WORKERS at more than 3,000 subcontracting readymade garment factories in Bangladesh have been working under dangerous conditions even five years after Rana Plaza collapse as the factories still lack of safety measures, according to a recent study of New York University. The study titled ‘Five Years After Rana Plaza: The Way Forward’ conducted by the NYU Stern Center for Business and Human Rights estimates that there are more than 3,000 subcontracting factories in the country and it will take $1.2 billion to remediate major life-threatening safety concerns in the units.
The report also says that there are more than 7,000 RMG factories across the country, of which 4,000 are covered by safety initiatives of two global buyers’ platforms and the government. Both the government and the country’s apparel exporters, however, have expressed their disagreements over the number of factories and subcontracting issues. The NYU Stern Center proposed US$1.2 billion ‘shared responsibility’ model in which the government of Bangladesh and local suppliers will invite Western governments, brands and retailers, the World Bank and foundations to participate in a task force that will undertake a census of factories, assess the financial costs of fixing safety gaps and contribute to a fund to help meet this need.
In an ideal world, the Bangladeshi government would competently oversee the entire industry, without need of foreign intervention. The world, of course, is not ideal, and the government has not done its job vigorously. Known as the National Initiative, the government’s regulatory apparatus for garment manufacturing has worked since Rana Plaza in cooperation with the International Labour Organization (ILO). Still, progress has been slow; information disclosures sparse and sometimes inconsistent.
The bottom line remains economics. Western buyers will continue to squeeze the last cent out of the RMG factories while the garments owners are burdened with high interest loans, corrupt bank officials who ask for bribes for fresh loans, and the demands of the garments workers for a higher wage. In addition they face high tariffs in the US Market – a major buyer, increases in the energy bill and confusion about duty free access to the UK Market.
Government shouldn’t change the price of utilities and commodities every year which are directly linked with production like oil, gas, electricity and water. The last commercial gas bill was increased by 52 percent. There is a need for more value added services for existing buyers like R&D on design, idea and innovation. Factories also should invest in setting up R&D to get productivity increases to reduce costing. Lead time minimizing is one way to reduce cost of production. All system losses in local and foreign trade, commercial and customs must be eliminated. Road transport and infrastructures must be well managed.
We do not know for sure who can ensure safe and proper working atmosphere in RMG factories. In our view the private owners must act fairly and justly keeping in mind the important contribution the workers make. Not much to expect from the government.
