Labour unrest still high in RMG sector: Studies

Published in the Financial Express on 7, May, 2017

Monira Munni

Labour unrest is still high in the country’s ready-made garment (RMG) sector, although the number of such incidents has declined since 2013, according to recent studies.

Such incidents were high in medium-sized garment units, followed by small and large-sized ones, the findings revealed.

A survey conducted by Bangladesh Institute of Labour Studies (BILS) revealed that a total of 237 industrial disputes and workers’ actions took place last year while some 122 workers’ actions were recorded in the RMG sector, followed by 16 in transport sector and 12 in jute mills.

Out of 237, some 73 were demonstrations while 41 were highway blockades, 28 each was work abstention and human chain, 23 were strikes and 22 were mass gatherings or rallies.

Another study carried out by private think tank Centre for Policy Dialogue (CPD) showed that in 2016, the RMG sector witnessed at least 115 incidents of labour unrest.

The number was 198 in 2013 and most of them linked to post-Rana Plaza issues such as compensations and unpaid wages.

“Incidents were high in medium-sized industries and BGMEA member-factories, followed by small and large-sized ones,” said Khondaker Golam Moazzem, research director of CPD.

Both the studies revealed that Dhaka, Narayanganj and Gazipur were most labour unrest-prone areas that accommodate labour-intensive garment industries.

Over 39 per cent of labour unrest took place in Dhaka, followed by 28.28 per cent in Gazipur and about 25 per cent in Narayanganj, Mr Moazzem showed in his study report.

The report also showed that incidents were higher in Bangladesh Garment Manufacturers and Exporters Association (BGMEA) member factories while the percentage was comparatively low, 2.53 per cent, in the port city– Chittagong.

Unpaid wages, allowances and bonuses have the highest frequency in all the years though plummet from 2014 onwards, the report said, adding that other major issues such as worker mistreatment issues and labour law conflicts follow similar trends in that the numbers tend to steadily fall then rise sharply from 2015 onwards.

The findings showed a rise in the incidents of unrest during the period between June and July and the main reason behind workers’ demand for festival bonuses and salary arrears.

Regarding unrest in Chittagong-based garment factories, sources concerned said the cost of living is not as high as Dhaka in the port city while they attribute locals’ influence and less union activities to relatively less unrest there.

They, however, admitted that the labour rights situation is poor there, although workers don’t take to the streets demanding ensuring their rights.

Garment is a big and labour-intensive sector, labour leader Nazma Akter said, adding that unrest takes place in demand for payment of wages, arrears and other rightful benefits.

Mr Moazzem explained that a large part of incidents is related to financial issues which are not necessarily related to ‘fixing wages’.

“Most of financial issues indicate that poor financial management and poor human resources (HR) management of RMG enterprises caused most of the labour unrest,” he added.

Higher incidents in medium and small-sized factories perhaps indicate their weak HR and financial management, he said and suggested strengthening financial management particularly cash flow management and improving HR management to handle worker related concerns.

Partly disagreeing with such management, Mahmud Hasan Khan, vice president of BGMEA, said many medium-sized factories have strong financial and HR management while the situation is reverse in some big units.

Regarding unrest in RMG sector, he said some 3,500 garment factories are currently in operation in the country.

Such unrest will further decline as a platform for grievance mechanism has recently been formed, he said expressing his hope.