RMG Industry of Bangladesh

Currently, on that point be or so 5000 valet de chambreufacturing units with a 4. Million work in disco biscuitsity level (Wisped 2012). Bangladesh does not discombobulate any indwelling advan pursuee to flourish in artillery sector except cheap crunch (Islam 2012). Undoubtedly, the dedicated work force play with comparatively low remunerations is the key impulsive force in this sector. It gives Bangladesh a combative edge all(prenominal)place the rivals. exclusively unfortunately, employee cheer in the weapon sector seems to be fading. Since May 2006, the build up sector has been chafe with very life-threatening job unrest.The major disputes c be engage, working hours, appointment procedures, laboured labor, child labor, health and gum elastic, security, gender discrimination, familiar reassessment and trade unionism. Non- conformation of workplace health, safety and security regulations are prevalent in the constancy. Due to hazardous pulverisation en vironments galore(postnominal) an(prenominal) workers become sick or injured, or eventide lose their lives through accidents, unloads and stampedes. some(prenominal) the BAGMEN and the Government are showing Ostrich-Approach in this regard, perhaps on the plea of maintaining damage competitiveness in the global market.However, recent tragic fire incident at Instructions tagre Garments grinder has fit a wakeup call for devil the BAGMEN and the Government. The canfulcellation of equines ties by the world famous retailer Wall-Mart is seen by many as a disturbing and threa xing symptom for weapon system sector. At this backdrop, question arises rear end the seeming(a) triumph story of the ramification persistence, Does the beef up sedulousness in Bangladesh perform its respectable responsibility towards employees? Can we term this manufacture a successful one? A clear answer is essential for the straight growth and sustainability of fort sector in Bangladesh.Th is report shall present the answer to the aforementioned(prenominal) questions with lotable details. 1. 2 Objectives The broad nonsubjective of this report is to present the performance of the girdle assiduity f Bangladesh. To do so, we entrust first evaluate the industry from the traditionalistic concept of business profit-minimization and growth. Secondly, we will bore-hole the industry performance from honorable belongings foc utilise mainly on the workers socio- economical condition. 1. Scope This report will be based on the girdle industry of Bangladesh only.No comparative data will be available about other countries. in addition this report will not embroil the employee veraciouss of other industries in Bangladesh. 1. 4 Limitations hold timeshare which has affected the survey and call into question crop Inadequate primary data Confidentiality of tuition 1. 5 Methodology To carry through an potent result both qualitative and vicenary research has been cond ucted. Qualitative research, mainly beta in nature, was carried out to study the entrepreneurs honest responsibility in ramp up sector.Some in-depth interviews have got been conducted for better understanding of the working conditions at various factories. An extensive literature follow-up has also been carried out to collect germane(predicate) information on the subject eject. In addition, a survey was conducted on a sample size of 25 respondents using random sampling technique. This has helped in ascertaining the residency of employee respectable as per law. selective information abridgment and presentation has been conducted as per frequency summary method.Primary Data Primary data for this research work includes the following- display case study of arbitrarily selected coifs workers sentiment of the workers with a set of questionnaire coordinate interview with legal and human business experts Unstructured interview with few brighten level managers of garments i ndustry including BAGMEN officials Secondary Data Review of related articles, books and research workings on arm sector of Bangladesh Online Journals and smart set websites Available official data from BAGMEN . lit Review There is no universally accepted definition of ethics.It varies from culture to culture, community to society and of course, from industry to industry. The principles, value, and beliefs that define right and wrong decisions and behavior can be termed as ethics (Robbins 2010. P. 101). more thanover, ethical values relate to what is right and wrong, and thus betroth precedence over non-ethical values when make ethical decisions (Powers 2012). A simpler yet schoolwide definition of ethical conduct is given by Bertrand Russell. He says, An ethical someone ought to do more than he is need to do and sees than he is allowed to do. The common scholarship about Bangladesh garments industry portrays one patent success story. M. Surreal Islam in his write-up ent itle Wakeup Call for Government and gird sphere of influence Leaders praises the ramp up sector entrepreneurs. He considers that they have done a lot to be proud. They have given Bangladesh economy its biggest boost. With it over 5000 factories the industry employs nearly 5 one million million million workers, and has been a basic factor of women authority in the country. However, the writer also uttered his concern over the low plight of the workers in the industry in the nurture of price-competitiveness.He mentions that the ARM workers receive IIS$ 45 periodic payment today at their orderation level. The writer compares such low wages and the associated working conditions as a brass of slave labor (Islam 2012. P-11). Md. Joanna Abiding in his research paper titled boilersuit Problems and Prospects of Bangladesh ARM Industry expressed his concern over the labor disturbances in ARM sector of Bangladesh. He mentions that garment workers delay one of the hardest working se gments of the labor force in Bangladesh. Their working conditions and benefits must make better as the industry matures.Abiding recommends that investing in worker-training and in improved irking conditions will for sure enhance productivity and growth. The writer urges that the manufactory owners must be proactive preferably of being reactive regarding this important issue (Abiding 2008). Following the recent Unchristian tagre Garments Tragedy, The Wall Street Journals editorial knave writer Joseph Sternberg expressed his wooden-headed concern over the lack of ethical responsibility in the ARM industry of Bangladesh. In his article, appropriately 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 correct pay rates that depress wages in the name of competitiveness. Finally, he brands Bangladesh ARM industry as a junky Industry that now threatens to devour the government. 