Bangladesh University of Professionals (BUP)

Course Title: Legal Environment of Business (LEB-7305)

Term Paper On

Impact of covid 19 on job security of RMG sector: A case study on

Esquire Knit Composite Ltd.

Supervised By
Dr. Ziaur Rahman
Associate Professor
Faculty of Business Studies
Bangladesh University of Professionals

Submitted By
Tasnuva Ahsan Mumu
ID No: 2123031026
MBA Batch 26th

Major: Human Resources Management Bangladesh University of Professionals

Date of Submission: October 20, 2022

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Abstract

Job security in Bangladesh can vary depending on the industry and the specific job. Generally
speaking, jobs in the government sector tend to offer more job security than those in the private
sector. However, the economic situation in Bangladesh can also affect job security, as a struggling
economy may lead to layoffs and unemployment. Additionally, certain industries, such as the
garment industry, which is a major contributor to the economy, may be more vulnerable to
economic downturns. Overall, job security in Bangladesh is not as strong as in developed countries
but it's not that bad as well. The job security in the RMG sector in Bangladesh is generally
considered to be good as the sector is a major contributor to the country's economy. However,
there have been instances of factory closures and layoffs due to economic downturns or non-
compliance with labor laws. Additionally, workers in the RMG sector often work long hours and
face poor working conditions. Overall, job security in the RMG sector in Bangladesh is dependent
on the stability and growth of the industry as well as the commitment of factory owners to adhere
to labor laws and regulations. During the Covid-19 period in Bangladesh, the job security situation
in the RMG (Ready-Made Garment) sector has been uncertain. Many factories have closed
temporarily or permanently due to a decline in orders from international buyers. Additionally,
some workers have been laid off or had their hours reduced. However, the government has
provided financial assistance to some affected workers and there has been a push to increase
domestic consumption of RMG products to support the industry. The main findings of this study
is that the Workers lacking proper protection of their rights at work and lack social protections
suffered high decline in terms of their work, employment, and income securities.

The RMG industry in Bangladesh has been successful in creating jobs for women and improving
their working conditions. Human resources law compliance, employee benefits, and compensation

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were all in good standing at RMG businesses. Even while businesses have shown a desire in
preserving a work-life balance, the epidemic has dealt a catastrophic blow to most of them and the
atmosphere in which their employees operate. Research on the COVID19 pandemic as a whole
has been progressing well, but there is a severe lack of research specific to the situation in
Bangladesh. Through a literature review, it first assesses the breadth of the pandemic's effects on
the RMG sector; next, it looks at how prepared the RMG industry is to deal with the covid crisis
as a whole; finally, it identifies the many obstacles that have stood in the way of rolling out a
COVID-19 readiness program in the RMG sector. COVID-19 in Bangladesh, it is necessary to
address not just budgetary and policy but also governance/institutional and technological ones.
The author has taken Esquire Knit Composite Ltd as a case study in this study.

Table of Content
Subtitles Page No

CHAPTER ONE: INTRODUCTION

Abstract 2
1.1 Introduction 4-6
1.2 Background of the Study 7
1.3 Research Objectives 8
1.4 Research Questions 8
1.5 Literature Review 8

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 1.6 Problem Statement & Research Gaps 15
CHAPTER TWO: ABOUT IMPACT OF COVID 19 ON RMG
SECTOR
2.1 RMG industry and job security 17
2.2 The importance of Bangladesh's ready-made garment (RMG) industry 17
2.3 Role of RMG in urban poverty reduction 18
2.4 Environmental and social concerns in the RMG industry 18
2.5 COVID-19’s impact on the RMG industry 19
2.6 COVID-19’s impact on RMG’s supply chain 19
2.7 Government’s response to COVID 19 on RMG sector 20
CHAPTER THREE: METHODOLOGY
3.1 Study design 21
3.2 Sampling 21
3.3 Company overview 22
CHAPTER FOUR: RESULTS
4.1 Discussions 23
4.2 Findings 26
CHAPTER FIVE: CONCLUDING REMARKS
5.1 Conclusion 33
5.2 Recommendations 34
5.3 References 36

Chapter One

1.1 Introduction

The SARS virus, or Severe Acute Respiratory Syndrome virus, is a member of the family
Coronaviridae that causes severe respiratory illness in animals and, in rare occasions, humans
(WHOa 2020, Adhikari et.al. 2020). The corona virus, so named because it infects the respiratory
system, has gained widespread notoriety in recent years. Besides the common cold, the coronavirus

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family also causes deadly infections like Middle East Respiratory Syndrome (MERS) and Severe
Acute Respiratory Syndrome (SARS) (Corona Info, 2020). Over 7.8 million people have been
infected worldwide recently, and the death toll continues to rise, to over 0.43 million. In
Bangladesh, there are currently 65412 confirmed cases, 1139 confirmed fatalities, and 2,976
confirmed tests per million people as of June 13 of this year (worldometer.info). Wuhan, one of
China's states, was the initial point of transmission. After that, it spread quickly over the world,
infecting over 200 nations including Italy, Iran, France, China, the United States, Brazil, the United
Kingdom, Russia, Turkey, and Turkey (Statista, 2020). The virus typically caused pneumonia,
which affected the lower respiratory tracts (Uddin et. al. 2020). Corona virus is typically spread
by close bodily contact (within 1 to 6 feet) or through tiny respiratory droplets expelled during
coughing, sneezing, and even talking (CDCa 2020, WHOb 2020, WHOd 2020). Nearly one
hundred thousand people are infected daily, making Covid-19 an actual pandemic. People are
understandably frustrated that a vaccination for coronavirus has not yet been developed (WHO,
2020). The global economy has felt the effects of the coronavirus, and people's day-to-day lives
have also been negatively impacted (Duffin, E, 2020). The IMF forecasts a 3% decline in global
GDP for 2018. (BBC, 2020). The decline from 2.7% to 1.2% is dramatic (IMF, 2020). According
to UNDESA, GDP growth may slow to 0.9% by 2020, well below the 2.8% predicted by Oxford
economists (UN, 2020; Oxford, 2020). A slowdown in global growth of 0.5%-1.5% is possible,
citing OECD (BBC, 2020). The countries of South Asia have suffered the most. The number of
people infected with the corona virus in Bangladesh continues to rise, setting new daily highs every
day. Since workers in a garment factory are crammed into a very small area, there is a high
probability that the corona virus may spread there. As a result, most clothing factories are closed,
and production has halted for a longer period of time. The Ready-Made Clothes (RMG) industry,
which produces garments for sale to consumers, is Bangladesh's most important economic driver.
About 4.4 million people, largely women from lower-income backgrounds, are born each year as
a result. After China, this industry is the world's second-largest RMG exporter (Hossain et. al.,
2019). Bangladesh's native cotton production is inefficient, hence the country relies heavily on
Chinese cotton due to its ready availability and reasonable prices. In the era before Bangladesh's
independence Although the garment business existed prior to independence, its influence grew
afterward. In 1978, Bangladesh's Reaz Garments exported barely $69,000 worth of clothing to the
United States (Bhattacharya et. al. 2002). In the developing world, the garment industry has thrived

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thanks to the perseverance of RMG entrepreneurs, the prominence of the industry within the home
economy, and the opportunity presented by exporting to the global market. RMG made an effort
to substitute the jute industry, which had been generating less foreign exchange, in order to lessen
and compensate for losses (Mia et. al. 2019). There are more than 30 million people in the country
who are involved in the clothing industry in some way (Hossain et. al., 2019). Eighty percent of
Bangladesh's export revenue in the 2013–14 fiscal year came from the garment industry, which
brought in an estimated US$24.5 billion. It has established a goal of earning around US$ 50 billion
within the next five years in order to realize the vision 2021 through the advancement of
technological, social, and economic development (ActionAid Bangladesh, 2016). Background
factors contributing to the sector's performance include the country's lower cost of labor and
available labor, which has also contributed to a decrease in employment issues. However, this
industry is suffering more and more every day because of the pandemic. The worldwide clothing
supply chain has been negatively affected by the coronavirus pandemic. A million people have
lost their jobs, and the number of people who are either temporarily or permanently out of work is
rising every day as a result of government restrictions that have caused major merchants and
traders throughout the world to cancel orders (CARE, 2020). Based on feedback from more than
3,300 buyers and suppliers in 118 countries, we know that the coronavirus has had a devastating
impact on the apparel sector (Ethical trade, 2020; Clean Clothes Campaign 2020). As predicted by
Covid-19, global trade has fallen by 3% through the first four months of 2020, with an additional
13%-32% loss in volume expected this year (Teodoro et. al., 2020; WTO, 2020; IMF, 2020). Two
to three percent of cotton yarn trade and four to five percent of synthetic yarn trade were lost in
the last month (February 2020). (Business Standard, 2020). A staggering 43 million people have
lost their jobs in the previous two months due to the pandemic (Cnet, 2020). To see how many
people around the world have lost their employment to the corona pandemic, refer to Figure 1.

