CPD Chairman Prof Rehman Sobhan speaking at the 'Conference on Transformation in the RMG Sector in Post-Rana Plaza Period' in the city on Thursday — FE Photo
The country's readymade garment (RMG) sector, despite making certain improvements in workplace safety, still needs medium-to-long term strategies for future sustainability.
Besides, more investment is also required, especially in the fields of new design and product development and switching over to non-cotton textiles and IT-based marketing, for small and medium RMG enterprises.
The views came at the inauguration session of a conference titled 'Transformation in the RMG Sector in Post-Rana Plaza Period: Findings from CPD Survey' on Thursday.
The day-long event was organised by the Centre for Policy Dialogue (CPD) at a hotel in the city's Gulshan-2 area where Inter-Parliamentary Union (IPU) honorary president Saber Hossain Chowdhury was present as the chief guest.
Commerce secretary Shubhashish Bose, FBCCI president Md Shafiul Islam Mohiuddin, Garments Workers' Trade Union Centre president Montu Ghosh and CPD executive director Dr Fahmida Khatun also spoke with CPD chairman Professor Rehman Sobhan in the chair.
CPD research director Dr Khondaker Golam Moazzem presented the findings of the 'CPD-RMG Study' at the programme.
He said, "After Rana Plaza collapse, an unbalanced upgrading has taken place with limited focus on economic and technological issues in the RMG sector, particularly in small and medium factories."
Such an unbalanced growth is likely to have limited positive implications in the long run in terms of overall competitiveness of a firm, he said.
For last couple of years, institution-driven upgrading happened in the areas of social issues. That also improved the social upgrading in enterprises but economic upgrading of RMG enterprises remained the same in the meantime.
Mr Moazzem said the concerned parties needed to work together to create a natural link between social and economic upgrading to eliminate the unbalanced situation in the sector.
The CPD researcher also said it was a big challenge for the RMG sector to employ more people and make the enterprises technologically-advanced at the same time.
The think-tank called upon the brands, buyers, government and development partners to provide necessary assistance to the small and medium RMG makers to make them competent in the changing market scenario.
Speaking on the occasion, eminent economist Professor Rehman Sobhan underlined the need for recognising the contributions of RMG workers and ensuring their due rights for the sake of the sector's sustainability.
"Workers have to be recognised as the legitimate partners in creation of value and they should be given a share in the enterprises where they work so they can be motivated ... agents in charge of their future and the future of the industry," he said.
The CPD chairman also said if they were made partners they would work overtime in order to see that the factory keeps running and enhances its profits.
FBCCI president Md Shafiul Islam Mohiuddin said, "We have learnt a lot after the catastrophic incident of Rana Plaza ... we worked hard over safety issues ... after inspection by Accord and Alliance, around 1,200 factories have been closed."
Bangladesh made its RMG factories safest in the world, Mr Mohiuddin said adding there are now 67 green factories in the country, of which seven are amongst the top 10 green factories around the world.
However, the RMG supply chain is largely dominated by brands and buyers; they take 75 to 80 per cent of the profit margin, which limits the choices of the country's apparel makers.
Citing a study by University of Pennsylvania, he also said it is a reality that within 2000 to 2014, apparel price has gone up by 40 per cent.
Mentioning that around 2.2 million people enter into the job market of the country every year, he said it has become a challenge for the RMG sector to employ more people because around 90 per cent of the factories have already initiated latest technologies and automated machines.
Besides, he welcomed the trade unions to come forward with their demands in a peaceful manner as the BGMEA has ratified the ILO convention.
Montu Ghosh said though Bangladesh is the second largest RMG exporters in the world, valuation of the workers remains at the same level as before.
It has been five years since the Rana Plaza incident, a lot of work was done in the factories but the wage issue still remained neglected by the government and the owners, he added.
In his speech, Mr Saber Hossain said the contribution of RMG industry to the country's GDP (gross domestic product) is more than 12 per cent with the sector employing over 5.0 million people, of which 80 per cent are women.
Referring to the fact that there is a global RMG market of $700 billion, he said the industry people and the government need to make a plan about how to achieve the US$50 billion export target by 2021.
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