Table of Contents

Introduction .................................................................................................................................... 2

Compliance According to Labor Law of Bangladesh ....................................................................... 3

Social Codes of Conduct in the RMG Industry ................................................................................ 4

Voluntary Codes of Conduct ........................................................................................................... 5

Ensuring Proper Application of Codes of Conduct ......................................................................... 5

Weekly Holiday Notice ................................................................................................................ 6

Notice of Nearest Hospital, Fire Station, Police Station etc. ...................................................... 6

Notice of Important Officials Phone Numbers ........................................................................... 6

Form V (National and Festival Holiday) ...................................................................................... 7

Standing Order ............................................................................................................................ 7

Needle Control Policy.................................................................................................................. 7

Voluntary Work Policy ................................................................................................................ 8

Sexual Harassment Policy ........................................................................................................... 8

Health and Safety Policy ............................................................................................................. 8

Conclusion ....................................................................................................................................... 9

References .................................................................................................................................... 10
Introduction
The RMG industry is the spine and engine of Bangladesh's economy. This industry grew quickly
finished the previous 30 years by exploiting the favorable trade quotas allowed to Bangladesh
by the global "Multi-Fiber-Agreement" (MFA). Likewise, low work costs have dependably been
one of the competitive advantages for Bangladesh garments in the global sourcing market.
Today, Bangladesh is the seventh biggest RMG exporter on the planet. Around 4,200 attire
factories send out garments worth almost US$ 10 billion, contributing over 75% to Bangladesh's
aggregate fare profit. (Export Promotion Bureau, Bangladesh, 2016) The industry gives guide
work to more than 2.3 million specialists primarily ladies and in a roundabout way bolsters
the occupation of around 20 million individuals. Since the abolishment of the MFA in 2005 the
RMG division in Bangladesh faces significantly stiffer rivalry. Article of clothing costs have been
falling by as much as 10% every year finished the most recent three years. Then again,
expanding creation costs are putting the industry in an extremely tricky financial circumstance.
Also, the weight from purchasers has been expanding, requesting from providers' full
consistence with universally perceived social and ecological benchmarks, quality items and
short and solid conveyance plans. The center issue is that under such conditions a noteworthy
number of the factories are not sufficiently fit to make due in the global market.

The simplest definition of compliance is observance, conformity, and obedience. In business,

compliance by and large assigns the necessity to cling to specific guidelines/laws, meet certain
standards, and take after specific practices. Compliance standards can begin from outer and
also interior sources. A compliance necessity might be obligatory or discretionary.
Understanding the cause of compliance prerequisites empowers proper prioritization and
hazard administration. Compliance necessities that your association must hold fast to might be
founded on your possession structure, administration practices, areas, and the markets in
which you wish to take an interest, and also your particular industry, client, and seller
affiliations. Later in this archive we will investigate the wellsprings of compliance necessities
and give open space references to help you in looking into their particular prerequisites. In the
event that you take a gander at your business hones, you will see that numerous standard
working techniques exist to fulfill the compliance necessities of the considerable number of
substances, inside and outside, with which the association communicates.

Compliance According to Labor Law of Bangladesh

Another need region is to help the administration in actualizing the national labor law through
mindfulness raising, promotion and observing exercises. The program will reinforce the
execution of principle partners engaged with the advancement of the RMG division including
specialists, experts, administrators, providers and purchasers. Through specialized and social
expertise upgrade exercises, for example, trainings, people will be empowered to better play
out their work and exercise their social obligations. Parallel, the program will fortify and bolster
all pertinent RMG associations, for example, NGOs, trade unions, entrepreneurs' affiliations
(BGMEA and BKMEA), preparing foundations and applicable government services. Building up
these associations implies enhancing their administration limit yet additionally their hierarchical
and authority culture. For this reason, physical and faculty redesigning measures will be
actualized by needs. The program's usage approach, on a fundamental level, expands upon
ventures which are as of now being actualized effectively by different improvement
accomplices e.g. GTZ, SEDF, UNDP, UNIDO, Oxfam, and so on. The exercises of these ventures
will be up-scaled keeping in mind the end goal to have a substantially more extensive zone and
industrial facility scope. MFB's fundamental errand is to screen and assess program exercises
and actualize program segments without able accomplices and assuming officially and
monetarily legitimized. (Export Promotion Bureau, Bangladesh, 2016)

