Analysis of the present condition of BGMEA

Introduction:

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is the apex trade body that represents the export oriented woven knit and sweater garment manufacturers and exporters of the country. Readymade Garment (RMG) is the leading sector of Bangladesh in terms of employment, production and foreign exchange earning. Readymade garment (RMG) alone earned about 78% of the yearly foreign exchange earning of the country. About 3.5 million people are employed in the garment - manufacturing sector. The growth rate of RMG export was over 20% per over the last two decades.

The RMG sector earned over US$ 9 billion in 2006. The BGMEA helps to drive commerce by progression sales of Bangladeshi-produced apparel and pursues excellence in the Bangladeshi readymade garments (RMG) articulation as its activities besides programmed, including establishing besides nurturing relationships with alien buyers, businesses and trade associations, organizations, chambers, again research organizations. The BGMEA also acts as a pressure assemble to provide the interests of the RMG sector and acts as a facilitator of trade negotiations with prevalent game dudes such as the WTO, ILO, and UNCTAD.

Objective:

The anterior matter objective of the BGMEA is to: “Establish a healthy a scene environment for a settle and mutually serviceable tie between the manufacturers, exporters and importers direction the process ensuring steady income supremacy the superficial exchange advance of the country”. The BGMEA secondary mission objective is to: “Implement all legitimate rights and privileges of garment workers regarding Health, Welfare further Safety”

Present History:

The BGMEA commenced activities in the unpunctual 1970s when the Bangladeshi readymade garments (RMG) industry was a negligible non-traditional cut bury a narrow export base. Through its inception, the BGMEA has been working to keep at and secure the interests of the RMG sector - it has helped boost RMG exports by 500%, allowing Bangladesh to become one of the chief RMG exporters worldwide. The BGMEA acquiesce up its regional office in Chittagong power 1985. Chittagong is a strategically important commercial port and the gateway as all RMG exports. BGMEA President Abdus Salam Murshedy said the garment sector was ignored unfortunately in the proposed budget for the fiscal year 2009-10.

He demanded 5 percent subsidy on bank interest rate and subsidy on diesel purchase at Tk 10 per liter for their survival during the recession.

The government should give long-term loan for setting up effluent treatment plants (ETPs) in the factories to save The BGMEA chief also urged the government for reinstating the tax-holiday facility up to 2015 and fixing 1 percent import duty on export-oriented capital machinery. He said the VAT on all usages of utilities by the garment factory owners should be withdrawn.

The RMG manufacturers had been lobbying with the ministers and other government high-ups for the last few months for the stimulus package as they are facing the crisis of global recession.

The president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said the government should give export performance bonus or cash incentive at a rate of 10 percent against export. This is our BGMEA present situation.

Main Functions of BGMEA:

BGMEA is being run by a 27-member elected Board of Directors. Four Vice Presidents having important portfolios, along with a secretariat of experienced officials, assists the Board in formulating and executing vital policies and programs of the organization. The President is the highest executive authority of the BGMEA.

The fundamental objective of BGMEA is to establish a healthy business environment for a close and mutually beneficial relationship between the manufacturers, exporters and importers in the process ensuring a steady growth in the foreign exchange earnings of the country. BGMEA issues UD to its exporters thereby monitors export as well. BGMEA plays a very strong role to lead the industry in concurrence with the government. The following are the regular activities of BGMEA for its members, apparel buyers and other partners.

To Protect and uphold the interest of the industry by aiding the formulation of government policies consistent with a congenial growth of the sector.

•    Committed to protect the interests of its members and their employees by implementing legitimate rights and privileges for garments workers.

•    To negotiate and consult with foreign and local agencies to promote the garments sector in every possible fields.

•    To maintain liaisons with foreign buyers, business associations and chambers.

•    To provide foreign buyers with all necessary information regarding all issues concerned with the RMG sector.

•    BGMEA brings the opportunities for local manufacturers to interact with foreign buyers and form new rapport by arranging different apparel fairs at home and abroad.

