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Supply Chain Management (SCM)

Executive Summary
Readymade garment industry sector is most valuable economic sector in Bangladesh. It constitutes about 80% of total export of Bangladesh. . It has been able to create employment opportunity for millions, alleviate poverty, accelerate industrialization, attract foreign direct investment, mobilize business and create a positive image of Bangladesh abroad. But this sector is struggling with a number of problems. And the main target of this report is to analyze the expressed and hidden causes behind labor unrest in garment industry. For the above purpose we collect data mainly from secondary sources as a methodology and the limitation of the report is that it is conducted in a very short time so we were not able to collect more information. In the part, Literature review, overall situation of the RMG sector such as History of Garment Industry (RMG) in Bangladesh; Factors Promoting Growth of RMG Industry; Contribution of RMG Sector to National Economy; Labor Unrest in RMG Sector; RMG in Post- MFA Scenario etc. have been focused. The present conditions of RMG sector have been presented through quantitative data of growth, wage structure, fire incidents etc. in Current Scenario phase. And we try to elucidate different facts and findings regarding the expressed and hidden causes, threats and challenges of RMG sector in the national and development economy of Bangladesh through Analysis and findings phase. Finally based on our findings we supply some recommendations such as maintaining Good relationship among employee and worker, Ensure the protection of job, provided with separate and adequate space for entrance and exit of the workers etc. Then the sources from where data collected are mentioned in bibliography. Finally in appendix phase we provide some necessary table for better considerate

Supply Chain Management (SCM)

Introduction
The export-oriented apparel industry of Bangladesh, popularly known as Readymade Garment (RMG) or simply as the garment industry, occupies a unique position in the economy of Bangladesh. It is experienced a phenomenal growth during the last three decades. By taking advantage of Multi Febre Arrangement (MFA) of GATT, it attained a high profile in terms of economic growth of the country. Its contribution to GDP reaches 13% in fiscal year 2009-2010. Since independence, no single sector could accelerate the industrialization process in the country as the RMG sector could do. To a creditable extent, it has been able to relieve the country from the burden of unemployment and at the same time contribute to the empowerment of women. But this sector is struggling with a number of problems. Conflict between owners and workers, labor unrest, shortage of gas and electricity, poor infrastructure, poor port facility, lead time complexities, conspiracy of home and abroad, advancing competitors in the quota free international market are some of them which are posing a great threat to its survival. In recent time, labor unrest in the RMG sector has been a matter of serious concern. Almost every day electronic and print media cover news of labor unrest in RMG sector in one place or another across the country. The fire and the tragic loss of 111 workers in Tazreen Factory on November 24 in Ashuliya, the hub of Bangladeshs readymade garment (RMG) industry, has made headlines all over the world. In the above background, an attempt has been made in the report to overview the causes threats and readymade garment (RMG) industry in Bangladesh in order to assess the impact of RMG sector in the national and development economy of Bangladesh.

Objectives of the Report


a) To analyze the recent labor unrest in the garment industry of Bangladesh; b) To identify the expressed & hidden causes behind labour unrest; & c) To analyze threats and challenges to our national and development economy.

Along with the main objectives, corresponding objectives are to i. ii. Evaluate the impact of post Multi-Fiber AgreementMFA scenario in Bangladesh; Study and evaluate the growth and development of garment industry in Bangladesh;

Supply Chain Management (SCM)

iii.

Examine the contribution of garment industry to the national economy of Bangladesh; &

iv.

Study the present market composition for the Bangladeshi garment product vis--vis market diversification;

Sources of Data and Methodology


The report was fully investigative in nature. In light of the objectives of the study, the report has been designed to examine some important aspects related to garment industry in Bangladesh. Data have been collected mainly from secondary sources by consulting various
a) relevant journals b) studies conducted by various donor and development agencies c) Bangladesh export statistics published by Export Promotion Bureau & Bangladesh Bank d) Internet Browsing e) Economic review of Bangladesh f)

annual reports of BGMEA and

g) The publication of WTO h) A semi-structured questionnaire carrying 20 questions has been developed for the

garment workers;
i)

The information published in the different newspapers and websites in recent times have been consulted in order to present the recent labor unrest situation in garment sector.

Most of the parts are collected from internet in different website. The collected data and information were then processed, tabulated and analyzed to present the findings in a logical and objective manner. Ms-Word and other required computer program were used to process the Quantitative data on which final report was prepared.

Scope of the Report


This study has focused on the various aspects regarding garments industry. The study could be more consistent, if we could visit working place where a production and management activities run.

Supply Chain Management (SCM)

Limitations of the Report


Since our study is based on secondary data mainly, there is a possibility of getting fake information. If the surveyed personnel provide us with any fabricated information about their opinion of their organization, then the report findings may be erroneous. Above all, this study is weak in some points. The notable ones are as under:
a) The survey was conducted in a very short time so we were not able to collect more

information;
b) Another limitation of this study is the persons private information were not disclosing

some, data and information for obvious reasons, which could be very much useful;
c) Lack of enough experience in this field; d) Absence of interview program; e) Absence of latest data; f) Reluctant behavior of consultant from where we collect the data.

Purpose of the Report


This report is required to prepare by the students of Department of Management Studies completing BBA (Bachelor of Business Administration) program of Jagannath University under the course titled Supply Chain Management (SCM).

Supply Chain Management (SCM)

Literature Review History of Garment Industry (RMG) in Bangladesh


In the 1950s, labors in the western world become higher organized by forming trade unions. This and other changes provided workers greater right including higher pay; which resulted in higher cost of production. Retailers started searching for places where the cost of production was cheaper. Developing economies like Honking, Singapore, Taiwan and South Korea presented themselves as good destinations for relocation because they had open economic policies and had non-unionized and highly disciplined labor force that could produce high quality products at cheaper cost. In order to control the level of imported RMG products from developing countries to developed countries, Multi Febre Agreement (MFA) was made in 1974. The MFA agreement imposed an export rate at 6% that increases every year from a developing country to developed country. It also allowed developed countries to impose quotas on countries that exported at a higher rate than the bilateral agreements. In the face of such restrictions, they found Bangladesh as one of the most suitable countries. Available records show that the first consignment of garments was exported from the country in 1977 by Reaz and Jewel Garment. Desh Garment was the first biggest factory that started functioning at Chittagong in 1977. In fact that was the humble beginning of new joint venture garment factory in Bangladesh. Thereafter many entrepreneurs became interested and started to setup garment factories following the Desh garment and realizing the future prospects globally as well. Available records also show that one of the reasons of the growth of garment industry in Bangladesh is the collaboration of a local private garment industry, Desh garment with a Korean company, Daewoo. As part of its global strategies, the Daewoo Corporation of South Korea became interested in Bangladesh when the Chairman, Kim Woo-Choong, proposed an ambitions joint venture to the Government of Bangladesh which involved the development and operation of tyre, leather goods, cement and garment factories (Rock, 2001). South Korean Company, Daewoo, a major exporter of garments, was looking for opportunities in countries for using their quotas subsequent to the signing of MFA in 1974. This is when Bangladesh started receiving investment in the RMG sector. Because of the quota limitation for Korea after MFA, the export of Daewoo became restricted. Bangladesh as a LDC got the opportunity to export without any restriction and for this reason Daewoo interested to use Bangladesh for their market. The reason behind this desire was that Bangladesh will depend

