Bangladesh’s readymade garment (RMG) workers will get a 9% increase in their wages, Labour and Employment Adviser M Sakhawat Hussain announced on Tuesday.

The annual increment raise will be effective December 1, 2024, and will be reflected in January 2025 wages.

The existing increment for the labourers of the country’s highest export-earning sector is 5%, and the government decided to add a 4% hike to it.

The adviser said the increment will remain effective until the government or the Minimum Wage Board announces a new minimum wage, adding that the previously set 5% annual pay increment, fixed by the Minimum Wage Board, will remain in place.

He clarified that any worker who is supposed to get a yearly increment in December will enjoy the additional increase. Those not supposed to get an increment in December will still get a 4% rise in their wages.

He also said that a vested interest group has been trying to divert buyers away from Bangladesh by publishing negative news in local and foreign newspapers. 

Many workers are protesting without understanding and are being trapped by multidimensional provocation. He urged everyone to address the conspiracy looming against the country’s RMG sector.

Earlier, at their 5th meeting, the Capacity and Implementation Committee on Minimum Wage Revision and Annual Increment recommended an annual 9% increment for the RMG sector.

At the meeting, the labour representatives proposed for a 10% annual increment hike, emphasizing the rising cost of living. In response, the employer representatives proposed an 8% yearly increment due to financial constraints and an aggressively competitive global market.

Mohammad Khorshed Alam of Shromik Dol, Babul Akhtar of Bangladesh Garment and Industrial Workers Federation, and Kabir Ahmed of Bangladesh Shromik Kalyan Federation signed as labour representatives.

ANM Saifuddin, member of the BGMEA’s assistance committee, and Fazlee Shamim Ehsan, executive president of the BKMEA, signed as employers’ representatives.

SM Enamul Haque, director of DoL, Md Hasibuzzaman, joint IG of DIFE, Raisa Afroz, secretary of Minimum Wage Board, and Mohammad Masukur Shikdar, joint secretary of MoLE, signed as government representatives.

Paying increments to be challenging

Talking to Dhaka Tribune regarding the increment hike, Former BGMEA Director Mohiuddin Rubel said it would be difficult for them to pay the increment because the industry’s capacity is not that high. Production costs have increased, but income has not increased in the same way.

“The price of RMG items has also decreased in the global market. However, since this is a tripartite decision, there is no other way but to accept it,” he added, urging the government to provide the necessary policy support to overcome the pressure the manufacturers will face in implementing this decision.

He also said that it is more viable to make these decisions while keeping in mind the capacity of the manufacturers so that they can implement them.

“It has now become a trend to take to the street with another demand if one demand is met. If they take to the street with another demand tomorrow, it will become impossible to run the business. The government will have to provide support, security, and assurance so that a fair working environment can be ensured,” he added.

He also said that the buyers are responsible and should ensure fair prices. Prices are falling in the global market, and they must adjust their prices.

“If they don’t raise prices but demand ethical production, it will become contradictory. If they pay a fair price, ethical production and sustainability will accelerate,” he added.

Meanwhile, a leading apparel exporter, speaking on condition of anonymity, expressed concerns about the industry’s challenges.

“We feel trapped after investing heavily in this sector, especially as the previous government increased utility costs significantly,” he added, fearing that many factories might struggle to implement further wage increases, especially after the recent major wage adjustments.

He suggested that the government conduct a comprehensive survey to assess the industry’s capacity and the workers’ needs.

He also said the industry’s ongoing struggles with the unreliable supply of quality energy.

“On top of that, the reduction in cash incentives has put exporters in an even tighter corner,” he added.

Talking to Dhaka Tribune, Nazma Akter, president of the Sommilito Garments Sramik Federation, said that the proposed increment is insufficient to meet workers’ basic needs.

She also criticized the process, questioning how labour representatives could demand a 15% annual increment without consulting labour organizations. “Additionally, no government officials communicated with us regarding this matter,” she alleged.

“We urge the government to implement an increment that accounts for inflation, enabling workers to meet their basic needs and maintain proper nutrition. This will not only improve their well-being but also boost productivity,” she added.

On December 4, the factory owners agreed on a 7% increment, and they had previously proposed a 6% where the labour leaders, who earlier proposed a 15% hike, reviewed their proposal and cut the figure to 12%, in the fourth meeting of the committee.

The post RMG workers to get 9% annual wage increment appeared first on Textile Focus.