•    To keep the BGMEA factories child labor free through continued monitoring.

•    Continue and expand collaboration with relevant Ministries of the Governments.

•    Continue educational support to workers’ children and make a provision for skill training for children removed from the BGMEA’s member factories.

•    Provides information services to its members by publishing monthly newsletters, issuance of circulars and through Dhaka's first B2B web portal which directly links exporters and buyers around the world.

•    BGMEA also established its own Institute called "BGMEA Institute of Fashion & Technology (BIFT)" in 1999. Till the day BIFT is continuously developing professionals for this sector through the courses of Fashion Designing and Garment Merchandising; and other certificate, diploma and short courses. Transforming it into University is under process.

•    Promotes computer oriented solutions for better management to its member units.

•    Participates actively in all trade negotiations for the sector in order to get easier market access and GSP benefits.

•    BGMEA's appointed lobbyist firm has been working to get duty free access in the US market. The New Partnership for Development Act (NPDA)of 2007 was introduced in the US House of Representatives by Congressman McDermott and our lobbyist is working to get the bill passed.

•    BGMEA has introduced Service Books for each and every workers employed in the factories.

•    BGMEA is going to launch a workers welfare committee in the factories.

•    BGMEA has ensured the minimum wage implementation to the tune of 99.49% of all factories.

•    BMGEA has set up a Crisis Management Committee for emergencies.

•    BGMEA regularly helps out the victims of natural calamity by providing relief, rehabilitation and other support. BGMEA stood beside the SIDR affected people with huge relief and support. BGMEA also rehabilitated 100 families by establishing a weaver's village (Taath Palli) in Manikgonj.

•    BGMEA provides scholarship to meritorious children of the garments workers. Each year 2000 students are getting the scholarships at Dhaka and Chittagong.

•    BGMEA runs training programs through 27 Technical Training Centers and 3 other centers with the objective of producing skilled workers for the RMG sector. More than 15000 trainees will be shaped up through this program and BGMEA will appoint them in the factories. BGMEA has trained and employed 10,000 people till the date.

•    BGMEA is in the process of taking over 34 vocational training centers to provide various skill sets to the unemployed.

•    BGMEA regularly conducts fire drills and fire safety program at the member factories. Although 18 fire incidents took place in 2007 and 2008, there were no casualties.

•    BGMEA runs 10 medical centers for its workers and provides HIV/AIDS awareness. Around 4.5 million workers have already received medical treatment and 55,000 workers have been made aware of HIV/AIDS and reproductive health.

•    BGMEA is going to develop a central database system for the garment workers, which will cover all workers' information of the readymade garment sector.

•    BGMEA is going to start a UD automation system to speed up custom procedures. Such online system will bring dynamism in a way that reduces lengthiness in custom procedures.

•    BGMEA has distributed essential food items among workers at subsidized price during the last Ramadan through 12 centers at Dhaka and Chittagong.

•    A Memorandum of Understanding (MoU) has been signed between BGMEA and IFC-SEDF on 17th June 2008 to monitor occupational safety and health status of the workers employed in the member factories of BGMEA operating at Dhaka. Under this program all the running factories at Dhaka have already been audited by the social compliance monitors of BGMEA and a database in being prepared.

The Registered Office:

The Registered Office of BGMEA, is situated at BGMEA Complex 23/1, Panthapath Link Road (3rd Floor), Kawran Bazar, Dhaka-1215 .BGMEA has also a regional office at 56, Agrabad Commercial Area, Chittagong. Apart from well functioning Office Administration, Accounts and Utilisation Permission/Utilisation Declaration sections, BGMEA accommodates two modern Conference Room and a Research, Development and Trade Information Cell equipped with Computers and other sophisticated office equipment. A Computerised Information and Data Collection System and web portal have also been developed to meet the information needs of the members on world apparel trade and market conditions.