Supply Chain Management (SCM)

on Daewoo for importing raw materials and at the same time Daewoo will get the market in Bangladesh. For this desire Daewoo signed a five years collaboration agreement with Desh Garment. It included collaboration in the areas of technical training, purchase of machinery and fabric, plant setup and marketing in return for a specific marketing commission on all exports by Desh (Rock, 2001). The outcome of the collaboration of Desh-Daewoo was significant. In the first six years of its operation, Desh export value grew at an annual average rate of 90 percent reaching more than $ 5 million in 1986-87 (Mahmood, 2002). Rahman (2004) argued that the Desh-Daewoo collaboration is an important factor to the expansion and success of Bangladeshs entire garments export sector

Factors Promoting Growth of RMG Industry


Factors which promoted growth of RMG sector in Bangladesh are 1. Domestic factors&

2. External factors 1. Domestic Factors


a) Cheap labor: RMG is a labor-intensive sector. Bangladesh is an over-populated country

burdened with unemployment problem. The private entrepreneurs in the late 1970s and early 1980s got an opportunity to use cheap labor to flourish this sector over-night. At present, about 3.5 million people are working in this sector. About 80% of them are women. They got a chance to change their fate by working in the garment factories which helped boom the sector. Nowhere in the world is labor as cheap as it is in Bangladesh. The following table shows a comparative study of per hour labor wage in major RMG exporting countries. Country Turkey Mexico China Pakistan India Sri Lanka Vietnam Bangladesh Per hour wage (US$) 2.44 2.17 1.88 0.56 0.51 0.44 0.44 0.22

Table 1: Country-wise per hour wage of garment workers; Source: The Daily New Age, 13 Aug, 2010.

Supply Chain Management (SCM)


b) Low production cost: As labor cost is very low, RMG factories in Bangladesh can

produce quality garment at lower cost which has attracted the foreign buyers. International companies like Wal-Mart, JC Penney, H&M, Zara, Tesco, Carrefour, Gap, Metro, Marks & Spencer, Kohl's, Levi Strauss and Tommy Hilfiger all import in bulk from Bangladesh. The total export from the sector has doubled from $6.4 billion in FY 04-05 to $12.5 billion in FY09-10. The comparative advantage of low production cost also attracted foreign direct investment. As a result, both backward and forward linkage industry flourished in Bangladesh. Currently, the backward industry is able to meet up to 85% of the demand for the raw materials, which significantly contributed to the country's growth of apparel and knitwear exports.
c) Local Demand: Clothing is a basic need. Bangladesh is one of the most densely populated

countries in the world. Every year Bangladesh needs a huge quantity of garment for its local need. Culturally people of Bangladesh like to wear new cloths on the eve of various festivals like Eid, Puja, Pohela Baishakh etc. Before emergence of RMG industry, people of Bangladesh had to depend on the tailors for their domestic need of clothing. Though tailoring still exists, ready- made garment business is very prolific in Bangladesh.
d) Government Support: The apparel industry received support from the government, which

included measures like duty drawback facilities, tax holidays, cash assistance, income tax rebate, creation of export processing zones, zero tariff on machinery inputs, rebate on freight and power rate, bonded warehouse facilities, provision of import under back-to-back letters of credit, loans at concessional rate, export development fund, etc.
e) Back to Back Letter of Credit: Back to Back Letter of Credit is one of the important

factors in the initial and continuing success of this sector. It considerably eases the financing requirement of garment business for the local entrepreneurs. The entrepreneurs are able complete the complicated process of manufacturing and export with very little of their own funds for working capital. Even if the turnover is Tk. 50 million and the profit is only 5% the returns are still decent since the funds are borrowed largely from the banks. Therefore the rate of return does not need to be high. In the absence of back to back L/C, it would have been very difficult for the new entrepreneurs to raise funds from local financial institutions to import fabrics and accessories.

Supply Chain Management (SCM)


f)

Private entrepreneurship: The export- oriented RMG sector started its journey entirely

with private initiatives. The journey was not smooth. The entrepreneurs faced tremendous constraints in terms of power and gas supply. Political instability, frequent hartals (strikes), poor port facility, and labor unrest created longer lead time, which became another barrier in competing with neighboring nations. Amidst all the constraints, the RMG entrepreneurs lived up to the buyers' expectations of reduced price margin, improved compliance standards, and quality assurance. There were also significant investments in backward integration.

2. External Factors
a) Quota facility: The key factor behind the growth was the quota system under the Multi-

Fibre Arrangement (MFA). The General System of Preferences (GSP) facilities and RoO (Rules of Origin) offered by the developed nations also helped Bangladesh to accelerate its export. In short, MFA provided market protection for Bangladesh, whereas GSP facilities offered preferential treatment and market access opportunities in developed economies.
b) Civil War in Sri Lanka: Civil War in Sri Lanka which started in late 1970s proved to be

boon for Bangladesh in respect of RMG industry, though it was a bane for Sri Lanka. Sri Lanka was a leading country in exporting RMG among Asian countries. But due to the civil war, the western buyers turned away from Sri Lanka and were looking for substitute of Sri Lanka. Finally Bangladesh came forward to replace Sri Lanka in RMG business based on its huge cheap labor force.
c) Supply Side Factors: On the supply side, several factors can be mentioned that have

contributed to the growth of Bangladesh as an apparel exporter. First as the wages of the East Asian Countries rose and quota restrictions limited shipments from these countries to particularly the US markets, apparel firms from those countries established production operations in other countries with cheaper labor and with few or no quota restrictions. In the second half of 1970s, business houses from the Republic of Korea, Daewoo in particular, ventured into Bangladesh to transfer the technology of production and to provide marketing channels. The number of garment exports business from this arrangement remained small but awareness as regard the prospects developed within the garment industry. In 1978, fewer than a dozen companies were in operation. The number grew to 80 just in three years. Since then, the growth of the industry has been fabulous. The Korean investment provided the garment industry the decisive advantage without which a much longer time would have been taken by the Bangladesh garment industry to attain its present status.

