who are attached to different political groups with different agendas. What we need is a common approach in the negotiations. In the last few days, some calm has returned to the scene. It would however be foolish to consider that this superficial peace might not be disrupted all over again. The RMG sector as I have already mentioned employs more than two million workers. It benefits directly at least one million families. In addition, there are hundreds of thousands of people otherwise associated with this industry. Their presence is reflected through associations like the FBCCI, the MCCI, the ICC-B, the DCCI, the Chittagong CCI, the BCCAMEA (the carton manufacturers), the Bangladesh Employers' Federation, the Bangladesh Chamber of Industries, the LFMEAB (fabric manufacturers), the BSTMPA (textile manufacturers) and BTTMEA (terry towel manufacturers). The above bodies constitute the heart and core of the Bangladesh economy. It is their efforts that have helped us in not becoming a 'basket case'. The government has a duty to perform. The country is now passing through a crisis. We are faced with challenges that we have to overcome. The situation is far too volatile to be left only to owners of factories. The government must get involved more intensively. The first step should be to set up a judicial inquiry commission. This body should determine in two weeks the causes that led to the anarchy. At the same time the BGMEA and the BKMEA need to set their own houses in order by identifying very carefully those factories who are not playing by the rules. They will then have to adopt strict guidelines with which every factory will have to conform. In this context, they should also set up in each administrative division a group of factory inspectors, appointed by the BGMEA and the BKMEA, who will periodically check conformity with existing rules and regulations, with particular reference to workers rights and privileges. In this regard, a Chamber of Appeal could be created in Dhaka at the BGMEA and BKMEA headquarters to resolve differences on the basis of law and fairness. The licence of a guilty factory should be suspended or cancelled depending on the gravity of the offence. It would also be pertinent to introduce the benefits of responsible collective bargaining despite the unwillingness of many owners to permit trade unionism. This will help to reduce the communication gap. These are very significant measures. I think that the government may consider assigning a Cabinet Minister particularly for this purpose till the end of its term of office. Let him be also endowed with the power to take decisions without having to resort to a cabinet sub-committee. In a manner of speaking, he would then be the czar for the RMG industry and be able to deal with reform within this industry with firmness. Muhammad Zamir is a former Secretary and Ambassador who can be reached at [email protected]
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