However, the talks remain stuck because of failure to agree on the wage increases that will lead to a review of the minimum wage. The fourth meeting in the committee initiated by the Ministry of Labour on this has ended without a decision. This meeting was chaired by Additional Secretary Sabur Hossain at the conference room of the Ministry of Labour on Tuesday. Six representatives each from the owners and from the workers were present in the meeting to argue the case brought by their sides.

The two-and-a-half-hour-long meeting could hear arguments from both parties justifying their stand on the demands.The owners expressed their willingness to increase the annual wage increment to 7%, considering current economic conditions and the sustainability of the industry. They emphasized that the global economic climate, inflationary pressures, and the need to maintain competitiveness in international markets limit their ability to meet the workers’ demands fully. On the other hand, workers reduced their initial demand from a 15% increment (including an additional 10% on top of the regular 5%) to 12%. They argued that rising living costs, inflation, and the increasing expenses of basic necessities necessitate a higher wage adjustment to ensure a decent standard of living.

There were no other comments as this third meeting of the committee had ended with the owners proposing a total 6% annual increment; 1% above the standard 5% actualized increment. This was a little advancement according to the expectations of workers but insufficient for them. At the recent meeting, the owners made the new attempt to find a common ground with their 7% proposal, but the workers were still firm on their 12% demand.

The deadlock led the committee members to decide to hold yet another meeting next week under the chairmanship of the Labour Secretary and with the aim of bridging the gap between both the parties.

These included some of the most glaring representatives from the meeting: Fazle Shamim Ehsan, Executive President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA); ANM Saifuddin, member, BGMEA supporting committee; Farooq Ahmed, Secretary General, Bangladesh Employers’ Federation; Mohammad Khorshed Alam, Youth Affairs Secretary, BNP Labour Wing; Babul Akhter, General Secretary, Bangladesh Garment and Industrial Workers Federation, and Kabir Ahmed, Central Vice-President, Bangladesh Workers Welfare Federation.

The stalemate presents very great evidence for the need for dialogue and compromise so that the interests of the workers and those of this cornerstone sector of Bangladesh economy-RMG-may share the stage at the end. Innovative negotiations and good faith among all working parties will be required to balance fair wages against the industrial hard economic realities.

Reference: https://www.ittefaq.com.bd/709449/

The post RMG Wage Dispute: Owners Propose 7% Increment, Workers Hold Firm at 12% appeared first on Textile Focus.

In light of the upcoming EU and global North regulations, Bangladesh’s RMG industry has been proactive. BGMEA is taking the lead as the parent organization for Bangladesh RMG sector. The BGMEA has established the Responsible Business Hub (RBH) within our premises, which plays a pivotal role in preparing the industry in adapting to these changes. The RBH focuses on capacity-building through targeted trainings, ensuring that factories are well-equipped to meet the stringent sustainability requirements. Additionally, the Hub is committed to continuous monitoring of factories, helping them to not only comply with but also exceed the upcoming regulations.

Moreover, BGMEA’s Digital Data Disclosure Platform, which has yet to be launched, is a groundbreaking tool designed to facilitate industry-wide data collection on environmental, social, and governance (ESG) metrics. This platform is set to become an essential resource for tracking and reporting on sustainability practices across the industry, ensuring transparency and accountability.

Our engagement in circular economy initiatives is another critical area of focus. BGMEA is actively participating in the SWITCH2CE Project by UNIDO, which supports the transition to a circular economy in the garment sector. We are also involved in the CREATE project, led by Aalborg University, which is aimed at fostering innovation and sustainable practices in textile production.

BGMEA’s Sustainability Strategic Vision 2030 is our roadmap for aligning the RMG sector with the Sustainable Development Goals (SDGs) and the national priorities of Bangladesh. This strategic vision emphasizes the importance of sustainable growth and reinforces our commitment to environmental stewardship, social responsibility, and economic resilience.

Bangladesh’s leadership in green manufacturing is evident in our achievement of having the highest number of LEED Certified factories in the world, with 230 certifications, including 92 Platinum and 124 Gold-rated factories. This accomplishment underscores our progress in enhancing green manufacturing capabilities, which not only contributes to environmental sustainability but also strengthens the global competitiveness of our textile and garment industry.

The post How Bangladeshi suppliers are preparing for upcoming sustainability laws in EU and global North? appeared first on Textile Focus.

