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Prime University

A Report
On
Wage Discrimination of Garments Sectors in
Bangladesh:
A Study of Law and Practice

Submitted To
Mohammad Julfikar Ali
Lecturer
Department of Law

Submitted By
Marzia Khanam (Susan)
ID: 13305010424
Program LLM (2Years)
Department of Law
Prime University

Date of Submission :----------------

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Wage Distribution of Garments Sector. A Study of Law
and Practice

Abstract:
The paper relates to the Bangladesh garments sector. Garments workers are badly exploited
by the factory owners in collaboration with their foreign buyers resulting in a sub-human
standard of life of workers. The occasional agitations for higher wages and better amenities
for workers are alleged to be fanned up to violence by some interested quarters together with
the privileged unorganized labour leaders and certain NGOs. The recent violence following
the declaration of the Wage Structure 2010 is alleged to be backed by those interested in
taking away this industry from Bangladesh. The paper highlights the major problems faced
by the industry and suggests solution in the light of the teachings of Islam.

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Chapter One
Introductory Part
1.1 Background of The Study:
After the decline and fall of the jute industry just after liberation (recent media reports show
a hopeful prospect of this industry) the garments industry now plays a vital role in the
economy, starting about a decade or so after the emergence of Bangladesh. Like the jute
growers and the jute industrial workers that were once the driving force of the Bangladesh
economy, the same role is being played today by the garments industry and its workers, and
they are the single largest number of industrial workers in the country. With the toil, sweat
and untiring effort of the garments workers, this industry has achieved immense expansion.
These workers join this industry with a hope of achieving social security and in search of
livelihood. They usually come from the wretched families of rural Bangladesh. These rural
families give their children very elementary education up to class one or two for making them
eligible to work in the urban based garments industries. It has been shown in different
research publications that about 96% of the male and 76% of the female workers are educated
up to that level, but their attitude towards life is modern. Many young women want to avoid
the curse of immature marriage and try to grow up as the mistress of their own life by
working in this sector (Wasif, 2010, P.13). The enthusiasm of rural youths, both male and
female, forms the huge industrial cheap labour force of this sector.
Apart from cheap local labour and subsidized energy such as gas and electricity, the garments
sector of the economy is almost 100% dependent on imported machineries and other raw
materials such as cloths, threads, buttons, furnace oil etcetera, and is almost 100% dependant
on foreign buyers of its commodities, such as knitwear and woven garments. The local cheap
labour do the function of value-added only and for that reason we may say that what we
export as garments to the foreign market is only the local cheap labour, and the foreign
buyers and investors are attracted to Bangladesh solely for this reason. Recently, since the
wage rate of the workers of China are increasing, the Chinese industrialists are thinking of
moving their investment to countries where labour is cheaper. Bangladesh may avail of this
opportunity (Ittefaq Report on Economics, 5 June 2010, P.02). Bangladesh garments industry,
like many other industries in the global economy, is highly sensitive to the ups and downs of
the global market situation. Because of the nature of this particular industry, the economic lot
of its labour class is also connected, ceteris paribus, with the prospect and prosperity of the
global economy.

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1.2 Methodology
Purpose. Adverse drug events (ADEs), or injuries due to drugs, are common and often
preventable. However, identifying ADEs, potential ADEs, and medication errors can be a
major challenge. In this review, we describe methodologies that have been used to identify
these events and give strategies for identification in non-study settings.
Results.Methods such as voluntary reporting, chart review, and computerized monitoring for
events have been most commonly used in studies of ADEs in inpatients. However, voluntary
reporting, the method most hospitals currently use, has a very low yield of events. Chart
review is much more sensitive but the costs are prohibitive. Computerized monitoring for
ADEs (using rules or triggers) is a high yield and relatively inexpensive strategy that should
be adopted by organizations. A limitation of this strategy, however, is that it identifies few
medication errors and potential ADEs, which are also important. These can be captured
through pharmacy logs, chart review, and direct observation. Once events have been
identified, they can be classified by type of event, severity, and preventability. In non-study
settings, the most practical method for identifying ADEs is computerized monitoring, and for
identifying prescribing errors it is pharmacy logs of interventions. Once problems are found,
a structure (either individual or committee) must be in place to classify them, identify
opportunities for improvement, and carry out the necessary changes.
Conclusion.Health care organizations have the technology to significantly improve their
detection of ADEs, medication errors, and potential ADEs. Identification and subsequent
classification of events is crucial for quality efforts to improve patient safety.
1.3 Objective of the study:
The survey data that this report is based upon was collected by staff from the Dhaka-based
Alternative Movement for Resources and Freedom (AMRF) Society, one of FWFs key
stakeholder partners in Bangladesh. AMRF has extensive experience in conducting off-site
worker interviews. An eight-member team from AMRF, composed of female and male
interviewers, was responsible for worker interviews and data collection and analysis.
1.3 Scope and limitations of the study:
Scope and limitation is a very important things of a study. We discuss this research
monograph civil and criminal courts and their structure and jurisdictions, various kinds of
tribunals its structure and jurisdictions. Not outside this. Because research monograph has a
some scope and limitation. Outside of the topic i dont discuss it. Worker Interviews other

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defeating and descendents of Sheer-Shah in July- 1555. The Mughal dynasty continued from
1555 to 1750.

FWF and AMRF share a long-standing commitment to interviewing workers away from
factories. Workday time pressures, fear of intimidation and risk of coaching all mean that
interviews at factories are both difficult to conduct and often produce unreliable results.
Following a well-established methodology, interviewers approached workers outside of
factories, at cafes, kiosks, shops, and other locales where workers commonly gather after
work. Most interviews were conducted in the workers homes in the evening, or during the
weekend. The primary data sources for this report are worker interviews based on a
structured questionnaire. Interviews were conducted in both one-on-
one and group settings. Further informal discussions, covering topics beyond the structured
questionnaire, provided an additional level of insight into the experiences and concerns of
workers. Interviews were conducted in Bangla. The study also draws on secondary
information (reports, books, studies) and information from other sources (unions, labour
NGOs, labour right activists and researchers) were also used for the study.

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Chapter Two
Conceptual Issue

2.1. Introdnction of Wage Determination for the Garments Workers


As regards wages of the garments workers, one may be identify at least three different
opinions conformable to Capitalism, Socialism and Islam.
2.2 Capitalism
Let us first of all look at the problem from the capitalistic point of view. David Ricardo, one
of the fathers of the modern capitalistic thoughts of economics maintains that a labour should
be given that amount of wage which is barely necessary to maintain his life and able to sell
his labour. From here comes the capitalistic concept of the subsistence theory of wages.
This subsistence wage rate ensures a labour to live like a mere animal.
In this system the labourer as a person has no value to the capitalists; what concerns the
capitalists is the labour power which they purchase. If the person X dies out of hunger the
person Y will be available to the capitalists to sell labour at the wage rate at which X died. So
it does not matter to the capitalists whether the subsistence wage rate is enough to keep the
labourer alive or not. Capitalism in comparison to Slavery and Feudalism is an improved
system in the sense that it has ensured the labourer freedom of his body; the labourer is free
to work at the subsistence wage rate or die out of hunger. While the freedom to work or die
does matter little to the capitalists, it did matter to the slave owner in Slavery or to the serf
owner in Feudalism, since the death of a slave or a serf was a loss to the slave owner or a
feudal lord like the death of a cattle to the farmer. Unlike the system of Slavery and
Feudalism, Capitalism has given the owner class the advantage of dissociating them from the
responsibility of making arrangement for the labourer to live. Thus the process of exploitation
in capitalism is more inhuman than that of the system of Slavery and Feudalism; capitalism is
a new type of more inhuman exploitative system, the basis of which is labour-slavery.
Recent advancement in the determination of wage for the labourer in capitalism is the
calculation of daily calorie intake necessary by the individual labourer to give the capitalist
optimum labour per day. This in other sense is the basis of scientifically determining the
subsistence wage rate. On this count, now it is maintained that the minimum wage rate
should be the amount which is necessary for the reproduction of labour power; even this
amount of wage rate is scarcely given by the owners of mills and factories to the labourers in

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most of the developing economies including Bangladesh and the scope of inhuman
exploitation of the labourers by capitalists as explained above remains unaltered.
2.3. Socialism
The socialists maintain that the characteristic of human labour force is that it is able, by being
used, to create the value which is more than the value of its production. The extra value id
est. surplus value thus created is grabbed by the capitalists as their profit. This is capitalist
exploitation. The socialists want to ascertain that the labourers get this surplus value which
they produce instead of the capitalists, and thus the process of labour exploitation will come
to an end and the labourers will get the due share of their produce in the form of wages.
According to the socialists, the garments workers of Bangladesh are not even given the value
of their labour power which they sell to the garments owners, not to speak of the surplus
value which they create in the process of production in this sector. The workers of this
sector are subjected to super-exploitation instead of the normal process of exploitation that
usually goes with capitalism (Selim, 12 August 2010, P.9).
2.4. Islam
Islam, in ascertaining the wage of labourers, goes beyond the materialistic calculative
methods of determining wages as we have seen above in Capitalism and Socialism. It appeals
to and emphasizes on the responsibility of the employers on behalf of Allh to do justice to
the workers in giving them their remunerations for the services they render to the employer
so that both the employers and the workers can afford equal standard of living for their joint
salvation and peace here in this world and the Hereafter. Islam, the religion of peace, gives
special emphasis on and appeals to the brotherly humane character and spiritual gain of the
employers to take into account while determining the wage for the workers they engage,
instead of the material approach followed in Capitalism and Socialism.
It is a piety to provide the workers with proper wage rate and remunerations. Hazrat
Mohammad (s) says to the employers that, They (the employees) are your brothers. Allh
has entrusted you with their responsibilities. So those on whom such responsibilities have
been entrusted are liable to give them such food as they eat, make arrangement for them to
wear such cloths as they wear, and shall never compel them to do such works which are
painful and beyond their capacity to do, and if they are to do such works the employees will
have to be given necessary assistance to do that piece of work (Hadith: Bukhari Sharif
Kitabul Imaan). Hazrat Mohammad (s) also said that, the workers will not be compelled to
do such work which will render them incapable and good-for-nothing (Hadith).

