Md Atiqul Islam, President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA)
As a way forward in order to address these challenges, we need to take a number collaborative and coordinated steps. Along with establishing sound infrastructure we need to produce skilled manpower and improve productivity. We need access to finance at competitive bank interest rate and establish special industrial zones. On top of ensuring sustainable production, we need market access and market diversification, and lastly we need positive branding.
I believe that with all our concentrated efforts, we will be able to prove that no East, no West, Bangladesh is the best in readymade garment manufacturing.
Tipu Munshi, MP; Managing Director, Sepal Garments Ltd
I appreciate the global support we have received as well as the work Alliance and Accord are doing. Being apprehensive, we were relieved to discover that only 1.8% of all factory building were found vulnerable. They pointed out the faults, we must now collaboratively figure out the solution, along with the workers, and the media industry.
During the last increase in workers’ wages, buyers assured us to go ahead with the move but did not raise prices, instead prices decreased by 15-20%, coupled with that there’s the electricity price hike and gas unavailability. We are working under terrible circumstances and we would appreciate all the collective assistance we can gather, because if we cannot intercept trade moving from China, we will lose it to Vietnam, India and Cambodia.
Shirin Akhtar, MP; President Karmojibi Nari (KN)
I’d like to request for a dedicated ministry for this purpose. We need to improve quality by incorporating skill, in labour and design, and for that we have required structures. All of this needs to be well thought out and we need a proper plan to implement it. Additionally, the garment industry requires uninterrupted gas supply, if the workers are unhappy it does not help the employers. Since we are talking about diversification nowadays, we need to utilise lobbyists in not just the US but anywhere feasible and lucrative. There is no alternative to trade unions, and laws must be respected, so workers as well as employers need to be trained in the proper ways of utilising unions.
Anwar-ul Alam Chowdhury (Parvez), Chairman, Evince Group, Former President, BGMEA
We need to own up to our own inherent skills and standards, the alternative results in a collapsed RMG industry. We need to find a way so that we can shoulder this responsibility on our own. When dealing with nations like the US, lobbyists are indispensable. Additionally, in our government we have not been able to develop the strength of diplomacy required in any country representative; we need diversified negotiation skills to effectively interact in diplomatic circles. If the government wants a sustainable and lucrative industry, it has to ensure consistent supply of energy. If we want to provide free economy privileges to Japan, India and Korea, then why can we not do the same for our own entrepreneurs? Our education system is not aligned with the job market. Even this issue needs to be taken into account and effectively addressed, if we are to maximise all our potentials in order for us to reach our goals.
Md Farid Uddin, Member (Customs Policy), National Board of Revenue
In the three decades that the RMG industry has been active, we saw a massive growth only after the 90s, thanks to the global economic boom. In order to reach the $50bn goal, we need to collaboratively reach a strategic and action plan that would be implemented by both the public and the private sectors, so that current challenges faced by the industry can be effectively dealt with. In terms of customs, we are working towards something that will facilitate trade. If the industry issues UD and submit it online, we will integrate it in our system within a year. Ministry of trade has to take the helm in enacting the TFA (Trade Facilitation Agreement) signed last December in Bali. If we work together, within the span of a year we can work through customs with a minimum of effort, time and money spent.
Dr Wajed-ul Islam Khan, Secretary, Bangladesh Institute of Labour Studies (BILS), General Secretary, Bangladesh Trade Union Centre (BTUC)
I’d like to point out that I have a confusion regarding the percentage of factory buildings as unsafe being 1.5%. If this is narrowly focusing on building safety, then I must say fire hazards come in all shapes and sizes, even as a store house in the basement or the boiler room. While these have nothing to do with building safety, they may still prove to be reasonable fire hazards.
On the subject of lack of training for workers, I agree that a trade union is the only way forward for tackling challenges related to workers. The participant committee is not an alternative to a trade union.
