Study: How does automation affect workers in Bangladesh’s RMG sector?

Bangladesh is the second largest exporter of readymade garments (RMGs) after China, contributing 10.35 percent of the national GDP and 84.58 percent of the country's exports in fiscal year 2023. The country is also home to 61 of the top 100 highest-rated LEED-certified factories in the world and 229 LEED-certified green factories. State-of-the-art garment factories also mean technological advances. But are those, especially automation, good for garment workers?

A recent study titled “Assessment of technological transition in apparel sector of Bangladesh and its impact on the workers” analysed just this. Commissioned by the Bangladesh Labour Foundation (BLF) with support of Solidaridad Network Asia, the study surveyed 429 garment workers from Dhaka, Gazipur and Narayanganj, all RMG-producing hubs. In addition, there were key informant interviews with 26 stakeholders and four focus group discussions with workers. The study was conducted by BRAC University between August and October 2024.

Status of automation in manufacturing in Bangladesh

Compared to other industries around the world, the status of automation in Bangladesh is still at a low to medium level, reaching a score of 2.5 to 3 out of 5. A study by LightCastle Partners from 2024 confirmed this, stating that Bangladesh is still in the “early stages of adopting automation in manufacturing”, with a high-tech intensity of just 1.9 compared to China (63.7).

The study also found that out of the ten stages from spinning to shipping, only three are fully automated, namely spinning, dying and finished fabric preparation. However, “the advanced level of automation was not found in the manufacturing stage”. The sewing stage, which employs a majority of workers, is still semi-automated, with Industry 2.0 dominating this process.

Beyond production, system and data management is automated, allowing for digital IDs, fingerprint scanning, mobile payments, IoT-enabled systems and streamlined processes such as attendance tracking, quality monitoring and resource management. “Data automation enables manufacturers to track production metrics, energy use and maintenance schedules in real time, support Just-In-Time (JIT) operations and reduce waste,” finds the study.

Advantages of automation

Among the many benefits of automating processes is a higher production rate while spending less time on more efficient tasks. This leads to an increased pace of work while achieving better quality, top-notch designs and higher accuracy. This means overall competitiveness and survival in the global market by fulfilling consumer demands, maximising profits and trouble-free operations. “It is observed that the official capacity of automated machines is about 200 pieces per hour, while a factory using manual machines can only make 50 to 60 pieces per hour,” is the observation.

In terms of spreading fabric, one factory manager stated that the factory now requires only one worker instead of seven, saving 1020 US dollars in labour costs. Similarly, while it earlier took seven workers with a manual machine to attach welt pockets, now it takes only three, saving 850 US dollars in labour costs. Productivity increased per hour from 90 to 140 pieces and reduced rejection from 10 percent to nearly zero percent after introducing the Back Moon machine to produce knitted polo shirts.

Better skill set, less overtime, more leisure time

A majority of workers (85 percent) who adapted from semi-automated to automated machines reported reduced physical strain, particularly in knitting tasks, with “notable productivity gains”. The number of errors also reduced by more than 50 percent and most of the interviewed workers (almost 97 percent) agreed that automation had helped achieve production goals due to the significant reduction of alteration and rejection and increased safety because of the avoidance of using scissors manually.

Automation has also created opportunities for skilled positions in machine operation, programming and maintenance as workers are increasingly required to operate both basic machinery and more advanced automated systems, “making them more versatile and empowered” according to the study. “About 79 percent of the interviewed workers believe that if they leave now and join another factory, their salary will be increased due to the skills attained after automation,” was the consensus.

Another significant finding is that more than three fourth of the workers (almost 78 percent) reported having more leisure time, which is spent with family, doing household chores, caring for children and the like, due to a reduction in overtime.

Challenges of automation

With the benefits of automation also come challenges, with almost every plus point also having a down side. For example, automated machines require fewer workers to operate and thus reduce the number of workers required to complete a task. This affects especially women workers and those who are aged, less literate or unskilled who are the first to lose their jobs while others may be moved to other sections, find new roles or positions or are trained to be machine operators.

