Gazipur RMG units go back to production.
September 25, 2008
The Gazipur based garment factory owners, some of whom were affected by the month-long labour unrest in August, are now upbeat on fulfilling this year’s export target of their produces, expressing their satisfaction over the government measures to keep law and order situation under control.
However, the industry insiders have linked the political stability and smooth supply of gas and power to such achievement.
According to them, normalcy returned in Gazipur and adjacent areas like Maona and Savar, where 60 percent of the country’s garment factories are located, as the unrest-hit factories have started production on the strict security measures taken by the government in association with the sector’s trade body leaders.
Meanwhile, in a bid to further stabilise the law and order, garments owners attended a crucial meeting at the Deputy Commissioner’s office in Gazipur yesterday where representatives from Police, Rapid Action Battalion (RAB) and other law enforcement agencies reviewed the latest law and order in the area.
Earlier, these factory owners threatened to close their units in the trouble-torn district for an indefinite period from the 25th of this month if the government fails to provide security for the industry within this stipulated time.
Most of the garment factory owners have expressed their hope that they will be able to make up for the loss they faced because of the latest spell of labour unrest.
They think the rate of inflow of orders from foreign buyers is still very high when the country can manufacture fine clothing with cheaper labour cost.
At the beginning of the year almost all garment owners expected to surpass the export target, but the unrest hindered production, said Salam Murshedy, managing director of the Envoy Group.
This group stopped production at its sweater factory for a few days in the first week of August when a section of agitated workers vandalised some factories at Ashulia demanding hike of their wages.
“Though it will be tough, we are optimistic of reaching our targeted export of US$100 million this calendar year. Our export was $90 million in 2007,” said Murshedy.
Lauding the government’s step for appeasing the unrest in the garment sector, which accounts for more than three quarters of the total exports, he said stable law and order situation, political stability and proper supply of energy are the main factors for achieving the target.
“The amount of loss we faced for the labour unrest will stand at Tk 15crore. But I am confident that I can recover the loss as the production started again,” said Mizanur Rahman Chowdhury, managing director of Mim Sweater, the factory that was burnt by its workers during the August 10 unrest.
“I exported US$15 million in 2007 and for this year my target of export is $18million,” the confident Chowdhury maintained.
Echoing Chowdhury’s optimism about RMG exports, Rezaul Hasanat, managing director of Viyellatex Group, a state-of-the art garment factory in Gazipur, also pointed to the fact that the work stoppage during the unrest would cost the production more.
“But the fulfillment of export target is possible under the current congenial business atmosphere,” he said. The total turnover of Viyellatex Group was $125 million in 2007 and this year the target is $135 million and it is possible to achieve, he added.
Iqbal Ahmed Quereshi Adnan, managing director of Titas Sweater, an affected garment, said anticipating Titas’ failure to timely deliver the export of sweater during the labour unrest, a major buyer from Spain cancelled his purchase order for 4 lakh pieces.
“But I am very optimistic about the achievement of export target of $7million this year, which was $6.5million last year,” he said, adding that the cost doubles when exporters have to make air shipment to maintain the lead-time.
When asked, Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Shahidul Islam said the situation seems normal, which is a pre-requisite to achieving export target.
“Stable law and order is a must for the recovery of the loss,” he said.
Weak trade unions fail to tackle unrest
September 25, 2008
Dozens of trade unions in the readymade garment (RMG) sector are hardly in any position to resolve recurrent labour unrests, as they have no control over workers at factory level due to inactivity of most workers’ unions, observed trade union leaders.
According to some leaders, at present there are more than 28 registered trade unions and more than 13 unregistered trade unions in the RMG sector.
Of the 200 registered workers’ union units at factory level, only 15 or so are active, the trade union leaders claimed.
As a result, the central trade union leaders do not have any proper means of intervention in the wake of any labour unrest, although the leaders are meant to play a major role in resolving labour unrest.
During the recent incidents of unrest, garment workers attacked many factories, but the trade union leaders could not communicate with the workers due to the absence of active workers’ union units.
Moreover, a ban was imposed on trade unionism since the declaration of state of emergency last year. However, the government relaxed such trade unionism embargo from industries, commercial enterprises and ports on September 7.
In line with trade union rules, leaders have an obligation to appease workers through realisation of their rights after negotiations with the factory owners concerned.
“We know we have a lot of responsibilities in the wake of any unrest in the industrial sector. But, sometimes we feel helpless as we have no control over the workers,” said Amirul Haque Amin, secretary general of the National Garment Workers Federation (NGWF).
