RMG Industry of Bangladesh
BUSINESS PERFORMANCE VERSUS ETHICS: AN ANALYTICAL LOOK INTO THE GARMENTS INDUSTRY OF BANGLADESH
1. Introduction
1.1 Background
The growth of ready-made garment (hereafter referred as RMG) industry is one of the most significant socio-economic developments in contemporary Bangladesh. The country emerged as a garments exporter in 1977 when the first consignment was exported to the then West Germany by Jewel Garments. Since then the RMG industry in Bangladesh has grown phenomenally. In the 1980s, there were only 50 factories employing only a few thousand people. Currently, there are approximately 5000 manufacturing units with a 4.2 million work force (Wikipedia 2012).
Bangladesh does not have any natural advantage to flourish in RMG sector except cheap labor (Islam 2012). Undoubtedly, the dedicated work force with relatively low wages is the key driving force in this sector. It gives Bangladesh a competitive edge over the rivals. But unfortunately, employee satisfaction in the RMG sector seems to be fading. Since May 2006, the RMG sector has been beset with very serious labor unrest. The major disputes concern wages, working hours, appointment procedures, forced labor, child labor, health and safety, security, gender discrimination, sexual harassment and trade unionism. Non-compliance of workplace health, safety and security regulations are prevalent in the industry. Due to hazardous factory environments many workers become sick or injured, or even lose their lives through accidents, fires and stampedes. Both the BGMEA and the Government are showing ‘Ostrich-Approach’ in this regard, perhaps on the plea of maintaining price competitiveness in the global market.
However, recent tragic fire incident at Nischintapur Tazreen Garments factory has given a wakeup call for both the BGMEA and the Government. The cancellation of business ties by the world famous retailer Wal-Mart is seen by many as a disturbing and threatening symptom for RMG sector.
1. Introduction
1.1 Background
The growth of ready-made garment (hereafter referred as RMG) industry is one of the most significant socio-economic developments in contemporary Bangladesh. The country emerged as a garments exporter in 1977 when the first consignment was exported to the then West Germany by Jewel Garments. Since then the RMG industry in Bangladesh has grown phenomenally. In the 1980s, there were only 50 factories employing only a few thousand people. Currently, there are approximately 5000 manufacturing units with a 4.2 million work force (Wikipedia 2012).
Bangladesh does not have any natural advantage to flourish in RMG sector except cheap labor (Islam 2012). Undoubtedly, the dedicated work force with relatively low wages is the key driving force in this sector. It gives Bangladesh a competitive edge over the rivals. But unfortunately, employee satisfaction in the RMG sector seems to be fading. Since May 2006, the RMG sector has been beset with very serious labor unrest. The major disputes concern wages, working hours, appointment procedures, forced labor, child labor, health and safety, security, gender discrimination, sexual harassment and trade unionism. Non-compliance of workplace health, safety and security regulations are prevalent in the industry. Due to hazardous factory environments many workers become sick or injured, or even lose their lives through accidents, fires and stampedes. Both the BGMEA and the Government are showing ‘Ostrich-Approach’ in this regard, perhaps on the plea of maintaining price competitiveness in the global market.
However, recent tragic fire incident at Nischintapur Tazreen Garments factory has given a wakeup call for both the BGMEA and the Government. The cancellation of business ties by the world famous retailer Wal-Mart is seen by many as a disturbing and threatening symptom for RMG sector.
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