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Many people's livelihoods are intertwined with the Garments industry, either as direct workers or
as suppliers, and these people face a high unemployment risk. Similar results can be seen in the
dairy, tourism, poultry, and transportation industries. Major companies are reconsidering their
investment, factories are closing their doors, and millions of jobs are on the line as a result of the
current economic climate (Aljazeera. 2020). Since a vaccine has not yet been developed (as of 13
June 2020), the government is taking precautions to ensure that the economy continues to function
normally and avoids a dip in the wake of the Covid-19 pandemic.

1.2 Background Of the study

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We all know that the repercussions of a pandemic can be felt in many different places and last for
a very long time. Many people have been killed and the global economy has been harmed as a
result of several pandemics, including the Asian flu (1957-58), the Spanish flu (1918-1920), the
Hong Kong flu (1968-1969), the Swine flu (January 2009, August 2010), the Ebola virus (1976
Sudan, 1995-2014 Congo, 2013-2016 West Africa, 2017 Congo, 2018 Equateur Province, 2019-
2020 Kivu, 2020 Equateur Province), and the Zika virus (2015-2016). The global economy is
feeling the effects of the US-China trade war and BREXIT. The International Monetary Fund had
anticipated global economic growth of 3.4% due to these factors. In contrast, the COVID-19
outbreak disrupted forecasts of every stripe and caused substantial harm to the world economy and
countless deaths. The gross domestic product (GDP) of nearly every country has fallen due to
COVID-19. The economies of the 33 developed countries1 shrank by an average of 15.26%, with
the United States' economy shrinking by 23.56% and the United Kingdom's by 28.22%; these
nations' economies were downgraded for an average of 8.76 years, with the United States' economy
being downgraded for 15 years and the United Kingdom's for 20 years; the economies of the 99
developing countries2 shrank by an average of 17.38% and were downgraded for an average of
7.41 years; the economies By Eurostat's calculations as of 31 July 2020, the COVID-19 epidemic
has reduced GDP in the European Union by 12.1% in the second quarter of 2020. During this
three-week lockdown, 50%-90% of the population will reduce consumption by 5%-8%, according
to research by Oxford Economics. The consumption dropped by 9-16% after six weeks of
confinement and 18-32% after nine weeks of confinement. The average GDP loss for all 178
countries is $83,765.17 million, which is significant at any level of significance, and the average
GDP contraction for all 178 countries is 16.04%, which is also significant at any significance level,
and the average duration of the economic downgrade for all 178 countries is 7.67 years. Another
finding is that the global economy will be downgraded for 7 years after the COVID-19 outbreak
in 2020, with a GDP contraction of 17.07% in that year.

1.3 Research Objectives

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This paper aims at realizing the scenario of the Covid-19 hit on the readymade garments sector in
Bangladesh followed by the initiatives taken by different organizations to reduce the loss and the
situation with the economic impact of the pandemic on Bangladesh.
The aim of the study is:
1. To assess the impact of the pandemic on the RMG job sector.
2. To assess the factors behind ensuring job security in RMG sector
3. To evaluate the change in the workers job life due to pandemic in the selected RMG
factory.

1.4 Research question

1. What are the impacts of the COVID-19 pandemic on RMG job sector?
2. How have RMG workers been affected by the COVID-19 pandemic? and
3. How do the COVID-19-related impacts on the workers of Esquire Knit Composite Ltd.?

1.5 Literature Review

At first, the majority of recorded cases were limited to Chinese citizens or foreign visitors to China.
Since January 2020, a handful of new epicenters have emerged, including Italy, Spain, the United
Kingdom, and several countries in Western Europe and the United States. Since January 2022,
India has been reporting an average of over 164,972 new cases of corona virus every day. Making
matters more complicated for policymakers is the fact that the lethal COVID-19 disease is evolving
and it is unknown how this sickness will effect the economy, employment generation, education,
tourism, and other macroeconomic indicators. The effects of COVID-19 on Bangladesh's garment
industry and economy have been the subject of multiple empirical research. as an illustration,
consider Akter (2020) investigated the impact of Covid-19 on the job market in Bangladesh. This
research, which relied on secondary sources, identified COVID-19 as a major contributor to the
job crisis. Job losses, according to the report, would result from a combined global and regional
economic downturn. The garment, transportation, tourism, banking, insurance, and education
industries are particularly at risk from the COVID-19 situation. Among other things, the study

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clarified some crucial features of RMG industries. The analysis concluded that when orders from
overseas clients shrank, companies would remain closed and employees would be laid off. The
results of this study show that RMG workers are severely impacted by COVID-19, although they
are unable to demonstrate a variety of affects on RMG workers. COVID-19 and Bangladesh:
Socio-Economic Analysis Towards Future Correspondence is the title of a paper by Begum et al.
(2020). The research presented here reveals that COVID-19 has had a wide range of societal and
economic repercussions in Bangladesh. As the study found, the pandemic poses a serious threat to
the global supply chain, which has repercussions for a wide range of industries. Despite the article's
focus on macro-level effects, it mostly ignored the crisis's far-reaching ramifications for vulnerable
groups like day laborers, RMG workers, and informal sector employees. The Asian Development
Bank (ADB) predicted 894,930 layoffs in Bangladesh as a result of Covid-19 on March 6, 2020.
The cancellation of orders poses a serious threat to the garment industry in Bangladesh, according
to research by Bhattacharjee (2020). Research on the effects of COVID-19 on Bangladesh's
garment industry was conducted by Islam (2020), and it makes use of both primary and secondary
sources of information. This research indicates that orders totaling $3.18 billion have been
cancelled as a direct result of COVID-19. The raw materials supply chain was substantially
disrupted, according to this investigation, which was conducted during COVID-19. According to
the data gathered, RMG exports in July 2020 were down 11.43 percent from the same month a
year earlier and 72.41 percent from July 2019. In addition, the monthly growth rate of RMG sector
exports was shown to be negative in FY 2019-20 by this analysis. The effects of COVID-19 on
Bangladesh's RMG business were investigated by Islam et al. (2020). This study, which relies on
secondary data, discovered that the export trends for both woven and knit items have decreased
since the start of the COVID-19 epidemic, but the trends were the other way around before to the
pandemic. Total RMG exports from Bangladesh were likewise found to be in a similar situation
in this research. Cancellation of orders, closing of plants, and layoffs of RMG employees were all
discovered. To combat the pandemic, this research also suggests ensuring safety procedures at
RMG manufacturers and keeping in excellent connections with foreign consumers. This study also
suggests a policy of short-term price cuts and the disclosure of a risk premium for RMG
employees. A study of the effects of COVID-19 on the labor market in Bangladesh was conducted
by Islam (2020). This study, which relies on secondary sources, discovered that for COVID-19,
the growth rate of the economy dropped drastically, triggering an economic catastrophe and the