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To bring the nicely and properly determined wage rate to a level of justice, the following
three conditions will have to be fulfilled: Firstly, the whole time wage is necessary to be of
that amount which is capable of meeting the basic needs of the worker; in other words, each
and every worker should be able to meet the general needs of himself and his family by the
wage he receives. Secondly, after fulfilling the basic necessities, the employee or the worker
should enjoy the opportunity of earning more according to the nature, craftsmanship or
technicalities of the work, efficiency, the quality of his produce and according to the
differences in proportions he makes to the profit made by the employer, id est. efficient,
skilled and workers engaged in risky economic activities will get more. Thirdly, the wage
will be determined under the above two conditions on the basis of free will and voluntary
mutual understanding of the employer and the employee.
With the purpose of creation of an environment of brotherly cooperation and for the
fulfillment of the condition of just wages the following duties will have to be performed by
the employer at the level of code of good conduct for piety. A portion of the product that is
produced by the workers will have to be given away to the workers free of cost or at a
nominal price. The residential accommodation, health care facilities, educational facilities,
provision for harmless amusements and other relevant facilities will have to be provided to
the workers. At the time of distribution of profits, a portion of that as bonus will have to be
given to the workers. There shall have to be arrangements for monetary help from some
special funds for the workers in times of adversity. Working hour should be specific and the
time for rest will have to be ascertained. Workers will have to be treated with sympathy under
all circumstances. As soon as the work under contract is finished, the worker or the employee
must be paid his wage or salary immediately without delay as the case may be. Hazrat
Mohammad (s) says, Pay off the wage of workers before the sweat of his tired body is dried
up (Hadith).

2.5 Conclution Wage Structure 2010 for the Garments Workers of Bangladesh
01. Rise of the Garments Sector
If we want to go back to the origin we shall have to start with Riaz Garments which presented
its product id est. shirts on behalf of the then East Pakistan (now Bangladesh) in 1969 to the
three astronauts Neil Armstrong, Edwin Aldrin, and Michel Collins who were invited to this
country for successfully completing the first human Moon mission. Afterwards Riaz

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Garments first exported garments in 1978 to Europe. Since then much water has gone down
the river Buriganga, and Riaz Garments is no more (Rahman, 11 July 2010, P. 13).
It is on record that in 1983-84, garments export was worth $31.57 million which was 3.89%
of the total export of Bangladesh. Because of the coming forward of private sector banks, the
garments industry started growing rapidly. In 1986-87 garments export was worth $298.67
million, which was 27.74% of the then total export; and in the past financial year 2009-10
garments export was worth $12.35 billion (in Bangladeshi currency Taka 864.50 billion)
which is 79.33% of total export. In the financial year 2008-09 the GDP of Bangladesh was
Taka 6149.43 billion of which the contribution of the garments industry is about 10%.
According to a survey report of the Department of Textile the total investment in the textile
and garments industry is about Taka 406.00 billion (Rahman, 1 August 2010, P.13).
At present, in this labour intensive totally private sector of the Bangladesh economy, around
4 millions workers, which is about 65% of the total workers engaged in the manufacturing
sector of the country, are directly engaged in about 5 thousand garments industrial units. The
number of workers engaged directly and indirectly in this sector and other related industries
will exceed 20 million. Of the garments workers about 80% are girls. There are about 3
thousand owners of the 5 thousand garment industrial units (Rahman, 11 July 2010, P.13, 23
and 1 August 2010, P.13). From this point of view this is the most successful business sector
of the present day Bangladesh (excluding the manpower export sector of the economy). This
may be compared with the once prosperous jute industry of Bangladesh (erstwhile East
Pakistan of the sixties of the past century).
As regards the rights of women to work together with men outside home (here the garments
industry) there is no bar in Islam in doing that so long as they maintain appropriate Parda
conformable to Islam. About the overall rights of the women Allh says, They (women)
have rights similar to those (of men) over them.2/228 As regards Parda Allh says, Tell the
believing men to lower their gaze and be modest. That is purer for them. And tell the
believing women to lower their gaze and be modest, and to display of their adornment only
that which is apparent, and to draw their veils over their bosoms, and not to reveal their
adornment save to their own husbands or fathers or husbands fathers, or their sons or their
husbands sons, or their brothers or brothers sons or sisters sons, or their women, or their
slaves, or male attendants who lack vigour, or children who know naught of womens
nakedness. And let them not stamp their feet so as to reveal what they hide of their
adornment.24/30-31 Verily! Allh loseth not the wages of the good.9/120

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The income that a woman earns is her own and the husband has no ownership on that. Thus
the economic rights of women have been well established in Islam. In respect of dignity and
right of men and women Islam has established equity and justice (Dainandin Zibane Islam,
2000, P. 438).
2.6. Wage Structure 2010
The Wage Board Chairman handed over to the government a draft proposal of Wage
Structure for the Garments Sector of Bangladesh which was declared on 29 July 2010 (Table
1). The draft proposal says that, before assessing the minimum wage for this industry, the
cost and standard of living of the workers, the productivity of the workers, the price of the
produce, inflation, and business capability etcetera have been taken into consideration. The
Wage Board presented the draft proposal of Wage Structure as per the order No. 139 of the
Bangladesh Labour Law 2006. The last wage structure in the Garments Sector was declared
in 2006. Although according to the labour law a new wage structure is to be fixed 5 years
after the previous fixation of wage in an industry, the government has declared the new wage
structure right now, the new minimum wage structure will come into effect from 01
November 2010.
Table I. The Proposed Wage Structure 2010 for the Garments
Workers of Bangladesh

Class Wage Year 2006 Wage Year 2010 Rate of


In Taka In Taka Increase
%
Grade 1 5,140 9,300 80.93
Grade 2 3,840 7,200 87.50
Grade 3 2,449 4,120 68.23
Grade 4 2,250 3,763 67.24
Grade 5 2,046 3,455 68.87
Grade 6 1,851 3,210 73.42
Grade 7 1,662 3,000 80.45
Apprentice 1,200 2,500 108.33
*The apprenticeship period is 3 months, but if the apprentice cannot attain satisfactory efficiency by that time, the factory owners will be
able to extend the period by another 3 months. (For details of workers by designations, see Appendix I).
Source: Rahman, 1 August 2010. P. 13.

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The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) said that they
were not sure if all industrial units of the sector would be able to pay as per the new wage
structure from 01 November 2010, but that they would be inspired to pay the workers at the
new rate of payment. The Bangladesh Knitwear Manufacturers and Exporters Association
(BKMEA) said that the production of factories had fallen by 40% for various reasons and
called upon the government to solve the problems of gas and electricity before the
implementation of this pay structure (Rahman, 1 August 2010. P. 13).
Appealing to the garments owners to be more cordial to the problems of the workers, the
government has also assured that the garments workers will be provided with subsidized
rationing facilities for rice and wheat on behalf of the government (Ittefaq, 1 August 2010,
P.11).
2.7 Workers Reaction to the New Wage Structure 2010
Immediate reaction of the workers to the new wage structure was widespread violence. They
came down in tens of thousands on the streets from garments factories almost all over the
country. They set fire on garments factories, broke instruments of factories and cars of
factory owners, including those of innocent people, and shopping malls on the streets. Thus
they created a panic and havoc all around the country in and around the garments factories,
which turned difficult and almost impossible for the law enforcing agencies to control. This
widespread havoc, which was widely and exclusively covered by the national and
international print and electronic media continued for three to four consecutive days in the
country causing, according to the BGMEA, Taka 8.75 billion losses to the garments industry
alone.
The causes of violence was that the Wage Board did not pay heed to garments workers long
continued demand of Taka 5 thousand as minimum wage, but instead set Taka 3 thousand as
minimum wage. The agitating leaders of the workers organizations rejected the three party
joint decisions of the Government, BGMEA and Workers representatives saying that they
declared to accept the wage structure without any discussion with the actual leaders of the
workers. They say that the wage structure has been imposed upon the workers only through
sittings with the government assisted leaders of the workers organizations. Their appeal was
by discussing the issue with the actual leaders of the workers, and implement it from 28 April
2010 (Ittefaq, 3 August 2010, P.2).
Some experts claim that since there are no trade union facilities in the garments industries the
spontaneous resentment of the workers went beyond control. They suggest that just as the

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owners have the right of association and to elect their own representatives, the workers also
should have their right of association and trade union facilities, so that they can elect their
own representatives to bargain with the owners. If this had been done earlier, the incidents
that occurred after the declaration of the wage structure 2010, could be avoided (Selim, 12
August 2010, P.9).
According to those that argue against the declared wage structure for Bangladeshi garments
workers, the minimum wage of an unskilled worker necessary to pay for food, clothing,
shelter, health care, etcetera at the present level of commodity prices should actually be more
than Taka 5,000. Since the garments workers are semi-skilled, their reasonable wage should
be Taka 6/7 thousand, which is above the wage that the considerate garments workers
demanded. Moreover, these workers get much lower wage than their counterparts in other
countries like China, India, Vietnam, Pakistan etcetera whose apparels mainly compete with
those of Bangladesh in the world market (Table II).
Table II. Comparative minimum wages of garments workers in some competing countries
Country Wage per Month Wage per Hour
$ $
Turkey N.A 2.44
Mexico N.A 2.17
China 300 1.44
India 106 0.51
Vietnam 92 0.44
Pakistan 116 0.56
Sri Lanka 92 0.44
Bangladesh 25 0.22
Source: Selim, 22 July 2010, P. 9. Turkey and Mexico figures are from Uddin, 21 July 2010, P.11. The principal source of data produced by
these authors is a World Bank (WB) study.

