Int'l recession, labour unrest in RMG sector: Does Bangladesh face
ex****t downturn like Cambodia?
Staff Re****ter
Does Bangladesh face downturn in garment ex****ts like Cambodia due to
economic recession in the United States and continuing labour disputes
at home?
This question has become relevant as Cambodian readymade garment
ex****ts plummeted by 46 per cent during the last quarter of 2007 due
to these two factors, chairman of the Cambodian Garment Manufacturers
Association Van Sou Ieng was quoted by AFP as saying.
President of Bangladesh Garment Manufacturers and Ex****ters
Association (BGMEA) Anwarul Alam Chowdhury Parvez said, "Country's RMG
ex****t was on the right track until January. The ongoing labour unrest
is yet to show any adverse effect. But then it will hit hard the
industry if it continues."
He said the US economic recession will continue for the next 6/7
years. If Bangladesh fails to handle the labour issues it will fail to
get advantage of the New Partner****p Development Bill. And this may
result in a fall in ex****t to the US.
"Labour issue is one of the main concerns in the US," he said.
Parvez said the ongoing labour unrest is hampering production in the
factories, increasing the cost of goods and also casting negative
impacts on the country's image.
"The industry leaders, government and also the media have to tactfully
handle the labour issue to keep the sector alive."
Bangladesh's labour unrest is mainly linked to low wages and
unfavourable working environment in the factories. Continuous
deprivation of the workers by the factory owners and misbehaviour by
the mid-level management creates unrest among the RMG workers.
However, the factory owners always have denied the allegations. They
said most of the factories have implemented the government fixed low
wages and are paying the other facilities in line with the labour
laws.
Bangladesh's RMG ex****t increased significantly in the last couple of
years and last year ex****t earnings from it reached US$ 7.8 billion.
During the July-November period of fiscal year 2007-08 woven ex****t
fell by 3.17 per cent while knitwear ex****t increased by 6.19 per
cent.
An economic downturn in the United States, which buys 70 per cent of
all Cambodian textiles, and continuing domestic labour disputes
contributed to the plunge, said Van Sou Ieng, chairman of the Garment
Manufacturers' Association of Cambodia.
Until last year, the sector had enjoyed annual growth of up to 20 per
cent, he added. But ex****t growth for all of 2007 stood at only 2.4
per cent, representing 2.9 billion dollars, Van Sou Ieng told AFP,
adding that the outlook for 2008 'surely was not good.'
"Definitely some factories will close, some people will lose their
jobs," he said adding deteriorating labour relations are also
weakening the sector.
Industry officials said an estimated 1,100 separate unions are
operating in Cambodia's 300 garment factories, with some manufacturers
having to deal with as many as seven workers' groups at one time.
The minimum wage for garment workers in Cambodia hovers around 50
dollars per month, the AFP re****t adds.
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