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loss of millions of jobs. There has been severe damage to the industrial, building, and service
sectors from COVID-19. The lockdowns have had a devastating effect on the urban informal
economy. During the time of the lockdowns, this paper also discovered that 11 million jobs were
lost (April-May 2020). This research also estimates that 3% of the labor force may have lost their
jobs due to COVID-19, with 500,000 manufacturing jobs lost, 1.23,000,000 service sector jobs
lost, and 0.4,000,000 garment sector jobs lost. An examination of the effects of SARS-CoV-2 on
Bangladeshi RMG workers was conducted by Kabir et al. (2020). A total of 2675 people from
low-income backgrounds across the country participated in the survey, and the results showed that
14% of those people had no food at home and 29% had barely enough food for 1–3 days. This
research showed that those garment workers from vulnerable and low-income areas may go hungry
as a result of the lockdown for COVID-19. This study suggested that the garment industry will
feel the effects of the COVID-19 epidemic for a long time, particularly in regards to health
problems, financial difficulty, and the inability to pay for necessities like food and future
employment chances. Research on the impact of rising production costs on COVID-19 was
conducted by Jebin and Hossain (2020).
Costs in the RMG industry were found to have been significantly impacted by COVID-19.
According to the research, the RMG industry lost $3.16 billion due to COVID-19, the cancellation
of orders, which impacted 1142 garments and 2.26 million workers. More than 18,000 people
could be laid off between April and June of 2020, according to this report. The policy implications
and socioeconomic effect evaluation of COVID-19 in Bangladesh were studied by Rahman et al.
(2020). This analysis uses a forward-looking macroeconomic technique to predict the effects of
Covid-19 on the economy in 2020 and compare them to a control group that has not been affected
by the virus. Instead of focusing on a single alternative, this research simulated the effects of
several plausible possibilities. While the GTAP framework was used to examine the shock
scenarios, a SAM multiplier model was also applied to the data for Bangladesh in order to analyze
the impact on household income and poverty and draw policy implications from the findings.
When compared to the baseline scenario depicting 8 percent GDP growth for the Bangladeshi
economy, this article demonstrated that Covid-19 shocks produce output shortages in the range of
3.5 to 9.3 percent. Low shock scenario simulations show a drop in exports of roughly 10%, while
high shock scenarios show a drop of 23%. The leather, textile, and garment industries have seen
the highest decreases in production as a proportion of their respective baseline outputs due to these

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interruptions. Manufacturing, construction, and a number of service industries also suffer
significant drops. The global migration model projections show a drop of 3.8% to 7.7% in
remittances into Bangladesh. Social accounting matrix multiplier model simulations show that
changes in sectoral output lead to decreases in household consumption spending of 2.8% to 7%.
When the expected weaknesses in remittances that were simulated before are included in, the
corresponding reduction in household spending reaches 3.5–7.5%. The resulting increase in
poverty rates ranges from 2.2 percentage points to 5.3 percentage points across different shock
scenarios. Under the low-shock scenario, the average percentage of poor households increases by
3.5% for small farmer households, 2.5% for daily laborer households, and 2.4% for non-farm
wage-employed households because of Covid-19. In a high-shock situation, these numbers could
rise to 7.5%, 6.2%, and 6.5%, respectively. A steeper decline in remittances would have a
devastating effect on household consumption. The research concluded that several stimulus
packages should be put into place to address these issues. Based on secondary sources, Shimanta
et al. (2020) analyzed the readymade clothing industry and COVID-19 in Bangladesh. According
to this research, when the number of lockdown days increases, the garment industry suffers as
businesses stop producing and customers cancel orders, leading to a loss of income for certain
factories and the closure of others, with the consequent loss of jobs for their employees. That's
why during this pandemic the jobless rate was climbing steadily. Based on secondary data of major
economic and financial indicators of Bangladesh, including production, wages, price levels,
advances, bills, investment, remittances, and foreign trade, Siddique & Faruk (2020) of the BRAC
Institute of Governance and Development studied the effects of COVID-19 on the country's
economy. Based on the results of this research, it appears that during the COVID-19 pandemic,
there was a significant decrease in the demand for textiles and knitwear goods, petroleum, cement,
and other non-metallic mineral products, while there was an increase in the demand for drugs and
pharmaceuticals. In response to the widespread spread of the COVID-19 epidemic, nominal wage
rates fell across many industries and service providers. It was also shown in this research that
COVID-19 had no effect on the national inflation rate when measured by point-to-point changes.
During the COVID-19 period, it was also determined that bills and investments were combined,
although advances were not altered. During the height of the epidemic, there was a precipitous
decline in the export of products, the import of goods, and the payment for services. Point-to-point
estimates show that the RMG exports fell by 56.44 percent. This article concludes that COVID-19

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had a severe impact on the Bangladesh economy, and that as a result, Bangladesh, along with the
rest of the globe, is confronting a unique economic problem. A large number of clothes employees
is anticipated to get affected owing to the coronavirus pandemic, ranging from pay cuts to job loss,
according to research conducted by Sultan et al. (2020). Trade leaders, backed by the government,
are needed to address the RMG industry's dilemma and prevent it from worsening the country's
economic situation. The effects of SARS-CoV-2 on the Bangladeshi labor market were
investigated by Genoni et al. (2020). Poor neighborhoods in the cities of Dhaka, Chittagong, and
Cox's Bazar served as the basis for this study's household survey. This research revealed that
COVID-19 has wide-ranging effects on the labor market, both in terms of breadth and depth, with
significant heterogeneity among regions and sexes. Long-term repercussions of poverty, food
security, and future earnings due to permanent job losses among market employees were also
identified as a result of the COVID-19 crisis. High levels of uncertainty in the labor market are a
major contributor to stress and worry, which, in turn, may contribute to health and mental issues
linked to the pandemic, as was also shown in this study. Because of this, low-income workers will
be unable to meet their regular monthly obligations. As far as the workers are concerned, this is
the biggest issue. Based on research by Mohiuddin (2020), the current nationwide suspension
instituted by the government to stem the spread of Covid-19 has resulted in an 80% decrease in
the per capita daily income of urban slum and rural poor. In order to cover their basic needs,
between 40 and 50 percent of the people of Bangladesh have taken out loans. The consequences
of COVID-19 in Bangladesh's garment industry, as well as strategies for dealing with the virus,
were investigated by Ahmed et al. (2021). According to this research, the apparel industry lost
$3.15 billion due to COVID-19's effect on the cancellation of a sizable number of international
orders. More than a million garment workers were laid off during the COVID-19 period, putting
many more people back on the poverty line, as was also noted in the research. Impacts of the
COVID-19 pandemic on Bangladesh's RMG industry were studied by Aktar et al. (2021). They
discovered numerous effects caused by COVID-19. The authors of this report noted that COVID-
19 has significantly slowed down global exports, imports, remittances, and economic growth. The
effects of COVID-19 on the clothing industry were discussed, with an emphasis on their economic
and social dimensions. Supply chains in the clothing industry were severely disrupted by COVID-
19, and the industry's export values fell sharply as a result. Garment workers' empowerment,
gender equality, employment, income, quality of life, and safety are all negatively impacted by

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COVID-19. The economic impact of COVID-19 on Bangladesh's RMG manufacturers was
investigated by Boudreau and Naeem (2021). A survey of BGME member manufacturers provides
the data for this study's representative random sample. Based on the results of this research, it
appears that early on in the pandemic, many customers canceled or renegotiated their orders.
However, this research indicated that consumers' reactions to the epidemic differed widely. This
report also discovered that BGMEA member factories' average yearly income dropped by over
17.4 percent in 2020 compared to 2019. Losses in 2020 sales were more severe for plants that were
smaller, older, less well-managed, and sold to a wider variety of customers. The employment rate
fell by 7.4 percent in the second half of 2020 compared to levels seen before COVID-19, although
it began to rise again by the end of the year. Because of COVID-19, some manufacturing facilities
had to postpone or reduce planned capital expenditures, particularly those aimed at expanding
automation. The effects of the COVID-19 pandemic on the garment business in Bangladesh and
India were investigated by Hansen et al. (2021) of NORC at the University of Chicago. As this
research shows, the COVID-19 epidemic has made women, migrants, and informal workers
especially vulnerable in the garment industry, and it has also raised the likelihood of forced labor.
Rebuilding trust between buyers, employers, and workers is also advocated for in this paper, as is
the development of livelihoods programming for vulnerable workers, the establishment of a
government-wide database for the garment sector, the expansion of social protection programs for
all garment workers, including unemployment benefits and housing, and the promotion of gender
equality in the garment industry. Hossain (2021) used secondary sources to analyze the effects of
COVID-19 on the Bangladeshi economy. He calculated that in 2020, COVID-19 will cost
Bangladesh $40,984.34 million, $6540.97 million, and $3941.45 million in lost GDP, export
volume, and remittances. The percentage drops in GDP, export volume, and remittances were
18.09%, 18.08%, and 19.73%, respectively. This report underlined the fact that the GDP, exports,
and remittances in Bangladesh are expected to decline for three, two, and two years beginning in
2019. As this research also noted, the worldwide unemployment rate is expected to rise by 1.38%,
while the unemployment rate in Bangladesh is expected to rise by 2.43%. After considering the
potential effects of COVID-19 on a number of economic indicator variables in Bangladesh, this
research concludes that, with the exception of unemployment, the country's economy does not
suffer any undue danger in the wake of the outbreak. Hossain and Rahman (2021) investigated the
state of the international economy following the spread of COVID-19. Time series data from 178