Three years ago , we had assessed calorie values and had determined that a minimum of Tk16,000 is required by a family of four, and assuming two people are earning, then the amount should be Tk8,000, whereas in reality, they receive only Tk5,000. I’m not implying that this is being done deliberately, but we have to bargain and raise our prices so that this issue can be addressed properly. If necessary we can employ lobbyists not just in Russia but to all the countries in East Europe with potentials for our benefit.
Rob Wayss, Executive Director, The Bangladesh Accord of Fire and Building Safety in Bangladesh
There seems to be an important constituent missing in our programme, that being garment federations who represent the overwhelming number of workers that have formed those newly registered trade unions. Their absence takes something away from this discussion. I think that the work Accord is doing is an important element in tackling the challenges in moving forward. One of the most important things in moving forward for the continued growth and dominance of the garment industry is remediating the factories in good faith and being forthright about that. While it’s true that less than 2% of the factories that were inspected fell below a factor of safety that was considered critical, all of the factories that have been inspected have significant items that need to be fixed, although the latter are not nearly as critically vulnerable as the former. It is important that we focus on fixing these items in a timely manner, that’s the best way to show the buyers and the world that Bangladesh is demonstrably a safe garment industry. This remediation requires good faith from everybody.
It’s the responsibility of all of us to support the government of Bangladesh, but the government of Bangladesh needs to have something in place as these elections of the safety and health committee worker reps move forward, so that these claims can be heard and resolved in a fair manner. The Accord is taking a responsibility to show progress that’s taking place in the garment factories. All of the factories have been inspected, we’re doing follow up and supporting factory owners.
Omar Chowdhury, Founder and CEO, Jukto Front
Bangladesh faces many challenges and we try to do the best we can with our limited resources. Lack of infrastructure is our main challenge, along with high interest rates and political instability. These challenges have to be solved through government policies, and it will take time. In the last five years our electricity situation has greatly improved, so has the gas situation thanks to the government. However, there are a few policies of the government that lack direction and have no inherent rationality, for example our income tax rate has been increased from 10% to 35%. Raising the tax and justifying the raise by stating that it is preventing money laundering makes no sense. On the other hand, since the RMG sector is facing so many challenges, including wages, resource tanks have decreased from 0.8% to 0.3%.
Baki Srinivasa Reddy, Country Director, International Labour Organisation (ILO)
From ILO’s perspective Rana Plaza is a turning point, and we have a great opportunity to reform the sector, overcome the challenges and move forward. Immediately after the Rana Plaza incident, our deputy director general led a high level ILO delegation to Bangladesh, and facilitated agreement of the employers, workers and government to agree on six priorities in order to prevent accidents in our RMG industry; they are: Changes in labour law, inspection of all garment factories, strengthening labour inspection system in Bangladesh, rehabilitation of injured workers, improving occupational safety and health and launching better work programme.
Subsequently this tripartite joint statement has become a blueprint for action, through the National Action Plan, Accord and Alliance. During the last 18 months, we have seen unprecedented commitments to reform the sector and address challenges. In addition to this programme, we have a number of initiatives to improve workers’ rights issues. From my perspective it is still implementation time, the time to fulfil the commitments that we all agreed upon. Clearly much has been done to work place safety, the three initiatives, Accord, Alliance and National Initiative have already inspected more than 2,200 factories, we should be able to complete the remainder within March 31, 2015.
We are glad to see that the government is providing excellent leadership in handling remediation related matters, including the review panel. Now nearly 30 factories have closed and we have seen the readiness and commitment shown by the BGMEA and BKMEA, to facilitate inspection of every single factory that is exporting garments from Bangladesh, and we are moving in the right direction.
M Rabin, Managing Director, Alliance for Bangladesh Worker Safety
According to Alliance, the RMG industry faces five major challenges. First, remediation financing, should the supplier be unable or unwilling to do the remediation, the brand is under obligation to do the financing. Ultimately its one’s own obligation to fix one’s own defects, however having said so, it is a shared responsibility. We are ready to share the responsibility, in that we are looking for low cost financing power of suppliers. Unfortunately we could not release $2mn in spite of running back and forth between BOI and Bangladesh Bank. We were planning to release $40mn and yet at merely $2mn we failed.
