Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 735 Thu. June 22, 2006  
   
Editorial


Bare Facts
RMG Sector

Respecting and implementing MOU in national interest


It is heartening to see that 'a 10-point memorandum of understanding (MOU) was signed on 12 June between the government, and workers and owners of the apparel industry towards institution of minimum wages and legitimate facilities for workers within the next three months.' The state minister for labour and employment, seven leaders of the Bangladesh Garment Manufacturers and Exporters' Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters' Association (BKMEA) and 17 leaders of different labour organisations signed the memorandum. Although this MOU is an ad interim instrument, its implementation and turning "it into a binding accord" is expected to help solve the labour unrest and bring back normalcy in the promising readymade garment (RMG) industry in the country. Well begun is half done, let us hope so.

The media reports reveal that the 10 conditions agreed upon in the deal are:

-Regret the damage of property and reach a consensus on immediate end to unrest.

-Withdraw the cases filed against the workers at Gazipur, Ashulia and Savar and release the arrested workers.

-No workers to be terminated.

-Reopen closed factories immediately.

-All workers to be given appointment letter and identity card.

-No obstruction in fair trade unionism and combined bargaining.

-One-day weekly holiday to be given and other holidays as mentioned in the existing labour law ensured.

-Overtime remuneration to the workers enjoying regular salary to be provided as per the labour law.

-Maternity leave to be given with pay as per the labour law.

-Minimum wage board to be formed to fix wages.

The meeting held on 12 June under the chairmanship of State Minister for Labour decided to declare and implement the minimum wage structure for the garment workers within three months of the formation of the wage board. (The garment workers have demanded for fixation of minimum wage at Tk 3,000/ against the existing Tk 950/ per month.) On the other hand, the other terms of the MOU would be implemented within not more than one month's time.

Now the most important task ahead is the timely implementation of the MOU and declaration of minimum wage for the workers by the minimum wage board. The people and the media have welcomed the signing of the MOU. The Daily Star in its editorial on 14 June wrote: "No foot-dragging in implementation, please!

A redeeming feature of the otherwise horrifying month-long labour unrest in our garment industry has been the three-party MOU that seeks to redress the grievances of the workers and address the concerns of the owners.

The most positive aspect of the understanding is the time-bound plan for the implementation of the accord. The wage board formed on May 31 will declare a minimum wage for workers by August-end. The other terms of the MOU will have been implemented by 30 June. These are features, which we would like to think display the urgency of the parties concerned in resolving the problems that generated the crisis in our RMG industry."

Another daily (New Age) in its editorial on June 14 wrote: "...The issue now is implementation of this accord and close monitoring round all the factories in the country. As the owners have not agreed to pay any interim relief, the wages revision should be implemented as soon as possible within the stipulated time."

It needs no repetition that uninterrupted and smooth running of the country's 4,000 garment factories employing about 2 million workers -- 90 percent of whom are first generation women -- and earning more than $ 6 billion in 2005 which amounts to about 76 percent of our foreign exchange earning, is in the best interest of the owners, workers and the government.

The owners have to admit that our RMG workers are unbelievably poorly paid. As reported in the media, the Brussels-based International Textile, Garment and Leather Workers' Federation, on May 24, termed the BGMEA's reaction to the May labour unrest 'divorced from the reality of the industry' and observed that such reaction 'makes the employers of Bangladesh a laughing stock internationally'. In their estimation, in February 2005 a garment worker in Bangladesh received only 6 cents as wage per hour, when the figure is 20 cents in India and Pakistan, 30 cents in China, 40 cents in Sri Lanka and 78 cents in Thailand. The organisation described the wages as 'truly scandalous'.

In spite of the signing of the aforesaid MOU, there were, unfortunately, fresh disturbances in 11 RMG factories in DEPZ and outside on 18 June because of some misunderstanding between the workers and the management of those units. The BEPZA chairman is reported to have held meetings with the management of the factories in the DEPZ and the Workers Representatives of Welfare Committees (WRWCs) and requested the management of the factories to solve such isolated problems. The workers in the RMG industry, who have so far been deprived of their due, should wait to see the implementation of the decisions of the MOU, including the fixation of minimum wage by the minimum wage board.

In order to implement the decisions of the MOU, the Ministry of Labour has reportedly formed 15 committees of which 10 will work in Dhaka and the rest outside Dhaka. The government must ensure that decisions in the MOU are implemented as per agreed time schedule. While recommending minimum wage, the minimum wage board may take into consideration the minimum wage for the workers of the public sector.

Knowledgeable people have attributed the success of the RMG industry in Bangladesh to a number of factors which, among other things, are:

  • Government's constant concern about the sector's growth and playing an active role as a catalyst to solve various complex problems.
  • Contribution from the cheap, disciplined and regimented workforce.
  • Emergence of a dedicated entrepreneur class.
  • Quality manufacturing of apparels.
  • Encouraging response from the foreign buyers.
  • Flexible and friendly import policy for import of accessories.
  • Support from the financial institutions, nationalised and private.

In view of what has been discussed above, time has come when all concerned must exercise their judgement, patience etc not only to bring back complete normalcy in the RMG industry, but also pave the way for further promotion and development of the sector in the highly competitive international market.

M . Abdul Latif Mondal is a former Secretary to the government.