Unrest in RMG sector
The factory owners had it coming. They did not bother to comply with the existing domestic regulations; the question of full compliance with the international standards does not arise at all.
Only a handful of factories have sufficient hygienic toilets, air and light, canteens, day-care centres for children of the women workers and medical services.
Many factories do not even pay wages and salaries on a regular basis, however measly they are, which brings up another point.
The wages are pathetic at garment factories and the very concept of appointment letters is laughable, if anything. There have been numerous instances when the media, civil society and labour activists have pointed this out, but to no avail.
The shock therapy should be an eye-opener for the government as well as the factory owners. Just pay them reasonable wages and ensure a reasonable working atmosphere and there would be no legitimate grounds for such agitation.
Sharmin Sultana
Dhanmondi, Dhaka
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It is true that some damage has been done to a couple of factories in the latest incident and I have all the sympathy for the owners and demand immediate steps to be taken so that law and order and working environment is maintained in these factories.
But only if the owners treated their workers as human beings these violent incidents would not have been carried out in the first place.
Naim Haq
New Easkaton Road, Dhaka
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Unrest has once again shaken the RMG sector and all because of some arrogant and greedy and self-centred factory owners.
Shoeb Ahmed
Dhaka
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The garment workers are no doubt paid the lowest wages. They earn something like $13 dollar a month that is of course assuming that the factories pay them the minimum wage. That figure is easily equivalent, if not much less, to the price of any clothing item they manufacture by the hundreds every month. Consider a cotton shirt, a Levis jeans. I find it ironic that these women get far less than the unit price of the very item they sew and churn out month after month. And to think that this is supposed to sustain the workers throughout the month is even a more ridiculous suggestion.
Deepa Chakroborti
Sylhet
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Garment manufacturers cite the example of thousands of women workers employed in their factories when they ask for duty-free and quota-free market access to foreign markets, especially the United States. They make it sound, as if, it is to make the lives of these women better that they are asking for the facility. But actually, as it seems from the recent reports and the survey of the International Labour Organisation, the owners are only out to increase their own profits and be able ride luxurious cars. They do not give a damn about the state of their workers. It has been and still remains the case. It is only too evident from the yearly reports that garment workers do not get their due festival bonus before Eid. The situation had to change sometime.
Ashik-ul-Insan
Uttara, Dhaka
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The economy of a country generally runs through the contribution of both domestic and foreign sectors. An economy can run without the contribution of foreign sector if the domestic sector is strong enough. Bangladesh economy cannot claim of running without the help of foreign sector such as export earnings, workers’ remittances etc. This is since the country is to depend on import not only for industrial goods but also for consumer ones. The local currency cannot buy such foreign goods; foreign currency is required. Export earning is one of the major sources of foreign currency to meet import liabilities. But it cannot cover the required quantum of import liabilities from the foreign sources of earnings and so trade balance becomes negative. The negative position is supported by workers’ remittances to reach at positive level of current account balance.
Of the total goods in the existing export basket, Readymade Garments (RMG) constitutes more than 70 per cent. A huge number of workers are involved in this sector. The sector is labour-intensive and has the capability to accommodate more workers depending on the trend of exports. On the other hand, there is an unrest in the sector with the workers demanding reasonable wages, timely payment of wages and bonuses. The sector is doing good business in a favourable overseas market and is enjoying different facilities from the government such as bond/duty drawback, cash assistance etc. A special point to note is that the RMG sector has an advantage in importing and procuring raw materials from home and abroad through usance/deferred back to back arrangement against export Letter of Credit (LC)/Order. The liabilities against raw materials are settled, in most of the cases, out of export proceeds. This shows that one of the major operational costs is not required upfront to manufacture goods. The components of production costs are direct materials, direct labour and direct overhead. Considering the share of administrative and selling expenses into cost of goods produced results in cost of goods sold.
