In the second review meeting of Sustainability Compact to be held today in Dhaka, Bangladesh will focus on clothing products’ pricing and remediation financing as the buyers failed to deliver as they promised.
In the Sustainability Compact – an initiative for improving safety standards and ensuring labour rights in the country’s RMG sector, the buyers pledged for responsible business. They also promised to provide low cost fund for remediation.
The European Union, the US, International Labour Organisation, the BGMEA, and the BKMEA will participate in the meeting which will be represented by the Ministry of Commerce, Labour and Employment Ministry and the Ministry of Foreign Affairs.
The first meeting was held in Brussels last year.
“Since, Bangladesh along with its RMG stakeholders met all the conditions of compact. We will now focus on clothing product pricing and remediation financing as it is a challenging issue for the sector,” Senior Commerce Secretary Hedayetullah Al Mamoon told the Dhaka Tribune.
As per the compact conditions, Bangladesh has amended Labour Act 2006, published rules of labour act, upgraded and empowered Department of Inspection for Factories and Establishment (DIFE) to ensure safe work place and workers rights.
It also appointed 235 factory inspectors and launched publicly accessible workers data.
In the first review, the stakeholders put the highest priority on addressing unfair labour practices, including anti-union discrimination and reprisals, alongside reporting, plus documenting violence against trade unions and workers’ representatives.
On the other hand, manufacturers platform BGMEA has taken initiative to improve safety standards. They launched biometric workers database, training programme and introduced hotline to hear workers voice related to safety concerns and rights.
“In line with the compact, the manufacturers complied with most of the conditions. The process of implementation of rules of the labour act has started to ensure workers’ rights as well as their rights to organise,” BGMEA senior Vice-President Faruqe Hassan told the Dhaka Tribune.
Although the buyers said they would increase prices of RMG products, they have never done that; rather the prices were cut, said Hassan.
Commenting on unfair labour practice, Hassan said: “Workers can be organised without fear and raise voice against violation of rights, which is reflected in registration trend of trade unions. As of December, 2015 a total 478 trade unions have been registered after the Rana Plaza incident.
Following the deadliest Rana Plaza building collapse in 2013, Sustainability Compact – an agreement between the EU and the Bangladeshi government with the support of ILO – was outlined for ensuring continuous improvements in labour rights and factory safety in the RMG sector of Bangladesh.
The present compact puts emphasis on respect for labour rights, freedom of association and the right to collective bargaining, structural integrity of the buildings and occupational safety and health, plus responsible business conduct by all stakeholders engaged in RMG and knitwear industries in Bangladesh.