The condition of being as per the important Federal or local specialists and their necessities.
With regards to monetary administrations, the most essential compliance rules originate from
the Securities and Exchange Commission. Most huge money related administrations
organizations have compliance groups whose part is to take a free position in ensuring that the
organization is following all the essential guidelines and directions.

The primary issues in Bangladesh are scarce resources, catastrophic events, an inflexible and to
some degree discretionary organization, over-populace and the destitution which this causes.
Around 50 percent of the populace lives underneath the destitution line.
The Ready-Made Garments (RMG) industry involves a one of a kind position in the Bangladesh
economy. It is the biggest sending out industry in Bangladesh, which experienced incredible
development amid the most recent 20 years. By exploiting a protected market under the
arrangement of Multi Fiber Agreement (MFA) of GATT, it achieved a prominent regarding
remote trade income, fares, industrialization and commitment to GDP inside a limited capacity
to focus time. The industry assumes a key part in business age and in the arrangement of wage
to poor people. About two million laborers are specifically and more than ten million tenants
are by implication related with the industry. In the course of recent years, the quantity of
assembling units has developed from 180 to more than 3600. The segment has additionally
assumed a huge part in the financial advancement of the nation.

The Agreement on Textile and Clothing (ATC) presented in 1994, went for bringing textiles and
clothing inside the area of WTO administers by canceling all quotas before the finish of 2004. It
gives a change time of 10 years, so nations influenced by the MFA could find a way to acclimate
to the new exchanging condition. Advancement of trade following the Uruguay Round
agreement presents open doors and in addition challenges for a creating nation like Bangladesh
in RMG division. In the Post-Uruguay Round period, conventional instruments of trade
arrangement, for example, tariffs, quotas, and subsidies will turn out to be less attainable and
less important. In a changed trade administration, rivalry among textiles and clothing sending
out nations is probably going to wind up noticeably extreme. The goal of this paper is to
distinguish the possibilities of RMG industry after the MFA eliminate by breaking down the
present situation alongside various strategy measures and the accessible choices keeping in
mind the end goal to be more competitive in the new administration. (The World Trade
Organization)

Social Codes of Conduct in the RMG Industry

Social sets of accepted rules will be standards and rules forced by purchasers upon themselves
and along their supply chains, both because of customer weight and as a major aspect of
complete marketing methodologies went for enhancing their picture. Social and natural
standards as illustrated in the Bangladesh Labor Law and Environmental Act set out least
standards to which makers in Bangladesh must follow. Conversely, compliance with general
codes of behaviors, which normally contain standards somewhat higher than those
characterized by the Bangladesh laws, is intentional. The social compliance status of the
Bangladesh RMG industry alludes to the degree to which the industry meets the prerequisites
of the labor law as well as some other purchaser particular set of principles or intentional
affirmation plot. The present social compliance status of the industry isn't acceptable; there is a
pressing need to enhance the circumstance.

Voluntary Codes of Conduct

The voluntary codes of conduct most widely used by the RMG sector include those of:

Social Accountability International (SAI) SA8000

Ethical Trading Initiative (ETI)
Fair Labor Association (FLA)
Fair Wear Foundation (FWF)
Business Social Compliance Initiative (BSCI)
Worldwide Responsible Apparel Production (WRAP).

Just WRAP and SAI have confirmations for factories, though FLA guarantees brands, not
factories. The other previously mentioned implicit rules don't have any accreditation choices.