14
nations were used to write this paper. This study found that the average GDP loss of 178 countries
in 2020 due to COVID-19 was 83,765.17 million dollars, that the average GDP of these countries
would be contracted by 16.04% of the total GDP, and that the average GDP of these countries
would be downgraded for 7.67 years; all of these variables were statistically significant at any
significance level from their zero-mean counterparts. Moreover, it was determined that by the year
2020, global GDP will have shrunk by 17.07% of the entire GDP, and the global economy will be
downgraded for 7 years owing to COVID-19. This report also noted that COVID-19 will cause a
substantial downturn in the global economy, ushering in a period of worldwide recession. We also
found that there is a negative effect on economic growth from the variables of total confirmed
cases, lockdowns, domestic travel restrictions, air travel restriction, unemployment, and change in
human quality index, with the effects of lockdowns and domestic travel restrictions being
statistically significant. This study also predicted that in 2020, the unemployment rate would rise
by an average of 1.36% from 2019, and that global stock markets would lose an average of 3.08%.
According to the findings of this research, rather than imposing bans and limitations, governments
should take preventative measures to preserve lives and the global economy. The effects of the
global COVID epidemic on Bangladeshi textile workers were investigated by Hossain et al.
(2021). This study uses a questionnaire to gather data from 500 garment workers in four different
regions of Bangladesh: Dhaka, Gazipur, Naraynganj, and Chottogram. This study indicated that
during the COVID-19 pandemic, 99 percent of workers reported that their factories were closed
for an average of 41 days. It was discovered in this survey that after the industries shut down, nine
percent of respondents relocated back to rural areas. During the peak of the COVID-19 pandemic,
40% of respondents said their factories laid off employees. This research also indicated that the
rate of retrenchment was slightly greater in knit factories and that job and retrenchment were higher
in the first three months of the COVID-19 epidemic in the country overall. Cancelling orders,
suspending shipments, and closing factories all occurred during the COVID-19 epidemic, leading
to layoffs and reductions in workforce size. According to the results of our investigation, the
retrenchment process is not being followed formally by the companies. Furthermore, our research
confirmed that some laid-off workers did not receive their promised compensation in the form of
back pay and overtime pay. According to this research, garment workers' pay were cut during the
pandemic, with the lowest average monthly income of the employees reported in April 2020, at
around BDT 5425. Wages began to rise again in May 2020, and by October 2020, workers had

15
returned to receiving their regular salaries. According to the results, the COVID-19 epidemic had
serious consequences for the lives, careers, and financial security of the garment industry's
workforce and their families. The effects of COVID-19 on Bangladesh's economy were studied by
Shahriar et al (2021). Impacts of COVID-19 on Graduate Employability was the primary research
question addressed in this report. This article showed that the COVID-19 has a negative effect on
Bangladesh's economy since it threatens the health and livelihood of millions of people. Findings
from this research indicate that by 2020, the graduate unemployment rate will have risen from 47%
to 58%, costing the economy an estimated $53 million per year. Sharif (2021) investigated how
COVID-19 affected RMG employees in Bangladesh. Using original data, this investigation
explores how COVID-19 has affected the lives of RMG employees and their families. According
to the results, RMG workers' health, safety, security, and social relations were severely impacted
by COVID-19, and they were forced to deal with a livelihood crisis as a result of their reduced
incomes.

1.6 Problem statement

The literature analysis revealed that numerous studies have been undertaken into the effects of
COVID-19 on the textile sector and the economy of Bangladesh. Prevalent in the existing research
on the impacts of COVID-19 were survey designs with qualitative explanations. The present body
of research is insufficient to draw any conclusions about the effects of COVID-19 on Bangladesh's
clothing sector. So far as the authors are aware, no one has conducted research into the effects of
COVID-19 in the textile industry of Bangladesh using advanced level econometric approaches
based on the temporal behaviors of economic and financial indicator variables. A new study will
add to the existing body of knowledge and help close this gap. In light of this, the current study
uses state-of-the-art econometric techniques to investigate how the recent COVID-19 pandemic
has affected the economic and financial indicator variables in Bangladesh's textile industry.
Therefore, this study will contribute to filling this knowledge gap by employing state-of-the-art
econometric techniques to inquire into the actual consequences of COVID-19 on Bangladesh's
apparel sector. This study also makes predictions about the way the apparel industry will change
as a result of COVID-19 using econometric approaches and time series data. We believe the results
of this study will be helpful to both policymakers and researchers. The study has also employed
state-of-the-art econometric techniques to pinpoint the link between the expansion of the apparel

16
sector and counteracting policies. This type of thesis works already exist but not with Esquire
Knit Composite Ltd data. This thesis is conducted for the purpose of industrial development. It is
conducted to get the real data from Knit Composite Ltd & provide the best solution.

Chapter Two
17
2.1 RMG industry and job security

Despite limitations, the RMG industry made a profound impact on women empowerment in
Bangladesh. policy in many countries, especially in Bangladesh which started journey in the
late1970. This sector has economic contribution as well as social contribution in Bangladesh. It
hascreated employment opportunities for about five million people including young, poor
andilliterate women. In the financial year 2016-2017 the RMG industry generated US$28.14
billionwhich was 80.7% of the total export earnings in exports and 12.36% of the GDP.
However,recently the RMG sector is going through severe disturbances in security issue and
employment relationship therefore spreading the big number of clash, death, labors agitation and
movement.The experience of disputes and violent protest by the garment workers is increasing in
recent years.The concerning security issues are the working environment in RMG sector is below
standards.
nditions frequently violate international labor standards and Codes of Conduct.Recruitment
policies are highly informal compared to western standards and there are no writtenformal
contracts and appointment letters. Ordinary workers are vulnerable to losing their jobs atany time.
However, fear of losing their jobs and lack of alternative job opportunities compelworkers to
continue in unsatisfactory employment. Continuous work schedule, wage penalties, physical and
verbal abuse are common. Women workers face physical abuse and sexualharassment inside as
well as outside the factories but management does not ensure the security ofwomen workers. In
this study there will be tried to analyze the prospects, problems and solution of job security
problems.

2.2 The importance of Bangladesh's ready-made garment (RMG)

industry
Employment, foreign exchange, and the advancement of women in Bangladesh's society are all
still heavily reliant on the ready-made clothing business. A significant portion of the nation's GDP
(11.2%, to be exact) can be attributed to this sector. There are more than 4,600 RMG factories in
the country, employing 4.1 million people and accounting for 36% of manufacturing employment.

18
Women are the backbone of the industry because they are hardworking, disciplined, and
inexpensive. With 61% of RMG workers being female, the sector has been instrumental in
advancing women's rights and gender parity.

2.3 Role of RMG in urban poverty reduction

During 2010–2016, poverty in Bangladesh has decreased from 31.5% to 24.3%, predominantly
driven by a reduction in rural poverty by 8.5- percentage points to 26.4%. During this timeframe,
urban poverty has reduced by 2.4-percentage points to 18.9%, which slowed down the overall
country-wide poverty reduction momentum.16 According to the World Bank’s Bangladesh
Poverty Assessment report, more than half of Bangladesh’s poor households will live in urban
areas by 2030. The continued reduction in urban poverty is primarily driven by the industrial
sector, in general, and the RMG sector in particular. The RMG industry has been playing a
predominant role in reducing urban poverty and compensating the slow progress of other sectors.
During 2010–2016, RMG sector’s urban poverty level has declined from 25% to 16%, while
poverty alleviation in other major sectors remains largely stagnant.

2.4 Environmental and social concerns in the RMG industry

Workplace safety in the Bangladesh RMG industry improved significantly in recent years.
Following the fire incident at Tazreen Fashions in 2012 and the Rana Plaza Building collapse in
2013, the government, with the assistance of the European and North American retailers’
initiatives (known as Accord and Alliance respectively), have implemented massive remediation
programs. Overall, the remediation efforts have enhanced workplace safety significantly in RMG
factories. Currently, the total number of Leadership in Energy and Environmental Design (LEED)
certified green garment factories in Bangladesh is 91, which is the highest in the world. Bangladesh
is also home to the highest number of platinum-rated garment factories in the world. Twenty-five
Bangladeshi factories have achieved the highest certificate provided by the US Green Building
Council (USGBC) with six out of the top 10 LEED certified factories worldwide in Bangladesh.
Around 500 more RMG factories have been registered with the USGBC for the LEED

19
certification. It is highly unlikely that ADB’s support initiatives might get hindered because of
environmental and social concerns.

