Introduction
Background of the study: * We are doing this assignment for completing the principals of management courses in the BBA department. * We are doing this report so that we can analysis the readymade garment (RMG) sector of Bangladesh and find out the problems and remedies of this sector.
Objectives of the study:
The main objectives of this report are * To gain knowledge about the industrial unrest in the readymade garments industry of Bangladesh. * To identify the problems of RMG sector of Bangladesh. * To analysis the problems of this sector. * To fine out the remedies that could solve the problems of RMG sector. * To gain in-depth knowledge about the readymade garments industry of Bangladesh.
Data
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It is making significant contribution in the field of our export income.
Bangladesh exports 35 types of garment products to about 31 countries around the world. The RMG sector is a 100% export-oriented industry. That Bangladesh today is considered an economic competitor in terms of international garment manufacturing by other countries of the region and beyond is the country since gaining independence in 1971. It appears much of the socio-economic development in the first decade of the twenty-first century for Bangladesh and its approximately 1.5 million women workers depends on the continuing success of the RMG industry.
Problems Surrounding RMG Sector:
The garment industry of Bangladesh has been the key export division and a main source of foreign exchange for the last 25 years. National labor laws do not apply in the EPZs, leaving BEPZA in full control over work conditions, wages and benefits. Garment factories in Bangladesh provide employment to 40 percent of industrial workers. But without the proper laws the worker are demanding their various wants and as a result conflict is began with the industry. * Raw materials:
Bangladesh imports raw materials for garments like cotton, thread color etc. This dependence on raw materials hampers the development of garments industry. Moreover, foreign suppliers often supply low quality materials, which result in low quality products
* Unskilled workers:
Most of the illiterate women workers employed in garments
Bangladesh are not nearly as strong, and their economic strengths pale in comparison to Australia’s. Australia are blessed in regards to resources and they are geographically close to one of the largest growing regions of the world, Asia. Australia’s economy is also incredibly resilient, Australia being one of only three countries not to record a period of economic contraction since data begun being recorded in 1991. The only real economic strength of Bangladesh, on the other hand, is that countries like China, Japan and Australia are beginning to outsource labor to Bangladesh, and this gives work to Bangladeshi citizens and brings money into the
On the 24th of April 2013, a tragedy occurred in Dhaka, Bangladesh, resulting in the deaths of more than 1000 people and the destruction of a nine-story garment factory “Rana Plaza” (Manik& Yardley, n.d.,). However, the unsatisfactory condition of the building was known to employees. The day before the tragedy, several cracks were noticed, yet the owner of the factory ignored the warning by police to suspend the factory. In addition, workers were physically intimidated which shows, illustrating the power of society and the desperation of financial condition as individuals (Hossain, 2013). 80% of the workers at the Rana Plaza were female; this was because their labor was the cheapest in the world, with the minimum income BDT being 3000 taka per month (the equivalent of 37 Australian dollars) (Burke, 2013). This industry represented the international fashion labels in Europe, America, cosmopolitanism and progressive brands such as Benetton etc. Most of the factory’s textile products were internationally exported, earning foreign currency and allowing it to become the largest industry in Bangladesh. The “Rana Plaza” was one of the main industry, which maintained the economy and society as individuals in Bangladesh. The power of capital at the Bangladesh level is the arrangement of dominance transnational businesses at the global level, which is a smaller rate of powerful
• The enormous surplus of labor in China imperils workers worldwide as international competition puts incessant downward pressure on wages and working conditions, leading the apparel and textile industries to favor the cheapest and most Draconian producers.
On April 24, 2013, NewYorkTimes journalist Jim Yardley reported on the collapse of Rana Plaza, an eight-story factory complex in the outskirts of Dhaka, Bangladesh, which claimed the lives of 1,100 people. A 400-page report of the incident places the blame squarely on the shoulders of the building's owner, Sohel Rana, along with the owners of the building's five garment factories, who now face possible charges of murder, along with accusations of “ignoring safety warnings and locking exit doors,” while the Bangladeshi government continues to receive harsh criticism for its lax enforcement of labor safety standards in the country's billion-dollar clothing manufacturing industry (“Sweatshop Labor”). The garment industry in Bangladesh is one of the world's leading exporters of clothing, second only to China, with more than 5,000 garment factories employing an excess of 3 million workers, producing merchandise for top brand retailers in the United States and Europe (Yardley; “Sweatshop Labor”). Workers in these factories endure long hours and unsafe working conditions for wages so low parents must send their children to work instead of school so that they have enough to eat. The tragedy of Rana Plaza brings to the forefront the true cost of things; is it worth 1,100 lives to save a few dollars on a shirt or a pair of jeans?
The relevance of this book can be measured by its ability to speak to the everyday individual, who may or may not know anything about economics, and plant the seed toward global economic education. It provides a keen social awareness to people who may or may not ordinarily care about international economics and can have an eye-opening effect toward what really happens in the textile industry.