Supply Chain Management (SCM)

Contribution of RMG Sector to National Economy


In the 1980s, there were only 50 factories employing only a few thousand people. Currently there were 4490 manufacturing units. Over the past few years garment industry is found to have played such an important role in the process of industrialization and economic growth. Average growth rate of this sector was over 20% per over the last two decades. This single sector alone earns about 80% of yearly foreign exchange of the country. Its contribution to GDP reaches 13% in FY2009-2010 which was only 3% in FY1990-1991. Government has set 26.36 billion export targets for FY 2011-2012. It has created employment opportunity for about 3.5 million people. About 80% of them are women. To a creditable extent, it has been able to relieve the country from the burden of unemployment and at the same time contribute to the empowerment of women. Thus this sector is playing a vital role in socio-economic development of the country. The growth of the
industry in terms of number of units and employment generation is shown in table below:
MEMBERSHIP AND EMPLOYMENT YEAR 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 NUMBER OF GARMENT FACTORIES 834 1163 1537 1839 2182 2353 2503 2726 2963 3200 3480 3618 3760 3957 4107 4220 4490 4743 4925 5063 5150 5400 EMPLOYMENT IN MILLION WORKERS 0.40 0.58 0.80 0.83 1.20 1.29 1.30 1.50 1.50 1.60 1.80 1.80 2.00 2.00 2.00 2.20 2.40 2.80 3.50 3.60 3.60 4.00

Table 2: Growth of the industry and Employment

Supply Chain Management (SCM)

Labor Unrest in RMG Sector


Causes of labor unrest
a) The wage of the worker get is low b) Workers do not get their wage, overtimes & bills in time c) They do not know anything about their job contract d) Being maltreated by owners and mid-level officers they work long hours in congested

environment without sufficient rest


e) Conflict between owners and workers f)

Conspiracy of home and abroad

g) Poor port facility h) Lead time complexities i)

Advancing competitors in the quota free international market are some of them which are posing a great threat to its survival

j)

If any worker protests, he/she are threatened by various types of harassment such as dismissal, arrest etc.

This is why labour unrest has been a common phenomenon in the RMG sector of Bangladesh.
a) Workers are being embroiled in clashes frequently; b) They call strikes often to make their demand home.

It causes enormous loss to the owners, cripples the economy and tarnishes the image of the country abroad. It also makes foreign buyers reluctant to render future orders. In addition, fixing new minimum wage for the garment workers and issue of implementing the new wage structure have been the prime causes of recent labor unrests across the country. The unrest takes shape of violence and vandalism. The agitated workers come to the street and go storming on vehicles and garment factories. The attacked factory is declared closed; many labor leaders are arrested, many workers lose jobs or suffer from uncertainty; losing interest in the uncertainty, the international buyers cancel their orders and divert to another market. The industry comes to a deadlock situation.

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Supply Chain Management (SCM)

RMG in Post- MFA Scenario


Over the last thirty years, international trade and investment in the global textile and garment (T&G) sectors has been influenced by Multi-Fiber Arrangement (MFA) quantitative restrictions (quotas) applied by the major developed country importers (the United States, the European Union, Canada and Norway) on T&G exports from (predominantly) developing countries. MFA quotas were negotiated bilaterally and applied on a discriminatory basis to some exporting countries but not to others, thus differing from country to country in both product coverage and the degree of restrictiveness. In such a context, the Multi-Fiber

Arrangement governed the trade in textiles and clothing from 1974 to 1994. This arrangement was superseded in 1995 by the Agreement on Textiles and Clothing (ATC) under the administration of the World Trade Organization (WTO). From 1 January 2005 all such quantitative restrictions on the trade in textiles and clothing were phased out, and finally abolished. The quota system under the MFA has distorted international T&G trade and has resulted in global welfare losses since quota limits on the exports of selective producers have prevented an allocation of resources to the most efficient T&G producers and preventedprices in quota protected developed country markets from falling. Competitive exporting countries with comparative advantages in T&G production have been restrained from expanding under the MFA quota system, while relatively uncompetitive producers have enjoyed guaranteed market access (up to the quota limit) to developed country markets (Spinanger, 1999). In such a context, there was serious concern that low income countries, such as Bangladesh, Cambodia and the like, which relied heavily on the garment industry, would suffer from the keen competition expected to be triggered by the complete liberalization of trade in textiles and clothing from the beginning of 2005. From the many corners it was predicted that China would expand its exports and India would follow, and that the other relatively small exporters would suffered seriously from the competition of these two giants. However, it turned out that some garment-exporting Least Developed Countries (LDCs), such as Bangladesh, Cambodia and Haiti, faired very well throughout the year 2005.

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Supply Chain Management (SCM)

Current Scenario
Labor unrest has been a common phenomenon in the RMG industry of Bangladesh. Workers are being embroiled in clashes frequently; they call strikes often to make their demand home. It causes enormous loss to the owners, cripples the economy and tarnishes the image of the country aboard. It also makes foreign buyers reluctant to render future orders. In addition the industry is losing competitive edge for this. In July 2009, due to massive labor unrest,

Hameem Group, a leading garment manufacturing factory incurred a loss of around 100 crore taka and two workers died with resultant loss of 2000 jobs. Causes of labor unrest are many. First and foremost is the long-standing grievance of the workers. The growth of RMG industry of Bangladesh much depends on hard work of the labor force. But unfortunately they are deprived of minimum facilities. They are to live a sub-standard life in city slums for years. The wage they get is low. Very often they do not get their salary, overtime bills and bonus in time. They dont know anything about their job contract. Being maltreated by owners and mid-level officers, working long hours in congested environment without sufficient rest, lack of nutritious foods, medicine, right to legitimate protest against ruthless exploitations etc are their daily destiny. They dont have any access to the decision making process. Factory building collapse, fire accident, stampede render many dead and injured. Nevertheless, if any worker protests against owners or management, he/she is threatened by various types of harassment such as dismissal, arrest or even physical assault by the hired hooligans of owners. Most of the labor force of this sector are uneducated and unskilled and have come from rural area simply in search of livelihood. They have to work hard in return for a very poor salary.
Grade with posts Grade 1 : Pattern Master, Chief Quality Controller etc. Grade 2 : Mechanic, Electrician, Cutting Master etc. Grade 3 : Sample Machinist, Senior Tk.2870 TK.1148 Tk.200 Tk. 4218 Tk.5000 TK.2000 Tk.200 Tk. 7200 Tk.6500 TK.2600 Tk.200 Tk. 9300 Basic House rent (40% of Basic) Medical Allowance Net Salary

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Supply Chain Management (SCM)


Machine Operator etc. Grade 4 : Sewing Machine Operator, Quality Inspector, Cutter, Packer, Line Leader etc. Grade 5 : Junior Machine Operator, Junior Cutter, Junior Marker etc. Grade 6 : Operator of General Sewing/ Button Machine etc. Grade 7 : Assistant Sewing Machine Operator, Assistant Dry washing man, Line Iron man etc. Table 3. 4th minimum wage structure for the garment workers Source: Minimum Wage Board, 2010 Tk.2000 TK.800 Tk.200 Tk. 3000 Tk.2230 TK.892 Tk.200 Tk. 3322 Tk. 2395 TK.958 Tk.200 Tk. 3553 Tk.2615 TK.1046 Tk.200 Tk.3861