2.5 COVID-19’s impact on the RMG industry

The RMG sector is on the verge of an unprecedented humanitarian and business catastrophe. To
flatten the coronavirus spread curve, the government declared nation-wide holidays up to 25 April
2020 and business and industrial activities have come to a grinding halt except emergency services.
Many international buyers are cancelling or postponing confirmed procurement orders as their
retail outlets are substantially closed in Europe, North America, Asia and elsewhere. 6 According
to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), international buyers
have either cancelled or suspended $3.16 billion worth of shipments involving 1,142 factories
affecting 2.26 million workers as of 18 April 2020.7 Millions of workers stare at joblessness as
new orders dried up given the collapse in global demand for apparels. Reportedly, 1 million
workers have already been fired or furloughed.8 According to a survey conducted by the BRAC
University, 47% RMG workers reported not receiving their wages and felt uncertain about their
current job status with their respective employers. Defying government lockdown, thousands of
RMG workers have demonstrated on the streets throughout the country demanding arrear wages.A
report by New York University Stern Center for Business and Human Rights observes that though
Bangladesh has seen its apparel exports grow impressively, the industry generally has not
progressed beyond cutting and sewing basic items to which relatively little value is added and from
which profits are modest. Bangladesh’s garment industry has created jobs, offered a degree of
independence to rural young women, and helped prop up the country’s shaky economy. But it has
not made the same progress in terms of the quality of those jobs, the value added to exports, or
increases to workers’ real wages.

2.6 COVID-19’s impact on RMG’s supply chain

20
The impact on the RMG industry will not be limited to itself and might have grave repercussions
on other industrial, consumer and service sectors. The value addition in the RMG industry has
increased gradually and stands at 63.2% as backward-linkage industries developed. At an
investment of $6 billion, a large capital-intensive textile industry has been established for
supplying yarn and fabric to the export-oriented RMG industry. Presently, there are 1,461
manufacturing units in the textile-value chain, of which 425 are in yarn manufacturing, 796 in
fabric production and 240 in dyeing-printing-finishing operations. There is also a large number of
accessories suppliers, mostly small and medium enterprises (SMEs), who are providing buttons,
zippers, hangers, threads and other accessories. The RMG industry is a key contributor to other
economic sectors, such as, banking, insurance, real estate, packaging, hotels, recycling, consumer
goods, utility services and logistics. A World Bank survey revealed that 98% of RMG factories
are clients of commercial banks. All machines and plants are insured with insurance companies
and, additionally, 87% importers and 15% exporters get their imports/exports insured with
insurance companies. It is estimated that port usage fees earned from the RMG sector account for
more than 40% of the income of the port authority. The 4.1 million workers in the industry have
also created a large demand for low-cost consumer goods, such as cosmetics, dresses, footwear,
utensils and other products. The looming crisis in the RMG industry will have a multiplied chain
reaction on the whole economy and salvaging this industry will be beneficial to other sectors as
well.

2.7 Government’s response to COVID 19 on RMG sector

To fight COVID-19’s unfolding fallouts, the government announced a stimulus package of Tk956
billion ($11.2 billion), or 3.3% of GDP to revive the economy, by strengthening the social safety
net, export sectors, SMEs and other priority sectors. The package allocates Tk50 billion for RMG
and other export-oriented industries which could only be used for paying salaries and allowances
to workers and employees. The size of the Export Development Fund has been increased from
$3.5 billion to $5.0 billion which provides short-term facilities for importing raw materials for
export-oriented industries. Out of this package, the central bank will institute a $600 million Pre-
Shipment Credit Refinance Scheme for RMG and other export-oriented industries. This highly
welcomed package, though significant, will meet only a fraction of the massive requirements of

21
the sector, which needs at least $470 million to pay wages every month. The country requires more
support for the basic subsistence of the workers and to keep the industry alive.

Chapter Three
Methodology

3.1 Study design

This research will employ a mixed method of research, yet heavily will draw on quantitative
inquiry. In line with the objective of the research, the first rigorous literature review was conducted
to advance our understanding of the impacts of COVID-19 in the RMG sector in Bangladesh and
the measures employed by the government, industry, and other stakeholders to address it. Some of
the data and information will be collected from the published reports of various organizations. The
primary data and information will be collected through a self-administered structured
questionnaire survey.

3.2 Sampling
The study was limited to the readymade garments industry called Esquire Knit Composite
Ltd. located in Dhaka District in Bangladesh. An online based structured questionnaire will intend
to distribute among four levels of employees/staff of the factory selected randomly. The four levels
of staff include staff performing high-level managerial functions, performing mid-level
supervising responsibility of various departments of the factory and the floor in-charge. The
sample size is small only 125 workers of Esquire knit Composite.
Purposive sampling was used to select female and male respondents for the survey. As female
workers represent around 60 per cent of total RMG work force in Bangladesh, 60 percent of the
respondents in the study were women (100 respondents), while the remaining 40 percent were men
(25 respondents). Both 1workers who have been retrenched (those who lost their jobs) during the
Covid crisis (20%; 25 respondents) and those who are still employed (80%; 100 respondents) were
interviewed.

22
3.3 Company Overview
The study will be based on Esquire Knit Composite Ltd.

The Esquire Group is a prestigious American corporate empire. Through the jobs it has created
and the goods it has shipped worldwide, the company has made a notable and admirable
contribution to society and the economy at large.
On 16 February 2000, under the Companies Act 1994, Esquire Knit Composite Limited (EKCL)
was founded as a private limited company. On 22 January 2015, it changed to a public limited
company, serving as a key part of the Esquire Group's overall business strategy.
In addition to supplying major retailers in Europe and the United States with RMG, EKCL also
exports to smaller boutiques and specialty shops. C&A, Best Seller, Ostin, Espirit, Mascot, Celio,
Next, Tchibo, Pull & Bear, etc. are some of the Company's largest worldwide customers. The
Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh
Knitwear Manufacturers & Exporters Association (BKMEA), the Bangladesh-German Chamber
of Commerce, the Bangladesh-Spain Chamber of Commerce, and the Bangladesh-France
Chamber of Commerce are all organizations that EKCL is a proud member of.
Under the auspices of UKAS (United Kingdom Accreditation Service), Esquire Knit Composite
Limited has obtained system certification to the international standards ISO 9001 (quality
management system), ISO 14001 (environmental management system), and ISO 18001
(occupational health and safety management system). In addition to being certified by the Global
Organic Textile Standard (GOTS) and the Organic Content Standard (OCS-IN), the Hohenstein
Textile Testing Institutes in Germany have given EKCL its oeko-tex standard 100 accreditation
for using only environmentally friendly dyestuffs and chemicals.
Accredited by the National Accreditation Board for Testing and Calibration Laboratories (Nabl),
Esprit, C&A, and Next, Esquire's testing facility is among the best in the world. Business Social

23
Compliance Initiative (BSCI), International Trade Standards (ITS), SGS, BV, UL, etc. randomly
audit EKCL to ensure compliance on a regular basis.

Chapter Four

4.1 Discussion
4.1.1 Bangladesh's Garment Industry and the Covid-19

Covid-19 is now a worldwide health concern that has far-reaching effects on the economy and the
job market (Mckeever, 2020). Public transit, airplanes, the luxury goods sector, and other areas of
the economy have all closed because to the pandemic (Macksoud et al. 2020, Muro et. al, 2020).
Although the number of victims in Bangladesh is not yet on par with that in Italy or the United
States, it is rising, and this has forced the closure of many manufacturing facilities (Sen et. al.,
2020). But a number of retailers and importers have canceled recent purchases. While garment
exports as a whole are down from the same month last year, they are down by a significantly less
amount in February ($3.32 billion) than they were in the same month last year ($26.24 billion)
(Perera, 2020). According to the results of an interview, this crisis has the potential to disrupt
worldwide supply and demand, resulting in a loss of revenue of up to $4 billion (Amit, S. 2020).
The Export Promotion Bureau said that from July to April of FY 20, garments sales were down
14.08%, woven garments sales were down 14.31%, and knitwear sales were down 13.85% from
the previous year (The Financial Express, 2020). In terms of economic impact, Bangladesh's
garment export industry has seen particularly impressive expansion during the past two decades
(Mia et. al. 2020). Workers in remote areas who had no access to the formal labor market before
the garment industry emerged now have a chance to join it. In the long run, it contributes to poverty
reduction, women's emancipation, and societal progress. In light of the ongoing corona pandemic
in Bangladesh, an indirect lockdown was initially instituted on March 26, 2020, and was prolonged
six times, the final time being on May 30, 2020. Many public and private institutions, including

24
educational institutions, manufacturing facilities, transportation hubs, and agricultural operations,
were forced to close (AA News, 2020).

