Published on 12:00 AM, February 16, 2011

Ready Made Garments

The booming sector

Asian Group Managing Director MA Salam shares his views on the garment industry with The Daily Star


MA Salam

What is the garment industry's compliance status now?
Maintaining compliance is a must for a garment factory to receive orders from foreign buyers. Nearly 80 percent factories in the country maintain compliance at present. And those who lag behind are trying to catch up.
What's your suggestion for the factories that failed to maintain compliance?
They have to work in sub-contracts with the companies who maintain standards in all fields. Many of such factories are now taking steps to fulfil the compliance criteria on their own. It is a good sign.
Do the BGMEA members pay workers' overtime properly?
Yes. Each garment owner has to keep 20 machines inactive out of every 100 due to a nearly 15 percent shortage of expert workers that makes the owner bound to pay overtime bills in time. Otherwise, he will not find anyone working for him.
What are the facilities for the workers in the factories?
The workers are the heart of a factory. They are the focal point. If they are discouraged the industry will not run. So the owners always try to provide due facilities to them. Now workers get maternity leave, insurance facility for the whole family, medical treatment, education for their children and much more. BGMEA also strictly monitors whether the factories provide the facilities properly.
Is the industry still running on child-labour?
The garment industry is now completely free from child-labour. It is one of the preconditions for compliance. Moreover, BGMEA has prohibited this kind of labour in the sector by imposing a fine of $1,000 to $1,500 on the owners if it finds any violation of the rule. Besides, the association also appointed doctors to examine the real age of workers, most of who do not know their birth dates.
The workers in export processing zones are better paid than those who work outside. Why this discrimination?
It is true that the workers of the factories in the export processing zones get more salaries and other benefits than the workers outside the EPZ. The factories running in the EPZs get more facilities from the government. They get one-stop service for their problems related to gas, electricity, water supply, customs, labour and others. They get five years more tax-exemption than the factories running outside the EPZ. They get an uninterrupted electric supply from 8am to 6pm. Moreover they are working for branded companies. So it is quite possible for them to provide high salaries and benefits to workers. The factories outside the EPZ will also be able to provide the same facilities to their workers if they are treated like the EPZ factories.
What is your view on trade union?
To form trade union is a legal right of the workers. We always show respect to the right. But the experience with trade union in the previous years was quite bitter. The women working in the factories do not want trade union as they think it will hamper their rights. For this reason we formed a concept of “Welfare Committee” in the EPZ. It has already started working in the EPZ and other big factories running outside the EPZ. We are trying to form the committee in every factory running outside the EPZ.
Are the foreign buyers satisfied with the factories running in the port city?
Yes, of course, they are satisfied. Otherwise why do they pass the export-orders? They are a bit annoyed with the insufficient electricity, gas and water supply that are also restricting the factories grow their capacity.
What is the role of garment factories in Chittagong in the national economy?
The garment industries in Chittagong are some of the major contributors to the national economy. The companies added around $5.07 billion to the economy last year, almost 35 percent of the sector's total earnings of $14.6 billion.