From the comparative picture of minimum wages depicted in Table II, it can be argued that
even if the Bangladeshi apparels workers demand for Taka 5 thousand as minimum wage is
accepted, they will receive less than $ 72 per month or $ 0.34 per hour, which still remains
the lowest among the comparator countries. So the argument which the garments owners
always make that, if the wages of the workers are increased this industry will lose its external
competitiveness is not tenable. One may raise the question of productivity of the Bangladeshi
garments workers, but even under that consideration the Bangladeshi garments workers are
deprived. According to a WB account a Bangladeshi worker by producing 2536 numbers of

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T-shirts per year gets $290, whereas an Indian worker gets $668 by producing only 56 more
T-shirts per year. According to a Centre for Policy Dialogue (CPD) account, export earnings
of the garments industries in 2001-02 was $4.58 billion of which a little more than $0.22
billion was paid to the workers, which is only 5% of the total earnings, although by the sweat
of the workers value added was 31% of the total value (Selim, 22 July 2010, P. 9).
Garments industry has turned into a main pillar of the Bangladesh economy, accounting for
three-fourth of the countrys total export earnings. The garments owners have been able to
spread an idea that this is their main or paramount credit. But the actual truth is that there is
no backward linkage in the Bangladesh garments sector to speak about; as a result the lion-
share of the value added here is the contribution of the labour power, if not the whole. The
main foundation and source of the rapid expansion of the Bangladesh garments industry is the
cheap labour power. In Bangladesh the intensity of capital per worker is very low (1/3 in
comparison to China). The owners of the garments industry could own so large amounts of
wealth mainly in exchange of the self-sacrifice of the workers who do bone-breaking work
day and night at unusually low wages. So if any one is to be recognized as Commercially
Important Person (CIP) and given some special advantages, it is the 3 to 4 million garments
workers of Bangladesh who are the real Hero, not the tax-avoiding millionaire owners
(Selim, 12 August 2010, P.9). The argument that the garments workers should get their just
wage is thus incontrovertible.
It is ironic that when garments workers are being deprived of their rightful wages, the pomp
and granger and standard of living of the garments owners are gradually increasing. Many of
them purchasing first class air tickets and booking five star hotels abroad go on luxurious
world tour with their family members once or twice every year. They hesitate little while
spending money in such a lavish manner, but if the question of giving the workers just wages
and minimum of facilities arise they always wail if this is done the industry will be ruined.
Business is very bad these days (Selim, 22 July 2010, P. 9). Such practice of the garments
owners does not even conform to the principles of wage determination in Islam as shown
above in Section II, 03. It is simply the capitalistic exploitative indifference (parallel to
coercive methods that is followed in socialism) which they show to the just interests of the
workers who turn into sweat their blood every day in garments factories. This is simply
unjust. Allah does not accept it. Al Qurn reveals, Allah hath favoured some of you above
others in provision. Now those who are more favoured will by no means hand over their
provision to those (slaves) whom their right hands possess, so they may be equal with them in
respect thereof. Is it then the grace of Allah that they deny?16/71

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It is not only in Bangladesh, the garments workers are discontented all over the world. The
difference is that workers elsewhere do not adopt the policy of breaking and setting fire to
factories as the Bangladeshi workers do. To put forth their grievances, they may choose the
way of agitation but they do not violate the law. China also faces the events of discontents.
The workers there come to the cities to do bone-breaking work, leaving behind the painful
village life, but for that they demand reasonable remunerations. They are unwilling to work
shutting down eyes-ear-mouth like their predecessors. Before or after work, the discontented
garments workers demand increase in wage by standing on the roads such incidents are
occurring much in China (Royel, 16 August 2010, P. 20).
The way in which the garments workers of Bangladesh reacted to the new wage structure is
also un-Islamic. Al Qurn reveals, But seek the abode of the Hereafter in which Allh hath
given thee and neglect not thy portion of the world, and be thou kind even as Allh hath been
kind to thee, and seek not destructive affairs in the earth; verily! Allh loveth not those who
seek destructive affairs. 28/77 It is Islamic, as said above (in Section II, 03), that the wage will
be determined on the basis of free will and voluntary mutual understanding of the employer
and the employee.

2.8 Owners reaction to the new Wage Structure 2010


(i) Problems faced by the owners
The crisis of the apparels industry are not limited merely to the wages and allowances of the
workers. The production of the factories has come down to a half, export has decreased, and
the price of the apparels is decreasing in the international market. The owners of the apparels
industry say that the supply of gas and electricity is not continuous, because of which they are
compelled to use generators to keep the production process of the factories continuous. This
results in increasing cost of production. But it is urgent to reduce the cost of production to
keep the price competitive in the international market. The related entrepreneurs say that if
the government fails to supply sufficient gas and electricity then industrialization in this
country will be hampered.
Moreover, serious and untoward incidents are being occurred on the basis of rumours and
petty demands; it has become a ploy to destroy factories by spreading news of misbehaviour
of the factory owners with the workers, which is tarnishing the image of Bangladesh as an
exporting country in the outside world (Dilal, 11 July 2010, P.13).

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But it cannot also be denied that sometimes there occur abnormal deaths of workers in the
garments factories (Ittefaq. 24 July 2010, P.1 and Ittefaq, 27 July 2010, P. 1). It is also
alleged that the kidney disease is widespread among the garments workers as they are
discouraged to drink water during their duty period, because if they drink water during their
duty time they may have to repeatedly go to the urinal (Selim, 22 July 2010, P. 9). This is
inhuman, whereas Al Qurn reveals that, I would not make it hard for thee, Allh willing,
thou will find me of the righteous.28/27
(ii) Falling trend of the prices of apparels in the international market
Export Promotion Bureau and BGMEA sources say that apparels prices in the international
market are gradually falling recently. Table III shows the price per dozen at which the foreign
buyers purchased apparels from Bangladesh in the last 16 years from 1994-95 to 2009-2010
(July to November) (Hasan, 26 July 2010, P. 2).
Table III. Apparels price per dozen at which the foreign buyers
purchased during 1994 95 to 2009 2010 (July to November)
Year Price per Dozen in $
1994-95 35.65
1995-96 35.38
1996-97 37.06
1997-98 38.52
1998-99 39.63
1999-00 38.87
2000-01 39.19
2001-02 32.64
2002-03 32.31
2003-04 31.23
2004-05 30.22
2005-06 28.85
2006-07 27.69
2007-08 27.50
2008-09 26.82
2009-10 (July-November) 26.62
th
Source: Hasan, The Daily Ittefaq, 58 Year, No.211, 26 July 2010, P. 2.

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Table III shows that apparels prices increased gradually from 1994-95 to 2000-01 with a
slight fall in the year 1995-96 compared to the immediate past year, after which the prices
jumped; then from 2001-02 prices fell continuously till 2009-10. For this reason, the apparels
owners were unwilling to accept Taka 5,000 as minimum wage for the garments workers,
because this will, in their view, adversely affect the garments sector (Hasan, 26 July 2010, P.
2). The owners proposed Taka 2,513 as minimum wage for the second time, whereas the
visiting General Secretary of the International Textile, Garments and Leather workers
Federation said, after meeting separately with both the owners and the workers at Dhaka that,
it will cause no harm to the industry if Taka 5,000 is given to the workers as minimum wage
(Jugantar, 23 July 2010, P. 2). Afterwards, as a result of the intervention made by the
government, the BGMEA accepted the new wage structure with Taka 3,000 as minimum
wage for the garments workers of Bangladesh. If it is just, there is no question; but if unjust,
in that case Allh says, Woe unto the defrauders, those who when they take the measure
from mankind demand it full, but if they measure unto them or weigh for them, they cause
them loss.83/1-3
Garments workers sweat their blood in the process of production of garments in the factories
and it is alleged that for months after months the owners do not come to the factories; the
factories are usually run by the salaried officials who habitually misbehave with the hard
working labourers of the factories (Khayer, 29 July 2010, P. 2) It is Haram (not permissible)
to consume the fruits of the workers by sitting idle without their consent (Alam, 2003, P.200-
201); this negates the usual capitalist concept that its highest executives spend their time
sitting on public committees, and have to have deputies to do their work (Lewis (1954),
1963, P.412) as this is improper.
(iii) Alleged attempts to destroy the Garments Sector: Six causes:
The garments owners claim that a certain quarter has started hatching conspiracy to destroy
the garments sector of the country. The external miscreants by intruding the garments
establishments in the guise of workers have started misdeeds. They are being instigated and
used by certain interested quarters from outside.
The concerned parties have identified six causes behind the attempts to destroy the garments
sector. These are: (a) the foreign buyers recent inclination to Bangladesh, (b) The instigation
of some external powers, (c) the assistance of local influential quarters and the so called
labour leaders, (d) the intrusion of the jutting outs miscreants in to the garments factories, (e)
the differences of opinions of the political miscreants centering the occupation of the Jhut
sector, and (f) the internal feud among the labour leaders. The actual workers have no