Esquel, one of the leading cotton-shirt-manufacturers in the world came from China and it supplies lots of clothing brand such as Banana Republic, Tommy Hilfiger, Hugo Boss, Brooks Brothers, Abercrombie and Fitch, Nike, Nordstrom and Lands’ End, in addition to private companies (Plunkett Research, Ltd.). However, due to the high demand of the US apparel stores for Chinese products, the low cost, which was the main reason why raw materials are being purchased from China, have increased. China’s competition is huge, with Vietnam, the Philippines, Malaysia and Sri Lanka also producing material at cheap prices (Plunkett Research, Ltd.). The US apparel stores can instead purchase from these other Asian countries. It is hard to determine the exact number of suppliers in this industry; but, in general, majority of them are in Asian countries that can provide low-cost raw materials to US-based apparel stores. Therefore, the US apparel stores may acquire higher net profi
Triangle Shirtwaist Factory brought attention to the lack of safety regulation and lead to an overhaul city's fire department, building codes, and workplace regulations. The business models and practices of the Triangle Factory owner is today just shipped overseas as we see in the Rana Plaza incident. It highlights the corruption and unethical practices of today fashion industry. The Large company uses the overseas business as sub-contractors. This way the can turn a blind eye to the local business practices and lack thereof. These companies get the benefit of large mass produce garment at cheap rates, but bear no responsibilities for maintenance of the factories, equipment or training for the workers. The business models and practices of the Triangle Factory owner is today just shipped overseas. Modern sweatshops are not only a problem, but an unethical system of abuse and waste exploits workers of the poor. Companies use terms such as “Terms of Engagement” or “Corporate sustainability” to show there care about the treatment of people and the environment and have standards in place to maintain ethical practices in the facility that manufactures the products that carry our brands. However, these companies have little control over the subcontractors. Brown ( ) state that “even if the contractors and their subcontractors had the desire and political will to implement effective safety programs, few of them have the resources necessary to accomplish
The introductory of the documentary examines the fabric mills of Bangladesh. It is very competitive in the international market place to find low cost labor; when merchandise manufactured in another country is imported these country put on a duty rate. Apparel companies contemplating low cost labor,
Doug Saunders’ article, “Are garment workers’ deaths on our hands? No” is about the sufferings that the Bangladesh garment workers have to experience in the hopes of meeting consumer needs in Europe and North America. According to the tone of the writer, this article presents an argument on ethical concern about the existing business relationship between the developed and the developing countries. Developed countries such as Europe and North America go for cheap markets in countries like Bangladesh but in the process they affect the welfare of these countries. Saunders uses the fire outbreak and a collapsed eight-storey building, as evidence for the suffering of Bangladesh workers. Conversely, Saunders claims that clothing agreements by developed
In Bangladesh there have been many problems due to the small market and their extremely low cost. So for american companies like Walmart, H&M, Tommy Hilfiger,etc bangladesh is a goldmine because they produce quality work and at a very cost. Although with their low cost there is a high demand for their goods, which rushes the production process resulting in injury.
This article addresses how working conditions of garment workers in global South have merely changed after Rana Plaza collapse in 2013 and struggles on implementing corrective action plans in factories due to companies’ apathetic actions towards this approach. This collapse is widely known as killing thousands of people at Rana Plaza, an eight-story factory located in Bangladesh’s capital city that consisted several factories manufacturing clothing for multinational brands such as Walmart and Joe Fresh. In the wake of this disaster, companies, trade unions, and worker’s rights group decided to make the buildings safer and improve working conditions for employees in factories across Bangladesh, which meant adding sprinkler systems and
Fifty years ago almost all clothes sold in the U.S. were made here. Now almost 98% of the clothes sold here are made in other countries. For big retailers like Walmart, and Forever 21 they are able to sell clothes at low prices due to clothes being produced in other nation “where labor and other costs are less expensive,” as stated in “The Real Cost of Fashion.” How this works? Well, an example from “The Real Cost of Fashion.” Says, “For example, it costs $3.72 to manufacture a denim shirt in Bangladesh. To make that same shirt in the U.S. costs $13.22. Lower costs mean U.S. stores can sell clothes for less and still make a profit. For U.S. shoppers, it means more clothes in their closets and more money in their wallets to buy other things.” But three years ago, a tragedy occurred in a building in Bangladesh. 1,127 workers died while about 2,500 workers were injured when the building collapsed. This building contained five factories which made clothes to sell in the U.S. and Europe. Officials then discovered the owner of the building illegally added more floors and let the companies place heavy gear that the building wasn’t sturdy enough to support. According to “The Real Cost of Fashion,” Bangladesh’s government “temporarily closed about 20 factories for safety violations. It also announced plans to raise the country’s minimum wage. Bangladesh has some of the lowest-paid workers in the world.” They get paid less than $2 day. It
This article is very important because Silverstein highlights key issues that occur in the garment industry, which many Western consumers are unaware of. Important examples include the treatment of workers, unsafe working conditions, and the cost of production. On March 18, 1969, the United States began their campaign of bombing Cambodia for the following four years. This caused sociopolitical trouble that eventually caused the Pol Pot regime
The fashion industry fuels the message that “the way to solve your problems is to consume more.” Therefore, making people buy things they don’t really need. Currently there are “80 billion clothes sold a year” and “40 million garment workers.” This industry encourages people to buy things based of their wants and not their needs, sometimes people buy clothes they never wear in their life so this means that these poor people working in sweatshops are getting abused and producing clothes for no reason.
Bangladesh is a south Asian country and has an approximate population reaching 164 million. The manufacturing industry is what Bangladesh is known for. That industry also accounted for almost 12% of GDP in 2009 and 2010 with employing over four million people (The Bangladesh Accord Foundation, 2014). The labor force is made up of young, urbanizing, mainly women. Bangladesh accounts for approximately 78% total exports (The Bangladesh Accord Foundation, 2014), which is second to China.