Millions of people lose their jobs as a result of the shutdown of public transportation beginning on
March 16 and lasting until May 30. Most businesses and public events have been closed for quite
some time, with the exception of those run by the government in the areas of defense, healthcare,
and emergency response. Bangladesh Some 84% of the country's exports were from apparel
factories, but due to the pandemic, major buyers from different countries, including Topshop,
Asda, Urban Outfitters, Sports Direct, New Look, Peacocks, and some larger companies, cancelled
orders in March and April worth potentially US$ 3.4 billion (The Guardian, 2020). Contrarily, the
employees are not being compensated. Bangladesh, Cambodia, Myanmar., Pakistan, China, and
Vietnam have all published statements on this subject as part of the STAR (Sustainable Textile of
Asian Region) initiative (STAR, 2020). Management of Tanaz Fashion in Bangladesh has chosen
to close operations after being unable to recoup their losses from payment and cancelled orders
(Dhaka Tribune, 2020). More than 1600 textile manufacturers participated in RMG Sustainability
Council (RSC) efforts to recoup workplace safety systems and reduce losses caused by Covid-19
(The Financial Express, 2020). Thirty percent of the workforce recommended that when BGMEA
chose to fix up the factories, they only recruit people who lived close by. Nonetheless, the BGMEA
inspection team found that greater than 50% of the devices were operational, and that 70% to 90%
of them were in violation of the Covid-19 rules at that location (The Financial Express, 2020).
After the first 10 months of this fiscal year (July 2019–April 2020), profits have dropped by 14%,
marking a new low over the past 5 years. Just in May of 2020, a 55.7% decline in profits is
recorded. There have been 2.28 million people in Bangladesh whose jobs have been put in jeopardy
as a result of the cancellation of orders totaling US$ 3.18 billion and 982 million items between
March and June. Meckengi predicts that in 2020, the impact of Covid-19 will cause a $30 million
drop in revenue for Bangladesh's garment industry (BGMEA, 2020). Real GDP growth in
Bangladesh is expected to slow to 2.0% in FY 2019-2020 because to declining Readymade
Garments exports, slower private investment development, and larger disruptions caused by
Covid-19, as reported by the International Monetary Fund (IMF) (Holy, 2020).

4.1.2 The Economic Situation in Bangladesh and Covid-19

25
Since no vaccine has been developed, preventative measures against the virus will have to be put
in place, such as quarantines, hand washing, musk use, etc. The longer the economy is shut down,
the more damage it will do.

Figure 3 shows that the daily average of positive cases in Bangladesh is rising, and that the greatest
daily average will be 3471 on June 12, 2020. Figure 4 shows that on June 12th, 2020, there will be
the most deaths (46 each day), and on June 11th, the number of cured cases will have surpassed
1,000. The government is making an effort to help all socioeconomic groups in an effort to smooth
out the curve, and has released a number of packages that include amenities people would need in
their daily lives. The government is using a variety of strategies, including an extended lockdown,
to reduce the population. According to the World Bank, just 15% of the population has an income
of greater than Tk.500 (US$5.90) per day. Because of the prolonged closure, Bangladesh could
see its biggest humanitarian crisis in decades (Textile Today, 2020). According to Inter Press
Service, between March and April, the income of the poor plummeted by 80%, thus worsening the
suffering of 7 million slum residents due to price hikes of consumer goods (The independent, 2020;
IPS News, 2020). As a country dependent on agriculture for its livelihood, we have a significant
seasonal labor shortage in the agricultural sector. As a result, crops are being damaged and farmers
aren't getting their fair price, reducing the country's GDP. The government of Bangladesh has
begun distributing $589 million to farmers in an effort to promote the country's poultry and cattle
industries, on which about 20% of the population relies directly or indirectly (Islam et. al, 2020).
Mr. Abdus Salam Aref, the former secretary general of the association of Travel Agents in
Bangladesh, reported a 70-80% drop in outbound passengers and a 35-40% drop in inbound
passengers during the first week of March. This decline is expected to accelerate to an inbound
passenger drop of 70-80% by the end of the month (Amit, S. 2020). The economic, mental, and
emotional tolls of this pandemic are mounting. The unemployment rate in Bangladesh is 4.4%
(The Daily Jugantor, 2019), and roughly 70% of the populace subsists on a meager wage, as their
purchasing power was severely eroded in early April after the onset of Covid-19 (from $1.30 in
February) (Kamruzzaman et. al, 2020). The Dhaka Stock Exchange dropped 279.32 points (6.5%)
on March 9, 2020, the largest single-day drop in the last 6/7 years (The independent, 2020).
Because of the widespread nature of the pandemic in China, several sectors are unable to meet the
demands of shipping companies in a timely manner, causing problems for businesses here in the
United States where a large percentage of their raw materials originate. Since Wuhan is the

26
pioneering province in the distribution of motorcycle parts and accessories, Bangladeshi importers
will have to either wait or come up with creative alternatives (Iraj, S. 2020). As a result of a
shortage of raw materials, exports and general trade will be harmed, and a total of 894,930 jobs
are predicted to be lost in March. This represents a loss of US$ 3.02 billion, or 0.7% of the
economy's US$ 300 billion plus value (The Diplomat, 2020). It is predicted by the Economist
Intelligence Unit (EIU) that GDP will fall by 4% in the coming year. There will be many problems
to solve after a pandemic, such as unemployment, liquidity crisis, negative export position, food
crisis, and the closure of industries. The government of Bangladesh has made available various aid
programs across a range of industries in an effort to mitigate the effects of the crisis (The Business
Standard, 2020).

4.2 Result
Bangladesh’s ready-made garment workers were profoundly affected by the Covid pandemic. The
impact was felt in all four areas of Esquire Knit Composite Ltd. workers’ securities: employment,
income, work, and representation.

4.2.1 Employment security

First, in terms of employment security, the impact on RMG workers was most felt in the areas of
employment contract, job termination and job loss. The study finds that the current Esquire Knit
Composite Ltd. workers are mostly permanent workers. Only a few are temporary workers
employed primarily within knit and noncompliant factories. However, differing labour violations
are also noteworthy. Among these, the research noted that, the legal requirements regarding the
appointment letter and service book are often not respected. Only 37% of respondents indicated
that they received the appointment letter after starting the job. In addition, when the employers
make it available, they often do not take the signatures of the workers in the service book. Identity
cards are generally provided; ninety-three per cent of respondents had ID cards. In the majority of
cases, workers' attendance is recorded by a digital punch card. The level of compliance of the
factory has been a determining factor for both appointment letter, service book, and ID cards.
Modern and computerised systems for attendance recording are used at a higher rate in the fully
compliant factories. The immediate impact of Covid on RMG workers include factory closures,
loss of working days, retrenchment, and job loss. Nearly all (99%) of workers shared that their

27
factories closed, on average, for a period of 40.8 days. A small proportion (9%) of respondents
went to the villages when factories were declared closed. On average, each of them had to go there
and back twice and experienced many difficulties on their ways to and from their native village.
On average, the workers incurred the cost of BDT 3,685 for the movement to and from their
village. Loss of working days was at its highest in April 2020 followed by June 2020. In April
2020, workers were not able to work on average for 26.1 days, and in June for 20.8 days. Four in
every ten respondents claimed that their factories retrenched workers during the Covid period. Job
loss and retrenchment were more commonly observed in the first three months of the Covid
outbreak in the country and the rate of retrenchment was slightly higher in knit factories. When
retrenching the workers, employers considered several factors including gender, the age of the
workers, and the length of service in the job. Reasons for their retrenchment and job loss were
mostly related to the Covid-related shipment cancellation, cancellation of work orders, and factory
closure (or a section of the factory due to a drop in the work order). Furthermore, 7% lost their job
because of being involved with the workers' movements or protests during the Covid period.
Employers, in general, did not follow the formal procedures for retrenchment. They neither served
a prior notice, nor had they informed the worker in writing regarding their retrenchment.
4.2.2 Income security