By adding profit margin with this cost as per the policy of the concerned manufacturing units, export price is generally determined. The major cost of production is involved with procurement of direct materials. This is generally met out of export proceeds as noted earlier. Recurring cost is required for payment of labour and for different direct and indirect overheads. In general, export from Bangladesh is executed on sight payment basis. Under this mechanism, bills are submitted to banks for negotiation after arranging the shipments on board. Banks negotiate the bills and make fund available to the exporters’ account if the bills are in conformity with the sales/LC terms. So, chances of non-payment are very few; rather situation of non-realisation of payment leads the exporters to face legal action as per foreign exchange regulations of the country. The RMG sector, being a profit-making one, does not quote export price without keeping profit margin. So, the export proceeds should cover all costs and bring profit for the firms. Labour cost, as stated earlier, is a direct cost like material one. This is paid periodically and this payment should not be deferred for settlement from the export proceeds in the same way as in the case of material cost. Another feature of export-oriented industries is that it cannot generate daily sales revenue; there is a time lag between receipt of order and shipment of goods. During this period no cash flow is expected from the order but regular operational and general expenses are inevitable. To meet them, there requires proper fund management.
Labour unrest in the RMG sector has become a common phenomenon. As discussed earlier, labour cost is included in the price. So, there is no problem to off-load such liabilities if fund is properly managed. Then there comes a question why unrest is noticed among workers. Definitely, either fund is not properly managed or fund is used otherwise leading the factory into financial crunch.
Until and unless an alternative but big export sector is found, the RMG will serve as the lifeblood of the economy. But frequent unrest in this sector may bring negative impact over the sector as well as over the economy. So, something needs to be done for smooth operation of this sector from the end of the government.
Mehdi
Via e-mail
Iran issue
Reuel Marc Gerecht, a senior fellow at the Foundation for Defence of Democracies and an expert on the Middle East, recently wrote in International Hearld Tribune: ‘As Iranians have come to know theocracy intimately, secularism has become increasingly attractive. Iran now produces brilliant clerics who argue in favour of the separation of church and state as a means of saving the faith from corrupting power.’
Indeed, most Iranians, especially women and the youth, never accepted the theocratic rule without protest. Iranian writer Azar Nafisi, who was expelled from her teaching position at Tehran University for refusing to wear veil, tells about the resistance women put up against the theocratic rule in her book Reading Lolita in Tehran: ‘The streets of Tehran and other Iranian cities are patrolled by militia, who ride in white Toyotas, four gun-carrying men and women, sometimes followed by a minibus. They patrol the streets to make sure that women wear their veils properly, do not wear makeup, do not walk in public with men who are not their fathers, brothers or husbands. ... In the course of nearly two decades, the streets have been turned into a war zone, where young women who disobey the rules are hurled into patrol cars, taken to jail, flogged, fined, forced to wash the toilets and humiliated, and as soon as they leave, they go back and do the same thing.’
Now all taboos have been broken in Iran and it will be impossible for the mullahs to impose the same rules again. Theocracy might have lost all its appeals even to many who initially supported it. As a consequence, repression in the name of Islam can longer be possible. Politically speaking, it may lead to a tectonic shift in the entire region. Bangladesh should be proud of its own secular tradition.
Mahmood Elahi
Ottawa, Canada
The team to Tipaimukh
It’s relieving news that a team comprising parliamentarians and experts is soon heading for Tipaimukh to study and assess the situation that has been nagging us for years. There may be a score of issues connected to the problem but two of them seem vital on all counts — firstly, is the dam being constructed only for producing electricity or covertly for irrigation purpose as well? Second, exactly how many rivers in Bangladesh will get affected in terms of water flow in cusecs and occasional inundation due to sluice gate handling by the upper riparian country? The surface interpretations don’t always reveal the reality at core. It has to be found out by in-depth study if India is planning to construct only one dam on the Barak or a few more on adjoining smaller rivers which finally stream down into Bangladesh either individually or as tributaries to bigger rivers. The experts will find many subsidiary areas to look into but they must have the appropriate support from the hosts.
Those experienced in water management reportedly say that a dam constructed for the sole purpose of generating electricity is less harmful to the lower river tracts though abrupt discharges through the sluice gates especially during the monsoons may cause outbursts highly detrimental to a stable flow. But the clandestine fact lies elsewhere. For economic reasons, a dam constructed at a huge cost can’t possibly be restrained with only a part obligation. Where agriculture is the source of survival in Monipur and Kachhar hinterlands, the dam reservoir is likely to be utilised for irrigation purpose to serve the dual necessity that faithfully justifies the huge capital expenses. If water is diverted to canals for irrigation, the impact on Bangladesh rivers will be enormous leading to an irreversible bleak situation all over the country’s heartland. Our wise team members, we hope, will chart out the details of the scheme in its entirety.