16
affiliation with these factors. The garments establishments are getting jobs these days (Badal,
2 August 2010, P. 2)
May be there is a conspiracy to harm the garments sector of Bangladesh but when the
disturbances in this sector erupts, tens of thousands of workers come down on the streets
which is pictured in the national and international electronic media. It is illogical to conclude
that all of them are miscreants; there may be some who fan the fire of discontents in the
minds of the deprived workers. If the workers are satisfied with and had there been no serious
discontents in the minds of the workers about what is going on in this sector, it is obvious that
it would have been almost impossible to drag down on the streets tens of thousands of
innocent workers by a single or a series of mobile calls of the miscreants from outside as is
alleged by some experts (Dey, 1 August 2010, P.11) and at the same time the disguised
miscreants inside the factories could do little harm to this sector. Our habit is to expect too
much from law and law enforcing agencies, we forget that they have some natural limits to
their capacities; they can at best suppress the problems for the time being but not permanently
cure the actual problems prevailing in the factories. It is the owners of the factories who can
play the pivotal role in bringing about peace in the factories by allowing the workers their due
share to their produce in the factories in the form of satisfactory wages and allowances by
cutting down the excess profits they earn. It is not permissible in Islam to earn excessive
profits by coercing the working class or the purchasers of commodities. Islam prefers to
advise the business community to ascertain a middle course in between the highest and the
lowest margin of profits for success in both the worlds, here and the Hereafter.
The garments owners will have to understand that the minimum wage of a garments worker
is Taka 1,662 (now Taka 3,000). Actually the new basic wage rate is Taka 2,000, while the
minimum basic pay for a government employee is Taka 6,545. Of the remaining Taka 1,000,
Taka 800 is house rent allowance and Taka 200 is medical allowance, which like other
allowances are not usually included in the basic wage/pay in any other services as has been
done in the case of wage of the garments workers; It is difficult for the workers to sustain
their life under the prevailing high prices of daily necessities with this meagre amount of
money. As a result, suppressed despair and discontent is naturally there in the minds of the
workers (Hydar, 15 May 2010, P. 2), which burst out from time to time, as we see, in the
factories causing unrest and disturbances in this sector. To control this is beyond the capacity
of the law enforcing agencies, and the government, too, cannot and should not always
shoulder such selfish interests and responsibilities of the private factory owners at public
costs even though the factory owners pay taxes. They are to solve their own problems by

17
bringing contentment in the mind of the workers by allowing them satisfactory wages.
Government can at best assist them in this regard. Al Qurn reveals, Help ye one another
unto righteousness and pious duty. Help not one another unto sin and transgression, but keep
your duty to Allah.5/2

(iv) International conspiracy


BGMEA sources are often heard to official say that some interested quarters are hatching
conspiracies to divert the attention of the buyers from the Bangladeshi apparels industry.
Rival competing countries allegedly create unrest in the industry and instigate the garments
workers to engage in destructive activities such as breaking and setting fire to garments
factories. It has been seen that factories where wages and allowances are satisfactory, in other
words the compliance factories, are being mainly chosen for attack and creating disturbances.
Garments owners and exporters maintain that, in the name of just wages for the workers,
some Non-Governmental Organizations (NGOs) are instigating the workers to create trouble
in the factories. They spread discontent among workers under various pretexts and send the
news of such unrest to different international media. Such news worries the foreign buyers
about the uncertainty of supplies from Bangladesh and makes them choose safe sources of
supply elsewhere. Because of the global economic depression, the demand for apparels and
the price thereof has fallen significantly in the international market. Owners and exporters of
apparels are now in a panic, because of the fear that if in the present adverse global economic
situation worker unrest remains widespread, the garments sector will not survive.
BGMEA leaders claim that wage payments of the workers in factories have not been stopped
even in this period of international recession. They say, it is not the actual workers of the
factories but the occupiers of Jhut trading, together with other problems, which create
unrest in the garments industries at present. Leaders of the Combined Garment Workers
Federation (CGWF) maintain that the problems can be solved through mutual understanding
and not by shutting down the factories (Dilal, 11 July 2010, P.13). CGWF leaders admit that
there are some pending problems of the actual workers in some garments factories. These
problems need to be solved by the factory owners either individually at the factory level or
collectively at the sector level, so that the national and international self seekers cannot utilize
the innocent workers to serve their own heinous purpose.
Some of the privileged labour leaders of the garments industries frequently or occasionally
visit various foreign countries under the patronage of some interested national and

18
international quarters. They have amassed huge amount of money and property. They are also
accused of blackmailing both the factory owners and the workers of this sector and causing
disturbances that erupt from time to time in this successful sector of the Bangladesh economy
(Sipu, 5 August 2010, P.1). The concerned parties should remember what Allh says, Keep
the covenant. Verily! Of the covenant it will be asked.
2.9 Profit motive of the Garments Owners and the Imperialistic Capitalists
buyers
For the creation of additional employment for the surplus labour, capital investment in
different fields of economic activities is a must, and, in capitalism, if our interest is in an
expanding capitalist sector, the assumption of profit maximization is probably a fair
approximation to the truth (Lewis (1954), 1963, P.407). In capitalism, workers are involved
in the process of production, but they are not considered as sharers of the profit. It is
permissible to earn a reasonable margin of profit in Islam by producing and trading Halal
(permissible) goods and the profit is not appropriated by the producers or traders alone but
injunctions have been given that give the workers a share from the earnings (profits) of their
labour; because the workers of Allh cannot be deprived (Hadith: Quoted in Dainandin
Zibane Islam, 2000, P.500). But we see an entirely different picture in the Bangladesh
garments sector at large.
01. The owners of the garments factories spread an idea that if the wage of the workers is
increased the factories will incur loss and the result will be the closure of the factories id est.
an increase in wages will be ruinous to this golden egg laying sector. But this is not at all
true. An International Labour Organization (ILO) survey reveals that, the minimum wage of
workers of Bangladesh in the garments sector is the lowest compared to other competing
countries in the world. Let us have a look at Table IV.
Table IV. Comparative picture of Minimum Wages and Profit margin
in the Garments Sector of different competing Countries
Countries Minimum wage in $ Profit margin
per Month %
India 113 11.8
Pakistan 118 N.A
Vietnam 120 6.5
China 204 3.2
Bangladesh 39 43.1

19
Source: Selim, 13 August 2010, P. 19. Bangladeshi minimum wage is corrected in the table. Selim quotes $69, equivalent to Taka 4,830,
which is above the new minimum wage that is yet to come in to effect.

The WB estimates of minimum wages given in Table II are at variance with the ILO
estimates presented in Table IV. ILO estimates seem to be slightly inflated for countries like
India, Pakistan, widely inflated for countries like Vietnam and Bangladesh, and deflated by a
wide margin for China, in comparison to WB estimates.
However, even if the wage rate is increased by reducing the rate of profit of the Bangladeshi
apparels owners by as much as 50 percent, the profit margin of the Bangladeshi owners will
remain higher than that of other competing countries. A Bangladesh Institute of Development
Studies (BIDS) study shows that in Taka 100 worth of Bangladeshi apparels the amount of
value added by labour is Taka 31. Of this Taka 31, the worker receives only Taka 7 and the
owner takes away Taka 24. Even if the worker is given Taka 15, then also the owner will be
able to earn a profit of Taka 16; and if the former account is taken into consideration, even
then the profit margin will remain 22% which is still more than that of India, China, and
Vietnam. It is common knowledge that if the wage rate is increased, the efficiency of the
workers and the productivity of the industry will also increase. Allh says, For the best
(worker) that thou canst hire is strong, the trustworthy.28/26 The necessary precondition for
this is to pay the worker sufficient wage so that the worker can keep himself/herself mentally
and physically healthy for satiety and higher productivity.
The revised wage structure was declared on 29 July 2010. All concerned naturally assumed
that it would come into effect from August 2010. But it was later decided that the new wage
structure would come into effect from November 2010. This means that the workers would
receive enhanced wage from December 2010, by which time two Eid festivals would be over.
Therefore, the purpose of the section of garments owners is very clear. They are desperate to
take surreptitiously immense profit over night by keeping the cheap wage situation (Selim, 13
August 2010, P. 19).
02. In Bangladesh the garments industry is not at all an isolated issue. International
monopoly capital and imperialistic capital is directly connected with it. Along with cloths-
threads-buttons etcetera, machineries and equipments id est. everything as a whole is
required to be purchased from them. On the other hand, the process of marketing of almost
the entire amount of produce is controlled by them. The pre and post process of production is
entirely dependent on the multinational companies and imperialist capital and is the prey of
their reckless exploitation and deprivation. The renowned foreign companies, including Wal-
Mart, sell a shirt at $10 in the shops of New York by purchasing that at $3 from Bangladesh.

