Sewing up in garments sector

Photo: Wahid Adnan/ Drik News and Noor Alam/ Driknews

IT is quite unfortunate that several thousand garment workers rampaged through different parts of the capital and Gazipur on July 30, rejecting the new wage structure and demanding Tk.5,000 as minimum wage from August. The angry workers vandalised vehicles and around 200 business establishments, including several garment factories, resulting in injury of at least 25 people including five police.
The government formally announced a revised wage structure on July 29, unanimously recommended by the tripartite minimum wage board, for the workers of the readymade garment (RMG) sector -- aiming to put an end to the longstanding labour unrest over wages. Under the new wage structure, an entry point worker placed at grade-7 would get Tk.3,000 a month from November, up from Tk.1,662 set in 2006.
Garment Sarmik Sangram Parishad, a combine of the workers' rights bodies, at an emergency meeting, rejected the minimum wage and demanded review of the proposal. The leaders of the combine demanded that the minimum wage for garment workers should be fixed at Tk.5,000 and warned that they would announce tougher movement programs, including strikes, if the demand was not met.
In all, 14 rounds of negotiations took place between the employers and the workers, brokered by government representatives at the tripartite wage board in the last six months, many of which were stormy -- with the employers remaining reluctant to increase the wages fixed nearly five years back. The RMG factory owners said that the new wages would reduce their profit margin and make it difficult to compete in the global market.
It appeared from the way the minimum wage negotiations advanced that a bridging of the positions was impossible. The demand from the workers was Tk.5,000 as the minimum wage while the employers pleaded that they could absolutely go no further than Tk.2,500 given the present deplorable condition of the sector and the need to maintain viability and competitiveness.
The fixation of the minimum wage at Tk.3,000 was a compromise, but with some favour for the workers. The employers had refused to pay more than Tk.2,500 but in the end they agreed to add another Tk.500 under some conditions. Though the workers did not get what they demanded, they still have a raise which is higher than what was originally offered.
While any action leading to destruction of public and private properties, endangerment of people's life and disruption of law and order is condemnable, the reason for violence and vandalism by the garment workers is understandable. The increase in their minimum wage is almost double of what the workers now get.
Admittedly, this amount is not enough to make both ends meet because the spiraling cost of living and inflation are likely to eat up the increase. At the same time, the position of the employers, who are heavily burdened with producing their own electricity and a plethora of other production costs, must be taken into account.
Maybe, the workers' frustration and anger were compounded by the hopes that were raised by the prime minister's observation a few days back that the wages of the garment workers were "insufficient and inhuman."
But, by agreeing with the factory owners' demand for deferred implementation of the new wage structure, which is scheduled to take effect in November, the government has shown its sympathy for the employers, not for the workers. That may also be a reason for the workers to feel deceived and become violent.
Bangladesh ranks fourth in terms of value in the global apparel exports, with a 3% market share, according to a recent World Trade Organisation (WTO) report. According to the report, which was prepared on the basis of export data of 2007 of the respective countries, China exported apparel items worth $115 billion, EU-27 countries $103.40 billion, Turkey $14 billion and Bangladesh more than $10 billion.
Bangladesh was the largest exporter of cotton T-shirts and was second in cotton pullover and jeans exports to European countries in 2009. In terms of volume, the country was the second-largest exporter of cotton trousers to the US last year. The latest data from the Export Promotion Bureau said that Bangladesh fetched $12.59 billion from garment exports last fiscal year, and contributed around 80% to national exports. Last year, Bangladesh also explored some new export destinations such as Japan, New Zealand, Canada, Australia, and some countries of South America.
Certainly, these are very encouraging developments for our RMG sector. Unfortunately, the RMG units of the country have been facing frequent agitation and violence, mainly by the workers. The far-reaching consequences of the labour unrest in garment units may be devastating for foreign investment as these incidents have been widely covered by the foreign media.
The RMG sector has been playing a very vital role in the economy of Bangladesh. Presently, more than 4,500 garment units are involved in exporting both woven and knit items. Almost three million workers, most of whom are women, are employed in these factories. The RMG sector provides jobs for over five million people, including indirect employment.
The doors for rethinking the wage structure have not been closed. The stakeholders should now get down to implementing the new wage structure immediately in a spirit of cooperation, leaving an open door to further negotiations. The government must go on playing its role as the honest broker in any follow-up engagements between the workers and the owners.
More importantly, the government should extend some tangible support to the owners of RMG units, such as supplies of diesel and furnace oil at a subsidised rate, so that the industries can run their generators. The extension of such support will enable the owners to meet the demand for higher wages by the workers.
The garment workers must realise that violence and vandalism as a means to articulate their demands are not only condemnable but also criminal.. Such actions will surely leave them isolated from the mainstream of society. If they want to mobilise public support for their cause they must desist from violence and vandalism.

A.N.M. Nurul Haque is a columnist of The Daily Star.
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