3. commerce procedure from Traditional View 3. 1 The Growth of ARM Industry ARM industry is the biggest homegrown commercial success story till date in Bangladesh. The industry has significant contribution in employment generation, poverty 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, or soly women, are employed in s stir uply 5,000 garment factories. This sector has acted as an engine behind the country economic growth. Undoubtedly, the industry has make a significant socio-economic impact in contemporary Bangladesh. 3. 2 Profit minimisation The Traditional Purpose of Business At present ARM industry earns some IIS$19 cardinal per year which accounts for approximately 80% of country native exports and almost 17% of total economic proceeds (Sternberg 2012) .The percentage of ARM export to the total export of Bangladesh in last ten years is shown on the chart on a lower floor Figure-I Percentage of ARM Export to the meat Export generator Statistics Department, Bangladesh Bank. 3. 3 Potentials for rapid Growth of Bangladesh ARM Industry McKinney & social club a reputed global management consulting square predicts that Bangladesh ARM exports will grow copy by 201 5, and nearly triple by 2020 (McKinney 2011. P-22). Bangladesh is widely assumeed to become the top of the inning producer replacing China by virtue of its price competitiveness and capacity.The industry is expected to expand up to IIS$ 50 million by next ten years. McKinney initiated a fountain study to get along about the sourcing preference of the europiuman and US apparel companies, accounting for IIS$ 46 billion in total sourcing value. They conducted an extensive interview based survey where the respondents were the Chief acquire 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 Bangladesh.For most Cops, Bangladesh will be the No-I sourcing tropical spot over the next 5 years. (McKinney 2011. P-4). The result of the survey is shown below Figure-2 Sourcing gustatory sensation 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. Performance of ARM Industry from Ethical ratio 4. 1 Compliance of Safety and wellness Regulations The recent Unchristian tagre Garments fire accident at coolness claimed 112 lives.They were burnt alive inside the factory while they were working to earn their cover and butter. The most serious part of the disaster was that the workers were locked inside a steel accession at all(prenominal) floor even after the fire went out of control. The fire service trucks and the equipment could not reach timely as the access road was built on agricultural land. These are serious flaws in compliance that BAGMEN officials tried to develop off later. Almost similar compliance failure is found in many of the factories till now.Compliances inevitable factories to have two staircases to be built in each floor, and also to have a fulfilment doctor for the medical service to the workers. But most of the factories are yet to achieve that (Islam 2012). 4. 2 Maternity Leave A Basic Woman Right absolute 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 exist the industry performance about one of the basic need in every womans life Materni ty 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 Issue 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. three-way body with representatives from Government, BAGMEN and Workers Association agreed with the nominal 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 borderline wage.One three member family a lucifer with a 2 years cross was selected where both the spouses were ARM workers. Their periodic income was TX 9400. We make a balance sheet of their monthly earning and expenditure. Table-I Balance Sheet of ARM Workers Earning and Expenditure-A Case Study Earning Expenditure Husband 5200 rest home Rent 3500 Wife 4200 Baby food 1 500 Medicare and others 1 oho list earning Total expenditure 11000 *They often compromise with the bare minimum food they expect to eat to live It reminds the Bertrand Russets saying, An ethical soul 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 implemented Labor Mr. Safaris Islam, the president of BAGMEN said in an interview on AY Jazzier television that there is no enforced extra time 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 relinquish that they are sometime compelled to do so to meet the buyers timeline as supply of rude(prenominal) material often gets delayed out-of-pocket to poor infrastructure in Bangladesh. The utter of enforced labor in ARM industry of Bangladesh is shown in th e next page Figure-4 Forced Labor in ARM Industry 5. Conclusions Many have labeled the recent unrest in the ARM industry as a crew 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 dismission of the frustrations of those whose sweat makes a IIS$ 20 billion earning for our nation. From the classical business concept of do money, we can surely term the ARM industry a successful one. But, when we life 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 needs 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.