The RMG sector is an established place where more than four million workers work directly and millions of others indirectly.Till September 12, 2024, about 219 garment factories shut in Ashulia and apparel sector is feared to get into a deeper crisis if production does not resume on Saturday, 14th September after the weekend. Officials see conspiracies behind the unrest and believe "real workers" are not involved in the vandalism of some factories. The labour leaders blame the influence of partisan politics and control over jhoottrade for the situation.Owners face losses, the economy of the country usually slowsdown and it fades the reputation of the country as well.
The reasons behind the unrest are the subject of much debate. several causes behind labor unrest e.g. long working hour, negligence towards women workers duringpregnancy period, arrear salary and deprivation of bonuses, lack of congenialworking environment, deprivation of residential or transportation facilities,deprivation of reasonable salary, devoid of life insurance, sudden layoff fromjob, sexual harassment especially towards the women workers and political instability. Most of the workers are unhappy with their current wages and working environments of the factories. The workers of the garment's industry in Bangladesh are not normally provided with life insurance.
A study explored the factors contributing to labour unrest causes of labour unrest subdivided into worker induced cause (WIC), owner induced cause (OIC), middleman induced cause (MMIC) and external influence (EI) factors.
A daily newspaper stated that the garment workers are involved in severe clashes because of rumors or simple instigation and bad relationship with the management. Regardless the massive labor unrest for wage hike in 2010, the other incidents of labor unrest occurred either the rumor of death of the fellow worker or on instigation. Some studies explored that the fear of job loss,rumor, jhoot business, arrears, shutdown of factories, police cases, pay hike and discrimination in grades, poor relation with workers and managers, local influential, international conspirator, cutting orders by foreign buyers, higher house rent, lack of proper training program etc. are the causes of labor unrest in the RMG industry of Bangladesh.
The demands voiced by garment workers include equal opportunities for men and women, increased wages, improved benefits, and lighter workloads. In addition, delays in wage payments, alleged blacklisting of dismissed workers, and contentious issues surrounding unionisation have fueled anger and dissatisfaction.The most important reasons of labor unrest in the Bangladesh's garment industry are unpaid wage and the delayed payment.
The recent RMG workers' unrest in Ashuliaand Gazipur is related to outsider groups vying for dominance, especially over the scrap business after the change of the government. The set of extortionists left the area, and another group is taking the position with coercion. The power struggle between local thugs with differing political allegiancesin another reason. Some ringleaders are allegedly attempting to assert dominance after the regime change and their rivalry has intensified the unrest.It is obvious that workers will raise their demands when the situation is favourable for them.
As the issue of Bangladesh readymade garment workers deprived of fair wages and benefits is widely discussed in the international arena, it is highly necessary to look into the matter as to why workers are not given wages as per new pay scale and their discontent over the adjustment of grades.
The new pay scale for RMG workers is supposed to be implemented from 1 December 2023. Although the new pay scale has been implemented in most of the garment factories, owners of some factories are lingering. As a result, dissatisfaction has erupted among the RMG workers.
The new pay scale for RMG workers was declared at the end of last year and Tk 12,000 was fixed as minimum wage. Earlier, minimum wage was Tk 8,000. In the new pay scale, grades for workers were brought down to four from seven. As a result, the senior workers have been affected. Their wages come down to the level of junior workers. So, the workers protested against this. The new pay scale for RMG workers is supposed to be implemented from 1 December 2023. Although the new pay scale has been implemented in most of the garment factories, owners of some factories are lingering. As a result, dissatisfaction has erupted among the RMG workers.Workers' ongoing protests, leading to these drastic measures, underscore deep-rooted problems within the sector, including labor conditions and wage disputes.
"In this situation, the garment workers have long been demanding the introduction of a rationing system. Despite promises from the former finance minister and the state minister of labor, there is no allocation for rationing in the proposed budget for the sector that earns 83% of the country's foreign currency," the labour leaders claimed.
The five organisations pressing for this demand include the Bangladesh Garments Workers' Federation, Bangladesh Garments Workers-Officials' Federation, Bangladesh Garment Workers' Solidarity, Akota Garments Workers' Federation, and Bangla Garments Workers' Federation.
The low presence of industrial police in some areas is another reason for faltering investor sentiment. Numerous representatives of foreign companies say there is no functional authority which they can turn to for protection in some industrial zones.
Lack of safety and security is a big barrier towards running industrial units for both local and multinational companies. Currently, many investors are negotiating with leaders of the Collective Bargaining Agents (CBAs) to resolve the crisis and resume operations, with labour demands mostly centering pay rises.Reports of international buyers diverting their orders to Cambodia, Indonesia, and elsewhere due to the instability should serve as a wake-up call for both the government and industry leaders.
Additionally, the unrest has diverted attention from other critical issues, such as energy shortages affecting the RMG sector as well as its backward linkage industries. The failure to address these challenges promptly will have ripple effects throughout the economy, exacerbating the difficulties already faced by the RMG sector.
At this point of political and labour unrest, the Advisers to the interim government also decided to pay the workers of Beximco by lending the company as soon as possible.So far, a loan of Tk 70 crore has been given to Beximco so that it can pay the workers, the secretary of the labour ministry said in a press briefing.
It is essential for entrepreneurs and regulatory authorities to engage in meaningful dialogue with workers to address grievances and improve working conditions. The existing political culture of controlling everting ruling party, extortion, control of jhoot business and involvement outsiders in labour unrest etc should be addressed on priority basis. Without such measures, the cycle of protest and closure is likely to continue, impacting both workers' livelihoods and the economy. Persistent labour unrest among garment workers could influence Bangladesh's economic growth.Addressing the crisis should go beyond temporary solutions.
The writer is former Non-Government Adviser, Bangladesh Competition Commission, Legal Economist & CEO, Bangla Chemical
