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Worker in EU employment

Introduction
The tremendous success of readymade garment exports from Bangladesh over the last two decades has surpassed the most optimistic expectations. Today the apparel export sector is a multi-billion-dollar manufacturing and export industry in the country. The overall impact of the readymade garment exports is certainly one of the most significant social and economic developments in contemporary Bangladesh. With over one and a half million women workers employed in semi-skilled and skilled jobs producing clothing for exports, the development of the apparel export industry has had far-reaching implications for the society and economy of Bangladesh. Worker There is a certain degree of ambiguity in the definition of worker in EU employment and industrial relations regulations. One problem is that both narrow and broad definitions of worker have been used. In order to secure the common market objective of free movement of workers, the European Court of Justice refused to accept Member State definitions and insisted on a meaning of worker covering all persons engaged in economic activity, and not only employees with a contract of employment. More narrowly, the 1989 Framework Directive on Health and Safety (Council Directive 89/391/EEC) defines worker as any person employed by an employer, including trainees and apprentices but excluding domestic servants (Article 3(a)) If the definition of this term were a matter for the competence of national law, it would therefore be possible for each Member State to modify the meaning of the concept of migrant worker and eliminate at will the protection afforded by the Treaty to certain categories of person.

Data Collection: For the assessment, both primary and secondary data was collected. For t h i s w e interviewed 3 garments company through using a structured questionnaire. Personal interview technique was applied while fill up the questionnaire on respondents. The sample garments companies who are interviewed are given in a chart: Name of the Garments Company Millennium Garments Limited RAHAN GARMENTS (PVT) LTD ALAM FIBER IMPEX Ltd. FABRICS AND COMMODITIES EXCHANGE LTD.TOKIO MODEL LIMITED. Sampling plan Garments Company of Dhaka are constitutes as the study area, because of convenience of the field work and easy communication. For the crisis condition of Bangladesh it was difficult for us to collect data form more samples. Above it, we go for different garments company and the company who intended to talk with us is taken as a sample. I tried to get rid of any kind of personal biasness and taking true information.

Data analysis We analyzed the data by averaging the response of the sample. Most of the analysis and discussions of this study have been made on the basis of the information obtained from the interview with the questionnaires. Besides, observation of the interviewers has also been an important component of analysis and discussion. Scope of the Study This study has focused upon the various problems regarding with the garments company and the prospect of these industries. We have taken 5 garments company to gather data on the present situation of the garments industries as well as problem regarding and the future of the industries. Limitations of the Report Since our study is based on both primary and secondary data, there is a possibility of getting fake information. If the surveyed personnel provide us with any fabricated information about their opinion of their organization, then the report findings may be erroneous. Above all, this study is weak in some points. The notable ones are as under: The survey was conducted in a very short time so we were not able to collect more information. This survey made on crisis situation of Bangladesh, so it was difficult to collect more samples. Only the big and the reputed Garments Company consider here as sample. The questionnaire contains some questions that, if answered properly, might damage the companys image. In this type of questions, the respondents might provide socially acceptable answers. This risk was unavoidable. Another limitation of this study is the persons private information were not disclosing some, data and information for obvious reasons, which could be very much useful. Lack of experience in this field Lack of proper authority to conduct the interview program

Analysis Technique & Report Writing At first, we went to different garments company and collect information from the personnel. In preparing this report, we approached according to the following procedure: 1) Select the topic 2) Conduct survey 3) Sorting information Analysis and 5) Evaluation of the information Report writing and presenting

The Bangladesh Garment Industry For Bangladesh, the readymade garment export industry has been the proverbial goose that lays the golden eggs for over fifteen years now. The sector now dominates the modern economy in export earnings, secondary impact and employment generated. The events in1998 serve to highlight the vulnerability of this industry to both internal and

