Introduction:

Entirely export oriented Ready-Made Garments (RMG) sector of Bangladesh has

experienced a noteworthy enhancement since its commencement in last half of 1970s.
Strangely enough, though this major industry is now totally based on private entrepreneurial
efforts, its inauguration was rooted into an export consignment of Shirt which was done by
Trading Corporation of Bangladesh (TCB), the state operated trading agency, in mid ‘70s.
The export consignment held with some East-European countries. However, the entrance of
private entrepreneurs in this sector gifted it with a tremendous boost.

Major problems of RMG industry of Bangladesh:

In spite of being the main source of the money stream in internal economy of Bangladesh,
the Ready-Made Garments sector is in continuous threat by some major and crucial factors.
As a result, the whole sector is in risk and in a volatile situation which may disgracefully
collapse the whole sector as well as the country’s economy. These problems or threats can
be categorized in following sections:

i. Critical political condition:

Internal political instability and security threats due to such instable condition has become a
serious concern for the RMG industry. If we focus on recent situation, only during the
political unrest in October and November, 2013, this industry had to count a loss of
minimum TK. 2000 corer and orders worth $2.40 million were cancelled by the buyer only in
first ten days of December, 2013. Moreover, due to the rail-road blockade, the exporters
had to do air shipment which also compelled them to bear an extra expense of $0.9 million.
For delayed shipment the exporters experienced a price cut by $4.65 million as orders
valuing $6.6 million were supplied in delay (Bangladesh Sangbad Sangstha, December 12,
2013).

ii. In-apt worker:

Bangladesh is now a major competitor in international RMG market. This makes it
compulsory to maintain the quality of the product. Quality control in production unit largely
depends on time to time training and workshop programs organized for the workers. But,
ironically, such initiatives are absent in Bangladesh. As a result, the qualities of the products
are degrading which sometimes result in cancellation of the consignment and creates a
negative image in the international market.

iii. Lack of proper in-work precautionary security measures:

The most serious issue regarding the RMG sector of Bangladesh is most of the factories
lack proper safety measures against any unwanted perils. This is making the working zone
immensely risky which also violates the rules and regulations of International Labor
Organization (ILO). Such irresponsible attitude of the factory owners is the key reason
behind many accidents in recent years which have taken great tolls of life. In past 11years,
approximately 730 workers were blazed and killed and about 4700 workers were injured in
several fire accidents in garments factories. The amount of deaths and casualties in building
collapse is numerous. Only in the building collapse on April 24, 2013 of Rana Plaza in
Savar, 1,130 people were reported to be dead and approximately 2,515 injured people were
reported to be rescued from the building (New Age, April, 2013). Continuous accidents like
Spectrum Sweater Industries, Phoenix Garments, Smart Export Garments, Tazreen
Fashion, Garib & Garib, Matrix Sweater, Ha-Meem Group and many more has made the
foreign buyers too much concerned about the issue.

iv. Workers Dissatisfaction:

The RMG sector has faced several incidents of strikes by the workers for the issue of
inadequate payment. The workers belong to the lower income group of the society.
Although, this sector is the backbone of the country’s economy, the radar of the sector, the
workers, are not even paid the minimum to keep their heart and soul together. The sector
became volatile due to labor unrest for the first time in 2006 and since then it has become a
regular phenomenon. In 2006 the unrest condition was mitigated by discussion with the
labor representatives and the minimum pay rate was decided to be Tk. 1662.50. But the
agitation aroused again in 2010 and the rate was revised to Tk. 3000 per month which
came into effect in November 2010 (The Daily Star Forum, August 2012). But, if we
consider the current inflation and living cost, the logical minimum wage should be higher.
According to Center for Policy Dialogue (CPD), the minimum wage of a worker is shown
below:

Conclusion:
In current perspective, RMG sector is the lifeblood of the economy of Bangladesh. Both
GDP and GNP depend on this sector. As a result, for the betterment of the national
economy it’s must to strive to alleviate the problems of this sector. Moreover, the sector
currently employs about 4.2 million workers whose fate directly depends on the existence of
RMG sector.