bdnews24.com :
Amid international criticism over work environment in Bangladesh’s garment factories, the owners’ platform has sprung to their defence by portraying their ‘terrible conditions’.
“Due to a massive rise in costs, we are not millionaires anymore. Businesses are being operated by bank overdrafts,” said Atiqul Islam, President of Bangladesh Garments Manufacturers’ and Exporters’ Association (BGMEA).
He described factory owners now as ‘ODpati’ rhyming with the Bengali world ‘Kotipati’ which means millionaire.
“We are not Kotipati any more, we have turned in to ODpati,” he said Sunday at a discussion organised by the BGMEA. In an overdraft (OD) account, banks cover cheques which would otherwise bounce. As with any loan, interest is charged on the outstanding balance of an overdraft loan.
Buyers of Bangladeshi garment products are largely unhappy with the working environment especially after the deadly Tazreen Fashions fire and the Rana Plaza collapse.
Factory owners say that they are spending a lot on bettering working environment to satisfy the buyers. However, the workers allege the owners of paying less.
The BGMEA chief said the readymade garment (RMG) sector was now under ‘immense pressure’ adding: “Each and every owner is affected in some way.” He claimed that workers’ wages had been raised by 219 percent in the last four years.
He said the cost of handling cargo at the port doubled while the insurers were not cooperating.
“The Accord and Alliance are shutting down factories citing building codes. We certainly want to work in proper buildings, but it will take time,, said Islam
The platform of European buyers, Accord has set 15 conditions including better working conditions for the RMG sector. Meanwhile, the Alliance, which is an international labour organisation, has also kept the factory owners under pressure.
Both organisations have threatened to stop the GSP facility – the preferential trading status – for Bangladeshi RMG products in the European market if the conditions were not met.
The BGMEA chief demanded zero import duty on fire safety equipment and cutting down the tax-at-source to 0.30 percent from the existing 0.80 percent. Commerce Minister Tofail Ahmed said at the discussion that the Accord and Alliance needed to understand that things will take time.
“I think there’s a conspiracy against the garment industry. The Accord and Alliance need to understand that (relocating) factories to new buildings will take time. They have to understand the reality.” The minister called upon factory owners to build standard factories and added: “You have to protect the interest of workers and maintain good relations with them.”
At the discussion, factory owners said that at least a million RMG workers will lose their jobs if the requirements by the Accord and Alliance were to be met.
