We have recently observed the fourth anniversary of the Rana Plaza disaster and also recalled the effects of the deadly blaze at Tazreen Fashions factory in Ashulia that killed many workers.
We have also recalled on May 1, the great contribution being made by workers within our socio-economic matrix and the need for all of us to have a participatory engagement with them -- both the employers as well as others involved with entrepreneurship.
Discussions and evaluations revealed that we have moved forward in certain areas but are also being held back in other facets.
Despite criticism about their role, Alliance appears to have tried to carry forward a constructive inter-engagement. Their press statement underlined that many of our factories had achieved substantial completion of their Corrective Action Plans.
They also noted that millions of workers now have basic fire safety skills and access to their confidential Helpline Worker Safety committees.
They have also pointed out that their efforts have directly translated into lives saved and not a single garment worker has perished in an Alliance factory since their remediation work began.
Critical examination of the current dynamics and scenario within the RMG sector, however, also brought out to the surface an element which has been simmering for some time.
Exasperated garment manufacturers have justifiably been quite critical of fair pricing of their products within the global supply chain against the backdrop of existing pressure on them to improve safety standards.
Local apparel makers also drew the attention of participants in different workshops to the fact that over $1 billion had already been invested so far to renovate and retrofit their factories as per the demand of the buyers, retailers, and brands.
Yet, according to them, retailers and brands have shown little interest in offering a reasonable price of the products they are now sourcing from Bangladesh.
In response, a senior official of a European brand has pointed out that the retailer does not make a lot of profit. Instead, they are forced to include in the pricing equation the fact that they are able to sell only 60% of the products at tagged prices.
Of the remaining 40%, 20% is sold at discount prices and the rest 20% is sold at clearance outlets or eventually just donated. This explanation is only partially acceptable as it does not refer to the high profit margin being retained by the middle-man.
Four other important points to take note of:
1. A geographical mismatch existed in Bangladesh in terms of availability of labour. Some entrepreneurs pointed out that they cannot set up a factory where there is abundance of labour and, on the other hand, they do not find labour where they can set up factories. Our regulatory bodies need to address this issue through discussion.
2. Abundance of university educated professionals with business administration degrees but a scarcity of technically educated workforce. This is something which needs to be taken care of through technical education and vocational training.
3. The positive effect that has been generated because of the National Initiative introduced after the Rana Plaza disaster and the role played by Accord on Fire and Building Safety in Bangladesh and Alliance for Bangladesh Worker Safety.
It has been revealed that their efforts have led to inspection and remedial measures having been undertaken till October 31, 2015 in 1,475 factories. After necessary improvements 34.8% of these factories have received green mark (fully safe), 47.3% yellow mark (safe to some extent), 15.4% amber (still having some safety concerns), and 1% black (still unacceptable).
It is understood that 90 engineers from 20 engineering firms are involved in the remedial process. Difficulties apparently still exist with regard to factories located in rented buildings or if they are located in buildings shared with others.
Nevertheless, one can term this effort as a step forward. Success in this regard will encourage other factory owners to also step forward in this interactive engagement aimed at acceptable remediation.
4. The issue of allowing trade unions in the RMG sector. The ILO representative in Dhaka, Srinivas B Reddy, correctly pointed out that this crucial area in our economy needs a transformative change in the relationships and partnerships upon which industries are built. He suggested that this can be brought about through greater social dialogue between the government, employers, and workers.
The Bangladesh Institute of Labour Studies has recently indicated that in 2016 there were 1,403 casualties in other sectors, of whom 699 died
It may be recalled that in June 2016, the ILO Committee on the Application of Standards concluded a special paragraph calling for further amendments to the Bangladesh Labour Act relating to freedom of association and collective bargaining so that it is consistent with international labour standards, including revisiting the minimum 30% requirement of membership for union registration.
It was pointed out during the discussions that trade union registration has significantly increased over the last two years. As of February, 2017, the number of RMG trade unions stand at 571.
Rights activists have complained that the number would have been much higher had it not been for general anxiety among workers that employers generally have a negative attitude about this and any attempt in this direction is frowned upon.
Commendable steps
Mijail Shipar, senior labour and employment secretary of the government has however assured that the government is trying to introduce a standard operational method with a time-frame so workers can get registered in a shorter period of time.
It has also been revealed by the relevant government authorities that the government will now allow workers of Export Processing Zones factories to form trade unions.
It may be added here that Commerce Minister Tofail Ahmed has also indicated that if 50% of the members of the Workers Welfare Association (WWA) of the EPZ factories consented to registering as a trade union, then the WWA would be allowed to register under Ministry of Labour and Employment as a trade union.
This decision followed after repeated warning from the European Union that unless there was some visible progress in the promotion of worker’s rights, it would affect the duty free and quota free access that Bangladesh products presently enjoy in the EU under the EBA principle.
Death at work
This analysis would however remain incomplete if we failed to take into account workplace deaths also taking place in the non-RMG sector.
The Bangladesh Institute of Labour Studies has recently indicated that in 2016 there were 1,403 casualties in other sectors, of whom 699 died.
The highest number of casualties was in the transport sector. There were also quite a few incidents of boilers exploding and causing casualties in factories.
In response to this revelation, the Ministry of Labour and Employment has announced that the dynamics of ensuring safety at workplaces will be widened and extra funds would be made available by the government to ensure such security.
Any analysis of the above aspects will only reiterate the government’s political will towards overcoming the challenges within the RMG sector. We will have to be more patient and work together in a coordinated manner.
This will enable the phoenix to rise from the ashes more effectively.
Muhammad Zamir, a former Ambassador and Chief Information Commissioner of the Information Commission, is an analyst specialised in foreign affairs, right to information, and good governance. He can be reached at [email protected].
