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Tuesday, 11 March 2014

Assignment on Threats of labour unrest in Bangladesh

Threats of labour unrest
This year the nature of labour unrest at Ashulia was different. Primarily, the unrest started from a rumour of a death of a storekeeper at Ha-Meem Group in May 11. Later the problem of unrest was resolved for a brief period of one month when the missing Salman reappeared. But again the unrest started at the area despite repeated negotiating sessions among the workers, their leaders, government high-ups and the owners.
When the unrest reached its pinnacle, the leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) were forced to keep shut 300 Ashulia based garment factories for a few days since June 16. After a series of negotiation between the stakeholders and the owners, the garment factories were reopened in June 21.
In general, apart from wage hike issue, other causes for unrest in the garment sector are rumours of death and beating, fear of job loss, jhut business, cases with the police station, fear of shutdown of the factories, arrears of salary, checking at entry point and identity cards, pay hike and discrimination in grades, bad relations between workers and mid-level management, provocation by the local influential people and international conspirators and some NGOs, role of industrial police and division between industrial police and normal police, sudden order cut by the international buyers, piece rate production, problems of accommodation and increased house rent, lack of motivational training system, inflation and so on.
We often think that labour unrest at garments is caused only by issues related to wage hike and hence most discussions focus a great deal on that. Therefore, it will be more enlightening to elaborate on the other real causes of unrest which are often kept out of public view.

1.Rumors:
Rumour is a common problem in the garment sector. Very often rumours of deaths and accidents cause commotion among workers and resultantly, workers vandalise factories without checking up on the veracity of the rumours. Consider the following incidentas an example. A few years ago a large number of workers at a Gazipur based garment factory were stampeded and injured while they were coming down from the upper floors of the building after a rumour of a co-worker being attacked by a genie spread. Needless to say, the existence of the genie could not be found anywhere in and around the factory. The latest incident of unrest at Ashulia also started from a rumour of a missing Salman, a storekeeper of Ha-Meem Group, which was baseless.
2.Fear of job loss:
Sometimes workers, in fear of losing their jobs, engage in vandalism. They fear job loss for their misbehaviour with the seniors or if they are identified in any kind of violence.
3.Jhut business:
Jhut (the scrap of clothing items) is a very profitable business for a section of traders as the item brings them cash money. Previously jhut was a waste product of the garment factory but now it has become a by-product for its commercial value. As a result, some people, especially the locally influential people want to grab more jhut through influencing either workers or mid-level management of the factories. Many factories have faced unrest for the politics involved in jhut business.
4.Case with police stations:
Filing of cases with the police station by the factory authorities on many an occasion have triggered labour unrest and work stoppage. When any kind of violence takes place at the factories, the managements and the local police file cases against hundreds of workers and the workers' leaders without mentioning their names. Police then search for the workers even after normalcy returns to the factories. Such objectionable police behaviour often results in clashes with the factory managements.
5.Fear of shutdown of factories:
In majority of factory closure cases, the managements do not follow the rules of law. Without serving any prior notice to the workers, they shut down the production units. As a result, workers get involved in clash with them and vandalise factories either for reopening production units or for arrear salary and other dues.
6.Arrears:
Workers clash with the management for arrear salary and bonuses especially during the Eid festivals. The situation in salary disbursement has improved a lot as managements are now handling it professionally and have enhanced the compliances at factory level.
7.Checking at entry point and identity cards:
Some severe labour unrest took place during checking the workers at the entry point of garment factories by the security guards. Workers engage in altercation with the guards when they ask them for identity cards during the checking. Sometimes workers forget to carry the identity cards. In such cases guards do not allow them to enter the factory. If a worker is unable to join work, he will miss the attendance bonus of that particular day.
8.Pay hike and discrimination in grades:
Incidents of unrest in November 2010 were only triggered by discrimination in salary hike and changes in grades. Many senior workers or operators did not get the salary at the proper grades although the minimum wage was implemented since that month. As a result, workers vandalised many factories. In the latest wage structure workers were categorised in seven grades. A section of workers started demonstration when the experienced and old workers were graded properly.
9.Bad relations between workers and mid-level management:
Very poor understanding between workers and mid-level management is a perennial problem in the garment sector. Floor managers demand a quick delivery of works from the operators, but it might not be always possible. In such cases the mid-level officials engage in altercation with workers. Many mid-level officials were injured for bad relationship between workers and the management.
10.Provocation by locally influential people and international conspirators and some NGOs:
Local influential people play a vital role in the sector. Local MPs have a great role to play, but sometimes they allegedly influence workers for some undue facilities. They use workers to establish their supremacy locally. They use workers to get jhut items and orders from garment owners for supplying materials, food items to the workers and other tenders. In cases of any outbreak of unrest, owners blame international conspiracy and NGOs overlooking the direct role local vested quarters play in the sector for business and political gain.
11.Fear of police and role of industrial police:
The police force has a major role to play to quell garment unrest. During the recent unrest in Ashulia, many questioned the roles played by the newly introduced industrial police. Some quarters say that a clear division has already been created between industrial police and the normal police force.
12.Sudden order cut by international buyers:
Sometimes international buyers do not follow ethical buying practices. For different reasons they undercut the prices or reduce the volume of order. As a result, garment makers either delay in payment to the workers or deprive them as factory owners also become victims of order cuts and rate cuts. Ultimately, workers engage in clash with the management.
13.Production in piece rate:
Sometimes sweater factories are considered the source of unrest for mismatch in calculation in piece rate. Sweaters are produced under piece rate basis, meaning workers receive salary upon production. Sometimes workers are not paid in exact calculation of pieces at the end of the month. Suppose, at the end of a month a worker claims he has produced 100 pieces of sweaters while the officers calculate it to be 95. Many factories were vandalised for such wrong calculations in sweater factories.
14.Accommodation and higher house rent:
Workers do not have dormitories for their accommodation. As a result, they have to pay higher house rent. Owners of these houses in Ashulia have increased the rent four times in a year. Following such arbitrary moves, workers put pressure on factory managements to increase their salary and they take to the streets when managements do not increase the salary.
15.Lack of motivational training programme:
According to present estimate, the country's more than 5,000 woven, 1,700 knitwear and nearly 1,300 spinning, weaving, finishing and dyeing factories suffer from shortage of 25 percent workers. Currently, 3.5 million workers are employed in the sector. They do not have institutional training on production management, organisational behaviour and adaptability but they are the most important part of the multi-billion dollar garment business. If they were trained properly, they might not engage in frequent unrest.
16.Inflation:
Spiralling of prices of basic commodities is a major source of unrest. For example, prices of four eggs are Tk 40, which only five months ago were Tk 24. Similarly, prices of almost all commodities have increased. As a result, workers always bargain with the managements for pay hike.
17.Political instability:
 Political stability is a prerequisite for rapid industrial growth. At this moment, there is no anti-government movement by the opposition in the country. But the development in the Industry sector is almost zero. No significant FDI is pouring in. An uneasy political situation is prevailing in the country. It should be changed.