Here, the study observed a gender gap: “It is found that women workers are more vulnerable due to a lack of technical skill, and 62 percent of workers stated that women were replaced - either by being reassigned to different roles or, in some cases, losing jobs.”

In practice, female garment machine operators typically know how to operate fewer machines, often sticking to just one, while 50 percent of the male operators know how to operate at least two machines. The latter also excel at managing multiple processes on the same machine, averaging 3.5 processes compared to 2.9 processes for female operators.

“Gender inequality is also visible in upper-level production roles like CAD operations, which is dominated by male workers,” states the study. This goes along with an increase in income.

Less overtime means less pay

While workers having to do less overtime due to faster production cycles enabled by automated machines sounds like a big perk at first (dropping from an average of 20 hours per week to 11 hours), the downside is that workers now have less money at their disposal as the wage structure for machine competency has not been upgraded accordingly.

“This highlights the fact that the more machines or processes a worker can operate, the more they earn monthly, but this amount is not adequate,” finds the study. “This directly affects livelihoods and family life, with negative impacts driven by low income and rising inflation rates. While the factories have benefited significantly after the use of advanced technology and machines, there has been no significant rise in the income of the workers after this technological transition,” is the conclusion.

The transition to automated processes has also led to job polarisation, particularly in mid-level roles, as many tasks can now be performed more efficiently by automated systems and software.

Limited access to training is another challenge for workers, with more than two fifths (41 percent) mentioning that they did not receive any formal training. For those who did get formal training, most of it happened during work hours, thus putting more pressure on the workers. “This lack of proper and consistent formal training leaves many workers feeling unprepared and worried about their job security. It is also evident that female participation in both formal and informal training is comparatively low,” is the consensus.

Recommendations for a just transition

One can see that to make automation in the RMG industry work — especially for those at the lowest rung of the ladder, the garment workers — a coordinated approach from factories, training institutions, brands, buyers, business associations, government and development partners is needed as the study suggests.

At supplier/manufacturing level, this means developing a strategic plan for sustainability to ensure “a just transition for workers and smooth business operations”. This includes training facilities, timely information sharing, motivation packages for upskilling and introducing internship programs in collaboration with technical education institutes to attract future talent.

Brands and buyers should ensure responsible business conduct and ethical trading practices. This should include impact assessments to evaluate and update the social and economic effects of automation on workers and suppliers. They should also collaborate with suppliers, trade associations, trade unions and governments on transparent, inclusive automation strategies and get involved in the design and funding of worker training programmes.

Important is also to ensure that fair wages, safe working conditions and labour rights are maintained throughout the automation process. Brands and buyers should also commit to long-term contracts with their suppliers and adjust pricing structures to offset the latter’s automation costs. They should also work with their suppliers to minimise layoffs by focusing on reskilling, upskilling and redeployment within the supply chain.

Trade unions should coordinate and collaborate with employers, employers’ associations, brands, governments and CSOs to support a just transition. They should also ensure that decisions about automation are communicated openly and that the approaches are participatory, where workers and their representatives are consulted.

Importantly, they should also ensure that women are not disproportionately affected by automation and provide additional support for women workers during the transitional process. This includes a push for stronger social safety nets including unemployment benefits, pension schemes, access to affordable healthcare and education and others. Lastly, they should also push for greater accountability from global brands to ensure their supply chains remain ethical and comply with global labour and human rights standards.

At government level, a national action plan should be developed that prioritises workers in a just transition, including strong labour laws and protection to address challenges posed by automation. Fair benefits and compensation for displaced workers should also be in place. Access to financial assistance for technology upgradation, green infrastructure and advanced machinery, especially for small and medium factories, will also be important. Similarly, national public and private technical training centres should be supported to offer demand-based skills training for workers and mid-level management.

The study also recommends developing upskilling and reskilling programs specifically tailored to the needs of female workers and other measures.

While key findings were introduced at the beginning of the year, the complete study is yet to be published. FashionUnited gained insights through the executive summary and will update the article once the full study is made available.