The following table shows a comparative study of minimum wage of workers of RMG sector with other industries of Bangladesh Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Sector Oil-mills Re-rolling Foundry Ship breaking Ayurvedic unit Pharmaceutical Soap and cosmetic RMG Shrimp processing unit Tailoring shop Minimum wage in Tk. 7420 6100 5100 4645 4350 3645 3300 3000 2645 2350

Table 4: Sector-wise minimum wage for workers

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Supply Chain Management (SCM)


Source: Daily New Age, 13 Aug, 2010

Recent Labour Unrest in RMG Sector


The RMG sector has economic contribution as well as social contribution in Bangladesh. It has created employment opportunities for about five million people including young, poor and illiterate women. However, recently the RMG sector is going through severe disturbances. The clashes between garment workers and law enforcers create serious crisis in this industry (Islam and Ahmad 2010). In January 11, 2010, the garment workers created violence for getting the facilities such as lunch bills and encashment of casual leaves. Forty workers were injured, production of 30 garment factories were halted. The garment workers had created another aggression on April 28, 2010 for increasing their monthly wage rate from US$ 25 to US$ 70. During that incidence, more than 22 RMG factories were affected and 30 peoples were injured (Islam and Ahmad 2010). The wage rate (0.25 US$ hour) is the lowest in Bangladesh compare with other countries mentioned in appendix. Another major worker disputes had taken place on May 25, 2010 for low house rent allowance. Thirty peoples were wounded, a police station was burned down and many roads were blocked for several hours. Another worker unrest took place on June 21, 2010 for implementing minimum wages of US$ 70 a month. In that clash, two hundred peoples were injured and thirty factories were ransacked (Islam and Ahmad 2010). The garment workers had violated at Dhaka on June 30, 2010 for protecting the closure of factories, and more then 40 people were injured. The workers have been engaged in street protest, picketing, or blocked of a manager's office or a factory for expressing their dissatisfaction about their wages and other job related issues. One of the reasons for this unrest in the garment industry is legal and institutional failures to ensure labour rights (Islam and Ahmed 2010). Most of the garment factories in Bangladesh do not follow the labour law and ILO conventions (Islam and Ahmed 2010). The Labour Act 2006 (called Labour code) clearly mentions that the wage of a worker must be paid within seven workings days [Section 123 (1)]. Majority factories do not provide appointment letters/contract letters, identity cards and employee handbooks. Health safety and security condition in this sector are also insufficient. The workers do not have a clear idea about their rights and labour laws (Islam and Ahmed 2010).

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Supply Chain Management (SCM)

Fire at garment factories


Around 33 major fire incedents at garments factories claimed at least 500 lives between 1990 and 2012. Listed below are some of the disasters since 2000 No. of Death 46 24 22 54 21 26 111

Year 25.11.2000 08.08.2001 06.01.2005 23.02.2006 25.02.2010 14.12.2010 24.11.2012

Factory Chowdhury Knitwear Garments factory Maico Sweaters Shan Knitting and Processing Ltd. Kts Garments Garib and Garib Sweaters Ha-Meem Group Tazreen Fassion

Source: The Daily Star 27.11.12 Fire service officers inspected 163 out of 574 in Ashulia after November 24 fire. The findings were appealing. 53 of those inspected factories lacked minimum fire safety standards.

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Supply Chain Management (SCM)

Analysis & Findings Expressed & Hidden Causes Labour Unrest in Garments Industry
Expressed causes of labour unrest at RMG sector in Bangladesh
a) Low wage rate: As the industry is highly labour intensive in nature, the historical

evolution of world apparel business supplier in the world. As human labour is embodied in the manufacturing process. It makes wages rate as an important determinant of production cost. As quotas were imposed on some apparel exporting countries, a large number of intermediate buyers shifted sourcing of RMG product to Bangladesh which was reinforced by the market access power of the country through the US and Canadian markets quotas imposed on imports apparel garments. Considerably the prevailing low wages ensured competitive prices for the ventures entrepreneurs to shift low wages helped Bangladesh focus on high volume mass production of RMG items competing directly countries such as China, India, and Vietnam.
b) Access working hours: Though the wages are low, the working hours are very long. The

RMG factories claim to operate one eight-hour shift six days a week. The 1965 factory Act allows women to work delivery deadlines; however, women are virtually compelled to work after 8 oclock. Sometimes they work until 3 oclock in the morning and report back to start work again five hours later ar 8 oclock. They are asked to work whole months at a time the Factory Act, which stipulates that no employee should work more than ten days consecutively without a break.
c) Poor accommodation facilities: As most of the garment workers come from the poor

family and comes from the remote areas and they have to attend to the duties on time, these workers have to hire a room near the factory where four to five huddle in a room and spend life in sub human condition. For four to five workers there is one common latrine and a kitchen for which they have to pay from Tk=2000 to Tk=2500/-.They share this amount among themselves to minimize the accommodation expense. The owners of these factories must not treat the workers as animals. The owners of these factories who drive the most luxurious car and live in most luxurious house do ever think that these are the workers who have made their living so juicy. Will these selfish owners ever think of these workers of their better living for the sake of humanity by providing better accommodation for these workers in addition to providing with the job?

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Supply Chain Management (SCM) d) Safety Problems: Because of the carelessness of the factory management and for their

arrogance factory doors used to be kept locked for security reason defying act Safety need for the worker is mandatory to maintain in all the organization. But without the facility of this necessary product a lot of accident is occur incurred every year in most of the company. Some important cause of the accident are given below Routes are blocked by storage materials Machine layout is often staggered Lack of signage for escape route No provision for emergency lighting boors, opening along escape routes, are not fire resistant Doors are not self-closing and often do not open along the direction of escape Adequate doors as well as adequate staircases are not provided to aid quick exit Fire exit or emergency staircase lacks proper maintenance Lack of proper exit route to reach the place of safety Parked vehicles, goods and rubbish on the outside of the building obstruct exits to the open air Fire in a Bangladesh factory is likely to spread quickly because the principle of compartmentalization is practiced
e) Political crisis: Garments industries often pay dearly for political unrest, hartal and

terrorism etc. The international market has withdrawn quota advantage over garments export form Bangladesh since December 2005.
f)

Accommodation and higher house rent: Workers do not have dormitories for their

accommodation. As a result, they have to pay higher house rent. Owners of these houses in Ashulia have increased the rent four times in a year. Following such arbitrary moves, workers put pressure on factory managements to increase their salary and they take to the streets when managements do not increase the salary.
g) Lack of motivational training programme: According to present estimate, the country's

more than 5,000 woven, 1,700 knitwear and nearly 1,300 spinning, weaving, finishing and dyeing factories suffer from shortage of 25 percent workers. Currently, 3.5 million workers are employed in the sector. They do not have institutional training on production management, organizational behavior and adaptability but they are the most important part of the multi-billion dollar garment business. If they were trained properly, they might not engage in frequent unrest.

