Bangladesh labour unrest worries foreign garment buyers
DailyIndia.com, NY
Dhaka, June 21 (IANS) Foreign garment buyers, particularly those from the European Union, have expressed serious concern about continuing labour unrest in Bangladesh’s textile and readymade garment industry.
Major foreign buyers have warned Bangladesh of the adverse consequences of the recent spate of violent protests in its vital apparel sector because of non-compliance of labour standards, disruption of production and delayed shipment.
In a letter to Prime Minister Khaleda Zia, 11 top buyers from the European Union and the United States have urged the government to resolve the industrial standoff through dialogue among major stakeholders in the shortest possible time, the New Age newspaper said.
Reflecting buyers’ concern, the European Commission envoy here, Stefan Frowein, met Commerce Minister Hafizuddin Ahmad to emphasise the need for a negotiated settlement of the disputes between the managements of the 600-plus units and the workers.
Disturbance in the sector was worrying buyers in Europe, the major destination for Bangladeshi apparel exports, BSS news agency quoted him as saying.
Although Bangladesh has done well despite the World Trade Organisation (WTO) regime taking away quotas, recurring violence has marred the working of this sector that earns the highest foreign exchange for the country.
The South Korea-based Youngone Industrial Group is going to establish its 16th industrial unit at the Dhaka Export Processing Zone (DEPZ) investing $7 million to manufacture textile fabrics, official sources said, reports BD News.
The minister said the government was keeping a vigil on the garment sector since the recent factory violence as ‘we are determined to ensure a proper and peaceful working atmosphere in the sector’.
The government, Ahmed said, had already undertaken several steps with the formation of a wage commission being one of them to resolve the garment industry problem. The commission is due to submit its report in three months.
Despite factory unrest, the earnings from garment industries rose by 19 percent this year while the amount is expected to reach 20 percent at the yearend, Ahmed said.
Garment products worth $3.7 billion were exported to Europe from Bangladesh in the past 10 months, according to commerce ministry officials, Bangladesh Observer newspaper said.
Copyright Indo-Asian News Service