18.Power crisis:
 At present, industry sector is severely hit by the power and gas crisis. Many factories have suspended production for want of power and gas. In some cases, some factories are running their factories in the night instead of day. It is very unusual for both the owners as well as for the workers .This is why the total production has fallen0; the cost of production increases dramatically, earning has slimmed down. The government has to come forward with practical and pragmatic decisions to overcome the crisis.
19.High interest rate:
The RMG owners as well as other entrepreneurs are counting losses because of high bank interest rates. Nowhere in the world entrepreneurs pay interest rate at 13 percent except for Bangladesh. In addition to that, the banks realize another 13 percent as service charge. To many entrepreneurs, the bank interest rate is too high to cope with; and ultimately leaving them in a vulnerable situation in a competitive market. It is expected that the bank interest rate should be reduced to 7 percent .The government should come forward to save the entrepreneurs form the exploitation of the banks. If it can be done, the total scenario will be changed and the RMG sector will be able to give the minimum benefits as expected by the workers.
20.Reduce productivity:
 The productivity of our worker is much lower compared to that of the workers of Korea, China, and Hong Kong. The gross production rate per hour of these countries is two times higher than that of our worker. So, we are to train our workers to increase their per hour productivity. If it can be done, our production will be increased to a great extent and we will be able to compete with our rivals.
21.Increase cost of production:
 The cost of production is increasing day by day as the price of raw material is rising. As the prices of essential raw materials are increasing beyond the control of the RMG owners, hence the pay increase is not possible. The price of essential raw materials must be kept under control. This has to be done by the government. It is a major reason for labor unrest. The government should focus on increasing the local production rather than depending on import.


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