He identified two main factors behind the failure of the labour leaders in properly handling the severe RMG labour unrest, firstly, the absence of effective factory level units of workers’ unions, and secondly, difficulty to unite so many trade unions under one umbrella.
Quamrul Ahsan, secretary of the Bangladesh Garment Sramik Karmachari Federation, pointed to the fact that leadership has not emerged among workers at factory level because trade unionism in the form of workers’ union are limited for various reasons.
“When any unrest occurs at any factory, all workers try to take up the leadership on the negotiation table, which, most of the time, leads to disputes being unresolved,” he went on.
He said that the number of trade unions, registered and unregistered, is now more than it is needed.
“We tried to bring all such trade unions, operating in the garment sector, under one umbrella,” Quamrul said, adding that the initiative ended up in failure due to lack of harmony among the union leaders.
President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Fazlul Hoque said surely some factories do not have any workers’ union.
“There is no hard and fast rule for forming a union at factory level. If the workers want to form a union at factory level they can do it,” he said.
“We, the owners, always appreciate constructive roles of the trade unions,” Hoque said.
He urged the trade union leaders to be more responsible in the wake of any labour unrest as they are an integral part in the production process.
BGMEA eyes $25b exports by 2013
September 25, 2008
Their commitment came at an iftar party at a city local hotel, which was attended by policymakers and policy movers, foreign diplomats, bureaucrats, civil society members, researchers and economists.
“As industry leaders, we can promise and attain this milestone (of exports),” BGMEA President Anwar-Ul-Alam Chowdhury Parvez said.
He expressed gratitude to the caretaker government for its role in ensuring 525 days free of hartals to operate the US$ 10.7billion industry smoothly.
“It’s our earnest belief that other activities such as the Regulatory Reforms Commission, anti-corruption drive, and an independent election commission will only help drive the country forward in the right direction,” Parvez said.
He stressed the need for synergising the public-private initiative to improve the country’s image, develop human resources and improve infrastructure like gas, electricity, highways and economic zones by encouraging private investors with right policy supports.
The BGMEA president said only 5 percent of the industry of around 4,000 factories, which fail to pay workers’ wages and other social benefits regularly, were dictating the image of the entire industry.
He, however, recognized that everything was not going well in the industry and there were numerous areas that deserve improvement.
“But, we cannot do so without the help of the people who really count,” he said, seeking support of the policy movers attended the party.
“What we can do without, however, is the help of the destructive elements that are taking us all for a ride; and without the bad publicity that is shaping the public opinion against the industry and its entrepreneurs,” said the BGMEA president.
Pay salary, arrears and Eid bonus Timely.
September 25, 2008
They also demanded steps by the government to sell the property of the factory owners, who laid off their factories without paying workers’ dues, on auction to pay the arrears.
At the press conference organised by National Alliance for Protection of Garment Workers and Industries at Dhaka Reporters’ Unity, speakers said that in some garment factories workers are unpaid for months and even in Ramadan they remain unpaid.
The alliance leaders placed their seven-point demand and declared to form a human chain on September 27 at Topkhana Road in the city if their demands are not met by the time.
Their demands include payment of 50 percent dearness allowance until the minimum wage of RMG workers is fixed by the wage board, lifting all sorts of restrictions on trade union activities, arrest and punishment to the garment owners who violated the labour laws and payment of arrear bills of workers of Honour Way Textile and Apparels (Pvt) Limited that was laid off illegally.
Helena, sister of Hosne Ara who was critically injured during the police atrocities on Tuesday, during a sit-in in front of Honour Way Textile and Apparels (Pvt) Limited at Uttarkhan said, “Suddenly on July 15 the authorities declared the factory closed saying that the owner had died.”
During the last 14 years the authorities closed the factory at least three times, every time saying that the owner had died, she added.
The workers of the laid-off factory said that the authorities fabricated the story only to misappropriate Tk 13 crore of the Provident Fund of the workers.
They also said that discontentment and frustration among RMG workers have been prevailing for long in the sector and there might be an outburst any time paralysing the sector, which is the largest foreign remittance earner in the country.
Convener of the alliance Abul Hossain and its central committee members Shaheeb Ullah, Golam Kadir, Rafiqul Islam Sujan, Mohammad Hossain Mollah, Zannatul Ferdous and Joynal Abedin attended the press conference.
Meanwhile, women members of National Garment Workers’ Federation staged a sit-in at its central office on Topkhana Road.
Federation President Shahida Sarkar, General Secretary Amirul Huq, Vice President Faruk Khan and Joint Secretary Kamrun Nahar were present.
Over half of the garment factories across the country have not yet paid Eid bonus and other arrears, they said demanding interference of the government, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) to ensure payment of Eid bonus and other arrears before Ramadan 27, says a press release.