By and large, adherence by a specific producer to a given standard or set of principles is

checked through occasional reviews/examinations. These examinations are done by purchasers
as well as outsider reviewers selected by the purchasers.

Ensuring Proper Application of Codes of Conduct

Bangladesh Labor Law 2006 (BLL 2006) Implementation of the BLL 2006 is observed principally
by Ministry of Labor and Employment (MoLE) industrial facility reviewers and BGMEA and
BKMEA social compliance screens. Other than examining and checking the status of the
factories, BGMEA and BKMEA screens give counseling backing to manufacturing plant work
force with the goal that they can actualize the required, adjust measures as expressed in BLL
2006.

Below are some notices which should be displayed at all times to ensure compliance:

Weekly Holiday Notice

Factory workers are entitled to weekly holidays as per section-103 of the Bangladesh Labor Act,
2006:

(1) Every worker working in any establishment shall-

(a) in case of shop, commercial or industrial establishment, get one and half days, and in case of
factories and other establishments one day as weekly holiday;
(b) in the case of road transport establishment, get one day of twenty-four consecutive hours of
weekly holiday; and no deduction from wages is allowed for such leave.
(Ministry of Labor and Employment, 2015)

Notice of Nearest Hospital, Fire Station, Police Station etc.

Emergency numbers should be displayed in case there is any accidents or occurrences the
authorities are to be contacted immediately. According to the Section 80 of Labor Act, 2006:

Provided that the factory authority shall, immediately after the occurrence of such incident,
inform the matter to the Government, Fire Service, Directorate of Inspection of Factories and
Establishments, Police Station, and if required, the nearby hospital or government-private
medical service establishment, through telephone, mobile phone, SMS or fax, in order to take
immediate necessary action to minimize potential damages or bring the situation under
control.

(Ministry of Labor and Employment, 2015)

Notice of Important Officials Phone Numbers

Important Officials Phone Numbers should be displayed in public so that in any need the factory
workers can easily reach the important officials.
Form V (National and Festival Holiday)

About national and festival holidays the Labor Act of Bangladesh states that:
(1) Every worker shall be allowed in a calendar year 11 (eleven) days of festival holiday with
wages.

(2) The employer shall fix the day and dates of such leave in such manner as may be prescribed
by rules.

(3) A worker may be required to work on any festival holiday, but 2 (two) days compensatory
holidays with wages and a substitute holiday shall be provided for him in accordance with the
provisions of section 103.

(Ministry of Labor and Employment, 2015)

In accordance to the labor law, a form V must be supplied stating the holidays.

(Kumar, 2013)

Standing Order

THE EMPLOYMENT OF LABOUR (STANDING ORDERS) ACT, 1965 should be applied by

maintaining all conditions mentioned in the act. (International Labour Organization)

Needle Control Policy

All industrial sewing machine needles or parts of damaged/broken needles are controlled
effectively and accounted for during the production process and throughout the whole
manufacturing unit. This means that when a new needle is issued it is cross referenced with
stock levels of the particular needle and size to ensure full traceability at all times. This includes
janome sewing machine needles (machine and hand sewing), and any ticketing or kimbal/tag
gun needles and the policy is covering all areas of manufacturing e.g. the sample room,
embroidery and appliqu machines, machines that are positioned out of the main flow of
manufacture and operations that are performed outside the factory premises. You can visit
more about different types of needles mechanism.
The Needle Control Policy should include the following:

Industrial Sewing Machine Needles Supplies Guideline

Control of sewing needles in use
Change of a needle during production
Requirements for broken needle control
Any found fragments are being added to the needle replacement form
Utilization for Needle
Kimbal/Tag janome sewing machine needles control policy

(Rahman, 2015)

Voluntary Work Policy

Sexual Harassment Policy

Workers in garment factories are often vulnerable to threats and incidents of various forms of
abuse. Such abuse may include sexual harassment, and results from baseline worker surveys
across Better Work country programs indeed indicate that concerns about sexual harassment
are common in garment factories. In addition to the damaging psychological and physical
effects sexual harassment can have on victims, it can negatively affect workplace
communication and overall factory productivity. As part of the Better Work impact assessment,
researchers are working to identify which factory characteristics lead to a higher incidence of
sexual harassment.

