RMG Industry of Bangladesh

Currently, thither argon approximately cholecalciferol0 manufacturing units with a 4. Million work force (Wisped 2012). Bangladesh does not have any subjective advantage to flourish in subdivision sector except cheapjack motor (Islam 2012). Undoubtedly, the dedicated work force with relatively grim honorarium is the key driving force in this sector. It gives Bangladesh a competitive pass on over the rivals. But unfortunately, employee satisfaction in the strengthen sector seems to be fading. Since May 2006, the limb sector has been be station with very serious dig out unrest.The major disputes c one timern wages, working hours, appointment procedures, forced dig, child labor, wellness and safety, security system, gender discrimination, sexual reassessment and trade unionism. Non- shape of workplace health, safety and security regulations atomic number 18 prevalent in the assiduity. Due to hazardous factory environments some(prenominal) workers become sick or injured , or even lose their lives d unity calamitys, fires and stampedes. Both the BAGMEN and the Government ar showing Ostrich-Approach in this regard, perhaps on the plea of maintaining price competitiveness in the global market.However, recent tragic fire incident at Instructions tagre Garments factory has given a wakeup call for two the BAGMEN and the Government. The cancellation of equines ties by the world celebrated retailer Wall-Mart is seen by many as a disturbing and punishing symptom for progress sector. At this backdrop, question arises behind the apparent success story of the artillery sedulousness, Does the work up perseverance in Bangladesh perform its honourable responsibility towards employees? Can we term this manufacture a successful unitary? A clear answer is essential for the continuous growth and sustainability of girdle sector in Bangladesh.This report shall largess the answer to the aforementioned questions with vast details. 1. 2 Objectives The broad objective of this report is to present the movement of the tree branch exertion f Bangladesh. To do so, we bequeath first evaluate the intentness from the traditional concept of business profit-minimization and growth. Secondly, we go out gauge the persistence public presentation from ethical dimension focusing chiefly on the workers socio- economic condition. 1. orbit This report will be based on the ARM industry of Bangladesh only.No comparative data will be available about separate countries. Also this report will not include the employee rights of other industries in Bangladesh. 1. 4 Limitations Limited timeshare which has affected the survey and hearing process wretched primary data Confidentiality of information 1. 5 Methodology To master an legal result both qualitative and quantitative enquiry has been conducted. Qualitative research, mainly exploratory in nature, was carried out to study the entrepreneurs ethical responsibility in ARM sector.Some in-d epth interviews have been conducted for better understanding of the working conditions at assorted factories. An extensive literature review has also been carried out to collect relevant information on the subject issue. In addition, a survey was conducted on a sample size of 25 respondents using random taste technique. This has helped in ascertaining the compliance of employee right as per law. Data analysis and unveiling has been conducted as per frequency analysis method.Primary Data Primary data for this research work includes the following- Case study of randomly selected garments workers Survey of the workers with a set of questionnaire Structured interview with legal and human right experts Unstructured interview with few lead level managers of garments industry including BAGMEN officials Secondary Data palingenesis of related articles, books and research works on ARM sector of Bangladesh Online Journals and partnership websites Available official data from BAGMEN . Lit erature Review There is no universally accepted definition of ethics.It varies from culture to culture, society to society and of course, from industry to industry. The principles, values, and beliefs that define right and wrong decisions and behavior can be termed as ethics (Robbins 2010. P. 101). Moreover, ethical values relate to what is right and wrong, and thus develop precedence over non-ethical values when making ethical decisions (Powers 2012). A simpler as yet comprehensive definition of ethical conduct is given by Bertrand Russell. He says, An ethical soul ought to do more than he is required to do and sees than he is allowed to do. The mutual perception about Bangladesh garments industry portrays one apparent success story. M. Surreal Islam in his write-up titled Wakeup Call for Government and ARM Sector Leaders praises the ARM sector entrepreneurs. He considers that they have done a lot to be proud. They have given Bangladesh economy its biggest boost. With it over 5 000 factories the industry employs nearly 5 million workers, and has been a basic factor of women dominance in the country. However, the generator also expressed his concern over the low wage of the workers in the industry in the name of price-competitiveness.He mentions that the ARM workers go through IIS$ 45 periodical payment today at their entry level. The writer compares such low wages and the associated working conditions as a national of slave labor (Islam 2012. P-11). Md. Joanna Abiding in his research paper titled Overall Problems and Prospects of Bangladesh ARM sedulousness expressed his concern over the labor disturbances in ARM sector of Bangladesh. He mentions that garment workers remain one of the hardest working segments of the labor force in Bangladesh. Their working conditions and benefits must repair as the industry matures.Abiding recommends that investing in worker-training and in improved irking conditions will certainly enhance productivity and growth. T he writer urges that the factory owners must be proactive instead of being reactive regarding this important issue (Abiding 2008). spare-time activity the recent Unchristian tagre Garments Tragedy, The Wall Street Journals newspaper column page writer Joseph Sternberg expressed his deep concern over the neglect of ethical responsibility in the ARM industry of Bangladesh. In his article, befittingly titled Why Dacha Keeps Burning the writer has flagged what is wrong in the industry.He mentions that ARM industry in Bangladesh is inefficiently and insufficiently developing. The writer criticizes special labor rules, including a ban on unionization, and regulated pay rates that set out wages in the name of competitiveness. Finally, he brands Bangladesh ARM industry as a Monster constancy that now threatens to devour the government. 