Mohammad Nurul Alam
Bangladesh RMG sector is going towards uncertainty and passing a tough time that has never been experienced. The situations inside the country and globally seemingly not favorable for the apparel business where the future is only beyond the prediction. Some alarming facts has been considered not to be a good sign for the sector.
Worker unrest and vandalism of the Garment Industry
In recent worker unrest over the wage hike, there have been seen some targeting attacks on different renowned garment factories those are well known for worker welfare and solidarity action to help people by fair price shops, medical facilities, daycare and other worker-friendly initiative. But some miscreants by force entered the factory premises and blaze the loaded shipping track and vandalize office equipment and machinery. The camera footage shows the attackers are members of some young group that came inside the factory to rob and damage the factory.
Like this various factories in Gazipur and Ashulia have experienced attacks, vandalism, and incidents of arson, leading to casualties.
Industry insiders believe the attack on the garment industries are preplanned and to stop country’s growth as swell as economy.
BGMEA informed the media that the unrest was instigated by outsiders rather than workers. It has been also shown video footage to Buyer’s representatives in a meeting by BGMEA how attacks on various factories has been done by the miscreants.
Buyers are not ready to pay upcharge for wage hike
There are tremendous pressure has been observed to up the wage for workers as this is the part of social responsibility of the Brands but on the contrary they are reluctant to up the product’s price just to keep contribution for workers. Because as they believe that the minimum wage falls short of covering basic needs and a decent standard of living for the workers so in this regard they must come forward to provide upcharge of the goods.
It has been said that the goods taken from Bangladesh if considered buyer’s price 5 USD the same products sourced from other country is paid more than 7 USD. There is clear duel standard has been shown from the Brand’s side that industry insiders believe.
“Since we have accepted the new minimum wage, we will ensure implementation of it, and we need your support in terms of responsible purchasing practice,” BGMEA president Faruque Hassan said recently to the foreign buyers in a later that published in Bangladesh National news papers.
He also said “”Now, with the increase in the minimum wages, this industry has taken the challenge to ensure better living standards of the workers while maintaining competitiveness,”
Political turmoil and conflict over national election
Bangladesh is now going to an uncertain future as political parties fail to come in a common flat form to participate in the general election. The western countries have been urging to arrange free and fair election ensuring the all party’s participation. But the political unrest along with strike and blockages lead the RMG business towards uncertainty.
Apart from political turbulence and chaos there are threatened to have sanction in various form by USA and other nations that might be a big problem for the sector.
Business leaders demanded an immediate end to the ongoing political violence since it has made all the people of the country sufferer badly and serious blow to the economy.
Global demand for apparel product is declining
Due to recession and for instable economy throughout the world tendency to purchase is getting lower and in some cases users’s mind set has been changed to be more sustainable for not to buy beyond need.
Bangladesh RMG sector has a set up to produce basic or upper basic based on cotton product but the man made fibre could gain more attraction so consumers in the western country expending less for cotton made product and country like Bangladesh having order crisis.
RMG insiders expressed opinion that the post Covid apparel purchase by the brands globally has not been made by proper market survey or may be due to Russia-Ukraine war consumers choice to buy apparel product got hanged and so a huge number of unsold apparel products got stock in the wear house.
Russia-Ukraine war is heading towards uncertainty
The invasion on Ukraine by Russia is getting longer than it was thought and the economic uncertainty around the Europe also seems to be unending to determine the upcoming apparel order.
The war also halted the apparel market for the brands for these two places, Russia and Ukraine where big brands could sale their some portion of the business but now the market area is not open to send goods.
Apparel insiders opined though Russia was not directly connected with Bangladesh apparel business due to some financial legal issue but through the big brands made in Bangladesh could reach their and so it was also good business with them. As the sections has been given on Russia by EU the Russian market is cut off and stop for unknown period of time.
Bangladesh could be target of US labour policy
In a letter, dated 20 November, sent to commerce ministry’s Senior Secretary Tapan Kanti Ghosh by Md Salim Reza, minister (commerce) at the Embassy of Bangladesh, the embassy said there are reasons to believe that Bangladesh may be one of the targets of the US’ recently released memorandum on labour rights.
The RMG industry of Bangladesh could be one of the biggest target for business if the new labour law directed as politically on the RMG sector.
In conclusion, in the present circumstances Bangladesh RMG industry need join hand approach by the all stakeholders along with political parties. Apparel makers urges to get policy support from Bangladesh government and political stability to keep RMG industry sustainable for long time period.
