RMG: Shortage is now workforce, not orders

The ready-made garment sector is now reeling from skilled labour crises and thus missing out an opportunity to grab new orders from buyers hankering after new production sources.

After a long dreary period of Covid-19, markets and shopping centres in Europe and the United States have opened, thereby awaiting new clothing items to sell before Christmas while their fashion houses are run out of new goods.

Amid the circumstances, buyers are looking for new destination for sourcing goods to meet fashion demand.

Myanmar faces political unrest while Vietnam is still reeling from the pandemic – all these pushing up a high demand for ready-made garments.

Sources said the RMG sector has booked huge work order from last July and most factories are occupied till next March. The manufacturers say they suffer from worker shortage though they offer jobs for both skilled and unskilled workers.

At present, the migration rate of workers is very high.

“Now we have got enormous order that has crossed the pre-pandemic period, but we do not have optimum workforce. We agreed to appoint skilled workers with higher wages, but to no avail,” said Shahidullah Azim, vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Industry insiders opine that due to Covid-19, apparel industries didn’t hire new workers. A large number of workers have switched to new profession, thus being one of the main reasons behind worker shortage.

However in March 2020 when the pandemic hit the country, buyers withheld their order and also rejected it – a situation that compelled the RMG makers to furlough their workforce.

Around 3.57 lakh garment workers were fired during the pandemic, according to the Centre for Policy Dialogue (CPD).

The think-tank found that the retrenchment was 14 per cent of total RMG workforce; some of them have changed their profession while the rest failed to manage any job.

“During the pandemic, we stopped new recruitment due to low work order, but now we are suffering from worker shortage,” Fazlee Shamim Ehsan, BKMEA vice-president, told The Business Post.

“Being overflowed with order is a good sign, but unfortunately the government is trying to export garment workers to our competitor countries. If it continues, the sector will face more crises to capture the market.”

On the other hand, buyers are reportedly confirming the RMG makers that if the latters can meet shipment on time, they will place more orders which will catch up with what was during the pre-pandemic period.

“It is a chance to cross $40 billion export target by 2022, but we need to improve workers’ skill,” observed Ehsan, who is also the director of International Apparel Federation.

After visiting several industrial areas, The Business Post found that most factories posted job offers in front of their entrances. Even they slapped posters elsewhere in crowded areas calling for interested individuals – be skilled or not – to contact them in no time.

“Currently, it is a challenge to find skilled manpower. A worker needs a minimum three months to train up,” Mahbubur Rahman Lucky, managing director, Southeast Sweaters, told The Business Post.

Before Covid-19, Gazi Emon worked for a garment factory for 12 years, but pandemic left him jobless. Now the skilled individual works for Metro Rail Project and draws a good wage.

Emon hired another five fellows for this project who were all skilled in the garment sector.

“My previous three production managers called me over phone to join their factory but I have lost my interest in RMG,” said Emon.

Talking to several mid-level employees of the apparel industry, The Business Post found that skilled workers are unavailable.

If by chance expert workers could be hired, they have to be paid a minimum of Tk 500 to Tk 700 extra per month compared to what was four months ago.

“I hired three unskilled workers this month, and am trying to develop their skills. The skilled ones demand a raise,” said Jahangir Hossain, factory manager, Patriot Garments.

Shafiqul Islam used to work for a hotel. He lost job due to the pandemic. Now he is working for a factory in Dhaka.

“From my childhood I used to hear that garment factories offer job to novice employees. So, I came to the factory gate and the authority hired me as a helper. After one and a half months of training, I was promoted to general operator,” said Shafiqul.

According to the factory owners, they are continuing production with both experienced and inexperienced workers. When an adroit worker leaves the factory, their supervisors try to hire another from elsewhere, and if he fails, a neophyte is replaced and trained up.

“I was compelled to set up a training centre to develop skill among new employees. Not only me, most factory owners have done so,” said Khan Manirul Alam Shuvo, managing director, Fashion.com.

Bangladesh exported $9.059 billion apparel goods in the first three months of Fiscal Year 2021-22 with 11.48 per cent growth, which was $8.126 billion in the same period of the previous fiscal, according to the data of Export Promotion Bureau.

At the same time of FY20, the export was $8.05 billion. The data suggests that the country’s export performance has crossed the pre-pandemic period.

“We have a big chance to cross $50 billion in export within a while if we are able to manage proficient workers. Now we hiring worker from other factories which is not right,” BGMEA Director Faisal Samad told The Business Post.

“BGMEA, BKMEA and also we, the factory owners, should set up skill development centre to train workers,” suggested Faisal.