As common citizens we have had the terrible experience of desertification of the northern and western regions of the country and the onrushing saline water into the southern belts that ruined the basic soil composition. We know that Farakka and Teesta barrages are directly responsible for the catastrophe and misfortune to millions. We’re not unaware of the result of our government’s feeble protests and manoeuvres. As for Tipaimukh, we’re still in the dark about the broad scheme behind the hilly tracts. People, however, bear a strong feeling of mistrust and apprehension arising out of their past awful experience. They fear that the eastern region is about to face the same fate of desertification putting the entire country under a pall of devastation. The nation eagerly looks forward to the findings of the team that may throw a clear light on the disturbing topic of uncertainty and discord.
Mohammed Nawazish
Dhanmondi, Dhaka
Abolish fatwa
A so-called parallel jurisprudence by the name of Fatwa is unique in Islam. It’s not essential if a country is governed by the modern laws or not but an illiterate mullah can challenge the sovereign laws by proclaiming a religious edict which is popularly known as Fatwa and there is no law to prosecute that mullah. This practice not only violates the established norms of law but it creates an uncivilised precedence practiced in the middle ages. Governments in the Muslim nations are afraid to take corrective actions against the practice of Fatwa out of fear based on ignorance and illiteracy. It’s a shame that a modern government succumbs to such deliberate efforts by the Islamic fundamentalists which undermines the authority of the government with impunity. In the modern times, this practice of Fatwa is an attempt to impose a system on the society based on medieval considerations. If the aim of law is to eliminate crimes this cant be done by beheading or cutting limbs and hands. This requires universal education, even handed social justice and equal distribution of wealth.
In the rural Bangladesh, this inhuman medieval practice falls heavily on the weak women folks who are still largely without a voice of their own. An elected government must be held accountable for their abject failure to protect these women who suffer injustice, insult and humiliation in the hands of the vicious mullahs.
Akbar Hussain
Canada
Rain water harvesting
Your Staff Correspondent’s interesting and informative report of June 29 about Viyellatex Group’s efficient water management in the textile sector commonly associated with water pollution is an eye opener for other industrialists and all environment conscious persons. Their usage of natural rain water to meet all requirements for their dying and processing operations is an ideal approach to conserve underground water used by most such industries. On top of it, they treat and recycle their waste water and use it for flushing and cleaning toilets.
This is an excellent example of water management practices which should be followed by all textile processing industries. I believe this will be comparatively cost effective rather than going for using scarce ground water resources that requires electrical power, unfortunately another scarce resource for us.
This example of efficient water usage and recirculation, should be well publicised, and the management publicly recognised for this effective approach to water management. By just saying that the group is the best textile processing unit does not give the focus to their particular expertise on water management. This should be brought out for needed awareness on environment pollution and water conservation as an example for all to follow. I hope the government’s publicity department takes notice of this useful example and spread it around through the audio-visual and print media.
SA Mansoor
Dhaka
Digital Bangladesh
The Awami League-led government has so far done a tremendous job turning Bangladesh into a promised ‘digital Bangladesh’ within six months which includes:
– Exorbitant internet charge by all the operators including the government one.
– Pinak Ranjan, the Indian High Commissioner crossed the barrier of diplomatic norms while commenting on Tipaimukh dam issue, admitted by the foreign minister herself though after ten long days!
– Yet everyday we read more and more news of rape, murder and other heinous crimes. The law and order situation is turning worse by day while the home ministry remains without the minister as well as her deputy for days.
– The political cases of the members of the Awami League are being withdrawn while the BNP members are facing new ones everyday.
– In the new ‘digital’ budget, there is a provision to whiten black money only by paying 10 per cent tax!
The incumbent government is as usual talking much but doing quite the opposite.
Sheuly Haque
Tarah, Sirajgonj
DU at 88
Dhaka University turns 88 but signs of ageing are everywhere. From one of the best universities, it has now become a mediocre university.
And on who do we place the blame for the fall from grace except on ourselves!
