RMG sector faces big financial losses

Fear of missing orders

Mominur Rashid Mamun: For the past few days, there has been labor unrest in the export-oriented garment industry. The workers are protesting for various demands. Several factories were vandalized and looted. Especially in the industrial areas of Savar, Ashulia and Gazipur there is extreme unrest. It disrupts production. There is a fear of losing the mandate.
Garment industry owners are worried in such a situation. Due to labor unrest, production is severely disrupted. On time shipment of products is a growing concern. If the production can’t be completed within the stipulated time, the product has to be shipped by air in case of export. It will increase the cost by several times.
If ongoing volatility is not contained, it will be difficult to retain consumer confidence.
In addition, the next season’s agenda will be affected. If the work orders are not received as required, the risk of the worker becoming unemployed will be increased. Because if there are not enough work orders it is difficult to keep the factory running. The industrial sector has suffered huge financial losses due to the recent labor movement.
In the last one month, there have been incidents of vandalism and fire in hundreds of industries and factories in different parts of the country due to various reasons including labor dissatisfaction. At that time, the production and marketing process was stopped in more than two hundred factories. The Metropolitan Chamber of Commerce and Industries (MCCI) has said that the industry has suffered a loss of around Tk 5,000 crore.
The owners said that despite the assurance of meeting the logical demands of the workers, the dissatisfaction did not decrease, rather, the factories were vandalized by raising various unreasonable demands.
Workers’ demands and justifications
First, the workers came to the field demanding an increase in wages and attendance bonus. Later they demanded equality of men and women in employment. They also demanded jobs for the unemployed and reinstatement of the unemployed.
Labor leaders and owners have commented that all their demands are not reasonable. They feel that the demands that are being raised are not meetable at all. Unreasonable in some cases.
Commenting on the ongoing movement, President of Combined Garment Workers Federation Nazma Akhtar told, “It is not a labor movement. We form unions, present demands and negotiate to achieve them. All the claims raised are not logical. Salary will increase at the end of the year. And attendance bonus will be given if you work for 30 days. It is not a big demand, it can be solved through discussion.
Garment industry owners say that the participation of women in the garment industry is high. As a result, women have been empowered in the country. Women workers are more suitable for this industry due to the type of work. Moreover, the same number of male workers is not available. So, it is not a logical claim.
Hiring depends on demand. When workers are required in a factory recruitment is done on the basis of merit through notification. If there are no vacancies, it is not possible to give a job just by asking someone. There is a method of giving jobs. They said that workers are appointed based on that.
In response to a question about the wage hike demand, they said that as per the Minimum Wage Board rules, the wage is increased by five percent at the end of the year. In many cases we increase more than five percent depending on the skill of the worker and the type of work. But now the workers should think how reasonable is the demand for such a wage hike in the middle of the year.
As per the latest wage board rules, industrial owners are mandated to get a five percent wage hike every year.
Fear of losing mandate
BKMEA president Mohammad Hatim said, “If the ongoing labor unrest is not stopped, we will not be able to export products on time.” On the other hand, if this situation continues, global buyers will lose confidence in us. As a result, we will fail to get the amount of work order required for the next season.
He said, “On the one hand, the owner will suffer and on the other hand, the job of the worker will be at risk.” Because if there are not enough work orders, we can’t pay the workers. In some cases, the factory may have to be closed.
Who is leading movement?
Trade unions usually take the lead in securing workers’ demands. But the trade union leaders are not involved in the ongoing protest, instead they are calling it an irrational movement. Owners and labor leaders see behind this movement as an attempt to dominate and take over the business.
They claim that local Awami League leaders and a kind of non-working local people are leading this movement to achieve their own goals by inciting the workers.
A factory worker told on condition of anonymity that there are groups of Awami League to exert influence in the area. After the change of power they are using workers to make their position known. So far Awami League people used to work, now after the change someone else will do it. Areas where factories are located have local people who control various types of businesses. Such as jhoot business, supply of food and other goods.
He said that because of a political change, those who were deprived want to inform their situation anew. As a result, they are calling for such a movement by misleading the workers. Considering the current situation, the government should take quick action. Because the garment industry is the largest foreign exchange earner of the country’s economy.
Labor leader Sirajul Islam Roni told, “The current kind of movement is not a labor movement in my opinion. Because at the moment the workers do not have any movement demands. If there is any claim then it should be resolved through negotiation. In the present situation, it is not advisable for workers and industry to agitate in any way. Law and order forces and the administration must take swift action to resolve this so that no one else can take any chance.
Abdullahil Rakib, managing director of Team Group and senior vice-president of BGMEA, told, “This movement is a power struggle between Awami League and BNP. One of them is taking over Jhoot business, the other is Awami League’s showdown to show that they are in the field. There are no demands of common workers here. However, in one place, it is said that the laborer boys and girls should do fifty-fifty. A section of the agitators went to the factory and said that boys are sitting and giving work to girls, this cannot happen. But they don’t know that men can’t do women’s hand tailoring.
A call back to work
Not only the owners, but also the labor leaders have urged not to agitate in the current situation but to return to work for the sake of the industry.
Labor leader Najma Akhter said, “If there is a garment industry, jobs will be available. Resolve claims through negotiation. Please don’t destroy the industry by agitating. I request the workers brothers and sisters, your workplace is your family. Let us not listen to anyone’s words and fulfill our duties and join the work.