The announcement, made through a notice signed by Labour Ministry Secretary AHM Shafiquzzaman, calls for immediate resumption of work at all Beximco facilities in the Ashulia-Chandra area. The secretary urged workers to return to their jobs promptly, emphasizing the government’s commitment to resolving the crisis.

The unrest began when workers from multiple Beximco factories staged demonstrations demanding overdue salaries. Today marked the fifth consecutive day of protests, with hundreds of workers blocking the Chandra-Nabinagar highway near the Chakraborty intersection in the Sarabo area of Kashimpur, Gazipur. Protesters resumed their blockade at around 10:00 am, following a temporary suspension of demonstrations late last night.

The blockade has disrupted transportation and trade activities along the vital highway, adding pressure on local authorities to resolve the standoff.

Speaking to reporters, a Labour Ministry official said, “This loan package demonstrates the government’s proactive role in addressing labour grievances. We urge the workers to trust this process and resume their duties immediately.”

Beximco management has welcomed the government’s support and pledged to disburse the pending salaries promptly upon receiving the funds.

The Finance Division is expected to release the loan amount within the next 48 hours, enabling factory operations to return to normal. Despite the assurance, workers have vowed to continue protests until wages are paid in full.

Local police have been deployed to maintain order, but the situation remains tense. Labour rights organizations have called for sustainable solutions to prevent recurring wage-related disruptions in the industrial sector.

The unfolding situation highlights ongoing challenges in ensuring timely wage disbursement and worker welfare in Bangladesh’s vital manufacturing sector.

The post Government Steps in to Resolve Beximco Labour Unrest with Emergency Loan Package appeared first on Textile Focus.

Recent data from the United States (January–September 2024) and the European Union (January–August 2024) reveal a significant decline in the prices paid for Bangladeshi apparel imports. This downward trend raises serious questions about the sustainability of current industry practices and pricing structures.

The issue of purchasing practices has been widely discussed in recent years, with numerous initiatives established to address it. However, these efforts beg the question: are they truly driving meaningful change?

Over the past five years, production costs in Bangladesh’s garment sector have surged by an estimated 50%. This sharp increase is driven by a combination of factors, including rising wages, escalating utility costs, and a dramatic rise in raw material prices. Additionally, soaring airfreight charges and higher bank interest rates have added further financial strain. For garment manufacturers, balancing these increasing operational costs while remaining competitive has become an ever-growing challenge.

Despite these pressures, Bangladesh has emerged as a leader in sustainability efforts within the global apparel industry. However, achieving long-term success requires collaboration across the entire supply chain. Buyers, manufacturers, and stakeholders must work together to align expectations, ensuring that responsible business practices are adequately reflected in pricing structures.

The garment industry stands at a critical juncture, with the opportunity to create a brighter and more sustainable future. By addressing challenges holistically and fostering collaborative partnerships, the industry can pave the way for a system where sustainability and fair compensation coexist—unlocking shared growth and success for all involved.

The post Falling Prices for Bangladeshi Garments Spark Sustainability Concerns appeared first on Textile Focus.

The Indian business newspaper, citing three people aware of the development, reports that Bangladesh was rerouting its textile exports to the Maldives by sea and then dispatching cargoes by air to its global customers, including H&M and Zara.

“Previously, Bangladeshi goods were shipped through Indian airports, but now they are rerouting shipments from other locations,” Deepak Tiwari, managing director of MSC Agency (India) Pvt Ltd, told Mint over the phone.

“This shift means India’s airports and ports lose revenue previously earned from handling these cargoes,” he said.

The Mediterranean Shipping Company (MSC) is a leading global container shipping company.

The redirection of textile exports could weaken trade relations between India and Bangladesh and reduce the collaborative opportunities in logistics and infrastructure projects, said the newspaper.

It could also potentially threaten India’s revenue from port and transit fees, alongside business generated from Bangladesh’s exports that pass through Indian borders, it said.

Seized by the issue, the Indian government is exploring a balanced solution to ensure that Bangladesh’s textile exports—significant in volume and linked to Indian manufacturing hubs in Bangladesh—remain beneficial to Indian interests, one person said.

“A significant portion of these Bangladeshi textile exports are being produced in facilities or factories owned or operated by Indian companies based in Bangladesh,” the first person said.

Bangladesh’s textile industry contributes 80 percent of its exports and 13 percent of its GDP.

“The issue is under the government’s attention. We are currently reviewing its impact on India,” the second person said.

