Tuesday, July 01, 2014

Problems of Garment Sector in Bangladesh

100% Export-oriented RMG (Ready Made Garments) sector has brought a radical economic development in Bangladesh over the last three decades. The RMG industry of Bangladesh has expanded dramatically after the independence of Bangladesh. Once upon a time the Jute Industry was dominating the industrial sector of the country until the 1970s. But, after the liberation war, specifically at the beginning of 1980s, RMG industry has been established as an important player in the economy of the country and has gradually replaced the jute industry. Currently, Bangladesh is the second largest RMG exporter country of the world. Bangladesh exports many types of garment products to about 50 countries around the world. Nevertheless, this sector has not been free from problems. Moreover, it is facing newer problems day by day.  



1. Wages: The government of Bangladesh sets minimum salaries for various groups of employees, which is insufficient to cause a lifestyle even in a primary price. This is a worrying issue in our RMG industry and it should be fixed so that the labors can cause their lifestyles simply.  

2. Political Unrest: Apparel sector suffers from political anxiety, hartal and terrorism. The worldwide market has removed allowance benefits over garment trade from Bangladesh since December 2005. Bangladesh has to be advanced very carefully about getting better position of her garments in the global market. Finally, devastation of Twin Tower on 11 Sept 2001, Intrusion of Afghanistan and Iraq and depressive disorders in the globe economic system have seriously affected the trade of Bangladesh.

3. Inappropriate operating environment: Taking the advantages of staff members' hardship and lack of knowledge the entrepreneurs pressure them to perform in a risky and harmful position of performing congested with employees beyond the potential of the manufacturer ground and improper air flow. Inappropriate air flow, rigid situation, dirty rooms are the majority of our sectors. The master's profit is the first concern and this mind-set has gone to such a level that they do not care about their lifestyles.

4. Inadequacy of loan: Inadequacy of the loan soon enough, uncertainty of power, setbacks in getting components, no interaction, issue with taxation etc. Often prevent the market. In the globe market 115 to 120 products of dress are in demand where as Bangladesh provides only 10 to 12 products of garments. India, South Korea, Hong Kong, Singapore, Thailand, Taiwan etc. Has created an amazing improvement in clothing sectors. Bangladesh is going to task the garments of those nations on the global market.  


5. Discrimination of labor division: In the clothing sector of Bangladesh, projects are assigned mostly on the basis of sex. This decides many of the important conditions of female employees. All the employees in the sewing section are female, while almost all those in the cutting, ironing and finishing segments are men. Women employees are consumed in a variety of professions from reducing, stitching, placing control buttons, making buttonholes, verifying, cleaning the discussions, pressing, foldable, packaging and training to manage. Women perform mainly as assistants, machinists and less frequently, as line supervisors and top quality remotes. There are no women, reducing exports. Men control the management and control level tasks. Women are discriminated against in terms of access to higher-paid white training collar and control roles. 

When asked why they prefer to employ females for stitching, the proprietor and supervisors give several reasons. Most experienced that stitching is typically done by females and that females are more individual and more manageable than men.

6. Unit labor cost: Bangladesh has the most affordable unit work price in Southern Japan. It expenses only 40 cents to produce clothing in Bangladesh, whereas it expenses 79 cents in Sri Lanka and 86 cents in Indian. Clearly, Bangladesh’s relative benefits can be found in having the most affordable unit work price.

7. Working hours: Though the salaries are low, the work time is very long. The RMG sectors claim to function one eight-hour move six times a week. The 1965 manufacturer Act allows females to perform distribution deadlines; however, females are virtually compelled to perform after 8 o’clock. Sometimes they perform until 3 o’clock in the morning and review on their behavior to start perform again five hours later or 8 o’clock. They are requested to perform whole months at some point the Factory Act, which states that no employee should perform more than ten times repeatedly without a break.

8. Inadequate housing facilities: As most of the clothing employees come from the poor family and come from the distant areas and they have to be present at to the responsibilities promptly, these employees have to seek the services of a space near the manufacturer where four to five huddle in a space and spend lifestyle in the sub human situation. For four to five employees there is one common latrine and a kitchen for which they have to pay from Taka 2,000 to Taka 2500. They discuss this amount among themselves to reduce the housing cost.

One cannot believe their eyes in what terrible situation they have to pass out their time after almost a whole day of hard work in the factory. After the time consuming job they come into their rest, prepare their meals and have their dinner or lunchtime in unclean ground or bed and rest where they take their meals. They discuss the single bed or rest on the ground.

The entrepreneurs of these sectors must not cure the employees as creatures. The entrepreneurs of these sectors who drive the most magnificent car and live in the most magnificent house do ever think that these are the employees who have created their residing so luscious. Will these self-centered entrepreneurs ever think of these employees of their better residing for the benefit of humankind by offering better housing for these employees in addition to offering with the job.

9. Protection Problems: Because of the negligence of the manufacturer control and for their cockiness manufacturer gates used to be kept closed for security reason disobeying act. Safety needed for the employees is compulsory to maintain in all the company. But without the service of this necessary product a lot of injuries happen to suffer every season in most of the company. Some important causes of the accident are given below-

a.     Routes are obstructed by storage components.
b.     Machine layout is often incredible.
c.     Lack of signs for an evade route.     
d.     No supply for urgent lighting.
e.     Doors, starting along evade tracks, are not fire-resistant.
f.    Doors are not self-closing and often do not start along the route of evade. 
g.     Inadequate gates and stairways to quit easily.
h.  Fire quit or urgent stairway does not have appropriate servicing. 
i.      Lack of appropriate quit path to reach the position of safety.
j.    Parked automobiles, goods and junk on the outside of the building prevent leaves in the open air.
k.   Fire accident in the Bangladeshi garment factory is a common scenario.  

Fire Accident in RMG Sector


10. Cost competitiveness: Chinese providers and some other opponents of Bangladesh have applied distinct price-cutting guidelines in dispatching clothing products over the last few years, but Bangladesh did not reply successfully to such guidelines. Chinese providers were able to drop the trade price of 29 clothing groups by 46 % on regular in the United States within a season, from $6.23 per sq gauge in Dec 2001 to $3.37 per sq gauge in Dec 2002. Bangladesh needs to react to such price-cutting guidelines of its opponents to be able to remain aggressive in the quota-free international market.

11. Lead time: Lead time represents the time required for providing the requested clothing products after the trade purchase has been obtained. In the 1980's, the regular cause amount of time in the clothing market was 120-150 times for the main clothing provider nations of the world; it has been reduced to 30-40 times in the current several years. However, in this respect the Bangladesh RMG market has enhanced a little; for example, the common cause time is 90-120 times for woven garment companies and 60-80 times for knit clothing companies. In Chinese providers, the common cause time is 40-60 times and 50-60 times for woven and knit products, respectively; in India, it is 50-70 times and 60-70 times for the same products respectively. Bangladesh should improve its regular cause a chance to contend in the worldwide market.

12. Dependency on international raw materials: Bangladesh imports raw components for garments like pure cotton, fabric and garment accessories. This requirement of raw components affects the development of the clothing market. Moreover, international providers often supply low quality components, which result in low quality products.

13. Inexperienced workers: Most of the uneducated females appointed in garment factories are unskilled and their products often become lower in quality.
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