Seminar stresses RMG compliance
Integration and coordination between productivity and compliance are needed to have a sustainable growth in the country's prime forex earning RMG sector, speakers told a seminar in Dhaka yesterday.
Bangladesh Garment Manufacturers & Exporters Association (BGMEA) organised the seminar titled 'Productivity and Compliance: Imperative for Growth Sustainability' at a city hotel.
State Minister for Environment and Forests Dr Hasan Mahmud addressed the seminar as chief guest, while chairman of the International Leasing and Financial Services Ltd Mahbub Jamil spoke as special guest.
Senior journalist and columnist Zaglul A Chowdhury and senior specialist of Nike Inc Bangladesh Kumkum Sazia Kutubuddin also took part in the seminar.
Amit Gugnani of Technopak presented the keynote paper in the seminar chaired by BGMEA President Abdus Salam Murshedy.
Amit said productivity should be linked with compliance, which will lead a factory to a win-win situation. “Compliance can be explained through various parameters such as requirements of the local laws.”
To have a sustainable compliance, he said, there should be compliance with local labour law, wages and legal working hours, freedom of association, ban on child labour and forced labour, ban on discrimination, workplace health and safety and compliance with local environmental law.
But, one of the major shortcomings for Bangladesh is productivity as it is 40 percent compared to China's 70 percent and India's 60 percent.
Emphasising the importance of industrial engineering and social and environmental compliance to drive up productivity, China, Asian and South Asian countries would gain substantial share of the total global export by 2015, he added.
Speaking on the occasion, Dr Hasan Mahmud underscored the need for compliance for the sustainable growth of the RMG sector.
He said Bangladesh will face a severe competition with countries like China, Vietnam by 2015 and 30 percent of the total global export will be from China with other countries seeing fall in their exports.
Mahmud, however, hoped that Bangladesh's total export from the RMG sector would double if the NPDA bill (trade bill on duty free for LDCs) gets a go-ahead in the US Congress.
He pointed to the US Labour Department's observation that there is no child and forced labour in the RMG sector in Bangladesh.
Replying to a query, he assured the industrialists of trying to lower the interest rate of ETP (Effluent Treatment Plant) loan to 5-6 percent from 9 percent.
In response to another question, the state minister said the workers, owners and the government have responsibilities to maintain social environment in this sector.
“We've already decided to set up industrial police and intelligence forces. Trade union in the RMG sector will also be allowed, but we're extra careful in allowing trade unionism as it should not be like traditional trade unions,” he told the seminar.
Mahbub Jamil, former special assistant to the past caretaker government's chief adviser, emphasised increasing productivity and there should be no compliance unless the productivity improves.
Zaglul A Chowdhury said the success of this industry depends on compliance and productivity.
Kumkum Sazia emphasised green and sustainable compliance, which will reduce waste and be energy-efficient.
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