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Supply Chain Management (SCM) h) Unskilled workers: Most of the illiterate women workers employed in garments are

unskilled and so their products often become lower in quality.


i)

Improper working environment: Taking the advantages of workers' poverty and ignorance

the owners forced them to work in unsafe and unhealthy work place overcrowded with workers beyond capacity of the factory floor and improper ventilation.
j)

Lack of managerial knowledge:There are some other problems which are associated with

this sector. Those are- lack of marketing tactics, absence of easily on-hand middle management, a small number of manufacturing methods, lack of training organizations for industrial workers, supervisors and managers, autocratic approach of nearly all the investors, fewer process units for textiles and garments, sluggish backward or forward blending procedure, incompetent ports, entry/exit complicated and loading/unloading takes much time, time-consuming custom clearance etc.
k) Gendered division of labor: In the garment industry in Bangladesh, tasks are allocated

largely on the basis of gender. This determines many of the working conditions of women workers. All the workers in the sewing section are women, while almost all those in the cutting, ironing and finishing sections are men. Women workers are absorbed in a variety of occupations from cutting, sewing, inserting buttons, making button holes, checking,cleaning the threads, ironing, folding, packing and training to supervising. Women work mainly as helpers, machinists and less frequently, as line supervisors and quality controllers. There are no female cutting masters. Men dominate the administrative and management level jobs. Women are discriminated against in terms of access to higher-paid white collar and management positions.
l)

Rumour: Rumour is a common problem in the garment sector. Very often rumours of

deaths and accidents cause commotion among workers and resultantly, workers vandalize factories without checking up on the veracity of the rumours. Consider the following incidentals an example. A few years ago a large number of workers at a Gazipur based garment factory were stampeded and injured while they were coming down from the upper floors of the building after a rumour of a co-worker being attacked by a genie spread. Needless to say, the existence of the genie could not be found anywhere in and around the factory. The latest incident of unrest at Ashulia also started from a rumour of a missing Salman, a storekeeper of Ha-Meem Group, which was baseless.

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Supply Chain Management (SCM) m) Fear of job loss: Sometimes workers, in fear of losing their jobs, engage in vandalism.

They fear job loss for their misbehaviour with the seniors or if they are identified in any kind of violence.
n) Jhut business: Jhut (the scrap of clothing items) is a very profitable business for a section

of traders as the item brings them cash money. Previously jhut was a waste product of the garment factory but now it has become a by-product for its commercial value. As a result, some people, especially the locally influential people want to grab more jhut through influencing either workers or mid-level management of the factories. Many factories have faced unrest for the politics involved in jhut business.
o) Case with police stations:Filing of cases with the police station by the factory authorities

on many an occasion have triggered labour unrest and work stoppage. When any kind of violence takes place at the factories, the managements and the local police file cases against hundreds of workers and the workers' leaders without mentioning their names. Police then search for the workers even after normalcy returns to the factories.
p) Fear of shutdown of factories: In majority of factory closure cases, the managements do

not follow the rules of law. Without serving any prior notice to the workers, they shut down the production units. As a result, workers get involved in clash with them and vandalise factories either for reopening production units or for arrear salary and other dues.
q) Arrears: Workers clash with the management for arrear salary and bonuses especially

during the Eid festivals. The situation in salary disbursement has improved a lot as managements are now handling it professionally and have enhanced the compliances at factory level.
r) Checking at entry point and identity cards: Some severe labour unrest took place during

checking the workers at the entry point of garment factories by the security guards. Workers engage in altercation with the guards when they ask them for identity cards during the checking. Sometimes workers forget to carry the identity cards. In such cases guards do not allow them to enter the factory.
s) Pay hike and discrimination in grades: Incidents of unrest in November 2010 were only

triggered by discrimination in salary hike and changes in grades. Many senior workers or operators did not get the salary at the proper grades although the minimum wage was implemented since that month. As a result, workers vandalized many factories. In the latest wage structure workers were categorized in seven grades. A section of workers started demonstration when the experienced and old workers were graded properly.

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Bad relations between workers and mid-level management: Very poor understanding

between workers and mid-level management is a perennial problem in the garment sector. Floor managers demand a quick delivery of works from the operators, but it might not be always possible. In such cases the mid-level officials engage in altercation with workers. Many mid-level officials were injured for bad relationship between workers and the management.
u) Provocation by locally influential people and international conspirators and some NGOs:

Local influential people play a vital role in the sector. Local MPs have a great role to play, but sometimes they allegedly influence workers for some undue facilities. They use workers to establish their supremacy locally. They use workers to get jhut items and orders from garment owners for supplying materials, food items to the workers and other tenders. In cases of any outbreak of unrest, owners blame international conspiracy and NGOs overlooking the direct role local vested quarters play in the sector for business and political gain.
v) Fear of police and role of industrial police: The police force has a major role to play to

quell garment unrest. During the recent unrest in Ashulia, many questioned the roles played by the newly introduced industrial police. Some quarters say that a clear division has already been created between industrial police and the normal police force.
w) Sudden orders cut by international buyersSometimes international buyers do : not follow

ethical buying practices. For different reasons they undercut the prices or reduce the volume of order. As a result, garment makers either delay in payment to the workers or deprive them as factory owners also become victims of order cuts and rate cuts. Ultimately, workers engage in clash with the management.
x) Production in piece rate: Sometimes sweater factories are considered the source of unrest

for mismatch in calculation in piece rate. Sweaters are produced under piece rate basis, meaning workers receive salary upon production. Sometimes workers are not paid in exact calculation of pieces at the end of the month. Suppose, at the end of a month a worker claims he has produced 100 pieces of sweaters while the officers calculate it to be 95. Many factories were vandalised for such wrong calculations in sweater factories.
y) Inflation: Spiraling of prices of basic commodities is a major source of unrest. For

example, prices of four eggs are Tk 40, which only five months ago were Tk 24. Similarly, prices of almost all commodities have increased. As a result, workers always bargain with the managements for pay hike.