external shocks on the demand and supply side. Given the dominance of the sector in the overall modern economy of Bangladesh, this vulnerability should be a matter of some concern to the policymakers in Bangladesh. Although in gross terms the sectors contributions to the countrys export earnings is around 74 percent, in net terms the share would be much less partially because the backward linkages in textile have been slow to develop. The dependence on a single sector, no matter how resilient or sturdy that sector is, is a matter of policy concern. We believe the policymakers in Bangladesh should work to reduce this dependence by moving quickly to develop the other export industries using the lessons learned from the success of apparel exports. Support for the apparel sector should not be reduced. In fact, another way to reduce the vulnerability is to diversify the product and the market mix. It is heartening to observe that the knit products are rapidly gaining share in overall garment exports as these products are sold in quota-free markets and reflect the strength of Bangladeshi producers in the fully competitive global apparel markets. Preliminary data and informal evidence indicate that this sector seems to have weathered the devastating floods relatively well. The industry is one hundred percent export-oriented and therefore insulated from domestic demand shocks; however, it remains vulnerable to domestic supply shocks and the smooth functioning of the banking, transportation another forward and backward linkage sectors of the economy. The DhakaChittagong road remains the main transportation link connecting the production units, mostly situated in and around Dhaka and the port in Chittagong, where the raw material and the finished products are shipped in and out. Despite increased dependence on air transportation, trucks remain the main vehicles for transporting raw materials and finished products for Bangladesh garment exports. The floods disrupted the normal flow of traffic on this road. Eventually, this road link was completely severed for several days when large sections of the road went under water for a few weeks during the latter phase of the floods. This declining of the road connection between Dhaka and the port in Chittagong was as serious threat as one can imagine for the garment exporters. The industry responded by calling upon the Bangladesh navy to help with trawlers and renting a plane from Thai Air that was used to directly fly garment consignments from the Dhaka airport to the Chittagong airport several times a day.

Garment workers in Bangladesh Bangladesh has been one of the main beneficiaries of the quota system of the Multi Fibre Agreement (MFA). The rise of the export-oriented Ready-Made Garment (RMG) industry has been a major result of trade liberalization in Bangladesh. The industry currently employs 1.5 million workers, the majority of whom are women. It has been a major source of employment for rural migrant women in a country that has increasingly limited rural livelihood options, and where women migrants have been largely excluded from formal work in the cities. The growth of the industry has been promoted through: (a) the introduction of international quotas and the associated phenomenon of quota-hopping which supported the transfer of production and marketing expertise from Korea; and (b) the adoption of national export-oriented strategies which put direct export incentive schemes in place and simultaneously encouraged foreign direct investment through the establishment of Export Processing Zones (EPZs). While 5% of the several thousand export-oriented factories in Bangladesh are joint ventures based in EPZs (bideshi factories), 95% are

bangla factories set up outside EPZs -- many by those Bangladeshi entrepreneurs who were trained as management staff in Korea. Women workers offer a low-cost and compliant labour force that allows the garment industry to compete in the global market. In spite of Bangladeshs ban on trade unions in the Export Processing Zones (EPZs), the EPZs working conditions seem to be superior to that of other factories, but only 12% of the garment workers are employed there. EPZ and bangla firms in Dhaka that deal more directly with international buyers are more susceptible to pressures to abide by labour codes and standards. Dhaka firms which subcontract, deal with the informal economy and have weaker links with major external buyers are much less susceptible. This study explores the poverty implications of the export-oriented garment sector by undertaking a comparison of women workers in the export garment industry and those working for the domestic market. This allows an assessment of the benefits accrued from the liberalized economy versus the non-traded sectors. The 1322 women workers surveyed come from: (a) EPZ garment factories; (b) non-EPZ export-oriented garment factories; (c) selfemployed workers; and (d) non-garment workers supplying the domestic market. With the exception of EPZs which employ better off women and pay the highest wages with the best conditions, the garment export industry has directly benefited women from the poorer section of the rural population through employment opportunities. This has reduced marginalization of women who were previously excluded from formal sector jobs and confined to a limited number of occupations. Many of these women have entered the workforce for the first time rather having come from other sectors. Dhaka bangla factory garment workers were able to contribute to their own and other family members basic needs. Though they earned less than self-employed women, they earned higher than the other wage group outside of the garment industry. Remittances from garment workers also created redistribution from city to countryside and helped to raise the status of women in their families and communities. However, the export-oriented garment industry does not represent an unambiguous improvement in working conditions compared to the rest of the economy. It has a high turnover rate. These women are a source of exploited labor and work intensely for a period of time and then move on, only to be replaced by a continuous supply of young women from the country side. The health toll and conflicts with married life makes the garment industry unsustainable over the long run. Nevertheless, those who become well-off have the opportunity to start their own businesses later, and women have been able to change their role as dependents in an unprecedented manner through the growth of the garment industry. This has created a more visible significance of women as economic contributors to their families. Prior to the phasing out of the MFA, there were predications that up to 2 million women garment workers could lose their jobs, both through an absolute decline in markets and through technological upgrading in an attempt to compete (which would result in a transfer of jobs from women to men who have greater access to skills training). However, in defiance of predictions, the mass layoffs have not materialized and, in fact, since the lifting of quotas,