3. Business execution from traditionalistic View 3. 1 The Growth of ARM Industry ARM industry is the biggest homegrown commercial success story till employment in Bangladesh. The industry has epochal contribution in employment generation, distress alleviation and women empowerment.As a garment producer for the global market, at present Bangladesh ranks second, behind China only. More than four million workers, nighly women, are employed in approximately 5,000 garment factories. This sector has acted as an locomotive behind the country economic growth. Undoubtedly, the industry has made a significant socio-economic impact in contemporary Bangladesh. 3. 2 Profit Minimization The Traditional Purpose of Business At present ARM industry earns well-nigh IIS$19 billion per year which accounts for approximately 80% of country correspond exports and around 17% of total economic output (Sternberg 2012).The percentage of ARM export to the total export of Bangladesh in last ten historic period is shown on the chart below Figure-I Percentage of ARM Export to the extreme Export Source Statistics Department, Bangladesh Bank. 3. 3 Poten tials for Rapid Growth of Bangladesh ARM Industry McKinney & Company a reputed global management consulting firm predicts that Bangladesh ARM exports will grow double by 201 5, and nearly triple by 2020 (McKinney 2011. P-22). Bangladesh is widely expected to become the top producer replacing China by virtue of its price competitiveness and capacity.The industry is expected to expand up to IIS$ 50 billion by adjoining ten years. McKinney initiated a instance study to know about the sourcing preference of the European and US clip companies, accounting for IIS$ 46 billion in total sourcing value. They conducted an extensive interview based survey where the respondents were the Chief Purchasing Officers (COP) of the leading apparel players in Europe and US. Due to the rising labor cost in China, most of the buyers now consider Bangladesh as their alternative source. While China was once considered the place to be for sourcing, the light is starting to shine ever brighter on Banglade sh.For most Cops, Bangladesh will be the No-I sourcing hot spot over the next 5 years. (McKinney 2011. P-4). The result of the survey is shown below Figure-2 Sourcing Preference of European and US Apparel Companies Source McKinney COP Survey, September-November 2011 So, from the traditional understanding of business, the ARM industry of Bangladesh can surely be called as a successful one. 4. exercise of ARM Industry from Ethical Dimension 4. 1 Compliance of preventive and Health Regulations The recent Unchristian tagre Garments fire accident at Savor claimed 112 lives.They were burnt alive inside the factory succession they were working to earn their bread and butter. The most serious part of the disaster was that the workers were locked inside a steel gate at each substructure even after the fire went out of control. The fire service trucks and the equipment could not reach timely as the access road was strengthened on agricultural land. These are serious flaws in compliance t hat BAGMEN officials tried to inform off later. Almost similar compliance failure is found in many of the factories till now.Compliances required factories to have two staircases to be built in each floor, and also to have a fulfillment pay back for the medical service to the workers. But most of the factories are yet to achieve that (Islam 2012). 4. 2 Maternity deviate A Basic Woman right on Majority of the ARM workers in Bangladesh are women. They are often fondly called Pashas Joana the daughters of garments. Everyone in the industry recognizes that ARM industry survives, and grows with their sweat. We wanted to know the industry performance about one of the basic need in both womans life Maternity Leave.Finding of our survey is shown below Figure-3 Compliance of Maternity Leave in ARM Industry Source Survey Conducted for the Research. 4. 3 The pick out of Minimum Wage It is, if not, the most controversial, at least, the most discussed issue regarding employee right in the ARM sector of Bangladesh. Tripartite body with representatives from Government, BAGMEN and Workers Association agreed with the negligible wage of TX 3500. Most of the factories were also found compliant with this wage policy. We initiated a case study to have a feel of this minimum wage.One three penis family a couple with a 2 years baby was selected where both the spouses were ARM workers. Their monthly income was TX 9400. We made a balance sheet of their monthly earning and expenditure. Table-I Balance Sheet of ARM Workers Earning and Expenditure-A Case Study Earning Expenditure save 5200 House Rent 3500 Wife 4200 Baby Food 1 500 Medicare and others 1 oho Total earning Total expenditure 11000 *They often compromise with the austere minimum food they expect to eat to live It reminds the Bertrand Russets saying, An ethical person ought to do more than he is required to do. Surely, the entrepreneurs in ARM industry can do more than what they are doing for the ARM workers. And, mere compliance with the minimum wage policy is not ethical. 4. 4 Enforced push back Mr. Safaris Islam, the president of BAGMEN said in an interview on AY Jazzier television that at that place is no enforced overtime in Bangladesh ARM industry. However, our finding contradicts what the top man of BAGMEN claimed on international media. Enforced overtime is a common practice in many of the garments manufacturing units.The factory owners tried to Justify that they are sometime compelled to do so to meet the buyers timeline as supply of untoughened material often gets delayed due to poor infrastructure in Bangladesh. The state of enforced labor in ARM industry of Bangladesh is shown in the next page Figure-4 Forced Labor in ARM Industry 5. Conclusions Many have labeled the recent unrest in the ARM industry as a conspiracy to destroy the potentials that Bangladesh enjoys. However, we feel that there is no a conspiracy theories, but disturbances in the ARM sector.These disturbances are the legitimate outpouring of the frustrations of those whose sweat makes a IIS$ 20 billion earning for our nation. From the absolute business concept of making money, we can surely term the ARM industry a successful one. But, when we look at it from the ethical dimension, the performance appears to be dark which is evident from the poor socio-economic condition of the ARM workers. They are living a life where even the basic physiological inescapably are not met. If a US$ 20 billion industry fails to uplift the workers lives above the level of slavery, as many term it, that cannot be called successful.