20
Their profit will be more if they can purchase at a lower price. Because of that greed they
control the international market of garments industry in such a manner that the selling
countries are compelled to engage among themselves in cut-throat competition to sell their
apparels at the cheapest possible price. The apparels producing countries, including
Bangladesh, without trying collectively to encounter the exploitations and deprivations by the
imperialistic economic powers, which control the equipment of the garments industry and the
apparels market, try desperately and sell apparels at low prices to please them. To survive the
cut-throat competition to sell the apparels to the foreign buyers along with their purpose to
take surreptitiously immense profit the garments industry owners have to try to lower the cost
of production as low as possible. The price of raw materials and equipments of the industry is
beyond their control; so they usually have almost nothing to do in that regard. Moreover, the
Bangladeshi garments owners always try to remain in the good book of whichever
government comes to power for availing of the benefits such as tax exemptions, loan
facilities, bailing out funds etcetera because of which they are not serious about pressurizing
the governments for satisfactory supply of gas and electricity. Therefore, in order to make out
a place in the world market, and earn a big amount of profit, the garments owners choose the
only way, and that is to give the workers a wage rate as low as possible (Selim, 12 August
2010, P.9). Time has come for the Bangladeshi garments owners to remember that, It is
illegal to sustain loss (yourself) and cause loss to (other) (Hadith).
03. In a capitalistic system there always exists a natural conflict between the capitalists and
the workers on the question of wages. The lesser the wage, the more is the possibility of
increasing the rate of profits by the owners. The owner wants to use the labour power of the
worker at the least possible wage. On the other hand the worker wants to increase his wage as
far as possible. He wants to get the wage that will enable him lead a minimum possible living
standard. It is the question of his existence as a human being. From the owners side, the urge
to keep down the wage of the worker is an inherent characteristic of capitalism; in the
garments industry this is relatively higher. In this tug-war of wage fixation between the
owners and the workers, the owners always win. This is what has happened recently in the
garments sector of Bangladesh also.
In Bangladesh, if because of illness the workers fail to go to work any day, no owner of the
factory pays them wage. Moreover, if they demand their just due, it is alleged that the owners
torture them with the help of hired miscreants (Khan, 24 July 2010, P. 2). Their daily meal is
a piece of simple bread in the morning, rice mixed with salt and pungent at noon and rice
with vegetable soup at night; as a result many a worker becomes prey of untimely death

21
(Hasan, 26 July 2010, P. 1). This is contrary to the directives given to the employers in the
Hadith as mentioned above, They (the employees) are your brothers. Allh has entrusted
you with their responsibilities. So those on whom such responsibilities have been entrusted
are liable to give them such food as they eat, make arrangement for them to wear such cloths
as they wear, and shall never compel them to do such works which are painful and beyond
their capacity to do, and if they are to do such works the employees will have to be given
necessary assistance to do that piece of work (Hadith: Bukhari Sharif Kitabul Imaan).
04. A few months back, after visiting an apparels industry in Ashulia, the Chairman of an
apex US apparels buying organization Jaycee Penny expressed deep concern at the recent
unstable conditions at the garments factories of Bangladesh and said, it is impossible for the
workers to sustain life at the present wage rate, but it is not possible to increase apparels
prices in the US since recession is still continuing there (Khan, 24 July 2010, P.1). This is
just like shedding crocodile tears as the miser westerners usually do by seeing the wretched
conditions of the people of the developing countries which are their own creation around the
world by exploiting them for decades after decades in the name of development id est.,
creating a world after its own image, after centuries of colonial lootings, oppression and
suppression by the sneering British with the help of their local henchmen. The Bangladeshi
rising capitalists are following the legacy of the colonial past in the guise of creating
employment opportunities for the unemployed males and females of their own origin in the
apparels industry, like in all other industries of the country. They follow the western
capitalists in the modern sectors (as well as agriculture). Allh says, Follow not the footstep
of the devil. Verily! he is an open enemy for you.2/168
05. A section of the garments owners are loading their pockets with tens of millions of Taka
while being reluctant to pay the workers their monthly wage above Taka 2,500. Many
garments owners are making millions of Taka by black marketing the cloths coming through
shipment, but they are hesitant to pay even Taka 2,500 per month to the workers. They are
not even regular in their monthly payments to the workers whatever low wage they commit
them to pay. For not being paid for 2/3 months, incidents of workers discontents and
conflicts spread afterwards in those garments factories. On the other hand, the owners of
these factories have taken tens of millions of Taka bank loans in the name of these garments
factories, and are being forgiven for not paying off such debts.
BGMEA has built a luxurious building the purpose of which was to create experienced
manpower in the garments sector and to provide the workers with health care facilities. But
training facilities are there only in name, while BGMEA is receiving tens of millions of Taka

22
as commissions from shipment per year (Khayer, 29 July 2010, P. 2). The BGMEA building,
the concrete peak of vulgar pomp and wealth, is covering the sky of the capital city when
garments workers are passing their days in everywhere in Bangladesh intolerable poverty.
Allh says, O ye who believe! Squander not your wealth among yourselves in vanity, except
it is a trade by mutual consent, and kill not one another.4/29

23
Chapter Three
Data Analysis

3.1. Survey Findings


As regards wages of the garments workers, one may 334 workers from 20 factories supplying
FWF affiliates were interviewed from October to December 2011. Figures 1 and 2 show the
gender and job description breakdowns of the survey group.

3.2. Pay structure manipulation


One of the major problem areas identified by workers in the survey relates to the way
bonuses and other pay augmentations were translated into the new wage grading system
created by the 2010 law. Problems of this sort were reported by a majority of the survey
participants. Under the old minimum wage law, workers received a basic salary + bonuses.
Because overtime payments are calculated based on the basic salary, many factories prefer to
add bonuses rather than increase basic salary levelsas this result in lower payments for
overtime work. Many workers reported that under the new law, basic salaries have increased,
however the bonuses have been taken away, rather than applied to the new basic salaries.
Real income has increased, but not as much as workers expected or believed was fair, based

24
on previous bonuses. Such practices do not appear to be illegal, however they are widely
considered to be unethical.
Figure 3 illustrates a situation reported by a typical worker. Under the old wage structure, a
sewing machine operators legal monthly minimum wage was set at 2 400 BDT per month.
By October 2010 she was receiving 3 000 BDT per month because of yearly increments and
other bonuses. In 2010 the new minimum wage for the same person was set at 3 500 BDT,
and she no longer received the additional 600 BDT in bonuses and other payments. This
workers wage increase should have been 1 100 BDT; but in practice it was 500 BDT.

3.2 Implementation of the new minimum wage


The new minimum wage has been implemented in all the factories covered by the survey,
according to the interviews. It is worth noting, however, that a few workers from one factory
claimed that they receive 75 BDT less than the minimum; workers of another factory claimed
that they receive 57 BDT less. Other workers from two factories reported that helpers and

25
ironmen did not receive increased wages according to the new minimum wages set for their
grades.

3.3 Pay Grade Manipulation


24% of workers interviewed said they had been reassigned to a lower pay grade following the
2010 wage increases. While these workers received net pay increases, reassigning them to
lower pay grades meant that they did not receive the full increase to which they were entitled.
Additional problems were reported by workers who have been held at the same pay grade for
many years, and had not received reasonable promotions which would be expected based on
their skills and experience.

3.4 Wage, benefits and leaves


Before the 2010 law, the monthly average pay of surveyed workers was 3 371 BDT. Under
the new minimum wage scheme, the average increased to 4 027 BDT.
80% of the workers stated that pay slips are given to them. Most of the workers said that they
were paid within the first and second week of the month;
only 4% said that they were paid in the last week of the month. Most of the workers stated
they had 4 days leave in October, 4 days leave in November and 5 days leave in December.
82% of the workers said that they are entitled to 4 months maternity leave with pay, 18% say
that either they get only 2 months pay or receive no benefit at all.

3.5 Bonuses and Allowances


Figure 4 provides an overview of the reported bonus and allowances received by surveyed
workers.
In addition, only 50% of workers reported that a provident fund was made available to them.
The fund, which is established by the factory owner, is a type of long-term savings plan
where roughly 50% of the fund is contributed by workers an and 50% is contributed by the
employer. For example, upon leaving the company, workers receive a payout from the fund.
Provident funds are generally regarded as an effective type of financial savings security
scheme for workers.
Governmental, semi-governmental and other autonomous offices are mandated to offer
provident funds, and they are implemented in many private companies. Failure to provide
such a fund effectively deprives workers of another income component.

26
3.6 Overtime
Reported days with overtime per month ranged from zero to 30. Reported overtime hours
worked in October ranged from zero-192 hours, in November from zero-180 and in
December from zero-188.
The reported overtime payment in October ranged from 555 011 BDT, in November from
zero4 986 BDT and in December from zero5 137 BDT. The overtime hours are paid with
the regular salary, sometimes on different days or varied amounts in a number of days.
44% of the workers do not know how their overtime is calculated.
Some think it is double the rate of the basic pay. The overtime rate ranges from 1338 BDT
per hour.
Many workers keep their own overtime records; 23% of those keeping their own records
report that employer calculations did not match their own.
Generally, workers report that there is no functional process to reconcile complaints about
underreporting of overtime hours worked.
18% of workers reported that they were not fully paid for recorded hours.
Most of the interviewed workers reported that the overtime work was required by employers.
Workers who refused overtime reported scolding or other verbal abuse.

27
Chapter Four
COMPLIANCE PRACTICES AND CHALLENGES IN READY MADE
GARMENTS INDUSTRY OF BANGLADESH

4.1 Abstract :
The aim of this research paper is to find out the compliance factors practiced by readymade
garments industry as wel as chal enges to implement it. Researchers has found that
compliance issues are not same in al section of garments such as knitting section, dyeing
section, fabric finishing section, cutting section, sewing section, finishing section have
different compliance elements in their different wing. Though the compliance issues are
clearly defined, the employees and owners are not in real situation to implement this.
Chal enges, include less educated managers, high cost to implement, bureaucratic problems,
employer-employee relationships, ignorance of employee welfare, are raising unrest in
garments sector day by day. Garments owners should give emphasis on this issue to
keep and grow the quality and quantity in this sector.