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Hidden causes of labour unrest at RMG sector in Bangladesh


a) Lack of motivational training programme: According to present estimate, the country's

more than 5,000 woven, 1,700

knitwear and nearly 1,300 spinning, weaving, finishing and 3.5 million

dyeing factories suffer from shortage of 25 percent workers. Currently, workers are employed in the sector. They do not have institutional

training on production

management, organizational behavior and adaptability but they are the most important part of the multi-billion dollar garment business. If they were trained properly, they might not engage in frequent unrest.
b) Case with police stations: Filing of cases with the police station by the factory authorities

on many an occasion have triggered labour unrest and work stoppage. When any kind of violence takes place at the factories, the managements and the local police file cases against Police then

hundreds of workers and the workers' leaders without mentioning their names.

search for the workers even after normalcy returns to the factories. Such objectionable police behavior often results in clashes with the factory managements
c) Reduction of product: At present, industry sector is severely hit by the power and gas

crisis. Many

factories have suspended production for want of power and gas. In some

cases, some factories are running their factories in the night instead of day. It is very unusual for both the owners as well as for the workers .This is why the total production has fallen 0; the cost of production increases dramatically, earning has slimmed down. For this reason the owners do not want to pay the reasonable salary to the labor as a result conflict rises.
d) High cost of production: The cost of production is increasing day by day as the price of

raw material is rising. As the prices of essential raw materials are increasing beyond the control of the RMG owners, hence the pay increase is not possible. The price of essential raw materials must be kept under control. This has to be done by the government. It is a major

reason for labor unrest.


e) Communication gap: Communication gap between owners and labors is another hidden

cause behind the

labour

unrest. Due to communication gap misunderstanding create and it

causes labor unrest.


f)

Mistreatment of the workers by managers: Sometimes the manager or top level authority

of the garment mistreats with the labor and it creates labor dissatisfaction which turns into labor unrest.

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Supply Chain Management (SCM) g) Non-execution of labor laws: In our country labor law is not executed properly. On

execution of the labor law is the reason for labor dissatisfaction and dissatisfaction leads to create unrest in the garments sector.
h) Sudden order cut by international buyers: Sometimes international buyers do not follow

ethical buying practices. For different reasons they undercut the prices or reduce the volume of order. As a result, garment makers either delay in payment to the workers or deprive them as factory owners also become victims of order cuts and rate cuts. Ultimately, workers

engage in clash with the management.

Threats to Development Economy


Development economics seeks to determine how poor countries can be transformed into prosperous ones. Strategies for transforming a developing economy tend to be unique, because the social and political background of countries can vary dramatically.
a) Price competitiveness: China and some other competitors of Bangladesh have

implemented sharp price-cutting policies in exporting garment products over the last few years, but Bangladesh has failed to respond effectively to such policies. China was able to drop the export price of 29 garment categories by 46 per cent on average in the United States within a year, from $6.23 per sq metre in December 2001 to $3.37 per sq metre in December 2002. Bangladesh needs to respond to such price-cutting policies of its rivals in order to remain competitive in the quota-free global market.
b) Impact of labour unrest: Whatever might be the cause of labor unrest in the RMG sector,

impact is, beyond doubt, catastrophic. All the four parties- the workers, the owners, government and foreign buyers will be affected. If labor unrest continues, the foreign buyers will cancel their orders and divert to other exporters like, India, China or Cambodia. Hundreds of factories will be closed. Many owners may be bankrupt. Labors, losing jobs will lose their livelihood and many will involved in criminal activities. This will create burden on the existing unemployment problem and increase various types of crimes in the country. The government will be deprived of huge foreign exchange and revenue income. The foreign buyers, who could buy quality garments at a low price and make huge profit in the US or EU market will have to eye on another exporter country from where they have to count a high price for the same garments. Hundreds of businesses, grown based on RMG industry, will suffer. The whole economy of Bangladesh will be adversely affected.

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Supply Chain Management (SCM) c) Conditions of service and employment: It includes conditions of employment,

classification of workers, letters of Appointment and identity card, service book, form of service book, entries in the Service book, register of workers and supply of tickets and cards. (Section 3-9, Bangladesh labor Act 2006)
d) Health and Hygiene: The Act describes the terms and conditions of cleanliness,

ventilation and Temperature, dust and fume, disposal of waste and effluents, overcrowding, lighting, Drinking water, latrines and urinals, etc. (Section 51-59, Bangladesh labor Act 2006)
e) Safety and Health: It includes safety of the building and machinery, precaution in case of

fire, fencing of machinery, work on or near machinery in motion, cranes and other lifting Kamal, Billah & Hossain: Labor Unrest and Bangladesh Labor Act, 2006 5 machinery, hoists and lifts, floors, stairs and means of access, etc. (Section 61-72, Bangladesh labor Act, 2006)
f)

Working hours and leave: It describes the rules and regulation of daily hours, interval for

rest or meal, Weekly hours, weekly holiday, compensatory weekly holiday, spread over, night Shift, extra allowances for overtime, casual leave, sick leave, annual leave with Wages, festival holidays, etc. (Section 100-118, Bangladesh labor Act 2006)
g) Wages and payment: It contains special definition of wages, responsibility for payment of

wages, Fixation of wage-periods, time of payment of wages, wages to be paid in current Coin or currency notes, deductions for absence from duty, etc. (Section 120-126, Bangladesh labor Act 2006)
h) Trade unions and industrial relations, disputes: It narrates the rules and regulation of

special definition of worker, trade unions of workers and employers, collective bargaining agent, participation committee, Industrial disputes, lockout and strike, etc. (Section 175-211, Bangladesh labor Act 2006)
i)

Penalty and procedure: It shows the penalty for non-compliance of labor courts order,

penalty for Employment of child and adolescent, penalty for unfair labor practices, penalty for Illegal strike or lockout, penalty for taking part in or instigating go-slow, penalty For general offences by workers, penalty for other offences, etc. (Section 283-307, Bangladesh labor Law 2006) Based on the above mentioned literature it assumed that most of the labor unrest Occurred due to lack of proper implementation of Bangladesh labor Act 2006. Now the authors go for exploratory research to find out the reasons for labor unrest considering Bangladesh labor Act 2006, because labor unrest is a major problem for the growth and sustain of Ready Garment Factories.

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Supply Chain Management (SCM) j)

Children and women development: In garment industry most of the labors are women. By

working and earning money they are being able to support her family. This economic support to her family increases their dignity to her family. They get the power to give the opinion to make the family decision. But due to labour unrest many garment workers are being deducted. Many garment industry are being closed. It is creating threat in the process of developing and empowerment of the women.
k) Macro-economic perspective: Due to labour unrest the garments are being closed or

decreasing the production. Sometimes the buyers are finding new market are diverting to the new market. It will decrese the GDP of the country, decrease the rate of earning foreign currency. Due to this problem the infrastructural development will be decreased and the whole economy will have to face critical situation.
l)

Threats to poverty reduction target: In PRSP the poverty reduction target are set out.

Labour unrest may one of the major reasons or threat to achieve the target. Because this labour unrest will be responsible for creating the unemployment problem and this problem will restrain to the poverty reduction target.
m) Good governance: Good governance is another part to PRSP. It is most important factor

the total development of the country. Without good governance the country will not be able to run successfully. Labour unrest hampers the law and order situation. It affects the national and development economy of the country which is big threat to the good governance.
n) Food insecurity: Food security is one of the toughest challenges for the country especially

for the govt.of developing country. In PRSP food security has given most priority to achieve. Without food security a country cannot maintain the law and order situation. Due to labour unrest the production of the garment industry is becoming low. It is affecting the whole production and creating unemployment problem. So labour unrest is great threat to the food security. In PRSP criminal and justice has got great importance .Due to labour unrest the criminal and justice problem are raising.

