Wage and safety concerns for Bangladesh’s apparel industry

FIRSTHAND_ After the deadliest ever garment factory accident – the collapse of the Rana Plaza building on 24th April 2013 – workplace safety, image concerns and demands for higher wages have become major concerns for Bangladesh’s

apparel industry. FashionUnited spoke to the parties involved on site in Dhaka.

Almost daily, garment workers are staging demonstrations demanding higher pay causing suspension of operations in several factories. They are blocking roads and destroying public property to press home their demands and draw attention to the fact that they are failing to cope with inflationary pressure with their tiny earnings. For the last couple of years, the food inflation in Bangladesh has been hovering at a double digit increase, thus slashing people’s purchasing power.

Bangladesh's minimum wage still lowest in the world

The minimum wage for an entry level garment worker in Bangladesh is now 38 US dollars a month, which is the lowest among apparel producing countries with Bangladesh being the second largest garment manufacturer in the world.

However, factory owners agreed on November 13th to raise the minimum wage to 5,300 taka (68 US dollars) on prime minister Sheikh Hasina's intervention. The new wage structure will be effective from December 1.

Despite the wage hike, many labour organisations are staging demonstrations and demanding a minimum wage of 8,000 taka (103 US dollars). Industry insiders are still doubtful whether the new wage will help cool down the situation as many labour bodies are still asking for a further wage hike. Amid the situation last week on Wednesday, garment factories in Dhaka's Ashulia area reamained shut for security reasons as workers continued to demonstrate.

“Factory owners are very much rigid in providing a good salary to us for a modest living. The amount they are offering in the ongoing wage structure negotiations is unacceptable and won’t meet our minimal needs,” said Mosharefa Mishu, president of the Garment Workers Unity Forum. She said with their little earnings, the garment workers led a very poor life and failed to secure a meal even twice a day. “A handsome wage increase has now become the demand over time with expenses skyrocketing.”

According to Mishu, the promised actions of the foreign brands are still not visible even six months after the Rana Plaza collapse that killed 1,130 workers and injured many more. “The family members of the dead workers and the injured people are yet to get compensation and in this regard, no effective steps from both the government and the BGMEA or the international community have been seen,” she said.

Mishu believes that the massive publicity about poor working conditions and low wages by both the local and international media has helped draw global attention for the issue and to put pressure on factory owners and foreign buyers to initiate improvements. “The publicity, though exposing mainly negative sides, has not reduced work orders, rather statistics show an increased volume of apparel exports in the meantime. Buyers won’t leave us since such cheap products are not available anywhere in the world,” she added.

Regarding the Accord on Fire and Building Safety in Bangladesh and the Alliance for Worker Safety, formed by European and US buyers, respectively, Mishu said the latest fire incident at Aswad Composite Mills factory in Gazipur that killed eleven workers showed that no steps taken by either initiatives had been effective. “Had the factory owners followed the guidelines and steps of Accord and Alliance, the casualities may not have taken place,” she stated.

The president of Jago Bangladesh Garments Federation, Baharaine Sultan Bahar, said a safe and secure workplace is a general requirement for any industry. Besides, workers have to be paid a salary that can at least help cover their minimum needs. “But presently the salary the workers are paid can in no way ensure their essential requirements. Many of them remain unfed at least once a day failing to buy food,” he said.

International media attention good and bad

Bahar, however, thinks that the media attention is doing both good and bad for the industry as mainly the weak sides are being exposed. “Yes, it is causing a massive image crisis. But, side-by-side, I think it’s also creating pressure for bringing about changes. Buyers should raise prices, which ultimately will help poor workers. They are also responsible to improve working conditions,” he said.

Abu Hannan, a swing machine assistant of a factory located in Dhaka's Malibag area, said living condition of garment workers would not improve unless a handsome salary would be paid. “I heard from television and read in the newspaper that factory owners are proposing a minimum wage of 57 US dollars a month. This won’t help workers make ends meet because the costs have already increased manifold.”

“I am not concerned whether work orders have increased or fallen due to the massive publicity of the incidents and poor working environment. When factory owners are not considering our welfare but rather always try to deprive us, why should we be concerned?” he added.

After the withdrawal of the generalised system of preference (GSP) facilities by the US administration for Bangladeshi goods, the government has been trying to bring discipline to the apparel industry. To this regard the Bangladesh Labour Law has been amended alongside appointing more factory inspectors, asking the factory owners to ensure workplace safety and to improve working conditions.

Syful Islam, Dhaka



Photos: Family members of Rana Plaza collapse victims; a group of garment workers returning home for lunch; garment workers demonstrating