garment exports from Bangladesh have grown by half a billion dollars, with most of the increased sales in the US market. Condition of Garments Workers In Bangladesh In reality the condition of garments workers in Bangladesh is very bad. There are some changes due to the labour unrest, trade union movements, Social pressure and for the pressure of developed countries consumers. But till now Living standard of workers is unacceptable There is no law for the national minimum wage. There are scopes to fix the minimum wage in sector based: In every 3 years, the minimum wage is supposed to be revised but it is not followed in the all sectors. In 1994, the minimum wage for the garment workers was fixed at Tk. 930/ per month for the unskilled workers and Tk. 2300/ for skilled workers. This minimum wage was not revised till now. Even till now, the minimum wage of 1994, was not implemented in the whole sector. Till now, in many cases the unskilled workers receive Tk. 800/ per month. Most of the garment factories do not follow the labor law and ILO conventions. Most of the cases the workers cannot enjoy the weekly holiday. There is no Job security, social security, gratuity or provident fund for the garment workers. Most of the cases the management do not provide appointment letters/ contract letters, identity cards and service books. According to the Labour Law, the maximum working hour per day is 10 including the 2 hours overtime. But in most of the cases workers are forced to work 14 to 16 hours per day. Some times they work whole night. Overtime work is compulsory and forceful. There is not housing facilities from the owners. Most of the cases maternity leaves is absence. Most of the cases there is no transportation facilities. Most of the cases, there is no doctor, first aid, sufficient light and ventilation. In some cases there are no sufficient and pure drinking water and toilets for the workers. According to law, women work is prohibited after 8 pm. But the women workers are bound to work until 10 pm or 11 pm. Even in some cases they work the whole night. Most of the cases maternity leaves is absence. Most of the factories do not have the day care centers. Most of the cases, management do not pay the monthly wage and overtime payment within 7th of the next month. In many cases monthly wage and overtime payment is out standing for 2/3 months. Health-safety and security condition are not sufficient. Management do not allow the workers to join the trade union or formation of trade union though the workers have the trade union rights according to the labour law and ILO conventions. Management fires the workers if he/she joint in the trade union. Some times they threaded the workers and even close down the plant for the formation of trade union. Management does not ensure the security of the women workers. Women workers faced rape and sexual harassment out side the factories and some times inside the factories. There is other form of sex discrimination. Women workers are deprived from Equal wage, Equal dignity, Equal rights and Equal promotions. Trade Union Movement in Garments Sector Trade Union movement in garments sector is very weak. Even it is weaker than other sectors. There are 8 country wide registered trade union federations. There are 9 federations registered as division based. Another 5 registered federations are combined with Jute, Textile and leather Sector. Apart from these, there are 6 unregistered federations in this sector. There are 3 alliances in the garment sector. These are: 1. Bangladesh Garments Workers Unity Council. 2. Bangladesh Garments Workers and Employees Unity Council. 3. B.N.C.C. (Bangladesh Coordinating Comittee, affiliated with (ITGLWF).

Reasons of the Weakness Of Trade Union Movement In Bangladesh Main Reason of the Weakness of trade union movement of garment sector in Bangladesh are: 1. Disunity and division of organizations. 2. Unlimited and long working hours. 3. Absence of Job security. 4. Migration from factory to factory. 5. Absence of weekly holiday and other holidays. 6. Majority of women. 7. State policy. 8. Elite class ownership. 9. Low wage. 10. Unemployment of the country. National Garments Workers Federation National Garments Workers Federation is a countrywide registered Independent, Democratic and Progressive Trade Union Federation of garment workers in Bangladesh. The federation was established on 1984. There are 28 registered trade unions (plant unions) affiliated with the NGWF. Beside these, the federation has 1016 factory committees. From 1984, the federation is involved in all the important movements including several countrywide strikes in the garment sector. Total membership of the federation is: 20.000 paying member: 5.100 and Non paying: 14.900. Central Office of the federation is at 27/11/1 Topkhana road, Dhaka-1000. There are 3 others branch offices of the federation in Chitagong, Savar and Tongi. The federation is run by its written constitution and participations of its members in a democratic way. Aims and Objectives a. Ensure fair wages. b. Establish the Workers Rights and Human Rights. c. Ensure the equal wages and equal rights for the women workers. d. Improve the working condition and environment in working places. e. Struggle for a democratic, developped and progressive society. Main Activities 1. Unite the garment workers. 2. Formation of plant level unions. 3. Initiate and Conduct the countrywide movements for the betterment of garment workers. 4. Support, cooperate and conduct the factory base movements. 5. Awareness building among the garment workers. 6. Training and education for the garment workers. 7. Special training and education for the woman workers. 8. Legal aid for the members and garment workers.