Challenges to our National & Development Economy


a) Less foreign currency: as the production is less so the export of commodities will be

decreased and a deficit balance of payment will be occurred.


b) Less FDI(Foreign direct investment): When there is favorable environment for business ,

possibility of having more profit in a country, then the foreign country want to invest there.

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Supply Chain Management (SCM)

So the foreign investment increases. As a developing country FDI is most important for Bangladesh. But, unfavorable business environment and many other problems are providing a bad image to the foreign clients and abstaining them from investment. So we are suffering from lack of capital. As a result quality products are not being produced.
c) Reluctance to reorder: Though there must have risk in a business nevertheless the client

must try to their best to avoid the risk. Labor unrest make the clients think the related party risky. So, for avoiding risk the clients become reluctant to reorder and look for alternatives. Therefore we are losing clients and it makes the companies weak what hampers our economy.
d) Lessen Export: Garments sector provides lions share of our attained foreign currency. So

it can be imagined that how much it contributes to our economy. If the main earning source of a country is harmed then its national economy must be harmed. As the labor unrest make the regular activities face of problem so, there must have performance gap what results in less production as well as less export. Less export will provide less foreign currency and generally it will make a mess in our economy. Thats why it appears as a threat.
e) Bad image to the countries abroad: Because of inconsistent economy, political instability ,

labor unrest the garments industries are failing to deliver the produced products on time as well as to deliver the quality products. The production cost also increasing for bearing the compensation of damaged products. So the final price is also increasing. Thats why the countries abroad who are our client are carrying a bad image and being reluctant to buy our products. We cant but think it a great threat.
f) Damage the economic strength: If the labor unrest , economic instability , political

instability every now and then it will be enough to damage the garment sector. And it will take a long period of time to rebuild a new way of alternative. By this time the economy may be damaged and lose its strength. Loss of economic strength will cause many other problem even it may lose sovereignty. It is the booming and most potential sector of economy. We know 80% of export is earned from this sector. So if this sector is damaged the economic strength will be damaged.
g) Inconsistent Economy: Our economy is inconsistent and labor unrest will add scratching

to the wound. When such unrest situation occurred some unexpected occurrence is appeared. Physical confliction, firing etc. Thus production rate fall down on the other hand due to the physical conflict other production related supporting business activities also remain stop. So the whole economy faces a problem.

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Supply Chain Management (SCM)


h) Political Instability: Generally, a company has a labor union. The labor unions in our

country are enticed by politics unexpectedly. So, whenever the political instability takes place, it also touches the labor union as well as the company. Therefore labor unrest raises and hamper the regular activities of the companies what does not let them to attain their goal. So the political instability must be considered threat.
i) Potentiality to civil war: A lot of employees are working in the garments sector. Maximum

of them are of lower level and they dont have any other skill to do any other job. If, this great number of poor people loses their job at a time because of labor unrest and other problems, it must lead toward civil war. Because they will try to abduct others wealth for living. A single and short period war is enough for breaking the backbone of the economy of a country. So, we cant help thinking it Great threat.
j) Reduction of production: due to the effect of the unrest the labor will be unwilling to

work in the firm and thus the production rate will be reduced automatically.
k) Lower income level: due to the unrest the production will reduce and thus the income

level of both employer and employees will be decreased.


l) Remaining unskilled labor: if the workers remain closed to the unrest situations their

efficiency and skill will remain low.


m) Less demandable labor market: If our image about labor market remains same foreign

employers will be reluctant to import our labor. Thus our labor market will remain less recognize a high performing worker results in dissatisfaction and in some cases job turnover

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Supply Chain Management (SCM)

Conclusion & Recommendation Conclusion


In respect of production, export, earning foreign exchange, contribution to GDP, employment, investment and business mobilization, RMG sector of Bangladesh has been a flourishing industry. Its importance has crossed geographical boundary of the country. Garment business of many international markets in Europe and North America depends on 59 productions of garment factories of Bangladesh. It involves stakeholders from various corners covering public, private and international organizations. Given the fabulous volume of trade of the industry, the increasing trends of labor unrest in the RMG sector has been a matter of serious concern. Solving labor unrest in this sector is nearly impossible by a single agency like government or BGMEA or a civil society organization. Findings from data analysis show that public-private cooperation is the most chosen way of addressing labor unrest in the RMG sector of Bangladesh. However, it often deteriorates the situation. There is another allegation maintained by the garment workers against the law enforcers that latter work in favor of the garment owners and against the workers. To ensure sound law and order situation, co-operation between the conflicting parties is a crying need. The law enforcers, with all impartially can help trace the culprits into book and award exemplary punishment. On the hand, the factory owners, managers and garment workers have to have full support to them, provide genuine information to them and help in time of investigation. To avert further unrest, intelligence agency can work in the garment industry area. Involving labor-force in decision-making process is important in addressing labor unrest in the readymade garment industry. It is perceived by 92% of the respondents. While exploring the causes of labor unrest, it is found that irregularities in payment and low wage rank top among the causes of labor unrest. When this thesis is taken in hand, it was time for declaring new wage scale for the garment workers. There was tough bargaining between the factory owners and labor-leaders for the fixation of minimum wage. The labor-leaders demanded the minimum wage to be fixed at Tk. 5000 while the factory owners started it with TK. 2000. After a series of meetings with factory owners, Minimum Wage Board and labor-leaders finally it was settled at TK. 3000. Participation of all stakeholders in the decision-making process really helped settle the dispute. Respondents are of the view that representatives of

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Supply Chain Management (SCM)

labor-force should be included in regular meetings inside the factory as well as decisionmaking process at national level. They are also to be included in various committees with the factory owners and managers. Finally, it can be concluded that public-private cooperation in addressing labor unrest in the RMG sector of Bangladesh can be a viable and effective measure. However, level of mutual trust, communication and co-operation between workers and management of a garment factory as well as public and private sector should be uplifted. Minimum wage for the garment workers should be regularized and implemented properly.

