At a time when Bangladesh garment industry is working hard to achieve the US $ 50 billion target by 2021 to commemorate the country’s golden jubilee of independence, the recent labour unrest in Ashulia in demand of wage hike has global retailers – accounting for half of country’s total garment exports of about US $ 28 billion yearly – reportedly expressing concern over the same.
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The apparel retailers numbering around 20, including H&M, C&A, Esprit, GAP, Next, VF Corporation, Primark, Inditex and Li&Fung in a letter written to Bangladesh Prime Minister Sheikh Hasinareportedly maintained that the unrest may damage the country’s reputation as a reliable sourcing market and also called upon the Government to form a new wage board for the RMG workers. The retailers also reportedly suggested that the root cause of the unrest should be addressed through social dialogue.
“H&M Group is deeply concerned by the recent unrest in the Bangladeshi textile industry,” the Swedish retailer reportedly underlined in the joint note (which was also posted on the company’s website), adding, “Our staff members in Dhaka are monitoring the situation and are in close contact with our suppliers, industry associations, trade unions and other buyers.” For H&M Group it is important that its products are manufactured under good working conditions, in all production countries, it further added.
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The garment manufacturing hub of Ashulia, which has around 350 of the most compliant apparel manufacturing units and reportedly contributed around 20 per cent to Bangladesh’s total garment exports in the last fiscal year, was hit by workers’ agitation last month, demanding that minimum salary be increased to BDT 15,000/month from the current BDT 5,300 monthly. Following the protests, more than 1,600 workers from a number of factories were reportedly suspended for their alleged involvement in the demonstrations.
It may be mentioned here that the last time the wage board was revised was in year 2013.