Sramabikash Kendra, another platform of RMG workers, formed a human chain in front of the High Court yesterday demanding implementation of tripartite agreement among the government, RMG workers and garment owners signed in 2006.
About 70 percent garments of a total of 4500 garments across the country pay workers Tk 1200 only per month as salary instead of Tk 1662.50, which was fixed by the deal, they said, adding that if the workers demand salary as per the deal, owners of the factories threaten to lay off the factories.
Leaders and workers of Bachteshikho Nari, Garment Sramik Karmachari Federation and RMG workers from different garment factories in Gazipur attended the human chain, said another press release.
RMG workers pile pressure for pay, Eid bonus
September 25, 2008
Some garment factory owners are yet to decide on the payment of salary and bonus for their workers within the 20th of Ramadan, while the workers and trade union leaders in the sector continue to press home their demands.
Bangladesh Garment Workers Unity Council (BGWUC), a platform of 21 garment workers’ federation, already submitted Saturday a memorandum to the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) demanding Eid bonus and salary within the stipulated time.
The trade unionists alleged that a section of owners are dilly-dallying to pay the workers’ salary and bonus on time.
“We want the owners to pay salary and bonus to the workers within the 20th of Ramadan and we placed our demands to the BGMEA chief to mount pressure,” said Touhidur Rahman, coordinator of the garment workers’ platform.
Some owners are showing lame excuses saying that they make delay in payment of salary to the workers as they also receive delayed payment from foreign buyers, he said, suggesting that the owners should develop bargaining capacity with foreign buyers for better prices of sold merchandises.
“As per the general rule, the owners should pay the workers within the 10th of the month. But there are some owners who have not paid salary to their workers even in the middle of the month,” Touhid further said.
In the memorandum the BGWUC demanded payment of all arrears and salary for the month of September before Eid and a change in the time of the rationing of essential commodities for the convenience of the workers.
At present BGMEA and BKMEA sell some essential commodities at a subsidised rate to the garment workers from 8am to 5:30pm. “We demand that BGMEA and BKMEA distribute the essentials in the evening, because the workers stay in the factories during the present time,” the BGWUC leader said.
BGMEA and BKMEA’s rationing programme began from the first day of Ramadan.
Under the scheme, each worker is allowed to buy 3kgs and 700 grams of rice at Tk 100, 500 grams of red lentil at Tk 40 and 400 grams of gram at Tk 20.
Quamrul Ahsan, secretary of the Bangladesh Garment Sramik Karmachari Federation, said his organisation will also submit a memorandum to the owners through the BGMEA in a day or two demanding the timely payment of salary and bonus.
Meanwhile, at a press conference in Dhaka yesterday, a platform of some labour rights organisations, demanded the garment owners pay the workers’ salary by today, the 15th of Ramadan, and bonus within the 25th of Ramadan.
Shah Atiul Islam, convener of the Workers and Employees Action Committee, threatened to go on agitation if this demand is not met within the stipulated time.
“According to the International Labour Organisation (ILO) and the existing labour law of the land it is a fundamental right of the workers to get festival bonus, so the workers should not tolerate if they are not paid accordingly,” he told the press conference held at the platform’s office.
The workers’ leaders also urged the garment owners to announce a 100 per cent dearness allowance on basic salaries of workers so that they could cope with the price hike of essential products.
They also demanded withdrawal of all types of restrictions on trade unions, claiming that current labour unrest might not have occurred if the unions were active.
The government is now allowing trade unions to function with imposing nine conditions to follow, the journalists were told.
When contacted, Shahidul Islam, the BGMEA vice-president, said, “Most of the garment owners pay both bonus and salary before Eid. Still we are working on how to ensure the payment of bonus and salary on time.”
Businessmen hope for normalcy in garment industry
September 25, 2008
Some garment factory owners are yet to decide on the payment of salary and bonus for their workers within the 20th of Ramadan, while the workers and trade union leaders in the sector continue to press home their demands.
Bangladesh Garment Workers Unity Council (BGWUC), a platform of 21 garment workers’ federation, already submitted Saturday a memorandum to the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) demanding Eid bonus and salary within the stipulated time.
The trade unionists alleged that a section of owners are dilly-dallying to pay the workers’ salary and bonus on time.
“We want the owners to pay salary and bonus to the workers within the 20th of Ramadan and we placed our demands to the BGMEA chief to mount pressure,” said Touhidur Rahman, coordinator of the garment workers’ platform.
