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RMG industry back on track as demands are met

Staff Correspondent
24 Sep 2024 23:10:01 | Update: 24 Sep 2024 23:10:01
RMG industry back on track as demands are met
Interim government advisers, government officials and representatives from workers' unions and factory owners at a press briefing at the labour ministry in Dhaka on Tuesday — Courtesy Photo

Garment factory owners have agreed to meet the 18 demands put forward by workers, bringing an end to the ongoing instability within the readymade garment (RMG) industry. Normal operations are expected to resume from Wednesday.

The demands, which include increases to attendance bonuses, minimum wage implementation across all factories by October, and improved working conditions, were accepted following extensive discussions at a meeting held at the Bangladesh Secretariat on Tuesday.

Labour and Employment Adviser Asif Mahmud Sajib Bhuiyan emphasised the importance of these agreements in maintaining industrial peace and urged workers to return to work immediately.

"We have addressed the workers’ demands, most of which are logical and already considered. The industry will be fully operational from tomorrow. If any worker creates disorder or any owner violates the law, necessary action will be taken," he warned during a press briefing at the labour ministry in Dhaka.

The meeting, chaired by Labour and Employment Secretary AHM Shafiquzzaman, was attended by key government officials, including Home Affairs Adviser Lt Gen (Retd) Jahangir Alam Chowdhury, Industry Ministry Adviser Adilur Rahman Khan and Fisheries and Livestock Adviser Farida Akther, as well as representatives from workers' unions and factory owners.

Key agreements

Among the key agreements was a Tk 225 increase in attendance bonuses for workers, an additional Tk 10 for night shifts, and a Tk 10 rise in meal allowances, setting the minimum meal allowance at Tk 100. The government-mandated minimum wage will be implemented in all factories by October.

Additionally, the Trading Corporation of Bangladesh (TCB) will supply essential goods at subsidised prices in labour-intensive areas, and the Ministry of Food’s food-friendly programme will be expanded to those regions.

Wages owed to workers must be cleared by 10 October. Authorities have warned that failure to meet this deadline will result in legal action. A technical team will also investigate the controversial practice of biometric blacklisting of workers and submit a report by October.

Workers' rights and welfare

A significant step towards protecting workers' rights includes the establishment of a central monitoring system to eliminate local political interference and extortion in the jhut (fabric scrap) trade, which has long affected workers' welfare. The jhut business will now be controlled centrally, with the proceeds directed towards workers' welfare.

Legal cases against workers, including those from last year’s wage protests, will be reviewed by the Ministry of Law. Families of the four workers killed during the unrest will receive compensation. Additionally, compensation and medical care for workers involved in the July uprising will be provided through a central fund, with a comprehensive list of eligible recipients and benefits to be submitted by labour leaders to the ministry.

Past tragedies and gender equality

The demands of workers affected by the Rana Plaza and Tazreen Fashion disasters were also addressed. A special committee will present recommendations by October 2024 to ensure victims receive adequate compensation. Furthermore, the industry has committed to eliminating gender-based discrimination in hiring practices.

To improve worker welfare, all factories will be required to establish day-care centres, as mandated by labour laws. Maternity leave for female workers will be extended to 120 days, up from the previous 112 days.

Labour act amendments

The Bangladesh Labour Act, 2006 (amended 2018), will undergo further amendments, which are set to be finalised by December 2024, in line with Article 93. These changes will ensure that all garment factories provide service benefits to workers. The Act will also be updated to include a contributory provident fund, providing workers with long-term financial security in line with international best practices.

A committee, comprising representatives from both workers and owners, will be established to review the minimum wage structure within six months. The committee will also recommend an adjustment to the annual wage increment, currently set at 5 per cent, by November 2024, taking inflation and the industry's financial capacity into account.

Stakeholders’ reactions

Kutubuddin Ahmed, Industrial Council’s councillor, urged cooperation with the government, warning that failure to do so could lead to a "disastrous situation". He expressed confidence that workers would accept the decision and return to their workplaces. "We must recognise that not all demands can be fulfilled immediately. Protecting the industry is crucial, as only then can we ensure everyone’s survival," he said.

BGMEA President Khandoker Rafiqul Islam acknowledged that the decisions were challenging but necessary. "This was a concession from all parties. It is difficult, but we accepted it considering the industry's survival," he said, urging all stakeholders to cooperate in maintaining harmony in the sector.

Industrial Police DIG Md Sibgat Ullah echoed similar sentiments, calling on workers to refrain from vandalism and blockades. He also encouraged owners to meet workers’ demands promptly and to hold regular meetings to address any grievances.

Colonel Mohiuddin, Bangladesh Army’s 9th Infantry Division (Savar Cantonment), urged both workers and owners to adhere to the agreements to prevent further unrest. "Almost all demands have been met. I request workers to return to their workplaces, and owners to ensure a safe environment," he said.

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