Reasons of disputes in RMG sector

The ready-made garment (RMG) sector is the prime source of foreign earnings for
Bangladesh in last two decades. Almost 80 percent of the total export earnings of
the country come from this sector. Although, ready-made garment industry is doing
very well in Bangladesh and contributing a lot to the national development, there is
a threat of continuous unrest in this sector that has identified as the prime obstacle
for the development of this sector. There are more than 5,000 garment factories
operating in Bangladesh with 3.6 million workers of which 85 percent workers are
female who are mostly from the rural areas of Bangladesh. Nowadays the
companies are failing to achieve their production targets and their export earnings
are being hampered due to unrest in RMG sector. Unrest in Readymade Garment
industry of Bangladesh became a common phenomenon in the recent years due to
conflicts between the employers and the employees who are primarily concerned
with salary and other benefits. Main reasons for the labor unrest perceived by the
workers are unpaid wages and the deferred payment. Some RMG owners do not
give salaries and overtime allowances to the workers on time. There are some
socioeconomic factors related to the labor unrest in the readymade garment
industry of Bangladesh. The factors are:

Lack of Additional Benefits & Irregularities in Payment of Overtime:

The workers of this sectorare unhappy with their present salary and the lack of
added benefits given by the owner of thegarment factories. And excess over time
is also another reason for dispute.

Sub-Standard Living Condition and Rough Behavior of the Supervisor:

The workers blame that mistrust of the employers and rude behaviors of the
managers are the reasons for the unrestin this sector. And the low standard of their
living also contribute to the unrest sometimes.

Deferred Payment of Festival Bonus:

Kind of dissatisfaction always prevails among the workers because of deferred

payment and that lead to labor unrest in this industry.

Lack of Motivational Training Program:

Almost all the factories do not arrange any motivational training program for the
workers. Though a minor cause, study shows that it also leads to unrest sometimes.

Lack of Recognized Labor unions:

Absence of recognized labor unions in the RMG industry is a major concern. NO

formal communication or dispute settlement mechanism exists between the
workers and the owners of the RMG factories.
Negative Perception about the Rich People of the Society:

Somehow the workers in RMG sector hold a negative perception about the rich
people of the society. They believe that they are exploited by the owners of their
factories. It sometimes make them agitated enough to start movement against the
owners.

High Inflation and Inability to Meet Family Needs:

The identified key reason for the RMG workers resentment is the rapid price hike of
daily essentials and the workers inability to cope with it. Inflation rate in
Bangladesh is very high comparing to other developing nations. It increases the
process of necessities which leads to unrest indirectly.

Rumors of Detention or Death of Fellow Workers or on Instigation:

Rumors relating detention, injury or death of fellow workers also leads to unrest.
Sexual harassment and rude behavior are other two reasons for this. In Bangladesh,
labor unrest took place in 2010 for implementing minimum wages of US $70 per
month. In that clash, two hundred workers were injured and thirty factories were
ransacked. One of the reasons for this unrest in this industry is legal and
institutional failure to ensure labor rights

Reason Of Labor Unrest Measure taken or Should be taken

Low wages Govt. Has already implement

Minimum wage Act to protect their
life

No Bargaining Power CBA or Labor Union is must in

Garment industry

Conflict between employee and Labor Law 2006, working Hour

employer in different issues. Like
working condition, working hours,
Working environment, Health and
safety issues
minimum 8 hours, Safe and
Hygiene working environment must
for employees and also ensure
proper communication system
between employees and employer
Labor are treated as machine Labor need to treated as human
Capital

No change to take part in decision Participative management system

making Process needs to provide.

Lack of both educational and Need to give proper education and

practical knowledge training and also motivation

Monotonous and Hazardous work Need to involve different

interesting work with flexibility

Lack of social recognition and their Ensure recognition of their social

rights security and provide fundamentals
rights.