Industry experts suggested that Bangladesh took this step to gain greater control over its supply chain and meet its shipment deadlines by avoiding delays caused at India’s airports, said Mint.

“This new route offers Bangladesh a strategic advantage along with improved reliability, which is crucial for meeting tight deadlines in the international clothing market,” said Arun Kumar, president of the Association of Multimodal Transport Operators of India.

“Furthermore, by avoiding reliance on Indian ports, Bangladesh is ensuring greater control over its supply chain,” said the chief of the association advocating seamless, efficient transportation solutions across sea, rail and road networks in India.

Kumar explained that textiles were also treated as perishable goods and that failure to deliver them on time results in the rejection of consignments. Garments meant for a specific season lose their value if they are delivered late.

Indian textile exporters had a different perspective on the rerouting of exports by Bangladesh.

“There’s nothing to read into this,” Anil Buchasia, executive member, eastern region, Apparel Export Promotion Council, told Mint over the phone.

“Indian airports are already congested, and we had also requested the government to restrict Bangladeshi textiles from passing through Indian airports,” he said.

The third person aware of the developments dismissed suggestions that the move was linked to the ouster in August of former Bangladesh prime minister Sheikh Hasina, who is currently said to be staying in India.

The International Crimes Tribunal (Bangladesh) had issued an arrest warrant against her in October.

“The government does not see this as a reaction to Sheikh Hasina’s asylum. Textiles are the backbone of Bangladesh’s economy, so they must have made this decision to promote their textile exports,” the third person said.

Bangladesh’s garment exports fell 4.34 percent to $44.47 billion in FY24, according to Bangladesh Bank.

The decline was attributed primarily to reduced shipments of readymade garments, reflecting broader economic challenges. 

The post Bangladesh Bypasses India, Shifts Global Textile Export Route via Maldives appeared first on Textile Focus.

Textile warehouses vary greatly, ranging from a few thousand to several hundred thousand square feet. The high ceilings in many warehouses add even more space to consider when calculating energy costs. Each square foot requires heating or cooling based on the weather and the specific needs of the business or owner, which translates to additional expenses. To reduce energy costs, optimize heating, cooling, and lighting in warehouses of any size. Here are some practical tips on reducing your warehouse energy bills.

Reduce Heat Gains with Insulation

The logic is simple, the larger the space you need to heat, the higher your energy bills will be. This principle also applies to cooling systems. On chilly days, buildings take longer to warm up, and when it gets hot, they take longer to cool down. However, there are methods to monitor your HVAC systems to reduce unwanted heat gains.

Insulation is beneficial in both winter and summer. In an uninsulated textile building, cold air during winter will drive up heating costs. The same goes for energy costs in the summer; insulation traps heat, preventing it from counteracting the ambient air, which can result in unwanted heat gains in a building that you’re paying for but not benefiting from.

Upgrade Your Lighting Setup

LED lighting is a highly effective solution for textile business owners. Compared to traditional halogen systems, LED lighting uses up to 80% less energy. This reduces costs and provides bulbs that emit minimal heat, have a longer lifespan, and are simple to install.

LED lighting enhances facility safety by delivering bright, robust illumination. The bulbs are durable against shocks and vibrations and are resistant to dust and water, ensuring extended service life. Get experts to install better lighting in your warehouse, particularly for high-ceiling areas that are challenging to reach.

Upgrade HVAC Systems

Inefficient HVAC systems can waste energy in textile warehouses. HVAC includes many components that must work together effectively. Having an HVAC professional assess your system can reveal areas needing improvement.

For instance, ensuring ductwork is properly sealed is crucial for leak-free airflow. If parts of the warehouse are not being heated or cooled correctly, the solution might be as straightforward as replacing ductwork to ensure it’s airtight. Another factor affecting energy efficiency is the air filter. Regularly replacing air filters prevents clogs obstructing airflow and enhances indoor air quality with fresh filters installed.

Reduce Energy Usage of Equipment

Powering down or setting warehouse equipment to energy-saving mode when not in use can significantly reduce energy waste and improve your bottom line. Encourage workers to be mindful of the energy consumption of their equipment, fostering a more eco-friendly warehouse environment.

Every effort counts when it comes to reducing energy usage in the warehouse. While computers and electronics may not draw as much power as lighting or HVAC systems, they continuously consume electricity. Adopting switching computers and electronics to energy-saving mode when idle and turning them off overnight and on weekends can be an easy, sustainable habit for employees to maintain.

