RMG manufacturers: US sanctions announcement is a political move

RMG manufacturers and labour leaders have said the recent US sanctions announcement was likely a political move and businesses do not need to worry.

They were speaking during a seminar titled “Current Labour Issues and International Trade Scenario,” organized by the Economic Reporters Forum (ERF) – an association of the nation’s business and economic journalists – in the capital on Monday.

They also said that if the sanctions were implemented, it will be implemented for political reasons and the owners and workers have nothing to do there. So it is the government’s responsibility to deal with it through diplomatic channels.

Mohammad Hatem, executive president of the BKMEA, said that there is no opportunity for the US to impose trade sanctions on labour rights, but it can be implemented politically.

He said such sanctions will actually affect the owners, workers and the government. So, these sanctions should be dealt with diplomatically by the government.

“We are facing bigger internal problems like banking and customs issues, interruptions in gas and electricity supply and so there is no time to think about US sanctions as we are dealing with bigger problems inside the country,” he added.

BKMEA Vice-President Fazlee Shameem Ehsan said that as per the visible implementation of law and labour rights, there is nothing to worry about as Bangladesh is among the signatories of eight of the 12 articles of the ILO on labor conditions where even the US has signed six.

“However, there may be incidents which are not visible, in this regard we have nothing to do,” he said.

He also added that Bangladesh has signed more articles than its competitors like India, Vietnam, Cambodia, noting that Bangladesh also maintains global standards in compensation and if there is any sanction now it will be due to the political reason and the government should take initiatives to solve this problem.

ANM Saifuddin, president of the ILO-related Standing Committee of the BGMEA, also spoke at the event.

He said: “ILO declared Bangladesh RMG sector as child-labour free in 1998. We are improving everyday. Yes, still there are some issues and rooms for improvement, we are working on it.”

In his speech, Dr Mustafa Abid Khan, former member of BTTC, said that the message of the US regarding trade does not mention trade restrictions or sanctions.

Trade penalties or fines like tariffs can be as high as 10% in this sector. And sanctions will not happen immediately.”

‘Half of the trade unions in the RMG sector are ineffective’
Labour leaders and manufacturers highlighted that half of the trade unions within the country’s ready-made garment (RMG) sector are currently ineffective, attributing this inefficiency to various factors.

Advocating for a more accessible registration system, they urged that making an application for registration in accordance with labor laws should prompt swift action, with a faster review of the submitted documents. At present, there are approximately 1300 RMG factories with trade unions, and it was revealed that half of them are not effectively functioning.

Speaking at the event, Towhidur Rahman, a prominent labor leader and former secretary of IndustriAll Bangladesh Council (IBC), expressed concern over the unnecessary hurdles in establishing trade unions, emphasizing that such obstacles do not align with the principles of a robust labor law.

Regarding the US workers’ rights policy, he noted the emergence of a concerning development akin to a dark cloud in the western sky, emphasizing the need to address the situation promptly. He highlighted the importance of adhering to global labor standards and advocated for the implementation of EU guidelines through a national action plan to sustain business practices.

Expressing concern over the deaths of four workers during unrest in the RMG sector over wage increases, he called for thorough inquiries into the incidents. Currently, 115 labor leaders remain under arrest, and approximately 25,000 workers are facing charges in 43 cases. He urged the apex trade bodies of the RMG sector to take in consideration of these circumstances.

Addressing the challenges ahead, he pointed out that the implementation of minimum wages in various factories poses a formidable task.

He criticized the labor ministry, branding it as a breeding ground for corruption, asserting that the ministry has failed to take meaningful actions for the welfare and well-being of workers.

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