4.2. Introduction
Since its commencement in 1987, the Ready Made Garments (RMG) industry of
Bangladesh is trying to fulfill the requirements the buyers. In recent years, compliance
issues are the major components of the buyer requirements that must be ensured by
the Bangladeshi garments manufacturers. According to business dictionary dot com,
Compliance is the Certification or confirmation that the doer of an action (such as the writer
of an audit report), or the manufacturer or supplier of a product, meets the
requirements of accepted practices, legislation, prescribed rules and regulations,
specified standards, or the terms of a contract. Another definition is given by Baral
(2010) Compliance means to comply with something or yield to the wishes of
another. Compliance ensures all
labor rights and facilities according to the buyer code of conduct. The aim of compliance is to
maintain strictly the labor law.

But in many cases, the manufacturers are reluctant to ensure the implementation
compliance in their workplaces. The result is that most of situation the labor forces are
the sufferer; more than hundred labors lost their

28
lives at Tazrin fashion by firing, and building collapse at Rana Plaza is the historic
scandal of Bangladesh where more that one thousand labors died as well as thousands lost
their normal life loosing their hand, legs or parts of their body.
Not only the safety issues of the labor force but also the environmental protections
(green environment) are the zenith demand of the buyers. To ensure these compliance
issues, sometimes buyers are creating pressure on the manufacturers, even GSP facility at
US market, the largest portion of exporting, has been suspended due to the absence of
sufficient compliance issues at Ready Made Garments industry of Bangladesh.
4.4.Objectives of the study

Objectives of this paper are as follows:


a) To know the compliance practices by the garments industry of Bangladesh;
b) To explore the chal enges on implementing compliance in garments industry;
c) Finally, to recommend some suggestions.

4.5 Methodology of the study


Though the paper is fully secondary data based and descriptive in nature, researchers
visited some compliance and non-compliance garments and talked to compliance
managers. To fulfill the objectives of the paper, secondary data has been collected
from scholarly article, periodicals of financial research institutions, daily newspaper,
weekly and monthly reviews, websites, and books. Moreover, in-depth research article
published in home and abroad used to design this paper. Compliance Practiced by Garments
Industry

Following Figure is the code of conducts Regarding Compliance Issues.

29
4.5 Sector wise compliance issues are mentioned below.
a) Knitting Section
i. Plant layout: According to the requirements of the factory plan. Plant layout must be
prepared by plan consultant. Normally producers build the floor first then prepare plan layout
but it is required to estimate the floor size first and then prepare plan layout.
ii. Evacuation plan: It must be prepared by consultant side by side plan layout.
iii. Needle maintenance: Requirements of needle in production floor and collect broken
needle parts like needle butt, less, hook, etc.
iv. Quality control for gray fabrics: In gray fabrics there are some faults like hole, needle
mark, oil spot, thick and thin etc. which required to check for quality control.
v. Safety measures (goggles, hear aid, metallic shoes): Goggles are used to protect eyes from
fiber dust etc. Metallic shoes are used for safety from heavy spares of machine.
vi. Apron for operators: Aprons are needed for operators to avoid accidents from running
parts of the machine.

b) Dyeing Section
i. Chemical proof Gloves, Apron: Chemical proof gloves are needed to protect hands from
chemical reaction. Aprons are also mandatory to protect from accident of spare parts of
machine.
ii. Drainage for effluent: Send all waste water from dyeing to effluent treatment plant (ETP)
for processing.
iii. Steam line must be insulated because if steam lines are not insulated heat transfer rate is
high of the line and sometimes people touch the line which causes injvuries.

c) Fabric Finishing Section


i. Stainless steel Fabrics handling trolley: With stainless steel trolley it causes rust in fabrics.
ii. Gas should be supplied in uninterrupted: Without uninterrupted gas supply the plant not
running smoothly.

d) Cutting Section
i. Metal gloves for cutting operators: Metal gloves must use for cutting master to avoid
injvuries.

30
ii. Same lot numbers fabrics use for fabric laying to avoid color shading.
e) Sewing Section
i. Line setup according to product i.e. product layout.
ii. Setup inline quality controller.
iii. Set red and green light for every machine.
f) Finishing Section
i. Set metal detectors

4.6 Challenging Issues


a) Most of the managers, working in top level to lower level, got great liability to
implement compliance issues, are not well educated in their respective field. Informal
recruitment, low literacy levels, wage discrimination, irregular payment and short contracts
of service are very common practices in the RMG factories in Bangladesh. It is true that the
country still enjvoys some comparative advantage in manufacturing garment products
based on low labor costs (Baral, 2010).

b) Cost involvement, raises the cost of production as well as reduces the profit level,
is the major issue to implement the compliance factors. Main attraction of the buyers to
buy garments products from Bangladesh, cheap labor cost, ensured sellers high profit,
is lower rate than other countries but garments owner are reluctant to ensure compliance
issues. Others regard their workers as little more than bonded labor, hired to provide
maximum labor at minimum cost (Mahmud & Kabeer, 2003).

c) Barrier from governmental organization, bribery from collecting export registration


to collecting payment, and or slower procedures to move files relevant compliance
issues, is another challenge for garments industry to implement compliance.

d) New and experienced employees, working in present systems, going on for longer period
of time in the factory premises, are reluctant to be adopted with new system.
Moreover, regular practice of compliance codes of conduct can bring higher price of
products, lower labor unrest, less worker turnover rate, highest worker morality, highest
productivity and product quality, smooth industrial relation as well as global image
and reputation (Rahman, 2010).

31
e) Workplace condition, inside the factory recommended by ILO, is not standard. But
(Kabeer, 2004) revealed that most of these protests revolved around issues of wages
and overtime rather than workplace conditions, because, as workers themselves said,
getting paid their
wages on time is the biggest problem of garment workers.

f) Lack of welfare such as medical facilities, day care centre, provident fund etc
is absent in many more garments factory. Berik (2008) found that one factory did not
have any workers organization, while the other two had a Workers Welfare Committee.
Yet either workers did not know of the Committees existence or did not trust it because
the worker representative was selected by management. In the Dhaka focus group, non-EPZ
factory employees reported that their factories had no union (or other worker organization)
presence.

g) Employer employee relationship, relevant to decision making, dominating creativity


and productivity of the employees, is not good. X

32
Chapter FIve
Recommendations and Conclusion

5.1 Recommendations:

Introduction

This is the last chapter of my research and I found lots of information about rights of
garments workers in Bangladesh. In the last of my research I write down how we can protect
the garments workers rights and what can our government do for protecting the rights of
garments workers in Bangladesh.

The Wage Board on garments in Bangladesh nearly doubled minimum wages on July 29,
2010. The minimum wage at the entry level will be raised to Tk 3,000 a month (or about $43)
from Tk 1,662.50 ($24) to be effective from November 2010. About 3.5 million Bangladeshis
work in the garment industry, which accounts for 80 percent of the countrys exports. RMG
exports nearly doubled in last five years-from $6.4 billion in FY05 to $12.5 billion in FY10.
There are two questions that we need to understand in this aspect. First, the extent of the
impact on the owners would depend on how much more companies like Wal-Mart and H &
M are willing to pay to offset the rise in cost of production. Second, even if the buyers refuse
to increase their price offers, the owners may have the capacity to take a hit on profits
depending on the impact of the proposed increase on the wage bill.
Turning to the first question, the key information in assessing how much more they should be
willing to pay is the percentage of the retail price of garment that is accounted for by labor
costs. Although estimates vary by product and location of production, different published
academic research, that labor costs typically constitute 1-3 percent for a garment produced in
the developing world. Hence, large increases in labor costs do not require correspondingly
large increases in retail price. For example, for a typical sportswear garment, doubling wages
would increase retail price by roughly 1-3 percent; tripling wages would result in price
increases of 2-6 percent. These estimates assume that all of the increased cost is passed along
to the consumer. If some of the costs are absorbed by exporters, retail price increases would,
of course, be commensurately smaller.
But if we put a insight look on this issue, it is not that easy for the garment makers over here
to negotiate the things with the buyer. Our garment industry normally works on FOB (Free on

33
Board) price. They calculate their cost in CM (Cost of Making). As FOB price being offered
to the manufacturers are quite lower than the retail price. As per a garment executives recent
write up published recently in a daily newspaper For an export of say US100 , raw materials
(fabric plus other accessories) comprises of US$ 75-80 Since Bangladesh backward
linkage is very poor, so these fund goes back to the foreign suppliers The local owners pie
is only 20% of export value.. Garment sector being a labour intensive industry (unlike some
other industry such as pharmacy etc), labour cost alone takes up 80% of this CM value.. (i.e
16% of export value) So now, when this fields (labor) cost is increased exponentially by
70-80%., at one go .. what does it leave for the owner? We also find it a reasonable analysis
what definitely is going to reduce the competitiveness of our factories. They only can
continue if the buyers consider the issue according to the retail price and cut their profit a bit
or put the consumers in a bit pressure for the betterment of the third world garment workers.
Turning now to the second question, the key information is the increase in average wage for
the industry as a whole taking into account the distribution of the garment work force by
grades. Here the grades 1-5 each account for 10 percent, grade 6 accounts for 15 percent,
grade 7 accounts for 30 percent and the remaining 5 percent are apprentices. This gives a
weighted average wage of about Tk 2409 per month before the increase and Tk 4290 per
month after the increase, representing 78.1 percent growth in average nominal wage and 33
percent growth in average real wage.
Note that the extent of the average real wage increase exceeds the 19.8 percent growth in real
GDP per capita since the last wage adjustment in 2006. Thus, the proposed increase puts the
average garment worker ahead of the typical Bangladeshi in terms of income growth. This is
even more so for grade 7 entrants where real minimum wage is proposed to increase by
nearly 46.5 percent.
Given the 3.5 million workers in the industry, the increase in average nominal wage from Tk
2409 per month to Tk 4290 per month would lead to a maximum increase in the annual wage
bill of the industry by about Tk 79 billion(equivalent to about $1.1 billion). This is the
maximum possible increase because the initial average wage of Tk 2409 per month is based
on the assumption that workers were paid the minimum wage in each grade, which generally
may not be true. This maximum possible increase constitutes 9.2 percent of total FY10
garment exports. Data on average profit margin in the garment industry as a whole is not
available. Guesstimates are that it is unlikely to be more than 8 to 10 percent of the value of
exports. In the absence of any price increase from the buyers, the contemplated wage increase
is therefore likely to hit profits significantly in Bangladeshs garment industry.