With regards to income security, this study found that not all workers received their due wage or
overtime allowance after being retrenched. Some workers, a small percentage (8%), had to wait
more than 60 days to get their dues. Only 6% of retrenched workers received such benefits, yet not
all of them got 100% of their due benefits. The Covid pandemic has had an intense effect on the
income security of workers. The impact has been explored by looking into wages and benefits of
female garment workers. The study finds that almost all the workers (95 %) received the minimum
wages according to their grade structure prior to the pandemic. About 5% of workers earned less
than BDT 8,000, including 11% of the workers falling in grade 7. The study found that before the
pandemic the highest number of respondents (61%) averaged a monthly income in the ranges BDT
10,000 to 15,000 followed by (31%) falling in the range BDT 8,000 to 10,000. On average, workers
received BDT 10,747 as a monthly wage including overtime, attendance bonuses and other
allowances e.g., allowance for tiffin, and lunch. The average income from overtime work is BDT
2,004. Disaggregation by type of factory reveals that there is no major difference regarding the
monthly wages of workers in knitwear, woven and composite factories. However, among the

28
workers who are being paid less than BDT 8,000, the majority of them belong to knitwear and
composite factories. Gender distribution of workers income shows that the average monthly
income of male workers is higher (around 2%) than that of female, and the wage gap between men
and women is BDT 162. It is evident that the average monthly income of garment workers has
decreased during the Covid pandemic compared to workers’ average income before the pandemic.
The lowest average income of workers was recorded in April 2020 (BDT 5,425). The survey data
reveals that the average income gradually increased from May 2020, though the gender wage gap
existed consistently over the entire pandemic period. Though essential and appreciated, he
government-imposed lockdown and stimulus package for the month of April 2020—which
enabled workers of garment factories that were closed during the imposed public holiday to receive
65% of workers’ gross monthly wage—led to a significant loss in income for a large proportion
of workers. According to the survey, the highest loss in worker income was observed in April 2020
followed by May 2020. Though workers’ average income gradually increased from June 2020,
and they were almost back at the normal salary in October 2020,the wage loss remained evident
in November 2020.

4.2.3 Work security

The impact on work security covers the areas of work and working conditions of both female and
male garment workers of Esquire Knit Composite Ltd, including daily working hours, rest and
leave, overtime hours, and night duty restrictions. The study finds that a similar pattern exists in
regular working hours (48 hours per week) in all categories of factories, e.g., knitted, woven and
composite. Additionally, no difference was observed in the regular working hours based on the
compliance level of factories. By contrast, overtime hours did vary according to level of
compliance of factories, as well as among present and retrenched workers. A total of 83% of the
respondents indicated that they perform overtime work. However, workers of partially-compliant
factories (91%) do more overtime work than those in fully-compliant (81%) and non-compliant
(79%) factories. Moreover, 81% of current workers and 94% of the retrenched workers reported
that they regularly did overtime work. Worryingly, more than four in every ten workers (41%)
conducted overtime that exceeds the legal limit. Excessive overtime is more prevalent in knit
factories, where 62% workers undertake overtime work exceeding two hours. Excessive overtime
work appears lower among the current workers (36%) than among retrenched workers (59%).

29
Contributing factors in this regard are Covid-related order cancellations and drop-in orders etc. It
is found that RMG workers in Esquire Knit were not allowed sufficient breaks for resting. About
nine in every ten current workers (89%) were not allowed to take a break or rest, except during
lunchtime. It is interesting to note that the possibility for taking a break or rest is higher in non-
compliant factories (21%) compared to the partially-compliant factories (7%) and fully-compliant
factories (7%). In relation to female workers doing shifts after 22:00, the difference in survey
findings among the current and retrenched workers is worth mentioning. Of the current workers,
42% reported the incidence of night duty of women and of retrenched workers, 61%. However,
the practice of taking written consent is not followed in most cases where more than three-quarters
of the respondents indicated that consent was never taken from the female workers. Both current
and retrenched workers shared similar information. The degree of compliance of the factories does
not make a big difference in this regard where only 2% of all respondents (2% of the current
workers, and none from the retrenched) claimed that workers ‘always' can say no when night duty
is scheduled. Covid has influenced the working hours, overtime, rest periods, and night duties of
the workers. This impact, however, has been diverse. Pre-Covid, festival leave, and weekly holiday
were the two most common types of leave taken by the workers: 84% and 81% of workers,
respectively, reported that they always took these types of leave. During the Covid period, the
practice concerning festival leave and weekly holiday leave remained unchanged according to the
opinion of most of the workers. However, some changes have been observed in relation to the
provision of sick leave and casual leave. Possibly because the workload in many factories has
decreased and possibly because there is a risk of a sick employee passing on Covid to other
workers, employers of some factories now allow workers to take sick leave. However, 14% of
respondents have claimed that workers are now afraid of asking for sick leave and casual leave,
citing the fear of losing their job as the main reason for this. No change in the employment contract,
however, was seen despite the changes in workload during Covid. Most employers (93%) have
not changed their workers’ employment contract. There is also a lack of awareness among workers
on the provisions of the employment contracts. Fully-compliant factories provide maternity leave
at a higher level (91%) than the partially-compliant (83%) and non-compliant (63%) factories.
However, even if maternity leave is provided, the legal provisions are often not followed fully in
many factories. According to 43% of the respondents, the legal requirements regarding the length
of leave is not followed. Availability of paid leave has been reported at a higher rate by the

30
respondents from fully-compliant factories (94%) so it is found that compliance makes a difference
in the practice and availability of maternity leave. The Covid situation brought no remarkable
changes in the practice of providing maternity leave. Healthcare provisions and services have been
continuing in most of the factories during the Covid period. Only 11 respondents out of 400 current
workers (3%) have reported suspension of healthcare services during Covid-19. On reproductive
health issues, workers generally do not get any special treatment during menstruation. Six in every
ten respondents indicated that there is no special treatment, while 12% do not know whether any
facility is provided. Providing menstruating workers with sanitary napkins at a subsidised cost is
an exceedingly rare practice, which was only found in 7% of the factories. The lack in the provision
of information to workers regarding SRHR is noteworthy. Seven in every ten respondents noted
that such information was not provided. Only a few workers could talk about family planning
related information, but most workers shared that pregnant women workers received some special
attention or treatment. With regards to measures put in place to prevent the spread of the
Coronavirus, 88% of the respondents have noticed such measures. The most common initiatives,
reported by more than 80% of respondents, included the checking of the body temperature and the
availability of soap for handwashing. The least available measures, reported by 20% of
respondents, included the supply of gloves, installing disinfecting chambers, and the supply of
head coverings or caps. The availability of welfare and social protection measures before and
during Covid has yet to be ensured. None of the facilities, which include including day-care, a
breastfeeding corner, canteen, gratuity, provident fund, and accident injury compensation, among
others, were available in the factories of the respondents. The situation was worse for gratuity and
provident fund; only 27% and 18% respondents' employers made such facilities available to
workers. The Covid pandemic made the conditions worse; a declining trend has been reported for
all the services. Employers have generally not introduced any new facilities for the workers during
the Covid period except for the Covid-related health protection measures. Regarding the
prevalence of workplace harassment, the survey found that verbal harassment is the most common
harassment type which workers face (87%). Psychological harassment is also very common (77%).
According to 23% of respondents, workers were also subjected to sexual harassment. Furthermore,
three in every ten respondents have noticed the existence of physical harassments at their
workplaces Male respondents were more likely to report that physical harassment occurred in their
factory, but there was not difference in gender with regards to responses about verbal,

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psychological or sexual harassment that was caused by Covid. Respondents stated that Covid has
had a very minimal impact on the incidences of harassment within the workplace. The frequency
of the occurrence of harassments has remained almost the same throughout, but surprisingly, the
level of compliance of the factories does not make a remarkable difference with regard to
harassment.

