Solve crisis, save RMG sector
Speakers urge at The Daily Star-Junior Chamber roundtable
Staff Correspondent
The Daily Star, Bangladesh
Speakers at a roundtable yesterday called upon all stakeholders to immediately solve the prevailing crisis regarding minimum wage structure in the readymade garment (RMG) sector and look into other hidden causes that are responsible for the stalemate.
The minimum wage is one of the causes of violence in the sector but many other issues –workers right, overtime, regular increment, bonus, incentives and other facilities — need to be resolved for bringing back normalcy in the thriving garment sector, they said.
The speakers underscored the need for an amicable solution of the problems in the greater interest of the sector.
The Junior Chamber International (JCI) Bangladesh chapter organised the roundtable on ‘Problems in the RMG sector, recent issues and possible solutions’ at the Brac centre with joint collaboration of The Daily Star.
The Daily Star Editor Mahfuz Anam moderated the seminar while garment factory owners, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders, representatives of workers, buyers and donors participated in the discussion.
The seminar witnessed a strong debate between the representatives of workers and owners on the question of minimum wage for the garment workers.
Annisul Huq, former president of BGMEA and a member of the government formed wage commission for garment sector, told the discussion that the prevailing conflict between workers and owners on the question of minimum wage would be solved within a week.
“We are going to have a win-win situation on minimum wage within a week,” he said without giving details about the understanding between the conflicting groups.
Earlier both the workers and owners rejected the minimum wage structure declared by the government wage commission. The workers said the minimum wage was much less than their demand while the owners termed it ‘too high and unacceptable’.
The workers’ representatives demanded wage hike in the garment sector for the ‘very survival’ of the poorly paid workers.
With the unusual rise in the prices of essentials, the garment workers cannot survive with the poor amount they get, they said, adding that the sector may face another spell of unrest if their demands are not met.
Annisul Huq expressed fear that around 20 to 30 per cent factories might face closure if the minimum wage structure is implemented without considering the other relevant issues.
The cutting and making (CM) charge has declined almost by 50 per cent in the recent years, he said, adding that the wage structure should be formulated considering the ability of the owners.
Nazma Akhter, a worker leader and representative of the workers in the wage commission, reiterated their demand for Tk 3,000 as the minimum wage for the garment sector.
Urging the buyers to increase the CM charge and save the sector from ruination, she said the workers are also ready to launch movement for price hike of the garment items.
“We do not want to go for rampage but we want to survive. Please let us lead a life as just human beings,” said another representative of workers.
Mamunur Rashid of City Bank NA said the garment factory owners do not present the actual picture of their earning and profit. Although the owners make huge profit compared to their equity share, they show profit margin on the basis of total turnover, he added.
All the economic indicators like per capita income and GDP growth rate went up in Bangladesh in recent years but the garment workers are not getting the share of benefit, he said, adding that not allowing responsible trade union also acted as a factor behind the volatile situation in the garment sector.
Asif Ibrahim, a member of board of directors of BGMEA, said there has not been significant increase of the prices of garment products over the last 20 years in the global market and the benefits they achieved were due to the currency rate fluctuation.
“When we exported RMG products during 80’s, we used to get Tk 35 for a dollar but now we get Tk 70,” he said.
He, however, added, “In the meantime, our production cost has also gone up significantly due to workers salary and reinvestment in the sector.”
“We have to receive high price from the buyers that is needed for sustainable growth of the industry. We have to consider how much wage we can afford to pay the workers and what should be the reasonable wage for the workers,” Ibrahim said.
It would not be rational to impose the minimum wage by creating pressure only on the owners, he said, adding that interest of both the garment owners and workers has to be considered.
Urging the owners to treat the workers as human beings, Channel-i Executive Director Israul Haque said a wrong perception has developed among the workers that garment owners earn huge money and deprive the workers and it is one of the major reasons behind the unrest in the garment sector.
An amicable solution can come out only if the owners consider the workers as their partner, he said.
Golam Faruk, chairman of SQ Group, criticised the wage commission’s proposal for a seven-grade wage only for the garment workers and said under this system workers may lose their right to negotiate with the owners for high wage after becoming skilled workers.
He spoke in favour of the labour leaders’ demand for determining the minimum wage based on the workers’ basic needs.
Now the wage should be set considering the well-being of both workers and owners.
Dr Fahmida A Khatun, a senior research fellow of Centre for Policy Dialogue (CPD) Bangladesh, said although the garment factory owners got the benefits of currency fluctuations while exporting products, the workers are yet to get the share of that profit.
The workers have also been deprived of the profit of currency fluctuation as per the accounts of consumer price index (CPI) and per capita GDP, she said, adding, “If we adjust both CPI and GDP with the workers’ existing wage, per month minimum wage should be Tk 2156.”
“If a worker wants to consume 2,122 calorie food every day, he or she has to spend Tk 1016 per month only for food. But the workers have to bear other costs of the family as well,” she said.
Emphasising the need for a compromise between the workers and the owners to come to an agreement on the minimum wage, Mahbubur Rahman, president of International Chamber of Commerce – Bangladesh (ICCB) said if the garment owners have the ability to pay the workers as per the newly declared minimum wage, they must pay it, but it would not be viable for an industrial unit that does not have the ability.
He said trade unions in the industrial sector consider their vested interest instead of industry development.
S Rumi Saifulah, national president of JCI Bangladesh, BGMEA director Salam Murshedi, Jenni Christenssen and Zillul Hye Razi of European Commission office in Dhaka, and Robert Wong of US embassy in Dhaka also took part in the discussion.
Rumi Saifullah (2-R), national president of Junior Chamber International (JCI) Bangladesh, speaks at a roundtable on ‘Problems in the RMG sector–recent issues and possible solutions’ organised by JCI Bangladesh and The Daily Star yesterday in Dhaka. (From right) Asif Touhid, Waqar Choudhury, Aftab Mahmud Khurshid and Mahzabeen Faruque, members of the national governing body of JCI Bangladesh, are also seen. PHOTO: STAR