34
5.2 Finding of the Study
The major finding of the study I try to write about rights of garments working in Bangladesh.
That is varying important for me as a law student. I also learn about the life style, salary
system, trade uion, rights etc of the garments workers. I also learn about the definition of
garment worker, various rights of the garments workers and other important term which is
related with this topic. I also find this topic about varios trade unions, collective bargaining
agent (CBA) and various international organizations which are help to the garments workers.
Also discuss how the Labour Court and Labour Appellate Tribunal work. Finally I try to give
the overall discussion about the rights of garments workers in Bangladesh. In respect of
Bangladesh situation we know about the garments workers law in Bangladesh and application
such laws. Finally observation of all above matters we can take to solve, protection and
prevention of rights of garments workers in Bangladesh.

5.3 Conclusion
The acute dependence on the self-centered capitalist western public for apparels markets for
the countrys overall economic development is a major weakness of Bangladeshs economic
policy. The economically advanced countries of the west are eager to import our exportable
goods produced by cheap labour at the lowest possible prices but export to us their high cost
manufactured goods at increasingly higher prices, including their brand of political
democracy. Their commodities and democracy are gradually tarnishing the age old rich
socio-economic and religious-cultural values of our own. The west compels all nations, on
pain of extinction, to adopt the bourgeois mode of production; it compels them to introduce
what it calls civilization into their midst, i.e., to become bourgeois themselves; in one word, it
creates a world after its own image (Marks-Engels, Vol. 1, P. 38). Under this process there
will probably emerge a handful of vertex billionaires in Bangladesh someday but the dignity
and glory of the nation will not remain unimpaired. Let us remember what Al Qurn reveals,
Ye are the best community that hath been raised up for mankind. Ye enjoin right conduct
and forbid indecency; and ye believe in Allh; and if the People of the Scripture had believed
it had been better for them. Some of them are believers; but most of them are evil-livers.3/110
From the buyers side it is said that if a western retailer paid 2 pence more in UK currency
per piece of apparels, then the wage of the garments workers could be doubled provided the
garments owners paid the workers just wage. The diplomatic missions abroad may demand
that foreign buyers give us reasonable price for our apparels. Of course it is true that if we ask

35
for better prices for our apparels, the buyers may not automatically raise it, but if collective
efforts by developing exporting are launched, it may probably help apparels prices to rise by
some percentage points. The increased price may in course of time go to the pockets of the
workers; this is what actually is called trickle down effect in economics literature (Ittefaq,
An analyst, 8 August 2010, P. 23).
The garments factory owners of Bangladesh and their western imperialist capital owning
allies should remember the age old proverb that Hungry men are the angry men and no law
and law enforcing agencies can resist them from bursting out in the long run. Had it not been
so, the European colonies around the world could survive for eternity, and the garments
factories are trifle things.
The garments owners of Bangladesh should try to search out an alternative market for their
apparels outside the west. According to business leaders there is enough demand for
Bangladeshi apparels in Saudi Arabia. Strong effort will need to be made to tap this potential,
for example, by establishing Bangla Bazar or Bangla Town in Saudi Arabia similar to the
China Bazar or China Town around the world. Saudi Arabia can be a good market for
Bangladeshi apparels if the designs of the apparels are conformable to their demands together
with the western designs which are also demanded there as Arab women and children of
different Middle Eastern countries residing in Saudi Arabia have recently become
accustomed to wearing western types of garments (Sayeed, 22 August 2010, P. 23). Other
Middle Eastern countries can also be prospective markets of Bangladeshi apparels if efforts
are made to expand the apparels markets there. The sole dependence on the western apparels
markets, as it stands presently, could thereby be reduced. Al Qurn reveals that, He (Allh)
it is Who hath made the earth useful unto you, so walk in the paths thereof.67/15 In addition
to looking for new markets Bangladesh will have to export more-value-added apparels
instead of increasing the quantity of exports. To do this, emphasis will have to be given on
high-tech fashion rich production and export of apparels. Bangladesh at present mainly
exports apparels like basic T-shirts, polo-shirts, cotton-shirts and trousers in which the
amount of value-added is very low. This is also one of the reasons why the garments owners
cannot pay sufficient wage to the garments workers (Karim, 28 August 2010, P. 07). Side by
side, efforts should have to be made for gradual expansion of the domestic market of apparels
through improving the purchasing power of the countrys large population to reduce the huge
dependence of the garments sector on only the traditional foreign markets.
It is not logical to pay low wage to the workers on the ground that there is abundant supply of
labour in the economy. Likewise, it is not logical to threaten the worker that the garments

36
owners will shut down the factories if the workers demand higher wages. It is coercion on
the part of the rich ones to prevaricate in the case of giving away the wage of the workers and
pay off debts (Hadith: Bukhari and Muslim), it is farther said that the Prophet (s) will raise
allegations against three kinds of persons in the day of resurrection, of them one is The
person who makes one work hard and even after realizing work in full from him, does not
pay the worker his due wage (Hadith: Bukhari).
There may exist disputes among the owners and the workers centering arrear payments and
these can be solved in a peaceful manner. But no one should be allowed to capitalize on these
disputes and incite workers to create violence as some labour leaders and NGOs have
allegedly been doing every now and then. It is said that these labour leaders receive tens of
millions of Taka as bribe from the said foreign NGOs; even the garments owners also give
these labour leaders fat amount of money as bribe. Imprecation of Allh is on both the
givers and receivers of bribes(Quoted in Dainandin Zibane Islam, 2000, P.516 from Aan
Nihaya Fi Garibil Hadis, Allama Ibnul Asir (r), Vol. II, P. 226).
Destruction and eventual shutting down of the factories brings no good to the workers. If
labour leaders and NGOs are found responsible for inciting violence, they should be dealt
with iron hands. The resent cancellation of the registration of an NGO by the government is a
good example. In an environment of intimate relations between the owners and the workers,
there will exist no misunderstandings between them. The workers will remain satisfied with
the wage the owners pay to them and both the owners and their factories will be safe, there
will be need no need for industrial police to wield sticks over the heads of the workers to
keep them calm.
A healthy growth of the garments sector is necessary in the collective interest of all
entrepreneurs, workers and the economy as a whole. Yet, it is true that some owners are busy
in making their pockets heavy without giving the workers. There are directives of the finance
ministry and the Bangladesh Bank to provide financial assistance to the losing
establishments. Some tries to take the benefit without being loser. The garments workers
should be paid minimum wage by taking into consideration their overall cost of living, i.e.,
the costs of food, clothing, shelter and health care.
Many garments owners are eager to run the garments factories by paying the workers Taka
5,000 as minimum wage. They maintain that a business in which the workers are paid their
just wages cannot but flourish. But congenial environment will have to be ensured by
preventing any unrest created by political elements and toll raisers in the Jhut business.
They claim that a handful garments owners that do not pay the workers their due are creating

37
problems. This is one of the reasons put forward for the introduction of industrial police to
prevent anarchy in the Jhut sector and to control the defaults in wage payments by certain
owners. But the CGWF leaders argue that the arrest of the defaulting owner will not serve the
purpose of the workers. The right course of action will be to allow trade union facilities so
that the owners and the workers can solve their problems through discussions (Chaudury, 15
August 2010, P. 13).
BGMEA and BKMEA leaders welcome industrial police while CGWF leaders want the right
for trade union facilities for fruitfully solving the problems between the garments owners and
the workers through consultations. Even Al Qurn reveals that the affairs are a matter of
counsel42/38 and who make amicable settlement, his wage is the affair of Allah. 42/40

Prophet (s) has asked not to buy anything from a helpless person (Hadith: Abu Daud). It
means that it is not permissible to take unlawful advantage of his helpless condition. Shah
Oali Ullah (r) has opined that an approval taken by force is unacceptable in Islam
(Hujjatulillahil Baliga, Vol. 2, P.103. Quoted in Dainandin Zibone Islam, 2000, P.482).
Bangladesh has made a commendable success in the garments sector. Let this sector not be
ruined like the once prosperous jute sector of Bangladesh because of the rashness either on
the part of the owners or the workers or both or other concerned third parties. We may at best
beg by heart to Allah the Almighty in the words of Bengali poet Tagore Zvgvi cZvKv

hvi `vI Zvi ewnevi `vI kw (To whom Thou givest Your flag, give him the strength
to bear it). Let us move forward in our own traditional holy and pious way without paying
heed to the westerners who are entangled in serious socio-economic-cultural and religious
crisis which is the fruit of their own rash materialistic worldly deeds.

