Faculty of Engineering > Textile Engineering

Bangladesh Garments: Crisis and Challenges

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Md. Fouad Hossain Sarker:
Bangladesh garments, the US$20 billion industry and the largest export earning sector of the country, have gone through very difficult time in 2013. The year began with the wound of horrific fire on 23 November 2012, which turned more than one hundred workers along with the factory into ashes. The factory, owned by Tazreen Fashions Ltd., used to make clothing for several retailers around the globe including Wal-Mart, Sears and The Walt Disney Co. Although legal action by a group of activists brought the owner to the court, the owner of the factory has been kept free; and it is only on December 22, 2013 that he was formally charged. Moreover, things are not yet fully settled regarding the missing workers, payment of compensation to the victims' families and also medical treatment of the injured workers.

Md. Fouad Hossain Sarker:
That the Tazreen fire could not wake up the owners, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) or the government, was manifest in their lethargic inaction or irresponsible indifference to fix the problems in the industry. Therefore, Bangladesh witnessed the worst industrial disaster on April 24, 2013, only five months after Tazreen fire, that killed more than 1100 workers, injured many more, and hundreds are still missing. Garment factories in Rana Plaza, Savar, suddenly turned into a mass grave. The multi-storied building was built on low land and housed at least five garment factories. From the grabbing of the land through every phase of construction, this building grew with irregularities and corruption.       

Md. Fouad Hossain Sarker:
Several studies show that, with some of the world's lowest wages and no job security for its workers, the industry maintains one of the highest profits. Inhuman working conditions, low wages, verbal and physical abuse, irregular or non-payment of dues and the inability to organize are common in many of the factories supplying world-class garments. Additionally, most of the so-called 'accidents' since 1990 reveal the faulty structure of factory buildings including weak electrical wiring, lack of fire exits and fire alarms, narrow stair and exit paths, poor foundation, and locked doors. These problems could continue for inadequate or non-existent regulation and lack of monitoring by the relevant government agencies.

Md. Fouad Hossain Sarker:
Therefore if we want to determine the responsible parties for these death traps, then we find at least three groups from home and abroad. They include

(i) Owners of factories, buildings and the BGMEA. No irresponsible owner has ever faced legal action for their wrong doings; it seems that they have a free hand to do whatever they like. As an umbrella organization of garment owners, BGMEA has the responsibility of monitoring compliance and advocating for high industrial standards. Instead, this organization appears as the collective muscle of owners to protect them from the law.

(ii) Relevant government agencies. There are ministries, directorates, and divisions within government those are supposed to monitor the industry, and to take action whenever necessary for the abuse and irregularities but their presence has been little felt. Even the number of factory inspectors shows the government's indifference. That has not changed even after the worst disaster. For example, budget of 2013-14 was declared within two months of Rana Plaza disaster, but no allocation was made for the appointment of necessary number of factory inspectors and/or strengthening rescue facilities. Instead 'industrial police' was mobilized to suppress workers agitation demanding wage and security.

(iii) International buyers and brand retailers. Things on the ground are not supposed to be unknown to them. Factories often accept abnormally low prices in an effort to attract buyers and grab orders. In turn, and in order to maintain a profit rate, low cost suppliers often avoid safety measures and reduce workers real wage (through increasing working hour, cutting their benefits, not spending on other facilities). This cost cutting behavior deepens the deprivation and vulnerability of workers.

Md. Fouad Hossain Sarker:
Different sources show that, when a BD garment is sold at US$14 at a supermarket in NY, Toronto, Sydney or London, 60% of that value can be grabbed by international buyers and brand retailers. Governments of western importing countries also earn a significant cut as vat or sales tax. Out of the remaining 40%, the imported and local materials together with the establishment costs take nearly 35%. Finally, less than only 1% is left for workers. US GSP: A case of blackmail On 27 June 2013, President Obama declared the withdrawal of the GSP facility for Bangladesh and said that, 'I have determined that it is appropriate to suspend Bangladesh ... because it is not taking steps to afford internationally recognized worker rights to workers in the country.' It sounds worker-friendly, actually it is not. Although the US suspended GSP facility 'to punish' garment industry, but garments, the main export item from Bangladesh to the US, did never enjoy this facility! On the contrary it has been a victim of discriminatory and high tariff barrier from the US authority.

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