Social Compliance forum for RMG: Labour and welfare:

n  BGMEA has compiled the existing relevant laws for RMG on labour and provided the same to the task force on Labour welfare in RMG.

n  The task force is reviewing the compilation made by BGMEA and shall provide to Ministry of Law for approval.

n  If accepted it shall be published as a compilation of the existing labour laws for RMG of the country.

n  The compilation does not address the inadequacies of the law.

n  BGMEA has provided their comments and suggestions on the proposed labour code to the tripartite review committee on labour law to consider incorporating in the proposed code.

n  The committee is yet to review the proposals sent by BGMEA.

n  A work plan has been finalised for short term, medium term and long term activities.

n  The work plan has been submitted to the forum for discussion.

n  BGMEA have started addressing some of the short term activities such as child labour on a priority basis.

n  At present a crash programme initiated by BGMEA is looking into the child labour issue.

Social Compliance forum for RMG: Occupational Health and Safety

n  A task force has been set up to collect and compile the relevant rules and regulations on occupational safety in RMG related to building safety, fire prevention, environment, security matters etc for preparation of the work plan.

n  A work plan has been finalized for short term, medium term and long term activities.

n  The work plan has been submitted to the forum for discussion.

n  A meeting by the taskforce was held on 30.4.2006 for implementation on the basis of the work plan and prepare a check list in this regard. A subcommittee has been formed and an awareness programme is expected  to be initiated after discussion.

n  BGMEA have already started initiating some of the short term activities to ensure fire safety on a priority basis after the incident at KTS Industries Ltd.

Activities undertaken by BGMEA after the Incident at
KTS Textile Industries Ltd.

n  BGMEA Board of Directors meeting held on 27.2.2006 where the following decisions were made:

n  Ensure all RMG units have two stairs and ensure that gates of each stairway are kept open during working hours;

n  BGMEA inspection team to monitor the above on a regular basis

If any gate/door entering the stairway is found closed during inspection factory would be penalized Tk.10, 000 for first time default, Tk.50,000 for second time default and if the same factory continues to default for a third time membership would be cancelled.

n  Following the decision of the Board on 27.2.2006 a meeting of the general members of BGMEA was called on 8.3.2006 to discuss on these issues.

n  Following the decision of the Board on 16.3.2006 an advertisement was published in the papers to recruit more people to look into the fire safety issues of RMG units through the BGMEA crash programmed.

n  BGMEA launched its crash programme on 1.4.2006 to do the following:

n  conduct drills in all the RMG units;

n  check on gates whether open or locked during working hours;

n  check whether exits are clear or not;

n  whether adequate fire equipments are in place in the RMG units;

n  Whether fire safety teams are in place in the RMG units.

n  BGMEA expects to cover all the factories for drills within the next 6 months;

n  BGMEA has sought manpower through the Social Compliance forum to assist the team members of the crash programme in particular manpower has been sought from RAJUK, EPB, Chief Inspectorate of Factories, Fire Service and Civil Defense.

n  Accordingly manpower has been given from the Government to assist the team and the Government is also working independently on these issues.

Concerns

n  Bureaucracy still remains an issue

n  Little has been done for infrastructure development

n  The Social Compliance Forum is yet to receive assistance from UNDP in addressing the overall compliance issues.

n  Buyers are yet to discuss on ethical buying initiatives or contribute towards the cost of compliance.

BGMEA and development partners:

n  BGMEA is trying to address the child labor, fire safety and mid level management training and awareness on the laws on a priority basis.

n  BGMEA is speaking with a number of development partners particularly ILO to assist in addressing these issues on a priority basis.

n  BGMEA is expecting to receive some feed back in May from ILO in this regard.

Conclusion:

The Social Compliance forum is an excellent initiative taken by the Government to get all the stakeholders on one table to discuss problems and how to overcome those problems. Some issues will of course take longer than others to achieve. However we believe that regular consultations with the Government and other stakeholders will help us overcome many of the obstacles we are now facing.