RMG must move beyond cheap labour to stay competitive

Bangladesh’s garment sector cannot stay globally competitive by relying on low-cost labour alone and must invest in decent work, productivity and skills as technology, sustainability requirements and rising costs reshape the industry, speakers said yesterday.

The country’s ready-made garment (RMG) sector is at a turning point as changes in global trade, technology, climate and sustainability reshape the industry, said Emebet Mena, deputy country director of CARE Bangladesh.

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Speaking at a roundtable titled “Redesigning Systems for Decent Work and Global Competitiveness”, she said the sector’s future competitiveness must go hand in hand with decent work.

CARE Bangladesh and The Business Standard (TBS) jointly organised the event at TBS’s office in Eskaton, Dhaka. Emebet described the RMG industry as a “remarkable success story” that has made Bangladesh a leading apparel exporter, created millions of jobs and increased women’s participation in the economy. However, LDC (least developed country) graduation, technological advances, changing trade patterns, stricter sustainability requirements and growing global competition are creating new challenges.

She called for greater investment in workers’ skills, stronger worker representation, safer workplaces, gender equality and better industrial relations.

PRODUCTIVITY AND WORKER WELFARE

The need to improve productivity was also stressed by Nishat Nahim Hamid, chairperson of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Standing Committee on Energy Optimisation.

“Productivity has to be at the centre of everything, especially in the export manufacturing sector,” Nishat said.

She urged international brands to treat suppliers as long-term partners and called for predictable energy prices. She also said the cost of ensuring decent working conditions should be shared by the government, buyers, factory owners and workers.

Nishat highlighted heat stress, job security and barriers that prevent women from moving into supervisory positions.

Shaheen Anam, executive director of Manusher Jonno Foundation, said decent work should benefit both employers and workers.

“We all want Bangladesh to progress, but we do not want only a few people to move ahead while the rest are left behind,” Shaheen said.

The garment industry remains especially important for women, but factory closures, technological changes and the energy crisis are putting women workers at risk, she said.

She called for greater investment in women’s skills and access to technology and questioned whether international buyers are willing to pay for higher compliance and environmental costs.

Shaheen also raised concerns over river pollution, sexual harassment and weak enforcement of labour laws.

China Rahman, general secretary of the Federation of Garment Workers, said decent work means safe workplaces, fair wages and workers’ rights to speak and organise.

“We have been talking about decent work for years, but we still have not been able to ensure it,” she said.

Green certificates and improvements to a factory’s appearance are not enough, China Rahman said. Workers’ wellbeing must also be protected.

“Decent work is not about making a factory look good for a certificate. We must look at how workers are treated and whether they are working in a safe and dignified environment,” she added.

LABOUR LAWS AND INSPECTION GAPS

Legal and workplace protections must keep pace with changes in the industry, said Taslima Yasmin, associate professor of law at the University of Dhaka.

She said Bangladesh’s ratification of ILO Convention 190 and amendments to the Labour Act were positive steps, but workers still lack effective ways to seek justice for workplace harassment.

Taslima called for a separate law to address sexual harassment at workplaces and educational institutions, along with specialised training and gender-sensitive workplace inspections.

Meanwhile, the Department of Inspection for Factories and Establishments (DIFE) is facing a shortage of manpower and resources, said Md Atikur Rahman, deputy inspector general of the agency.

DIFE has only 427 inspectors to oversee around 80 lakh economic units, making regular inspections nearly impossible. Although workplace accidents in the garment sector have declined, accidents in other industries are increasing, he said.

Legal and workplace protections must keep pace with industrial changes, while Bangladesh needs stronger mechanisms to address harassment and ensure workers can effectively seek justice

DIFE is also expanding its focus to sectors such as tea, fisheries, leather, ceramics and steel, where workers face serious occupational health risks.

However, the second phase of its Labour Information Management System, designed to maintain information on 40 lakh workers, has been delayed due to a lack of funding.

Labour rights advocate Rajekujjaman Ratan said decent work requires both discipline and democracy.

“Without a democratic atmosphere, decent work cannot function,” he said, while questioning why around 40 percent of approved inspector posts remain vacant.

Rajekujjaman also criticised the Tk 467 crore allocation for the labour ministry against the national budget of Tk 9.38 lakh crore, despite the country having around 76 million workers.

Fatima Jahan Seema, lead of programme monitoring and impact at CARE Bangladesh, delivered the keynote presentation.

Doulat Akter Mala, president of the Economic Reporters’ Forum (ERF); Sharmin Nipa, general manager of Elite Garments Industries Ltd.; and Md Elias Hossain, senior general manager of Ananta Apparels Limited, also spoke at the event.