Some owners are showing lame excuses saying that they make delay in payment of salary to the workers as they also receive delayed payment from foreign buyers, he said, suggesting that the owners should develop bargaining capacity with foreign buyers for better prices of sold merchandises.
“As per the general rule, the owners should pay the workers within the 10th of the month. But there are some owners who have not paid salary to their workers even in the middle of the month,” Touhid further said.
In the memorandum the BGWUC demanded payment of all arrears and salary for the month of September before Eid and a change in the time of the rationing of essential commodities for the convenience of the workers.
At present BGMEA and BKMEA sell some essential commodities at a subsidised rate to the garment workers from 8am to 5:30pm. “We demand that BGMEA and BKMEA distribute the essentials in the evening, because the workers stay in the factories during the present time,” the BGWUC leader said.
BGMEA and BKMEA’s rationing programme began from the first day of Ramadan.
Under the scheme, each worker is allowed to buy 3kgs and 700 grams of rice at Tk 100, 500 grams of red lentil at Tk 40 and 400 grams of gram at Tk 20.
Quamrul Ahsan, secretary of the Bangladesh Garment Sramik Karmachari Federation, said his organisation will also submit a memorandum to the owners through the BGMEA in a day or two demanding the timely payment of salary and bonus.
Meanwhile, at a press conference in Dhaka yesterday, a platform of some labour rights organisations, demanded the garment owners pay the workers’ salary by today, the 15th of Ramadan, and bonus within the 25th of Ramadan.
Shah Atiul Islam, convener of the Workers and Employees Action Committee, threatened to go on agitation if this demand is not met within the stipulated time.
“According to the International Labour Organisation (ILO) and the existing labour law of the land it is a fundamental right of the workers to get festival bonus, so the workers should not tolerate if they are not paid accordingly,” he told the press conference held at the platform’s office.
The workers’ leaders also urged the garment owners to announce a 100 per cent dearness allowance on basic salaries of workers so that they could cope with the price hike of essential products.
They also demanded withdrawal of all types of restrictions on trade unions, claiming that current labour unrest might not have occurred if the unions were active.
The government is now allowing trade unions to function with imposing nine conditions to follow, the journalists were told.
When contacted, Shahidul Islam, the BGMEA vice-president, said, “Most of the garment owners pay both bonus and salary before Eid. Still we are working on how to ensure the payment of bonus and salary on time.”
Call to move all industries out of Dhaka
September 25, 2008
Speakers at a discussion on Thursday suggested that all industries, including garment factories, be moved outside Dhaka to protect the capital city.
At a discussion on river pollution and protection of environment at the office of Bangladesh Environmental Lawyers Association (BELA), they expressed fear that the pollution created by its inhabitants might destroy the city.
“Waters have been contaminated up to Shatnal area of the river Meghna. It affected breeding of hilsha fish,” said Inamul Huq, former additional director general of the Water Development Board.
He said the WASA had effluent treatment plants for only 10 percent of Dhaka’s total wastes, while the rest go to the river.
BELA director advocate Rezwana Hasan said, “We have selected six rivers near Dhaka. The condition of the rivers will be kept under observation.”
She stressed local people’s role to protect rivers of the country.
Huq blamed the WDB for the present situation of the rivers.
“According to the government rules, the WDB is responsible for the waters of the rivers,” the ex-WDB official said.
Hashem Sufi, director of Dhaka History Research Centre, also stressed on people’s support to protect the rivers.
Sufi blamed the occupation of river banks on the government as it leased the banks out to people.
He said there was a plan to dig a canal at a cost of Tk 700 crore to bring water from the river Jamuna to protect Buriganga, but it was possible to bring water from Padma at a cost of Tk 50 crore.
Bangladesh Environmental Lawyers Association organised the discussion.
Govt asks BGMEA, BKMEA to table plan
September 25, 2008
The Asian Development Bank has estimated GDP growth at 6.2 percent for FY 2008, the lending agency said in its Quarterly Economic Update of Bangladesh released Thursday.
Curbing inflation would be a key challenge, the report said, warning that Bangladesh Bank’s accommodative monetary policy would fuel inflation if bank credits were not directed to the economy’s productive sectors.
According to the ADB, food inflation rose to 12.3 percent in July from 11.1 percent in January 2008 while non-food declined to 6.3 percent from 11.4 percent during the same period.
The report however, said that inflation on a point-to- point basis, declined to 10 percent in June from 11.4 percent in January this year.
Revenue collection in FY 2008 recorded 1 percentage point higher growth compared to that of the previous year, which has been strongly aided by the interim government’s tax reform measures, the report reads.
