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RMG sector at risk as labour unrest shows no sign of abating 

Published : Thursday, 19 September, 2024 at 12:00 AM  Count : 331
Pranto Chatterjee
The ready-made garments industry has conventionally formed the backbone of Bangladesh's economy, which alone accounts for more than 80 percent of the total export earnings of the country, thus making it one of the most critical sectors that have contributed so far to national growth and global competitiveness. This industry reached an all-time high in exports, valued at US$47 billion in 2022, by showcasing immense potential. But this highly vital sector has now come under an unprecedented attack following fresh unrest among workers, protests, and factory disruptions in recent days. This is likely to have an impact on not just its exports and industrial output, but the overall stability of Bangladesh's economic landscape. In this article, we are going to discuss the gravity of the situation, the long-term repercussions of unabated unrest, and the dire need for prioritizing the safety of the workers in order to regain confidence in the sector.

The RMG industry is quite important to the Bangladesh economy. However, protests, factory closures, and even isolated incidents of vandalism have raised question marks over the future of this industry. And now, with reports suggesting that international buyers-the vital link in the chain-are starting to respond cautiously to the unrest, many have canceled or postponed their visits to Bangladesh. This has caused delays in finalizing orders and isn't a question of logistics, but symbolic of the bigger problem of the reliability of Bangladesh as a source of stability.

For many buyers, large orders are not only a matter of cost-effectiveness or product quality but also about the surety that such products will be delivered on time with minimum risk. With the recent unrest growing, Bangladesh is no longer that beacon of reliability it once was. A local report quoted a representative of a major European buyer as saying that around 5-10% of work orders could be affected by the unrest. What's more, one cannot turn a blind eye to the reputational risk involved in sourcing from a country in turmoil. In today's competitive global marketplace, any disruption in supply chains, especially within the highly time-sensitive fashion industry, could have disastrous effects on profitability and future partnerships.

While there is political unrest internally in Bangladesh, competitors such as India and Vietnam are ready to pounce on the first opportunity. Although Bangladesh remains the second-biggest exporter of garments in the world, continuous turbulence may eat away at that advantage. India has been taking advantage of the situation, offering policy incentives and tax benefits to its manufacturers, thereby making them an attractive alternative for global buyers.

“What is unfolding in the RMG sector in Bangladesh is less an uprising and more of a crisis that calls for immediate attention for the sake of not just the industry but the greater economy. The future of this vital sector needs to be secured by leading from the front through reforms that prioritize workers' safety, while commitments from employers are needed to ensure grievances are addressed quickly”

It also follows that a less positive buyer sentiment could prove catastrophic for Bangladesh. As buyers start to look elsewhere to diversify their sourcing, what begins as temporary delay or cancellation of orders could well achieve permanency in nature and shift away from Bangladesh. Even a minor decline in the share of the country in world RMG exports would mean a huge loss, meaning lesser industrial production, less foreign currency inflow, and loss of jobs to millions of workers. Ironically, the unrest meant for demanding better conditions for workers may finally cripple the very industry that sustains their livelihood.

Workers are the very core of this crisis themselves. These demonstrations are not unreasonable; they have legitimate causes, which range from non-payment of wages in time to illegal dismissals, adverse working environment, and failure of employers' promises. The Industrial Bangladesh Council-a platform of 18 trade unions-earlier claimed that the recent demonstration in Savar, Ashulia, and Gazipur was actually orchestrated by local goons and traders. Yet, to dismiss the protests as purely manipulated from abroad is to turn a blind eye to ills that have bedeviled the sector for years.

Workers' safety, wages, and job security must be at the heart of any effort to overcome the crisis. The success of this industry has come with the exploitation of its workers for far too long. Any restoration toward stability will have to institute workers' demands, ensure timely payments, and provide a guarantee for safety in the workplace. Without these, unrest will continue to fester, threatening not just the RMG sector but the entire national economy.

Workers are not cogs in the industrial machine but human beings with a set of rights, needs, and aspirations. If the industry continues to ignore the minimum demands of workers with regard to safety, dignity, and compensation, unrest will only build more and more. The way forward would be the realization that progress is not spelled out by export earnings or global rankings. True progress is all about working out an environment where workers and industries together can prosper in harmony.

What is unfolding in the RMG sector in Bangladesh is less an uprising and more of a crisis that calls for immediate attention for the sake of not just the industry but the greater economy. The future of this vital sector needs to be secured by leading from the front through reforms that prioritize workers' safety, while commitments from employers are needed to ensure grievances are addressed quickly. Global buyers, too, have their role in ensuring sourcing practices that will help further ethical and sustainable growth in Bangladesh.

Let us remind ourselves: the unrest in Bangladesh's RMG sector has been a grim reminder of the fine balance between economic growth and social responsibility. We are in danger of losing not only our leading position in apparel export but also the trust of those millions of workers who have built this industry. Now is the time to act, in unity, with compassion, and a coming together of a shared vision for a better future.

The writer is a Master of Technology student of Power Engineering at Indian Institute of Technology (IIT) Ropar



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