9. Publicize the workers and other materials for the garment workers in local and easy language. 10. Cooperate to get new jobs for the unemployed and dismissed workers. 11. Awareness building for health and environment and to provide health facilities. 12. Organize meetings, processions, demonstrations, seminars and symposiums for the garment workers. 13. Support and participate in the movements of other sectors, democratic movements and women freedom movements. Express and show solidarity with international trade union movements, democratic movements and women movements. Problems of Garments Industry In Bangladesh The Ready Made Garments industry of Bangladesh has expanded dramatically over the last three decades. The history of the Readymade Garments Sector in Bangladesh is a fairly recent one. Nonetheless it is a rich and varied tale. The recent struggle to realize Workers' Rights adds an important episode to the story. The RMG industry of Bangladesh has expanded dramatically over the last three decades. Traditionally, the jute industry dominated the industrial sector of the country until the 1970s. Since the early 1980s, the RMG industry has emerged as an important player in the economy of the country and has gradually replaced the jute industry. Although Bangladesh is not developed in industry, it has been enriched in Garment industries in the recent past years. In the field of Industrialization garment industry is a promising step. The sector now dominates the modern economy in export earnings, secondary impact and employment generated. It has given the opportunity of employment to millions of unemployed, specially innumerable uneducated women of the country. It is making significant contribution in the field of our export income. Bangladesh exports 35 types of garment products to about 31 countries around the world. The RMG sector is a 100% export-oriented industry. That Bangladesh today is considered an economic competitor in terms of international garment manufacturing by other countries of the region and beyond is the country since gaining independence in 1971. it appers much of the socio-economic development in the first decade of the twenty-first century for Bangladesh and its approximately 1.5 million women workers depends on the continuing success of the RMG industry. Problems surrounding ready made garments sector: The garment industry of Bangladesh has been the key export division and a main source of foreign exchange for the last 25 years. National labor laws do not apply in the EPZs, leaving BEPZA in full control over work conditions, wages and benefits. Garment factories in

Bangladesh provide employment to 40 percent of industrial workers. But without the proper laws the worker are demanding their various wants and as a result conflict is began with the industry 1. Raw materials: Bangladesh imports raw materials for garments like cotton, thread color etc. This dependence on raw materials hampers the development of garments industry. Moreover, foreign suppliers often supply low quality materials, which result in low quality products 2. Unskilled workers: Most of the illiterate women workers employed in garments are unskilled and so their products often become lower in quality. 3. Improper working environment: Taking the advantages of workers' poverty and ignorance the owners forced them to work in unsafe and unhealthy work place overcrowded with workers beyond capacity of the factory floor and improper ventilation. Most of the garment factories in our country lack the basic amenities where our garment workers sweat their brows from morning to evening to earn our countries the major portion of our foreign exchange. Anybody visiting the factory the first impression he or she will have that these workers are in a roost. Improper ventilation, stuffy situation, filthy rooms are the characteristics of the majority of our factories. The owners profit are the first priority and this attitude has gone to such an extent that they do not care about their lives. 3. Lack of managerial knowledge: There are some other problems which are associated with this sector. Those are- lack of marketing tactics, absence of easily on-hand middle management, a small number of manufacturing methods, lack of training organizations for industrial workers, supervisors and managers, autocratic approach of nearly all the investors, fewer process units for textiles and garments, sluggish backward or forward blending procedure, incompetent ports, entry/exit complicated and loading/unloading takes much time, time-consuming custom clearance etc. 4. Gendered division of labor: In the garment industry in Bangladesh, tasks are allocated largely on the basis of gender. This determines many of the working conditions of women workers. All the workers in the sewing section are women, while almost all those in the cutting, ironing and finishing sections are men. Women workers are absorbed in a variety of occupations from cutting, sewing, inserting buttons, making button holes, checking, cleaning the threads, ironing, folding, packing and training to supervising. Women work mainly as helpers, machinists and less frequently, as line supervisors and quality controllers. There are no female cutting masters. Men dominate the administrative and

management level jobs. Women are discriminated against in terms of access to higher-paid white collar and management positions. When asked why they prefer to emply women foe sewing, the owner and managers gave several reasons. Most felt that sewing is traditionally done by women and that women are more patient and more controllable than men. 5. Wages: The government of Bangladesh sets minimum wages for various categories of workers. According of Minimum Wage Ordinance 1994, apprentices helpers are to receive Tk500 and Tk930 per month respectively. Apprentices are helpers who have been working in the garment industry for less than three months. After three months, Apprentices are appointed as helpers. Often female helpers are discriminated against in terms of wages levels, and these wages are also often fixed far below the minimum wage rate. A survey conducted in 1998 showed that 73% of female helpers, as opposed to 15% of their male counterparts, did not receive even the minimum wage.

