Bangladesh Exporters Association: Clothing Exports Ranked Fourth In The World

The People's Republic of Bangladesh

He said that in the past 30 years, the export of garment industry in Bangladesh has grown staggering. In the past 20 years, Bangladesh has become a global sourcing center.

BGMEA vice president further pointed out that although Bangladesh's economic and garment manufacturing industry still has considerable competitive advantage, but the competition in the world garment market is intensified, forcing manufacturers to improve product quality inspection, and factories must enhance customer and social responsibility.

All these factors have led Bangladesh to become an emerging global garment supplier country.

At present, Bangladesh has more than 5000 garment manufacturing enterprises, employing about 2 million people, ninety percent of whom are women.

Supplement:

Bangladesh garment industry shareholders feel the pressure to reach the latest round of pay agreement at the end of July (2010).

Two trade union members revealed to the media at the negotiating table of the wage committee that the national minimum wage negotiations were renegotiated. Most members supported the current minimum monthly salary of workers ($24).

They also said they would ask Western buyers who buy Bangladesh clothing to put pressure on the BangladeshGarmentManufacturersandExportersAssociation, BGMEA, which is willing to adjust the minimum monthly salary to $30, such as Bangladesh garment manufacturers and Exporters Association.

Unless the pay agreement can be reached by July 28th, violence in Bangladesh's clothing industry in recent weeks will likely erupt again, especially in the wake of the Muslim fasting month and Eid al Fitr.

Labor unions in the United Kingdom and the United States have also expressed an alliance front with Bangladesh workers. It is reported that more than 1200 people have called for Wal-Mart to adjust their minimum monthly salary to $72-89 with the Bangladesh government.

Demonstrations and riots

Over the past few months, demands for wage increases and demonstrations against better working conditions have caused many conflicts between workers and the police.

At present, the minimum monthly salary of Bangladesh laborers was 24 dollars in 2006, but inflation and prices have risen by nearly 200% in recent years.

The industry group is now appealed to the workers to raise their minimum monthly salary to 5000 Bangladesh (72 US dollars).

After the demonstrations of the Ananta clothing factory in the Ashulia suburb of Dhaka in June 21st turned into a riot, the riots quickly spread to the adjacent Ha-Meem garment factory. The next day, BGMEA ordered the closure of all garment factories in the Ashulia area to try to end the demonstrations.

In just a week, more than 200 garment factories in Bangladesh were damaged and more than 300 injured: about 200 thousand workers were involved in the demonstrations, causing most of them to be dismissed and arrested.

Although the situation is still unstable, employers led by BGMEA (representing more than 5000 member factories) insist on raising two or three dollars a month.

ShamsunnaharBhuiyan, the labour representative for the MinimumWageBoard (MWB), claims that BGMEA's insistence on a mere increase of $4 to $28 has hampered the progress of MWB.

BGMEA opposed wage rises

BGMEA is the leader of Bangladesh woven and knitted garment manufacturers and exporters, supported by Bangladesh Knitting Manufacturers and exporters' Association (BangladeshKnitwearManufacturers&ExportersAssociation, BKMEA), in opposition to wage increases in the wage increase negotiations.

The initial labor minimum wage increase was set at $96, then reduced to $89, to $72.

BGMEA President AbdusSalamMurshedy told the media that the Bangladesh garment industry has just recovered from the recession and can not afford this extra burden.

The canal said the infrastructure was not perfect enough to allow manufacturers to agree to a rise in the main salary.

From July 2009 to June 2010, Bangladesh's clothing export earnings are expected to reach US $12 billion 348 million in the previous year, accounting for 80% of Bangladesh's total exports.

Wal-Mart, Tesco, H&M, Zara, Carrefour, Gap, Metro, JCPenney, Marks&Spencer, Kohl "s", "s" and "all" are purchased in large quantities in Bangladesh: most of them support Bangladesh labor wage inflation.

BGMEA President Murshedy argues that adjusting prices may help: at present, the lead time of Bangladesh garment factories is lagging behind that of other Asian competitive countries, so structural improvements are extremely needed.