Wasim Zakariah Director of Posh Garments Ltd and Chair and Co-Chair of Standing Committee of BGMEA SDG and Sustainability recently conversed with Textile Focus at Wagely present interview session RMG Leaders on Worker Wellness.
Key Discussion here –
Textile Focus: The Ready-Made Garment (RMG) industry has experienced significant transformations over the years. To delve into the major changes and challenges, as well as how they compare to other industries, could you walk us through the biggest changes and challenges the industry has seen and how they may differ from other industries?
Wasim Zakariah: The RMG industry in Bangladesh has undergone a remarkable transformation, evolving from modest beginnings to becoming the world’s second-largest apparel exporter. This growth reflects the industry’s resilience, adaptability, and dedication to maintaining high-quality standards. A key milestone in this journey has been the significant improvements in working conditions, safety, and social compliance, making Bangladesh’s garment sector one of the safest globally.
Bangladesh is nowhome to the highest number of Green Factories(226) in the world, a testament to its commitment to sustainability. Among the top 100 Green Factories globally, 60 are located in Bangladesh, highlighting the country’s leadership in environmentally responsible garment manufacturing. This progress aligns with the BGMEA’s strategic vision, which is closely tied to the Sustainable Development Goals (SDGs) and the EU’s recent Human Rights and Environmental Due Diligence (HREDD) initiative.
Despite these advancements, the industry faces several challenges. A heavy reliance on the U.S. and EU markets exposes it to risks from economic downturns and changing trade policies. Additionally, production efficiency in Bangladesh lags behind competitors like Vietnam and China, mainly due to limited automation and high costs. To stay competitive, there is a need to shift focus from basic garment styles to more sophisticated, higher-value products.
Infrastructure challenges also persist, particularly in port facilities and transportation routes, which create bottlenecks and delays. Overcoming these hurdles by expanding port capacities and developing alternative transportation routes is crucial to supporting the industry’s continued growth and maintaining its leadership in the global apparel market.
Textile Focus: How would you describe the journey of Posh Garments over the years?
Wasim Zakariah: Posh Garments has experienced a journey characterised by growth and adaptation. In the past decade, we’ve doubled our production capacity while enhancing workplace safety, employee welfare, and operational efficiency. Key milestones include the adoption of electronic salary payments, the integration of ERP (Enterprise Resource Planning) systems in 2018, the overhaul of our HR department in 2020, and the recent implementation of SOPs (Standard Operating Procedures) in 2023, all of which have streamlined our operations and boosted employee satisfaction.
Of course, this journey hasn’t been without its challenges. The global COVID-19 pandemic and the ongoing Russia-Ukraine conflict brought significant hurdles, including order cancellations, shipment delays, and trade disruptions. Yet, Posh Garments has remained resilient, committed to navigating these challenges and continuing our upward trajectory.
Textile Focus: What are the various facilities that Posh Garments provides to their employees? And how are those facilities ensuring worker wellness?
Wasim Zakariah: Posh Garments champions worker wellness through a holistic and proactive approach focused on safety, health, education, and nutrition:
- Safe Working Conditions: We prioritize safety by strictly adhering to health regulations, conducting regular training, and collaborating with the RMG Sustainable Council (RSC). This commitment to safety reduces workplace risks and ensures a secure environment for our employees.
- On-Site Medical Care: Our on-site medical facilities provide immediate healthcare access, including specialized services like prenatal counseling, vaccinations, and eye exams. These services are vital in keeping our workforce healthy and supported.
- Empowering through Worker Rights Education: We run awareness programs on worker rights and gender violence, empowering our employees, particularly women, with the knowledge they need to feel respected and informed. This contributes significantly to their mental and emotional well-being.
- Nutrition Awareness: Through a new partnership with Helen Keller, we’re enhancing our workers’ understanding of nutrition, and promoting healthy eating habits that directly impact their overall wellness. These initiatives collectively create a supportive environment where our employees can thrive, both personally and professionally.
Textile Focus: Are there any type of financial facilities you are providing for your employees?
Wasim Zakariah: Since 2016, we have implemented an electronic payment system to ensure our employees receive their salaries efficiently and securely. Recently, we have taken a further step towards supporting our workforce by partnering with AgroShift to offer basic food items at a subsidized rate. Additionally, we provide transportation for our workers, offering buses to commute to and from the factory. We also have a dedicated health fund to assist our workers in managing any major health issues, reflecting our commitment to their overall well-being.
Textile Focus: In your opinion, what are the major financial challenges for our garment industry at the moment?
Wasim Zakariah: The garment industry in Bangladesh faces significant financial challenges. Rising costs for raw materials, energy, and living expenses are squeezing margins, while buyers continue to push for lower prices, making profitability a tough battle.
Access to affordable financing is a major hurdle, especially for small and medium-sized enterprises (SMEs). These businesses struggle to secure the capital needed for modernization, technology upgrades, and sustainability efforts, with high interest rates and strict loan conditions adding to the burden.
Additionally, the fixed currency exchange rate is limiting the industry’s ability to maximize foreign exchange earnings, hindering growth and global competitiveness. These financial pressures demand urgent solutions to ensure the industry’s continued success.
Textile Focus: How has the RMG industry itself evolved in terms of improving wellness for the workers over the years?
Wasim Zakariah: In response to the question about the improvements in worker wellness within the Ready-Made Garment (RMG) industry in Bangladesh, I would like to highlight the significant progress made over the years. This progress is the result of a multifaceted approach involving regulatory reforms, proactive industry measures, and the influence of global buyers who have emphasized the importance of ethical sourcing.
The industry has seen substantial improvements in workplace safety, significantly reducing the risk of accidents andu fatalities. Additionally, there has been a growing emphasis on the overall well-being of workers. Key advancements include increases in the minimum wage, enhanced access to healthcare facilities, and the provision of clean drinking water, all of which contribute to both the physical and mental health of employees.
Moreover, the industry has made strides in promoting awareness around critical issues such as harassment, stress management, and workplace rights. Factories are increasingly establishing worker participation committees, unions, and grievance mechanisms, which provide employees with vital platforms to voice their concerns and seek redress. This comprehensive approach has played a crucial role in elevating the standard of worker wellness within the RMG sector.
Textile Focus: As we know the workers are the backbone of our RMG Sector, what can we do to ensure their inclusivity while progressing with the industry’s sustainability goals?
Wasim Zakariah: In the Ready-Made Garment (RMG) sector, our workers are the cornerstone of the industry’s success. To ensure their inclusivity and make them integral to a sustainable future, we must take deliberate actions across several key areas:
- Skill Development and Education: Empowering workers with opportunities to upskill is essential. This includes offering digital literacy programs and training in advanced manufacturing techniques, which can help them grow and take on leadership roles within the industry.
- Digital Inclusion: Introducing digital tools and platforms can enable workers to have easy access to crucial information about their rights, wages, and benefits. These platforms can also serve as channels for ongoing learning and professional development, ensuring they stay informed and empowered.
- Health and Well-Being: A healthy workforce is crucial for productivity and engagement. Prioritizing access to quality healthcare, mental health support, and safe working conditions is fundamental to keeping our workers motivated and resilient.
By focusing on these initiatives, we ensure that our workers are not just participants but active contributors to a sustainable and inclusive future in the RMG industry.