6. Insufficient of loan: Insufficiency of loan in time, uncertainly of electricity, delay in getting materials, lack of communication, problem in taxes etc. Often obstruct the industry. In the world market 115 to 120 items of dress are in demand where as Bangladesh supplies only ten to twelve items of garments. India, south Korea, Hong Kong, Singapore, Thailand, Taiwan etc, have made remarkable progress in garments industries. Bangladesh is going to challenge the garments of those countries in the world market. 7. Unit labor cost: Bangladesh has the cheapest unit labor cost in South Asia. It costs only 11 cents to produce a shirt in Bangladesh, whereas it costs 79 cents in Sri Lanka and 26 cents in India. Clearly, Bangladeshs comparative advantage lies in having the cheapest unit labor cost. 8. Working hours: Though the wages are low, the working hours are very long. The RMG factories claim to operate one eight-hour shift six days a week. The 1965 factory Act allows women to work delivery deadlines; however, women are virtually compelled to work after 8 oclock. Sometimes they work until 3 oclock in the morning and report back to start work again five hours later ar 8 oclock. They are asked to work whole months at a time the Factory Act, which stipulates that no employee should work more than ten days consecutively without a break. 9. Poor accommodation facilities:

As most of the garment workers come from the poor family and comes from the remote areas and they have to attend to the duties on time, these workers have to hire a room near the factory where four to five huddle in a room and spend life in sub human condition. For four to five workers there is one common latrine and a kitchen for which they have to pay from Tk=2000 to Tk=2500/-.They share this amount among themselves to minimize the accommodation expense. One cannot believe their eyes in what horrible condition they have to pass out their time after almost whole day of hard work in the factory. After laborious job they come into their roost, cook their food and have their dinner or lunch in unhygienic floor or bed and sleep where they take their food. They share the single bed or sleep on the floor. The owners of these factories must not treat the workers as animals. The owners of these factories who drive the most luxurious car and live in most luxurious house do ever think that these are the workers who have made their living so juicy. Will these selfish owners ever think of these workers of their better living for the sake of humanity by providing better accommodation for these workers in addition to providing with the job. 10. Safety Problems: Because of the carelessness of the factory management and for their arrogance factory doors used to be kept locked for security reason defying act Safety need for the worker is mandatory to maintain in all the organization. But without the facility of this necessary product a lot of accident is occur incurred every year in most of the company. Some important cause of the accident are given below Routes are blocked by storage materials Machine layout is often staggered Lack of signage for escape route No provision for emergency lighting Doors, opening along escape routes, are not fire resistant Doors are not self-closing and often do not open along the direction of escape Adequate doors as well as adequate staircases are not provided to aid quick exit Fire exit or emergency staircase lacks proper maintenance Lack of proper exit route to reach the place of safety Parked vehicles, goods and rubbish on the outside of the building obstruct exits to the open air

Fire in a Bangladesh factory is likely to spread quickly because the principle of compartmentalization is practiced 10. Political crisis: Garments industries often pay dearly for political unrest, hartal and terrorism etc. The international market has withdrawn quota advantage over garments export form Bangladesh since December 2005. Bangladesh has to advance cautiously for getting better position of her garments in the world market. Finally destruction of twin tower in 11 September 2001. invasion on Afghanistan and Iraq and depression in world Economy have seriously affected the export trade of Bangladesh. 11. Price competitiveness: China and some other competitors of Bangladesh have implemented sharp price-cutting policies in exporting garment products over the last few years, but Bangladesh has failed to respond effectively to such policies. China was able to drop the export price of 29 garment categories by 46 per cent on average in the United States within a year, from $6.23 per sq metre in December 2001 to $3.37 per sq metre in December 2002. Bangladesh needs to respond to such price-cutting policies of its rivals in order to remain competitive in the quotafree global market. 12. Lead time Lead time refers to the time required for supplying the ordered garment products after the export order has been received. In the 1980s, the usual lead time in the garment industry was 120-150 days for the main garment supplier countries of the world; it has been reduced to 30-40 days in the current decade. However, in this regard the Bangladesh RMG industry has improved little; for example, the average lead time is 90-120 days for woven garment firms and 60-80 days for knit garment firms. In China, the average lead time is 40-60 days and 50-60 days for woven and knit products respectively; in India, it is 50-70 days and 60-70 days for the same products respectively. Bangladesh should improve its average lead time to compete in the international market. Problems Regarding With RMG The garment industry of Bangladesh has been the key export division and a main source of foreign exchange for the last 25 years. National labor laws do not apply in the EPZs, leaving BEPZA in full control over work conditions, wages and benefits. Garment factories in Bangladesh provide employment to 40 percent of industrial workers. But without the proper laws the worker are demanding their various wants and as a result conflict is began with the industry. Low working salary is another vital fact which makes the labor conflict. Worker made strike, layout to capture their demand. Some time bonus and the