Recommendations
a) An appealing wage structure should be made and implemented. b) Government should take initiatives to solve this problem by implementing strong policies

related to minimum wage rate, and reducing inflation etc govt. can control this unrest condition of labor.
c) A strong CBA can perform to control the employees. They protect the right of the

employees as well as the employers.


d) Good relationship among employee and worker should be developed e) Giving them a healthy workplace f)

Ensure the protection of job:

g) Lessening rumor h) RMG factories should ensure proper production and official layout with perfect place

materials, tools. Organization should tape up unused machine and keep it away from the manufacturing plant safely.
i)

All of the employees related with this potential industry should be enthusiastic to avoid

the conflict of interests. This means that employees and employers should not place themselves in situation that might face them to choose between their own interest, business or financial interest and the interests of readymade garment industries.
j)

Workers should be properly seated for waist and foot rest. Workforce is the heart of any

organization. RMG factories should guarantee the workforces proper rest for the fix time which can easily be helpful for the productivity of this industry.
k) Industries should provide chair with backrest. Fatigue will surely arise during work in a

place; to remove such type of tiredness garment factories should make available place with suitable chair which can ensure backrest of the workforce in the right time.
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Supply Chain Management (SCM)

l)

RMG industries should have adequate leg space to allow easy leg movement of the

workers. That means layout of the manufacturing plant should be more spacious.
m) To be competitive, industries should comply with international standard code, such as

ISO or imported countries standard code.


n) Factories should have effective fire distinguisher and separate and adequate space for

entrance and exit of the workers. Every displays and control systems should be clear to all employees and workers.
o) RMG industries should ensure health, safety and standard work environment for the

employees. In this case, organizations should provide proper ventilation, sufficient light and air. For organizing such facilitiesm owners should comply at a minimum with legal standards, minimize the use and discharge of hazardous substances and promote recycling of resources.

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Bibliography
i. ii. iii. iv. v. vi. Table 1: Country-wise per hour wage of garment workers; Source: The Daily New Age, 13 Aug, 2010. Table 2: Growth of the industry and Employment; Source: BGMEA Table 3: 4th minimum wage structure for the garment workers; Source: Minimum Wage Board, 2010 Table 4: Sector-wise minimum wage for workers Source: Daily New Age, 13 Aug, 2010 International Journal of Business and Management Vol. 7, No. 3; February 2012; www.ccsenet.org/ijbm Absar , Syeda Sharmin, Problems Surrounding wages : The Ready-made Garment Sector in Bangladesh, Labour and Management in Development Journal, Vol. 2, No. 7. Haider, Mohammed Ziaul, Competitiveness of the Bangladesh RMG Industries in major International Markets. Asia Pacific Trade and Investment Review, Vol. 3, No. 1, June 2007 Mainuddin, Khandaker (2000), Case of the Garment Industry of Dhaka, Bangladesh, Urban and Local Government Background Series, No. 6, Washington, D.C., World Bank. Chowdhury, S.I.(1991), Garment Industry and the Economy of Bangladesh, The Bangladesh Trade Journal. Coping with Post-MFA Challenges: Strategic Responses for Bangladesh RMG Sector, CPD Dialog Report No. 55, Dhaka, Bangladesh. Web Addresses a) http://ro.uow.edu.au/cgi/viewcontent.cgi?filename=0&article=1039&context=theses&type=a dditional&seiredir=1&referer=http%3A%2F%2Fwww.google.com.bd%2Furl%3Fsa%3Dt%26rct%3Dj%26 q%3Dexpressed%2Band%2Bhidden%2Breasons%2Bbehind%2Blabor%2Bunrest%2Bin% 2Bgarments%2Bindustry%2Bin%2Bbangladesh%253A%2Bindepth%2Banalysis%2Bbased %2Bon%2Bmultilevel%2Bstakeholders%26source%3Dweb%26cd%3D1%26ved%3D.bm b) http://mppg-nsu.org/attachments/339_Aminul%20Islam%20Khan.pdf c) http://www.dpe.gov.bd/images/pdf/pterm/316.pdf d) http://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/Consumer%20Packag ed%20Goods/PDFs/bangladesh_ready_made_garment_landscape.ashx e) http://www.fairwear.org/ul/cms/fck uploaded/documents/fwfpublications_reports/FWFAnnualReport2011.pdf

vii. viii. ix. x.

xi.

Hossian, M. Ismail and Rahman, Shamsur (2002),Contribution of RMG to our national economy and its impact on our society. Alamgir, Mohiuddin, (2010), Exploiting the economy builders, The Daily New Age/ Extra, August,13, 2010.

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Appendix
1. Acronyms
ATC BB BBS Agreement on Textiles and Clothing Bangladesh Bank Bangladesh Bureau of Statistics

BGMEA Bangladesh Garment Manufacturers and Exporters Association BIDS BILS CAB CAGR CPD FY GATT GDP GSP HIID LDC ILO MFA NGO NIP RMG RoO SKOP TIP T&G WTO Bangladesh Institute of Development Studies Bangladesh Institute of Labor Studies Consumers Association of Bangladesh Cumulative Average Growth Rate Centre for Policy Dialogue Fiscal Year General Agreement on Trade and Tariff Gross Domestic Product General System of Preference Harvard Institute of International Development Least Developed Country International Labor Organization Multi-Fiber Arrangement Non-Government Organization National Industrial Policy Readymade Garment Rules of Origin Sramik Kallan Okkay Parishad Trade and Industrial Policy Textile and Garment World Trade Organization

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2. Questionnaire (English)
This questionnaire has been prepared for collecting data for conducting an academic research entitled Labor Unrest in the RMG sector of Bangladesh. And this has been taken for preparing the above report. Name: (Optional) Age: .. Sex: a) Male b) Female

Education: i) Illiterate ii) Primary level iii) Below SSC or equivalent iv) SSC or equivalent Occupation: v) HSC or equivalent vi) Graduate vii) Others Designation: . Monthly income: ..........

Working experience: . years.

Name of the Organization: (Optional) . 1) What are the causes of labor unrest in RMG sector of Bangladesh? a) . b) . c) . 2) Do you think that there exists any conspiracy behind labor unrest? a) Yes b) No 3) If yes, what type of conspiracy? 4) If yes, how it can be prevented? 5) Do you think that the incidents of labor unrest should be investigated? a) Yes b) No 6) If yes, by whom, do you think, the investigations should be conducted? .

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7) Has there been any incident of labor unrest in your factory in recent years (20062010)? a) Yes b) No 8) If yes, what were the reasons behind the unrest? .. 9) Had there been any retrenchment after the incidents of labor unrest? a) Yes b) No 10) Had there been any investigation on the incidence? a) Yes b) No 11) If yes, what was done with the investigation report? . 12) Do the law enforcing agencies work in your factory area? a) Yes b) No 13) Performance of law enforcing agencies in RMG industry area -------a) Satisfactory b) Mediocre c) Not satisfactory 14) If b) or c), how it can be improved? 15) Do you think that there exists a communication gap between the owners and workers in RMG sector? a) Yes b) No

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16) If yes, who is to negotiate between them? 17) Does the work-force have any representation to the decision-making process? a) Yes b) No 18) Do you think representation of the work-force in decision-making process can help minimize labor unrest? a) Yes b) No 19) If yes, how they can be involved? .. 20) Any other suggestions to address the problem

3. Tables : sectoral growth


i.Sectoral growth in different RMG product ii. Sectoral growth in different RMG product Yearly basis

Prepared by Md. Shawfiqul Islam Id. No. 091437 (4th batch) Department of Management Studies (MS) Jagannath University, Dhaka

34