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The Financial Express

Wage app to help RMG makers bargain with global buyers

BKMEA signed a deal with STITCH to introduce the app at its member factories


| Updated: August 24, 2022 12:03:57


Wage app to help RMG makers bargain with global buyers

Bangladesh Knitwear Manufacturers and Expor-ters Association (BKMEA) has initiated a move to help factories develop their price negotiation skills with global buyers through using an app, named 'Fair Price'.

In this connection, BKMEA and Sustainable Textile Initiative: Together for Change (STITCH) on Tuesday inked two deals to introduce the app at BKMEA member factories and promote gender sensitive workplace, at a programme held in a city hotel.

BKMEA vice presidents Fazlee Shamim Ehsan and Akhter Hossain Apurbo, First Secretary (economic affairs) at the Dutch embassy in Dhaka Bas Blaauw, Fair Wear Foundation Executive Director Alexander Kohns-tamm, and STITCH consortium Coordinator Mye Kallander, among others, were present at the signing ceremony.

'Fair Price' is a tool that facilitates fact-based costing and shared responsibility between buyers and suppliers to ensure prices sufficiently cover all labour expenses, including when wages are raised.

Low prices are a primary cause of labour violations and unsustainable low wages, speakers said, adding that the introduced app is a tool to address this by strengthening suppliers' bargaining power, and consequently their financial sustainability and their ability to raise wages.

Speaking on the occasion, Mr Alexander Kohnstamm said garment workers' wages across the world are low and so are in Bangladesh.

Wages in the Bangladesh garment industry should go up and brands can't deny their responsibility in this regard as people here deserve better prices and better wages, he noted.

"Better conditions can be ensured by fair prices," he said.

Amirul Hoque Amin, a labour leader, also called on brands to ensure fair prices of apparel products, saying fair prices would ensure fair wages for workers.

He also urged the Bangladesh government to ratify ILO convention 190 related to wages and its effective implementation.

Ethical purchasing practices, especially price negotiations, are a key to ensuring sustainable business relations among international brands sourcing from Bangladesh and manufacturers producing for them, said the organisers.

To support addressing this issue, BKMEA and STITCH consortium will work together to move forward the discussions on ethical purchasing practices and introduce the Fair Price app in BKMEA member factories.

'Fair Price' is a pragmatic, replicable and scalable tool intended for suppliers in every country and it captures all elements of labour costs.

STITCH consortium would provide technical support to BKMEA and its members on how to use the app during costing for any brands they are producing.

According to another agreement, BKMEA and STITCH will work jointly in forming and functionalising Sexual Harassment Complaint Committees at BKMEA member factories to promote gender sensitive workplace.

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