ZillulHyeRazi
The working conditions in the factories of Bangladesh supplying garments to the world are facing global scrutiny, particularly from the governments of the major importing destinations.
Their concern in improving occupational safety and ensuring core labor standards is also closely observed the y the international trade unions and civil society organizations defending the rights of the workers. This intense focus on improving working conditions in the export-oriented sector became visible following factory disasters in Bangladesh, where many workers lost their lives and livelihood. The worldwide media coverage of these disasters shocked many people, including politicians, workers' rights organizations and consumers of Bangladeshi products abroad.
The collapse of Rana Plaza brought the European Union and the US, together with the Bangladesh government, to jointly issue a statement from Geneva, committing to improving the working conditions in the apparel and knitwear factories of Bangladesh (Staying Engaged: A Sustainability Compact for continuous improvements in labor rights and factory safety in the readymade garment and knitwear industry in Bangladesh, 8 July 2013). This statement created a forum now known as Sustainability Compact.
The joint statement mentioned International LabourOrganisation as the overseeing body to monitor fulfillment of the commitments made in the Compact. Prior to the Compact Declaration, the European and the North American brands sourcing clothing from Bangladesh established the Accord and Alliance in May 2013. The Compact statement, of which Bangladesh is a signatory, welcomed the initiative brands took as their role in responsible business conduct related the o improving working conditions in the factories of their suppliers.
The Accord with 190 and Alliance with 26 signatories that include international labor rights organizations are contractually bound for five years, ending mid-2018, to work in Bangladesh with their suppliers. Both groups of brands have spent substantial resources on the inspection of factories and other activities. The Compact has no such deadline.
The second annual review meeting of the Sustainability Compact is scheduled for today in Dhaka in the presence of senior officials from the European Union, ILO, and the Bangladesh government.
Significant progress has been made since the Compact Declaration. Bangladesh Labour Act of 2006 has been amended, making it more compatible with relevant ILO Conventions, the factory inspection capacity has been strengthened by recruiting a large number of inspectors, several new trade unions in the apparel units have been formed and the long-awaited implementing rules for the amended Labour Act have been published.
However, the amendment to the labor-related provisions in the Export Processing Zones, and providing workers' rights similar to the rights enjoyed through the Bangladesh Labour Act remained unfinished tasks.
On the issue of occupational safety, remediation of the factories with varied degree of structural flaws detected by the inspection has been impeded by access to finance and lukewarm response of the factory owners in implementing the Corrective Action Plan (CAP) drawn by the engineers following the inspection.
There are also complaints that registration of new trade unions faces difficult procedures set by the Labour Act. Despite the remarkable progress made in improving the working conditions in the clothing sector, there are reasons to call it a 'halfway house'. In recent weeks, media reports exposed the garment leaders' dissatisfaction with the activities of the brands, particularly on the issues of formation of occupational, health and safety committees and trade unions by the Accord.
On the other hand, global trade union body, ITUC, cited several areas of Bangladesh Labour Act and its implementation rules as not compatible with ILO standards.
The upcoming Compact Review is expected to raise all the issues that are slowing the pace of progress achieved so far.
The Sustainability Compact mentioned that it will ensure workers' rights through two basic ILO conventions -- freedom of association and collective bargaining -- in Bangladesh. The Compact text clearly mentions that improving the working conditions will be “coordinated and monitored by the Bangladesh National Tripartite Committee with the support of ILO.”
There is also a reference to 'National Tripartite Plan of Action on Fire Safety and Structural Integrity in RMG'. The controversy over the role of the brands and other issues can, therefore, be resolved if the Bangladesh government takes a pro-active role and prepares itself to take over the tasks beyond 2018.
Apparel export to the EU, US and other destinations has on average maintained double digit growth in January- December 2015. Data showed that Bangladesh started gaining ground since the first quarter of 2015 in both the EU and US markets.
The success story is more visible in the EU market. In 2014, Bangladesh's total export to EU was about 13 billion euros. By the third quarter of 2015, it reached about 12 billion euros.
There is mutual dependence between importers and exporters, as Bangladesh's share of clothing imports, at least in the EU, has reached about 15 percent of the total.
Bangladesh's immediate challenge is conforming to the ILO standards on working conditions in the apparel sector. This issue is not just related to the commitment made in the Compact.
Bangladesh's continuity in receiving duty free access in EU is subject to adhering to 15 ILO conventions, two of which are mentioned in the Compact. The impression that Bangladesh will have to follow certain conditions for duty free access in EU when it graduates from the least developed country (LDC) status is not correct.
Even as LDC, a GSP beneficiary country may face temporary withdrawal of the preferential access, in respect of all or of a certain product originating in a beneficiary country. Of course, this may happen only when there is a serious and systematic violation of principles laid down in the conventions listed.
When Bangladesh graduates from the LDC status, it will require applying for GSP+ status, with a guarantee that all 27 (including 15 for the LDCs) ILO conventions are followed.
The real challenge the garments sector and other exports will face at that stage is the withdrawal of the relaxed rules of origin.
Most challenges in apparel exports are to be addressed at the domestic level. A coordinated approach to improving the working conditions with all the stakeholders, as envisaged in the National Plan of Action, will restore the confidence of our global partners and buyers in this vital sector.
Bangladesh will remain dependent on a few export destinations for a considerable period. An attitude of reluctance to cooperate by the stakeholders will not be beneficial to the sector or for the consumers abroad enjoying quality products at affordable prices. Fair pricing, a living wage for the workers, and responsible trade unions can be addressed if there is a sincere attitude.
The Bangladesh government can play its role as a catalyst, which will go a long way in creating an environment for sustainable improvements in the apparel sector.
The author is a former trade advisor of the European Union office in Dhaka. Views expressed are his personal, not necessarily reflecting the position of the EU.
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