Meanwhile, industry sector growth declined by 1.5 percent in FY 2008 from last year. However, growth rebounded in the second half following a surge in exports, rise in private credit and gain in business confidence, says the ADB update.
Nonetheless, the escalation of prices of raw materials and import inputs in the international market slowed industrial growth relative to the previous year, added the ADB study.
The report cited the 15.9 percent export growth in FY 2008 as ‘robust’ driven by a rise in knitwear and woven garments exports while imports rose by something above than 26 percent due to sharp rise in food grain imports.
The 32.4 percent growth in workers’ remittances has offset the higher trade deficit, which amounted to 60.2 percent during FY 2008, says the Quarterly Economic Update of Bangladesh.
Labeling the emerging power shortage is a major constraint to the development process the ADB stressed urgent actions to address the issue.
It said that large expansion in generation capacity is needed along with tuning up the transmission and distribution networks to keep up with the fast growth in electricity demand.
The ADB report recommended expediting exploration for new gas fields as gas supply shortages threaten in adding to generation capacity.
It also suggested formulation of the national e-governance strategy and implementation of the national information and communications roadmap for timely progress in the ICT sector.
Turkey exporters offer partnership with BGMEA
September 25, 2008
The Turkish knitwear industries association (TRISAD) is keen on entering into a ‘strategic partnership’ with the BGMEA for making apparel here for re- export to the EU and Russia, reports agency.
The proposal for the partnership came from visiting top TRISAD leaders when they met the leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at its headquarters here on Monday.
The BGMEA has welcomed the proposal and both sides would work now on how to make the proposition a success, said a press release. TRISAD President Mustafa Balkuv is leading the delegation.
Mustafa said some Turkish exporters have already relocated some orders with some Bangladeshi manufacturers and the merchandise is meant for Russian market.
The delegation exchanged views with the BGMEA team led by its President Anwarul Alam Chowdhury. Others present on the occasion included vice president Faisal Samad, director Mahmud Hassan Khan, Shahidul Islam, M A Rahim, Osama Tasir and Iqbal Hamid Qureshi.
The meeting discussed ways and means of how both sides can set up the partnership and implement it. Mustafa said Turkish knitwear export to EU stands only next to China.
It also ranks second in the export of brand items to the EU and Russia and the worth of the business is US$ 20 billion at the moment. From this, export to Russia stands at US$ six billion.
The Turkish delegation leader said the cost of garment manufacturing has increased recently in their home threatening its competitiveness in the EU market. So Turkey has decided to shift some of the sweater making to low cost third countries and they believe Bangladesh has all the merits to be their ideal partner.
Mustafa said Bangladesh and Turkey can mutually benefit from the strategic partnership and under it they can relocate some of their manufacturing here under joint venture projects. BGMEA president Anwarul Alam Chowdhury told the Turkish delegation that Bangladesh will be able to produce quality garments and brand items using the Turkish experience. It will not only expand exports but also open new market such as Russia. He urged the Turkish delegation to bring in investment in the textile sector particularly in dying and yarn production.
Legitimate demands of the workers should be addressed
September 25, 2008
RMG sector is once again hit by workers unrest. In the second eruption of violence in just 48 hours, the workers of Diganta Sweaters Ltd in Gazipur on Tuesday went on the rampage disrupting traffic movement on the Dhaka-Tangail and Dhaka-Mymensingh highways. In the violent incidents about 50 persons including the OC of Tongi Sadar Thana were injured. This time the RMG workers ransacked 10 garments factories and Police had to fire nearly 100 rounds of blank shots to disperse them. The trouble began in the morning when the workers of Diganta Sweaters reaching their factory for work became agitated following a rumour that three of their fellow-workers were found dead in the bathroom and started ransacking the nearby garments factories.
The previous violence had sparked off when there was another rumour that a female worker has died inside the bathroom of the same factory. On Wednesday when police were trying to persuade the workers for restraint, hundreds of others from the nearby factories rushed to the road and went on the rampage. Meanwhile, the home ministry on Wednesday directed the law enforcers to check any slide in law and order, and tackle unrest in readymade garment sector with an iron hand. The government directive is a timely and necessary measure as violence and unrest in the RMG sector have exceeded tolerable level and the BGMEA also has sought government protection to keep the industry running. In fact, stern action has been long overdue to restore peace and order in the vital RMG sector. It must be said that violent action by the workers on the basis of rumours and without verifying them is unacceptable and should be condemned and seriously dealt with. However, on some occasions there may be some valid grounds for the workers’ discontent and agitation and if so those should be addressed sympathetically. The workers should be guided by reasoning and not by emotion or fall in the traps of those who want the RMG sector of Bangladesh to be ruined.