(International Labour Organization)

Health and Safety Policy

The Bangladesh Labor Act 2006 (amendment 2013) provides some provisions regarding the
health and safety of industrial workers in Bangladesh. From Section 51 to -60, Health and
Hygiene related provisions and from Section 61 to 78 Safety of workers in any establishment
are mentioned. These instructions include:
 Cleanliness
Ventilation and Temperature
Dust and Fume
Disposal of Wastes and Effluents
Overcrowding
Lighting

(Ministry of Labor and Employment, 2015)

Conclusion
Bangladesh has already been confronting extreme rivalry in the US market from the Sub-
Saharan and Caribbean nations because of USTDA-2000 (US Trade and Development Act-2000).
An aggregate of 72 Sub-Saharan and Caribbean nations have been appreciating this dubious
favorable position lessening Dhaka's competitive edge.

Financial analysts distinguished high lead time, less efficiency contrasting with other contending
countries in spite of generally low wages, poor law and request circumstance and foundation
bottleneck as the real obstacles for piece of clothing ventures. Without sufficient number of in
reverse linkage businesses, span of creating array take relatively additional time, as endeavors
need to import crude materials and face a superfluous deferral because of bureaucratic Red
Tape, laziness of traditions customs and the stacking and emptying of boats. So as to abbreviate
these periods, the article of clothing producers tend to constrain their laborers into protracted
working hours when an expansive request comes in, however this game plan, which overlooks
the specialists essential right, is incapable in both the short and long haul in international
business.
References
Export Promotion Bureau, Bangladesh. (2016). Export Statistics Book 2015-2106. Retrieved
from Export Promotion Bureau of Bangladesh:
http://epb.portal.gov.bd/sites/default/files/files/epb.portal.gov.bd/files/ccd998a8_8b8
4_4253_b086_77c2a93b796a/Final%20Book%202015-16.zip

Export Promotion Bureau, Bangladesh. (2016). Quarterly Review on RMG: January-March

20161 - Bangladesh Bank. Quarterly Review on RMG. Retrieved from
https://www.bb.org.bd/pub/quaterly/rmg/jan_mar2016.pdf

International Labour Organization. (n.d.). Garment Factory Characteristics and Workplace

Sexual Harassment. Retrieved from betterwork: https://betterwork.org/global/wp-
content/uploads/Research-Brief-Sexual-Harassment-LR-Rnd5-4.pdf

International Labour Organization. (n.d.). THE EMPLOYMENT OF LABOUR (STANDING ORDERS)

ACT, 1965. Retrieved from International Labour Organization:
http://www.ilo.org/dyn/natlex/docs/WEBTEXT/47348/65074/E65BGD02.htm

Kumar, M. (2013). Form v.xls National and Festival Holidays. Retrieved from Scribd:
https://www.scribd.com/doc/162430783/Form-v-xls-National-and-Festival-Holidays

Ministry of Labor and Employment. (2015, 9 3). Bangladesh Labour Law (Ammendment) 2013.
Retrieved from Ministry of Labor and Employment:
http://mole.portal.gov.bd//sites/default/files/files/mole.portal.gov.bd/page/7f54da99_
c409_4b5a_bed3_3591a9224356/Bangladesh%20Labour%20Law%20(Ammendment)%2
02013.pdf

Rahman, E. K. (2015, 11 10). Industrial Sewing Machine Needles Policy. Retrieved from
autogarment: http://autogarment.com/industrial-sewing-machine-needles/

The World Trade Organization. (n.d.). Agreement on Textiles and Clothing. Retrieved from The
World Trade Organization: https://www.wto.org/english/docs_e/legal_e/16-tex_e.htm