4.2.4 Representation securities

When considering the representation securities, the research looked into participation in social
dialogue and workplace decision-making. Trade unions in the workplaces remain rare. The
presence of trade unions is slightly higher in fully-compliant factories (10%) than in non-compliant
factories (3%). Several different factors prevent workers becoming members of a trade union.
Among these factors, the most frequently mentioned are fear of job loss (45%) and fear of being
assigned to unfavorable work (60%). There is also a lack of awareness among the Esquire Knit
Composite Ltd. workers concerning the role of trade union's during Covid at their respective
workplaces. Of the thirty respondents that reported the existence of a trade union at their factory,
slightly more than half of the respondents (16) indicated that they did not know whether the trade
union raised any issue to the employers. The majority (18 of 30) were also unaware whether
employers had had any discussions with factory-level trade unions in order to mitigate the impact
of Covid on workplace working conditions. The degree of compliance of factories was a significant
determining factor regarding the availability of dialogue channels of representation in the
workplace where the availability of different committees is more evident in compliant factories.
Workers relatively lack more awareness about the antiharassment committee, canteen management
committee, and welfare committee. The majority of workers did not know whether anti-harassment
committees, canteen management committees and welfare committees have incorporated
representatives from the workers. Respondents from the fully compliant factories could mention
the existence of different types of workers' representation at a higher rate. Only a few of the
interviewed workers are members of different committees: Only 5% (24 out of 500) of respondents
had indicated that they were members. Gender variation of the membership was also
unremarkable. The lack of awareness among workers concerning meetings of these committees,

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or the outcomes of such meetings, during the Covid period is worth mentioning. In general,
workers were unaware whether the voices of workers were heard or respected by the factory
management. Regarding the incidence of protests during Covid and workers' participation therein,
one in every five workers indicated that a protest or demonstration occurred at their factories. The
level of compliance was not a determining factor in regard to the incidence of protests, which took
place in all types of factories. Unsurprisingly perhaps, the drop in income was the most important
reason for worker protest. Equal participation of men and women workers in worker protests was
observed. In sum, in all of the workers’ securities areas, the study finds that Covid has had
significant impacts on the jobs, livelihoods and well-being of ready-made garment workers and
their families, particularly on women workers. The impacts are falling disproportionately on those
who were already in precarious circumstances and who have the least ability to withstand the
additional impacts of the situation. In particular, the workplace closure measures caused massive
losses in jobs and working hours. Workers lacking proper protection of their rights at work and
lack social protections suffered high decline in terms of their work, employment, and income
securities.

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 Chapter Five

5.1 Conclusion
Corona Virus pandemic is now a great concern for all over the world. It has already crashed the
world economy and also affected in various sectors. It will be needed some years to come back to
the previous normal situation for the countries. Maintaining proper health measures and
consciousness, the outbreak effect can be reduced. The government needs to budget more in
research and development sector to invent the vaccine and be alert for upcoming threat like this.
The health sector should also be reorganized with improved facility and better technology which
we can afford. To face any unexpected event like corona, government should make a special wing
for Human Virome. The garments sector contributes the most in export earnings, so, it can turn
out the economy of Bangladesh now. Though, some companies are returning their due recently,
the amount of cancellation of orders are so high where factories cannot give the payments of the
employer and they are losing their jobs which will increase our unemployment rate day by day.
Many families are facing the trouble to survive on this situation who mainly depends on this sector.
To raise the economy line, Bangladesh government, BGMEA and BKMEA with some industries
are trying to fulfill the basic needs of the workers and introduce subsidy for different issues. The
garments workers need to be paid as soon as possible considering their economic condition. After
ensuring the health security, government should reopen the factories to continue the production
and the authorities should make contact with buyer and supplier to regain the market loss of the
sector immediately.

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5.2 Recommendations
In order for garment workers to be more resilient in the face of these threats during the Covid
epidemic, the following strategic directions are proposed to improve the guarantees of work,
income, employment, and representation.

Urgent actions are needed right now to prevent business closures, job losses, and income drop, and
to slow the trend of people shifting their work and labor into the home. For a better and stronger
recovery, interventions should build on preexisting institutions while also guiding employees and
businesses toward sustainable development.

Women are disproportionately impacted in the garment sector due to their low power and low
income, however women are underrepresented in social dialogue / union institutions. The majority
of respondents to Covid agree that women and other workers in precarious jobs should be
represented in wage, benefit, and health and safety committees. Creating and encouraging
possibilities for women's leadership in worker representation and unions will help guarantee that
women's voices will be heard in future talks.

Increase the reach and coverage of social safety nets to help people who are vulnerable or have
lost their earnings in the short term while also laying the groundwork for a more sustainable future.
In example, increasing social protection might help reduce systemic discrimination against women
by reducing their caregiving duties and safeguarding those who have just lost their jobs or are in
less secure occupations. Creating minimum standards for labor that counts as "decent" and
enforcing strict social safety nets is crucial. Employers and government alike need to provide
mandatory minimum (living) wages, in addition to health and disability insurance.

35
Create programs that help people keep their jobs, such as wage subsidies: These programs
should work in tandem with other labor market initiatives. Avoiding and minimizing vulnerability
should be the emphasis of any measures taken, as it is extremely difficult for women and families
who provide childcare to re-enter the labor market after being forced out.

Take a holistic view of the process of getting back to work: Reviving the economy and stopping
the spread of the pandemic are not incompatible goals. A false choice between getting back to
work and taking care of one's health must be eliminated. For the foreseeable future, firms will still
require strong measures based on appropriate social discourse to enable them function again and
workers return to work as safely as possible. More should be done to help workers, especially
women, balance their careers with their caregiving duties. It is important to promote and provide
family care leave for men in the workforce, and to work toward more gender-neutral societal norms
so that both sexes can equally share in the caregiving load.

Ensure a healthy and welcoming work environment: Measures taken to ensure the safety of
key workers during an acute health crisis may need to be implemented in the workplace as well.
Measures to improve OSH in the workplace, provide access to social protections, combat
discrimination, and other similar initiatives may be required.

Make improvements to labor law that are more welcoming to women: Sexual harassment,
night shifts, maternity leave length, menstrual accommodations, and gender parity are all issues
that should be addressed in labour law. Every company should have a system in place for fairly
representing employees in decision-making, such as plant-level unions or anti-harassment
committees, and these groups should ensure that women are fairly represented.

Establish open and accountable measurements of capability development: Workers may need
to switch industries, professions, and even work styles as a result of impending changes in the
labor market. They should be able to receive (re)training and develop digital skills and capacities
that will enable them weather the shift as the ready-made garment industry begins to show signs
of revival. There needs to be clear workplace promotion procedures in place so that employees
have a chance for advancement. Women in the clothing industry should have clear career paths
outlined in their workplace. A greater understanding of workers' rights Educating female workers
on how to assert their rights in the workplace and secure a safe and healthy environment for them
to do so includes teaching them how to calculate overtime pay, getting their approval before

36
assigning them to night shifts, organizing fellow employees, and serving on workplace
committees.

5.3 References
1. The Daily Prothom Alo Unable to Pay the Bill, the Child was Sold and Returned to His
Lap by the Police. 2 May 2020 https://www.prothomalo.com/bangladesh/article/1654203(
1 Oct, 2022, date last accessed)
2. Leitheiser E, Hossain SN, Sen S, Tasnim G, Moon J, Knudsen JS et al.. Early Impacts of
Coronavirus on Bangladesh Apparel Supply Chains. 2020
3. Kabir H, Maple M, Usher K et al.. Health vulnerabilities of readymade garment (RMG)
workers: a systematic review. BMC Pub Health
4. Dainik Amader Shomoy The Garment Worker was Picked Up and Raped During the
Lockdown. 6 May 2020 http://www.dainikamadershomoy.com/post/255460 (11 oct 2022,
date last accessed).
5. Khosla N. The ready-made garments industry in Bangladesh: a means to reducing gender-
based social exclusion of women. J Int Women's Stud 2009;11(1):289–303. [Google
Scholar]
6. Carlson LA, Bitsch V. Social sustainability in the ready-made-garment sector in
Bangladesh: an institutional approach to supply chains. Int Food Agribus Manag
Rev 2018;21(2):269–92.
7. Akter, S. (2020, September). Covid-19 and Bangladesh: Threat of Unemployment in the
Economy. In 5th International EMI Entrepreneurship and Social Sciences Congress
Proceedings E-Book. Dilkur Akademi.
8. Asian Development Bank (ADB) (2020). COVID-19 and the Ready-Made Garment
Industry in Bangladesh.
https://www.adb.org/sites/default/files/linked-documents/54180-001-sd-04.pdf

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9. Begum, M., Farid, M. S., Alam, M. J., & Barua, S. (2020). COVID-19 and Bangladesh:
Socio-Economic Analysis towards the Future Correspondence. Asian Journal of
Agricultural Extension, Economics & Sociology, 38, 143-155.
https://doi.org/10.9734/ajaees/2020/v38i930417
10. Center for Policy Dialogue (CPD) (2021). Vulnerability. Resilience and Recovery in the
RMG Sector in View of COVID Pandemic: Findings from the Enterprise Survey.
https://cpd.org.bd/wp-content/uploads/2021/01/Presentation-
on-Vulnerabiliies-Resilience-and-Recovery-in-the-RMG-Enterprsies-.pdf

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