38
Appendix I
The workers engaged in the garments sector have been arranged in 7 classes and other
employees in 4 categories by the Wage Board in their Wage Structure 2010.
Of the 4 categories of employees the MLSS id est. the 4th grade employees will get Taka
3,280 each per month. This 4th grade of employees include Peons of the Garment Factories,
Guards, Cooks, Sweepers, Junior Data Entry Operators, Floor Helpers, Loader Guards,
Messengers, Tea Boys, Cleaners, Drivers etcetera.
Categories of Working Class by Designations

Class Categories of Working Class Wage in Taka


per Month
Grade 1 Pattern master, Chief quality controller, Chief cutting 9,300
master, Chief mechanic, Chief electrician, Collar master
and Graphic designer
Grade 2 Mechanic, Cutting master, Asst. Pattern master, Asst. 7,200
Collar master, Asst. Graphic designer
Grade 3 Special machinist, Senior swing machine operator, Senior 4,120
winding machine operator, Senior knitting machine
operators, Senior linking machine operator, Senior cutter,
Senior quality inspector, Senior marker, Senior line
leader, Senior over lock machine operator, Senior
kwacha machine operator, Lay man, Senior auto cutter,
Senior marker etcetera.
Grade 4 Swing machine operator, Winding machine operator, 3,763
Knitting machine operator, Linking machine operator,
Dry man, Packer, Over lock machine operator, Line
leader, Auto cutter, Cad operator, Lay man, Bundling
man, Rib cutter, Tag man, Printer, Quality operator
etcetera.
Grade 5 Junior swing machine operator, Junior winding machine 3,455
operator, Junior knitting machine operator, Junior linking
machine operator, Junior dry man, Junior packer, Junior
over lock machine operator, Junior line leader, Junior
auto cutter, Junior cad operator, Junior bundling man,
Junior lay man, Junior rib cutter, Junior tag man etcetera.

39
Grade 6 Ordinary swing machine operator, Ordinary winding 3,210
machine operator, Ordinary printing machine operator,
Ordinary linking machine operator, Ordinary auto cutter
etcetera.
Grade 7 Asst. Swing machine operator, Asst. Winding machine 3,000
operator, Asst. Knitting machine operator, Asst. Madding
operator, Asst. Cutter, Marker, Creasing man, Line iron
man, Dry washing man, Over lock machine assistant,
Button machine assistant, Kwacha machine assistant,
Finishing assistant, Asst. Bundling man, Asst. Fusing
machine operator, Asst. Auto spreader, Lay man,
Embroidery operator, Printing operator, Printer, Helper
etcetera.
------ Apprentice 2,500
Source: The Daily Ittefaq, 58th Year, No.216, 1 August 2010. P. 13.

40
5.4 REFERENCES
01. Alam, A. Z. M. Shamsul, Islami Arthanitir Ruprekha (An Outline of Islamic
Economy), written in Bengali and published by Islamic Foundation Bangladesh,
Dhaka 2003.
02. Badal, Habibur Rahman from Narayanganj, Garment Sector Dhangsher Cheshta,
Nepothya 6 Karon (Attempts to Destroy the Garments Sector, 6 Causes Behind, The
Daily Ittefaq, 58th Year, No.217, 2 August 2010.
03. Chaudury, M.R, Ashche Industrial Police (Industrial Police is coming), The Daily
Ittefaq, 58th Year, No.230, 15 August 2010. Economics Supplement.
04. Dainandin Zibane Islam (Islam in Daily Life), Published by Islamic Foundation
Bangladesh, Dhaka 2000.
05. Dey, Samir Kumar, Uskanidata 48 Sramik Neta, Grefter 2 (48 Instigating Labour
Leaders, 2 Arrested), The Daily Ittefaq, 58th Year, No.216, 1 August 2010.
06. Dilal, Saif Islam, Antarjatic Shorajantro? (International Conspiracy?), The Daily
Ittefaq, 58th Year, No.196, 11 July 2010, Economics Supplement.
07. Hasan, Mehedi, Bishwa Bazare Toiri Poshaker Mullya32 Shotangsho Komechhe
(Apparel price has fallen by 32 per cent in the World market), The Daily Ittefaq, 58th
Year, No.211, 26 July 2010.
08. Hyder, Monir, Garmentse Ashoni Songket (Foreboding of a thunder-crash in the
Garments Sector), The Daily Ittefaq, 58th Year, No. 139, 15 May 2010.
09. Jugantar, 11th Year, No.169, 23 July 2010, Garment Sramikder Mojori Nirdharon
Sombar (Wage for the Garments Workers will be ascertained on Monday).
10. Karim, Enayet, Roptani Lakhamatra Arjone Dorkar Nirobossinna Biddoth O Gas
(Uninterrupted supply of Electricity and Gas is necessary for attaining Export Targets),
The Daily Ittefaq, 58th Year, No. 243, 28 August 2010, Economics Supplement.
11. Khan, Tuhin, Ashanto Savar-Ashulia Shilpanchol (Restless Savar- Ashulia Industrial
Area), The Daily Ittefaq, 58th Year, No. 209, 24 July 2010.
12. Khayer, Abul, Sramik Ashontoshe Indhan: Ak Engior Nibondhan Batil (Instigating
Workers Discontent: Cancellation of the Registration of one NGO), The Daily Ittefaq,
58th Year, No. 213, 29 July 2010.
13. Lewis, W. Arthur, Economic Development with Unlimited Supplies of Labour, The
Manchester School, May 1954, included in Agarwala, A.N. and S. P. Sing edited, The

41
Economics of Underdevelopment, A Galaxy Book, New York, Oxford University
Press, 1963.
14. Marx, Karl and Frederick Engels, Selected Works, Vol. 1, Foreign Languages
Publishing House, Moscow 1962.
15. Rahman, Syeed Mizanur, Songkot- Sambhabonar Poshak Khat (Garments Sector of
Crisis and Prospect), The Daity Ittefaq, 58th Year, No. 196, 11 July 2010, Economics
Supplement.
16. ______________, Mojuri Barlo Poshak Sramikder (The Wage of Garments Workers
has increased),The Daily Ittefaq, 58th Year, No.216, 1 August 2010, Economics
Supplement.
17. Royel, Shafiqur Rahman, Obey Jacche Chiner Shosta Srom (The Cheap labour of
China is vanishing), The Daily Ittefaq, 58th Year, No.231, 16 August 2010, News Item
Following The Economist.
18. Selim, Muzahidul Islam, Garments-a 5 Hazar Taka Nunotomo Mojuri Keno Chai
(Why Taka 5 thousand is necessary as minimum Wage in the Garments Industry), The
Daily Ittefaq, 58th Year, No.207, 22 July 2010.
19. _______________, Bandi-Shibirer Kayedaye Garment Shilpo Chalbe Ki, (Will
the Garments Industry be run under the techniques of Captive Camp?), The Daily
Ittefaq, 58th Year, Nos.227- 228, 12-13 August 2010.
20. Sipu, Jamiul Ahsan, Garment Shilpe Ashontosh-e Jader Beboshar Puji (About those
whose capital is discontent in the Garments Sector), The Daily Ittefaq, 58th Year, No.
220, 5 August 2010.
21. Sayeed, Rumi, Saudi Arab Bangladesher Poshak Roptanir Udioman Bazar (Saudi
Arabia is a Rising Market for the Export of Bangladeshi Apparels), The Daily Ittefaq,
58th Year, No.237, 22 August 2010, Economics Supplement.
22. The Daily Ittefaq, 58th Year, No.160, 5 June 2010. Ittefaq Report on Economics:
Mojuri Baray Chin Theke Biniog Sorche, Sosta Sramer Karone Bishal
Sombhabonaey Bangladesh (Investment is moving away from China as wage
increased, Huge prospect in front of Bangladesh because of cheap Labour), Economics
Supplement.
23. The Daily Ittefaq, 58th Year, No. 209, 24 July 2010, Mirpure Garment Sramiker
Mrittu, Songharsha Vangchur (The Death of a Garments Worker in Mirpur, Clashes
and Destructions).

42
24. The Daily Ittefaq, 58th Year, No. 212, 27 July 2010, Savare Sramic-Police
Songharsha, Shatadhic Ahato, Garments Bondha (Workers-Police Clash in Savar,
More than Hundred injured, Garments Closed).
25. The Daily Ittefaq, 58th Year, No. 216, 1 August 2010, News Item sub-captioned:
Sramikder Rationer Jonno Sarkar Bhartuki Debe (The government will give subsidy
to rationing for the workers).
26. The Daily Ittefaq, 58th Year, No. 218, 3 August 2010, Sramik Sanghaton Golor
Tripokhio Siddhanto Prothakkhan (Rejection of the Three Party decision by the
Workers Organizations, News Item,
27. The Daily Ittefaq, 58th Year, No. 223, 8 August 2010, Bishobazare Bangladesh
(Bangladesh in the World Market), An Analytical Economic Report, Economics
Supplement.
28. Uddin, Jamal, Ora Sramik, Koste Kate Din (They are Workers, Days are past in
Hardships), The Daily Ittefaq, 58th Year, No. 206, 21 July 2010.
29. Wasif, Faruq, Poshaksramik (Garments Workers), Prothom Alo, 12th Year, No. 251,
19 July 2010.

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