overtime salary are the important cause of crisis. Insufficient government policy about this sector is a great problem in Garments Company. There are some other problems which are associated with this sector. Those are- lack of marketing tactics, absence of easily onhand middle management, a small number of m a n u f a c t u r i n g m e t h o d s , l a c k o f t r a i n i n g o r g a n i z a t i o n s f o r i n d u s t r i a l w o r k e r s , supervisors and managers, autocratic approach of nearly all the investors, fewer process units for textiles and garments, sluggish backward or forward blending procedure, incompetent ports, entry/exit complicated and loading/unloading takes much time, time-consuming custom clearance etc.

According to our survey in five leading Company we found some problem which .

Bangladesh Faces the Challenge of Globalization Bangladesh faces the challenge of achieving accelerated economic growth a n d alleviating the massive poverty that afflicts nearly two-fifths of its 135 million people. To meet this challenge, market-oriented liberalizing policy reforms were initiated in themid1980s and were pursued much more vigorously in the 1990s. These reforms were particularly aimed at moving towards an open economic regime and integrating with the global economy.

During the 1990s, notable progress was made in economic performance. Along with maintaining economic stabilization with a significantly reduced and d e c l i n i n g dependence on foreign aid, the economy appeared to begin a transition from stabilization to growth. The average annual growth in per capita income had steadily accelerated from about 1.6 per cent per annum in the first half of the 1980s to 3.6 percent by the latter half of the 1990s. This improved performance owed itself both to a slowdown in population growth and a sustained increase in the rate of GDP growth, which averaged 5.2 percent annually during the second half of the 1990s. During this time, progress in the human development indicators was even more impressive. Bangladesh was in fact among the top performing countries in the 1990s, when measured by its improvement in the Human Development Index (HDI) as estimated by the United Nations Development Project( U N D P ) . I n t e r m s o f t h e i n c r e a s e i n t h e v a l u e o f H D I b e t w e e n 1 9 9 0 a n d 2 0 0 1 , Bangladesh is surpassed only by China and Cape Verde. While most low-income countries depend largely on the export of primary commodities, Bangladesh has made the transition from being primarily a jute-exporting country to garment-exporting one. This transition has been dictated by the country's resource endowment, characterized by extreme land scarcity and a very high population density, making economic growth dependent on the export of labor-intensive manufactures. In the wake of the 2001 global recession, Bangladesh's reliance on foreign countries as market for exports and as a source of remittances has become obvious. If Bangladesh is to become less vulnerable to the economic fortunes of others, it will need to strengthen its domestic economy, creating jobs and markets at home. A strong domestic sector and an improved overall investment environment will provide a more stable source of income - like what the garment industry has provided so far - and will rekindle and sustain Bangladesh's economic growth.

Prospects of the RMG Industry

Despite many difficulties faced by the RMG industry over the past years, it continued to show its robust performance and competitive strength. The resilience and bold trend in this MFA phase-out period partly reflects the imposition of safeguard quotas by US and similar restrictions by EU administration on China up to 2008, which has been the largest supplier of textiles and apparel to USA. Other factors like price competitiveness, enhanced GSP facility, market and product diversification, cheap labor, increased backward integration, high level of investment, and government support are among the key factors that helped the country to continue the momentum in export earnings in the apparel sector. Some of these elements are reviewed below.

