Competitiveness cannot come at the expense of livelihoods.
Nearly two centuries after Dickens famously wrote, “It was the best of times. It was the worst of times”, we are approaching a similar paradoxical era where advancement in technology can make miracles happen, and, simultaneously, deepen inequalities.
Advanced technology can play a critical role in enhancing the competitiveness of Bangladesh’s garment sector.
While competitors such as India and China boast efficiency rates of 60-65%, the average efficiency rate in Bangladesh is 40-45%.
Additionally, as global trends shift from fast fashion to sustainable fashion, it is critical for us to go beyond the tag of "cheap labour" and move to a higher tier of manufacturing.
One of the most prominent downsides of technology, however, is job insecurity.
In the US alone, approximately seven million people have lost their jobs to automation in the last 15 years.
Automation can already be seen in many sectors in Bangladesh, and as its influence continues to expand, we cannot lose sight of the implications it will have on workers.
The introduction of automated machines in garment manufacturing has seen notable reductions in labour requirements globally.
Technologies such as 3D printing have brought down the number of workers required in pattern design from 10-12 workers to 1-2.
In spreading, the use of automated technology has reduced labour requirements from 10-12 workers to 2-3.
Cutting, which previously needed 100-120 workers, can now be managed with 60-70 workers.
Adoption of automation is slow in Bangladesh because of the availability of cost-effective labour and the high capital investment required to automate factories.
This is expected to change rapidly, though.
The owners of the large factories that have started automating say that the cost of purchasing machines can be recovered in 1-2 years and factories that invest in high-tech machinery are able to secure new orders to fulfil the extra capacity.
The Covid-19 pandemic will also accelerate the adoption of automation, especially in the sample approval process.
By 2023, it is predicted that 25% of RMG factories in Bangladesh will adopt automation.
A study by a2i and the International Labour Organization (ILO) predicts that 60.8% of garment workers will lose their jobs to automation by 2030.
While the rise of automation will impact everyone, women garment workers are more likely to suffer job loss.
Despite making up over half of the RMG workforce, women are seldom seen in leadership positions. Beliefs that women are unable to handle technology as well as training often being run after-hours means women often cannot attend skills development courses.
This results in them often confined to low-skilled positions - the positions most vulnerable to job loss.
How can we strike a balance between competitiveness and welfare?
We must understand the importance of acting now if we want to futureproof the industry and protect the livelihoods of workers.
The focus must be on upskilling and reskilling our workers based on the future-of-work trends. Automation and human labour are not competitors for a fixed pie.
If we play our cards right, we can use automation to create a bigger pie. Workers, instead of being shed, can be reskilled and reallocated to meet increased demands.
A multi-stakeholder approach is necessary to ensure that these efforts prioritise women.
Simply building initiatives around training and skilling is not enough; the sector must collectively address the social barriers that often constrain women garment workers.
This includes strengthening social protection and building support facilities such as day-care centres.
BRAC, in partnership with the H&M Foundation, has launched the STITCH for RMG project. The first part of the project comprised the STITCH for RMG Global Innovation Conference, to catalyze industry-wide discussions on the future-of-work in RMG. In the second phase of the project, a global innovation challenge will identify innovations that can future-proof the work of women garment workers while enhancing industry competitiveness. Similar initiatives around future-of-work should be made commonplace to map the way forward for the industry. Women have built Bangladesh’s RMG industry. As we continue our quest for prosperity, we must ensure that they are not left behind.
Asif Saleh is the executive director at Brac