AA
Via e-mail
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What is there to celebrate when the university becomes 88? Dirty student politics, teachers’ apathy to teaching and total destruction of the educational environment of once one of the prime universities of the sub-continent? A decent person who has anything to do with Dhaka University should cry on this day if one must do something.
Tayeb Husain
Lund, Sweden
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University of Dhaka is only as great as what it can offer to students, to society and to the advancement of knowledge; and in that respect, the life and learning that each of our students experiences while at the university is a measure of its success. If we value independence, if we are disturbed by the growing conformity of knowledge, of values, of attitudes, which our present system induces then we may wish to set up conditions of learning which make for uniqueness, for self-direction, and for self-initiated learning.
Gopal Sengupta
Canada
Retrofit RMG buildings
to cut power cut!
A recent USAID study of the impact of power outages resulted in a substantial economic loss in the industrial sector of Bangladesh amounting to US$778 million a year. We all know that our country is experiencing growing gap between demand and supply of energy needed for meeting the country’s economic growth, infrastructural development, urbanisation and industrialisation. At present, against a demand for 5000 MW approximately, there is a shortage of about 1500 MW of power where industry’s account for 44 per cent of electricity consumption. Frequent power shortages in the main grid continuously impede production flow; hence, most factories are forced to rely on generators which are responsible for environmental pollution as well.
At present there are about 4000 RMG factories in Bangladesh. Ensuring efficient use of energy in these buildings has seldom taken into account at the design phase due to lack of awareness and various market barriers. On the other hand, energy efficiency of a building involves reduced energy consumption for acceptable levels of comfort, air quality and other occupancy requirements including the energy used in manufacturing building materials and in construction. Energy retrofits reduce energy consumption in existing building and thereby reduce greenhouse gas emission. Retrofits can include the building envelope, heating, cooling, lighting system, ventilation and appliances. According to a study by GTZ on RMG Industries, lighting and ventilation account for 40 per cent of energy consumption. Retrofitting measures such as window light retrofit, air handler replacement, ventilation control upgrade etc. are being applied in USA and other European countries to reduce energy consumption for lighting and ventilation.
A strategy to address both the short-term electricity supply crisis and the long-term environmental and resource issues cannot ignore the need to improve the performance of buildings. Therefore retrofitting of existing RMG buildings to reduce energy consumption can be a logical response to address the power scarcity problem of this sector.
Md Tarek Haider
Department of Architecture, BUET
Dependency on foreign loan
Begging seems to be like our main outlook in developing or surviving the nation. Recently, a project proposal, to buy ten millions (1 crore) energy saving bulbs, was submitted to the World Bank for getting loan! It seems like even if we need toilets in Dhaka city, we will seek loan from the donors!
And we all know how bigwigs get their share from these projects during the implementation of these projects.
Foreign loan is increasingly becoming a burden for the nation. A significant amount of money from the budget has to be given back to the lending nations every year. Any self-respecting government would concentrate on making the nation self-reliant in order to get rid of the curse called ‘loan’.
Nuruzzaman
Polashpara, Chuadanga
Law and order worsening
The law and order situation of the country probably started deteriorating from the assumption of office of the government at hand due to the failure of their stringent stance against the lawbreakers and offenders and their lax deployment of law enforcers and apparent connivance to the extortion, looting, hijacking, mugging and homicidal activities by the perpetrators, extortionists and terrorists most often reported to be allegedly loyal to the party in power and the capricious violation of law by the influential partisans of the incumbent government.
The government has not yet succeeded in containing the law and order situation in their six-month tenure, let alone improving the situation that home minister Shahara Khatun unjustifiably claims. The recent death of three traders from the assailants shooting in broad daylight at Karwan Bazar is another reminder of how much has the law and order situation deteriorated and how tremendously insecure the lives of the helpless people have become. The pledge-bound present government of populous mandate to make a turnaround in the virtual landscape of law and order should immediately reinforce and invigorate the law executive bodies to strictly conduct the drive against the wrongdoers, violators and criminals and exemplarily punish them irrespective of party allegiance in order to protect the life and property of the multitudes and ensure their fearless living, movement and trading to whom and for which they are indeed committed to.
Alamin Al Azad
University of Dhaka