Market Diversification Bangladeshi RMG products are mainly destined to the US and EU. Back in 199697,Bangladesh was the 7th and 5th largest apparel exporter to the USA and European Union respectively. The industry was successful in exploring the opportunities in markets away from EU and US. In FY07, a successful turnaround was observed in exports to third countries, which having a negative growth in FY06 rose three-fold in FY07, which helped to record 23.1 percent overall export growth in the RMG sector. It is anticipated that the trend of market diversification will continue and this will help to maintain the growth momentum of export earnings. At the same time a recent WTO review points out that Bangladesh has not been able to exploit fully the duty free access to EU that it enjoys. While this is pointed out to be due to stringent rules of origin (ROO) criteria, the relative stagnation in exports to EU requires further analysis. Product Diversification The growth pattern of RMG exports can be categorized into two distinct phases. During the initial phase it was the woven category, which contributed the most. Second phase is the emergence of knitwear products that powered the recent double digit (year-on-year)growth starting in FY04. In the globalize economy and ever-changing fashion world, product diversification is the key to continuous business success. Starting with a few items, the entrepreneurs of the RMG sector have also been able to diversify the product base ranging from ordinary shirts, T-shirts, trousers, shorts, pajamas, ladies and childrens wear to sophisticated high value items like quality suits, branded jeans, jackets, sweaters, embroidered wear etc. It is clear that value addition accrues mostly in the designer items, and the sooner local entrepreneurs can catch on to this trend the brighter be the RMG future. Backward Integration: RMG industry in Bangladesh has already proved itself to be a resilient industry and can be a catalyst for further industrialization in the country. However, this vital industry still depends heavily on imported fabrics. After the liberalization of the quota regime some of the major textile suppliers Thailand, India, China, Hong Kong, Indonesia and Taiwan increased their own RMG exports.

Figure: Trend to back-to-back linkage If Bangladesh wants to enjoy increased market access created by the global open market economy it has no alternative but to produce textile items competitively at home through the establishment of backward linkage with the RMG industry. To some extent the industry has foreseen the need and has embarked on its own capacity building.

Flow of Investment It is plausible that domestic entrepreneurs alone may not be able to develop the textile industry by establishing modern mills with adequate capacity to meet the growing RMG demand. It is important to have significant flow of investment both in terms of finance a n d technology. Figure 3 indicates that the investment outlook in this sector i s encouraging, although the uncertainties before the MFA phase-out period caused a sluggish investment scenario. In part the momentum in the post-MFA phase-out periodic indicative of the efforts underway towards capacity building through backward integration. This is evident in the pace of lending to the RMG sector and in the rising import share of RMG related machinery. However further progress would be necessary to improve and sustain competitiveness on a global scale. Policy Regime of Government Government of Bangladesh has played an active role in designing policy support to the RMG sector that includes back-to-back L/C, bonded warehouse, cash incentives, export credit guarantee scheme, tax holiday and related facilities. At present government operates a cash compensation scheme through which domestic suppliers to exportoriented RMG units receive a cash payment equivalent to 5 percent of the net FOB value of exported garments. At the same time, income tax rate for textile manufacturers were reduced to 15 percent from its earlier level for the period up to June 30, 2008.Thereduced tax rates and other facilities are likely to have a positive impact on the RMG sector.

Infrastructural Impediments The existence of sound infrastructural facilities is a prerequisite for e c o n o m i c development. In Bangladesh, continuing growth of the RMG sector is dependent on the development of a strong backward linkage in order to reduce the lead time. However, other factors constraining competitiveness of Bangladeshs RMG exports included the absence of adequate physical infrastructure and utilities. Labor Productivity The productive efficiency of labor is more important determinant for g a i n i n g comparative advantage than the physical abundance of labor. In Bangladesh, the garment workers are mostly women with little education and training. The employment o f a n u n e v e n n u m b e r o f u n s k i l l e d l a b o r s b y t h e g a r m e n t f a c t o r i e s r e s u l t s i n l o w productivity and comparatively more expensive apparels. Bangladesh labor productivitys known to be lower when it compared with of Sri Lanka, South Korea and Hong Kong. Bangladesh must look for ways to improve the productivity of its labor force if it wants to compete regionally if not globally. Because of cheap labor if our country makes the labor productivity in the apex position, then we think the future of this sector is highly optimistic. Research and Training The country has no dedicated research institute related to the apparel sector. RMG is highly fashion oriented and constant market research is necessary to become successful in the business. BGMEA has already established an institute which offers bachelors degree in fashion designing and BKMEA is planning on setting up a research and t r a i n i n g i n s t i t u t e . T h e s e a n d r e l a t e d i n i t i a t i v e s n e e d e n c o u r a g e m e n t p o s s i b l y intermediated by donor-assisted technology and knowledge transfer. A facilitating public sector role can be very relevant here. Supportive Government Policy In contrast to the public sector-led import-substituting industrialization strategy pursued during the first few years after independence, the industrialization philosophy of the government changed rather dramatically from the late 1970s when the emphasis was on export-oriented growth to be spearheaded by the private sector. Towards this end, various policy reforms were implemented in the 1980s and 1990s. Some of these reformed policies contributed considerably to the growth of the RMG industry in Bangladesh.

