CPD RMG Study Stitching a better future for Bangladesh
Corporate accountability is the accountability of corporations for the economic, social and environmental impacts of their activity. Corporate accountability encompasses responsibility and responsiveness, meaningful stakeholder processes including various governance, monitoring, compliance and grievance mechanisms and transparency. Government, civil society, labour associations, trade associations and employers federations all have important roles in the process of facilitating corporate accountability. In the discussions at the Virtual Dialogue on Corporate Accountability of the RMG Sector in View of COVID Pandemic: Challenges in Ensuring Workers’ Well-being the presentation and discussions highlighted the importance of addressing this.
The virtual dialogue was jointly organised by the Centre for Policy Dialogue (CPD) and the Shojag Coalition on 8 May 2021. The webinar highlighted the importance of corporate accountability in the apparels sector who were beneficiary of the stimulus package during the COVID-19 pandemic, with regard to their impact on jobs and livelihood of workers.
Dr Fahmida Khatun, Executive Director, CPD and Ms Maheen Sultan, Team Leader, Shojag Coalition and Member, Naripokkho delivered the welcome remarks and introductory remarks, respectively. They stated that corporate accountability refers to the responsibility of the stakeholders in ensuring that their actions contribute to overcoming poverty, fostering development and ensuring social justice. In the global apparel value chain, this responsibility lies on suppliers, brands/buyers and governments. Corporate accountability indicates responsibility and responsiveness, meaningful stakeholder processes including access to grievance and compliance mechanisms and transparency. In case of the apparels sector enterprises of Bangladesh, this can be scrutinised through corporate actions/inactions during the period of COVID-19 pandemic with regard to responsibilities pertaining to workers well-being. The main objective of the study was to examine the accountability of corporate actors in the apparels sector during the COVID-19 pandemic with regard to their impact on jobs and livelihood of workers.
While making the keynote presentation, Dr Khondaker Golam Moazzem, Research Director, CPD stated that a large section of enterprises that are small and non-member of BGMEA but engaged in the RMG value chain needs to be brought on-board to practice corporate accountability. This includes dimensions of governance, labour law compliance, freedom of expression and disclosure practices. There are differences of opinion between employers and workers with regard to the extent of the practice of corporate governance at the enterprise level. This is particularly observed in work pressure and workplace harassment during the pandemic period. In cases necessary, workers often could not challenge the decisions taken by the management.
About 67.6% of the factories have applied for loans under the Stimulus package and 62.7% received subsidized credit for four months. All RMG factories were not included and therefore all RMG workers were not supported. Workers laid off or retrenched during the COVID pandemic in 2020 only received part of the benefits due to them. According to the factories, 21.4% of them could not pay anything to the retrenched workers. The majority of workers were laid off during the first phase of COVID (April-May, 2020) when enterprises received government support to pay workers’ wages with the condition that no workers would be laid-off of or retrenched. Exemptions permitted to the application of the Bangladesh Labour Act allowing for the increase of working hours raised concerns about high pressure on workers (section 324, 100, 102 and 105). While such exemptions can be used for a limited period of time, the exemption periods were extended, which is also a concern.
Brands/buyers were generally not responsive about the issue of workers being retrenched/laid off from their partner factories. Only 14.7% of factories received requests from brands not to lay off/retrench workers, 1% of factories indicated that the concerned brands agreed to accommodate related costs for not laying off workers. Transparency and disclosure are the least developed areas with regard to corporate accountability in RMG enterprises. Only a small section of enterprises claimed that they disclose factory related information (40%) and financial support from government (21.6%), or publish g annual reports (41%). Unemployed workers received a limited amount of support from the government (21%) and NGOs (20%). As Labour courts did not function in 2020 and 2021under lockdown and did not hold any virtual hearings, workers lacked access to legal protection.
While the Ministry of Labour and Employment made repeated pleas to ensure that workers were not retrenched or laid off, the role of the public monitoring and inspecting authorities were largely confined to providing guidelines on workplace safety during the COVID pandemic period, and partly providing training on health-related safety during this period. DIFE has formed crisis management committees (CMCs) and has tried to monitor the level of health and safety protocol in RMG factories.
A number of suggestions have been put forward in the study including disclosure of factory related corporate accountability practices through official websites, withdrawing the decision of withholding the provisions of BLA, extending membership to non-member factories, enhancing social dialogue through effective functioning of participation committees and trade unions, operationalization of mobile financial services/bank accounts for workers’ wages, using social insurance schemes for paying dues of unemployed workers and promoting gender-responsive social safety net schemes.
Mr Tipu Munshi, MP, Hon’ble Minister for Commerce, Government of Bangladesh attended the programme as the Chief Guest. He opined that it is the duty of the owners to ensure the just deserves of the labour. Hon’ble Minister also stated that owners are also not being paid like before in the international market.
Ms Kalpona Akter, Executive Director, Bangladesh Center for Workers’ Solidarity (BCWS) said that the Bangladesh Manufacturers and Exporters Association (BGMEA) should share more information on the arbitration settlement process. Mr Abdullah Hil Rakib, Director, BGMEA emphasised making the mid-level management more aware of the labour rights to ensure a healthy working environment. They were present as Discussants at the dialogue.
Responding to the statement of Ms Kalpona Akter, Mr Faruque Hassan, President, BGMEA, a Guest of Honour at the Dialogue stated that the BGMEA’s arbitration cell is very active and he will work towards ensuring the recommendation to share more information on the arbitration settlement process. During his comments, the President of BGMEA mentioned that they were not aware of using a central database against workers. He also mentioned that he welcomes further social dialogue. It was suggested that some detailed presentation and discussion of the study could be done with BGMEA and BKMEA.
Barrister Sara Hossain, Honorary Executive Director of Bangladesh Legal Aid and Services Trust (BLAST) recommended keeping the labour court active which has been not regularly operating during the pandemic. Present as another Guest of Honour, she also reiterated the importance of data disclosure. Advocate Montu Ghosh, President, Garments Workers’ Trade Union Centre stated that trade unions are there to support the owners.
Mr Mohammad Hatem, First Vice-President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) commented that there is a need for responsible trade unions. He also spoke in favour of continued social dialogue. During his comments, the Vice President BKMEA mentioned that layoffs and non-payment of wages did not happen at a large scale and they are ready to deal with such complaints. In cases where this has occurred alternative arrangements were made by BKMEA. If there were any complaints he gave the assurance these would be looked into.
Professor Mustafizur Rahman, Distinguished Fellow, CPD chaired the session. He put emphasis on strengthening social dialogue in order to reduce the gaps between employers, workers and concerned government offices. Mr Pankaj Kumar, Country Director, Christian Aid Bangladesh delivered the vote of thanks and appreciated participants for attending such a broad-based discussion and extended important suggestions for improvement of corporate accountability in the garments sector.
The dialogue was participated in by business leaders, civil society members, researchers, representatives of different workers organisations and media professionals.
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