Secure the Area Around Trailers at Loading Docks

Various industrial sites necessitate distinct loading dock sealing solutions. A top-tier loading dock seal is among the most effective energy-saving products for industrial use. These seals form a gasket-like barrier around the trailer’s top and side edges upon entering the warehouse, making them ideal for warehouses requiring temperature control.

If the loading dock door is not secured, air seeps through the gaps. Using a high-quality dock seal minimizes the infiltration of outside air into the warehouse. This reduces energy waste and helps maintain consistent internal temperatures.

Endnote

To lower your energy bills and reduce warehouse energy expenses, focus on your warehouse doors. Proper insulation within the building helps maintain cooler areas cool and warmer areas warm. Reach out to an expert for additional energy-saving tips to help save money on your warehouse energy bills.

The post 5 Tips for Lowering Textile Warehouse Energy Bills appeared first on Textile Focus.

Mr. Jabbar is the adviser to the Bangladesh Ceramic Manufacturers and Exporters Association, and convener of the Bangladesh Semiconductor Industries Association.

He is a board member of Global Compact Network Bangladesh, trustee board member of CSR Center Bangladesh, represents DBL in the International Chamber of Commerce (ICC) Bangladesh and advisory committee member of the British International Investment, said a press release.

The other members of Bezia elected in the election are Rupali H Chowdhury, Sharif Zahir, Matiur Rahman, Md Halimuzzaman, A Mannan Khan, Mostafa Kamal, Ameir Alihussain, Md Sarwar Kamal, Arif Dowla, Ali Ahmed, Md Mustafa Haider, Tahsin Aman, Shamsul Huda, Delwar H Titu, Humayun Rashid, MHM Fairoz, and Abdul Mannan Bhuiyan.

BEZIA was established on the 1st of November, 2020. BEZIA represents the voice of investors and it is a non-commercial platform and a non-profit association where together it will represent investors from all economic zones including Government, Public, Private, PPP, G2G.

The post M. A. Jabbar becomes new president of BEZIA appeared first on Textile Focus.

The latest addition to this impressive portfolio is Cotton Field BD Ltd. Admin Building in Gazipur, which achieved an exceptional Platinum certification score of 86. The facility, located at 42/3, Rajnagar, Sataish Road, Tongi, is a testament to the country’s dedication to elevating industry standards.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) highlighted that of the 230 certified factories, an astonishing 62 rank among the top 100 highest-rated LEED-certified factories globally. This achievement not only reflects Bangladesh’s efforts in sustainable development but also strengthens its position as a leader in environmentally conscious manufacturing.

Bangladesh’s leadership in the green factory movement underscores its role as a responsible player in the global textile industry, setting benchmarks for others to follow in sustainable industrial practices.

The post Bangladesh now has 230 LEED certified green RMG factories appeared first on Textile Focus.

In a notice issued by Md Anwar Hossain, administrator of the BGMEA, the supporting committee was announced consisting the member of the BGMEA in light of Section 18(2) of the Trade Organization Act, 2022

The members of the supporting committee are Shahidullah Azim of Classic Fashion Concepts Ltd, Miran Ali of Misami Garments Ltd, Asif Ashraf of Urmi Garments Ltd, Shams Mahmud of Shasha Garments Ltd, Enamul Haque Khan Bablu of Ananta Clothing Ltd, M Mohiuddin Chowdhury of Clifton Fashion Ltd, Rezwan Selim of Softex Cotton Pvt Ltd, ANM Saifuddin of MS Wearing Apparel Ltd, Shihabouddoza Chowdhury of Amity Designs Ltd, and Sharif Zahir of Ananta Apparels Ltd.

Earlier, on October 20, the government has dissolved the current board of directors of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and has appointed an administrator.

Export Promotion Bureau (EPB) Vice-Chairman Md Anwar Hossain has been appointed as the BGMEA’s administrator.

The Commerce Ministry issued a circular in this regard on Sunday under Section 17 of the Trade Organizations Act, 2022.
The circular says that the administrator will hold a free and fair election within 120 days and then hand over responsibilities to the newly elected body.

Earlier, on August 24, Designtex Group Managing Director Khandoker Rafiqul Islam was elected as the president of BGMEA following the resignation of SM Mannan Kochi.

Kochi was elected BGMEA president on March 14 for the 2024-26 term.

The association’s board elected Rafiqul president to complete the remaining term.

The post BGMEA forms 10-member supporting committee to assist administrator appeared first on Textile Focus.