During the 1980s, a number of incentives were introduced to encourage export activities. Some of them were new like the Bonded Warehouse Facility (BWF), while others like the Export Performance License (XPL) Scheme 37 were already in operation and were improved upon. Also, rebates were given on import duties and indirect taxes, there were tax reductions on export income, and export financing was arranged. Under the XPL scheme, exporters of non-traditional products received import licenses for specific products over and above their normal percentage allotment based on the f.o.b. value of their exports. Under the Duty Drawback System, exporters of manufactured goods were entitled to get refund of duties and taxes paid on imported inputs used in export production, and also all excise duties paid on exported finished goods. For certain fast-moving items such as RMG, a notional system of duty payments was adopted in 1982-83. Under this system,

exporters were exempted from paying duties and taxes on imports used in export production at the time of importation, but were required to keep records of raw and 21packaging materials imported. The duties and taxes payable on the imports were kept in a suspense account. Liabilities to pay the amounts in suspense were removed on proof of exports. The discussion in this section clearly points to the positive contribution made by policy reforms to the growth of the RMG industry in Bangladesh. In particular, two policies the SBW facility and the back-to-back L/C system- led to significant reduction in cost of producing garments and enhanced competitiveness of Bangladeshs garments exports. It also allowed garment manufacturers to earn more profit which, when necessary, could be used to overcome difficulties arising from weak governance. Furthermore, poor governance, reflected in the leakage of duty-free imported fabrics in the domestic market, paradoxically enough also helped the garment manufacturers to earn extra profit and thereby enabled them to absorb the high cost of doing businesses a fallout of bad governance. Recommendation Bangladesh economy at present is more globally integrated than at any time in the past. The MFA phase-out will lead to more efficient global realignments of the Garments and Clothing industry. The phase out was expected to have negative impact on the economy of Bangladesh. Recent data reveals that Bangladesh absorbed the shock successfully and indeed RMG exports grew significantly both in FY06 and (especially) in FY07. Due to a number of steps taken by the industry, Bangladesh still remains competitive in RMG export even in this post phase out period.

Our Garments Industries can improve their position in the world map by reducing the overall problems. Such as management labor conflict, proper management policy, efficiency of the manager, maintainable time schedule for the product, proper strategic plan etc. Government also have some responsibility to improve the situation by providing- proper policy to protect the garments industries, solve the license problem, quickly loading facility in the port, providing proper environment for the work, keep the industry free from all kind of political problem and the biasness. Credit must be provided when the industry fall in need. To be an upper position holder in the world Garments Sector there is no way except follow the above recommendations. We hope by maintaining proper management and policy strategies our country will take the apex position in future.

Suggestions Regarding Fire Safety We need to remember that when there is a fire, the first thing one should do is to runaway from it. And this is what everyone does in such a situation. But the situation become dangerous and tragic when the escape doorways and gates are found locked. Precautionary should need to be adopted are given below: Building should be constructed with fire resisting materials Adequate exits and proper escape routes should be designed Protection against fire and smoke should be ensured

Electrical wiring must be properly designed, installed and maintained Escape routes should be lighted at all times, kept clear, be indicated by signs

Conclusion
The Ready-Made Garments (RMG) industry occupies a unique position in the Bangladesh economy. It is the largest exporting industry in B a n g l a d e s h , w h i c h experienced phenomenal growth during the last 25 years. By taking advantage of an insulated market under the provision of Multi Fiber Agreement (MFA) of GATT, it attained a high profile in terms of foreign exchange earnings, exports, industrialization and contribution to GDP within a short span of time. The industry plays a key role in e m p l o y m e n t g e n e r a t i o n a n d i n t h e p r o v i s i o n o f i n c o m e t o t h e p o o r . T o r e m a i n competitive in the post-MFA phase, Bangladesh needs to remove all the structural impediments in the transportation facilities, telecommunication network, and power supply, management of seaport, utility services and in the law and order situation. The government and the RMG sector would have to jointly work together to maintain competitiveness in the global RMG market. Given the remarkable entrepreneurial i n i t i a t i v e s a n d t h e dedication of its work initiatives and the dedication of its workforce, B a n g l a d e s h c a n l o o k f o r w a r d t o advancing its share of the global RMG marke

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