Therefore the next challenge boils downs to red tape. Third, relocation of factories, mostly comprising small and medium entrepreneurs, since brands are unwilling to invest in shared buildings. Fourth, the subcontracting policy is, as we know, a grey area in this country. There are a number of factories sub contracting, not having direct buyer’s orders, taking orders from here and there and working anywhere and everywhere without sufficient transparency. They need to be brought under the umbrella of accountability. Fifth, what is going to be the course of action on July 11, 2018, when Alliance and Accord retires from this country?
Sirajul Islam Rony, President, Bangladesh National Garment Workers Employees League
Our biggest challenge is international propaganda. We have efficient people and constructive plans, yet effectiveness is somehow lost. We need to investigate this. Beyond our borders, the good news from our country isn’t travelling, instead they’re discussing one troubled issue while another group is creating propaganda out of it. The fact that so many factories were shut down, did Accord or Alliance look into the state of the workers who lost their jobs?
We want to work under healthy work conditions. This should be a priority beyond everything else.
Abdus Salam Murshedy, Managing Director, Envoy Group
We need Trade Unions now that we are part of the ILO signatory body, but just a trade Union would not solve all problems. Instead we must focus on working collaboratively.
The factories that are getting relocated, and the ones that are getting newly built all need gas and electricity. We also need a deep sea port, if we are planning on eventually handling $50bn. Furthermore, if imports can be carried through by the ministry why can the export not be treated in the same manner?
Finally it is worth mentioning that back in 2009, 93% of entrepreneurs were Bangladeshi nationals while only 7% were foreign. So if we can all concentrate our collaborative focus on the development of this sector effectively and diligently, the $50bn isn’t far off.
Vidiya Amrit Khan, Director, Desh Group of Companies
Why is there such a distinct difference between epz included areas and factories in Kalughat? A lot of words were exchanged and after 10 long years we have one road that is already falling apart. We can talk about it, sign MoUs on it but who will solve the actual problem?
We talk about power: Price hikes in gas and lack of electricity. Lack of electricity can be addressed by the same process as taking loans from Bangladesh bank at an interest rate of 2% for the purpose of building housing for workers. Similarly if the government took initiative, and discovered alternatives for power, we can have subsidised solar panels, or green energy, which is aligned with the way forward.
The way forward for factories is green and lean, but we keep procrastinating thinking labour is cheap. However, one day labour is no longer going to be cheap, when our competition is India, Burma, Vietnam and Indonesia. We are not making enough technological advances and we will lag behind. We do not have management training for mid management, because it isn’t feasible for owners to speak to workers on a daily basis but mid management level employees need to and they need training for that. These are what we should look into. Once we do decide on a policy we should implement it and not just discuss it.
After extensive discussions, we often take a number of initiatives, but at the end of the day nothing transpires out of so much work. This is because in our country we have an issue with bureaucracy. When we discuss trade unions, it is stated that 33% of workers can make a single trade union. So technically, I might end up having three distinct unions in one factory with three distinct affiliations, which may very well hinder my productivity.
Dr Toufiq Ali, Chief Executive, Bangladesh International Arbitration Centre (BIAC)
First, I would like to point out that we are talking only about micro issues, they are fundamental for day to day operations and growth, but we have to think about the future.
The second point is that, we think of the RMG sector in terms of amount exported and the subsequent contribution to the economy. What this industry has really done is create a sense of entrepreneurship in people, wherever they go they want to do something. Backward forward linkage is one issue, but more importantly this feeling has emerged that we need to do something entrepreneurial instead of waiting for something to happen.
Tofail Ahmed, Honourable Minister, Ministry of Commerce, People’s Republic of Bangladesh
When we go abroad, we are handed our own newspapers, and told that everything that they think is wrong with our country comes from our very own news media. Accidents happen all over the world, but the media does not behave the way ours do. If we could instead also focus on the positive aspects of our country, perhaps we would go a long way in reaching our goal of attaining the $50bn goal by 2021.
