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Role of Plastic Re-Cycling Industry to Create Employment

Opportunities in Informal Sector (Khulna Region)

MOHITA MITRA1, SUJAN KUMAR GHOSH 2*

ABSTRACT
Plastic waste recycling is playing an important role in Khulna as an informal sector. The study was
conducted from July to October 2009 at Khulna, Bangladesh with an aim to find out the employment
opportunities in plastic recycling industry in Khulna city of Bangladesh. In this study, it is mainly
focused on the role of Plastic Recycling Industry for employment generation in Khulna region being a
part of informal sector. Besides, the report also tries to identify the factors that can be changed to raise
the wage level of laborers working there. Following the questionnaire method through sample random
plastic recycling factories survey this paper finds plastic recycling industry provides huge employment
opportunities for the poor working class of Khulna region with wage-discrimination.

Keywords: Plastic Recycling, Employment Opportunity, Wage Discrimination,

Women and Child Labor.

INTRODUCTION
Khulna, the third largest city of Bangladesh with a large population has been a place
of commercial importance for more than 150 years. Management of solid waste in the
municipal area is the responsibility of KCC. Average total per capita waste generation
rate of KCC area is estimated at 0.22 kg/cap/day (Aborjona O Paribesh, September
2000). Total waste generation is calculated at 200 tons/day where plastic waste forms
almost 40% of this total waste (PREGA, August 2005). This Large quantity of plastic
contents present in the Khulna's waste composition indicates the necessity for
frequent collection and removal. This also indicates the potentials of recycling of
plastic waste for resource recovery.
The existence of plastic waste has opened quite an extensive possibility for various
groups of the community to utilize it. Informal sector is playing this prominent role in
collection of recyclable materials. All the buyers of the recyclable items belong to the
informal sector and only a few formal manufacturers are involved in using recyclable
substance as raw material. It has become a main source of income for several groups
of the informal sector. Plastic waste is their main source of income for livelihood.
The objective of this study is to examine how the plastic recycling process creates
employment opportunities at various stages.

METHODOLOGY
Methodology of the study involved with both primary and secondary data sources. As
the study based on informal sector, there have some lacking of secondary published
data. This study is mainly based on primary data which is collected by questionnaire
1
BSS (Hons.) in Economics, Khulna University, Bangladesh, Email: mohita_ku08@yahoo.com
2
Training Officer, Bangladesh Institute of Bank Management (BIBM), Mirpur-2, Dhaka-1216.
*Corresponding Authors Email: trainingofficer_bibm@yahoo.com

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method. Considering the importance of plastic recycling industry in the aspects of

employment creation, the location of the study area is selected some factories in areas
of Khulna city. In order to a get a clear picture of workers in plastic waste recycling
situation of Khulna city, a systematic sampling technique was applied to select sample
tokais, feriwallas, vangari-dokans and wholesalers. Information about the recyclable
materials were gathered from each actor using questionnaire survey. Data on plastic
waste recycling practices were also collected from different factories of Khulna city.
To analyze the field data, Microsoft Office-2007 package have been used. There have
also been developed a model to show how the plastic recycling industry contributes to
create employment opportunity. The study was conducted in July to October 2010 at
Khulna, Bangladesh.

PLASTIC WASTE RECYCLING INDUSTRIES IN KHULNA CITY: AN

OVERVIEW
Plastic recycling industry is one of the new and multi-usable industries in our country.
For its work it is now called the green industry. Developed countries have established
it many years before knowing its usability and necessity of keeping environment
pollution free, dirt free and make country beautiful. In Bangladesh the condition of
the industry is not satisfactory at all. And in Khulna, the condition is worse. There are
about 15 or less industry here. Most of them are unregistered. Due to this, those
industries are out of coverage of government facilities and programmes. But owing
this problem people come to involve here for low need of initial capital, unlimited
supply of raw-materials, low wage of laborers, and unlimited source of labors. The
recyclers collect raw-materials from retailers and a low cost and after recycle them
send them to the manufacturing industries.
The plastic recycling industry can play an important role of reducing unskilled labors
from the country as there needs huge manpower. It also has an important part of
giving job to the poor distressed women. But there has a problem of wage
discrimination. So, the overall scenario of the Plastic recycling industry of Khulna
region tells us, though the condition is not good at all still now, but if proper
initiatives are taken it may prove itself an excellent source of employment generation.

EMPLOYMENT OPPORTUNITIES IN INFORMAL SECTOR

There is no clear-cut definition of the informal sector and hence studies dealing with it
are difficult to compare. Production is normally outside government control and
official statistics are generally not available. Enterprises usually employ less than five
and seldom more than ten persons. Their working conditions are poor. Workshops and
equipment are usually very simple. Managerial and technical skills are limited.
Finance, raw material supplies and marketing tend to pose problems and yet, the
sector has a remarkable capacity to provide jobs and to supply primarily the poorest
part of the populations with basic goods and services.
During periods of depressed economic activity, the informal sector tends to show a
particularly high degree of vitality, adaptability and dynamism. It often provides 50 or
more percent of urban employment and plays also an important role in rural
employment. For these reasons, in recent years this sector has attracted increasing
interest as a means of coping with the growing number of job seekers.

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The formal sector is usually sub-divided in small, medium and large-scale enterprises.
With the growing size of the enterprise, control by but also promotion through the
government normally increases. Small-scale formal enterprises may face to some
extent similar problems as the informal sector. However, the dividing line between the
two consists in the fact that the latter is left more or less completely to itself whilst the
former has easier access to assistance. Especially in urban areas, there exist links
between the formal and the informal sector. In periods of economic difficulty when
the formal sector is obliged to reduce manpower, this may be partly absorbed by the
informal sector on a temporary or permanent basis. Skills acquired in the formal
sector are thus put to use in the informal sector. Furthermore, the informal sector
sometimes works under sub-contracts for the formal sector.

FINDINGS AND DISCUSSION

Recycling stages
Plastic Recycling Trade Chain includes different stakeholders at each stage. Huge
numbers of laborer are engaged in these stages for their earning sources. These
stakeholders include Feriwallas, Van-Collectors, Wastebin-tokais, DCC-Collectors,
Dumpsite-Tokai, Vangari-dokan, Wholesalers, Manufacturers etc.

Figure1: Plastic Recycling Cycle

Households

Plastic
Markets Recycling Collectors
Cycle

Recycling

The above cycle shows that how the plastic recycled from household to market. In
this cycling process there create huge number of earning sources for different
stakeholders. But from the field study, it is found that between household and
collectors; there involve huge number of child-laborers for their earnings. On the
otherhand, women workers are mostly involved in recycling factories. Though they
some extend worked at the scrap collection process.

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Different stakeholders at plastic-recycling process

The following chart shows how Plastic Recycling Industry creates employment at
every stage:
Figure2: Plastic recycling stages

Through the vendors

Collection of Plastic materials from households
by Feriwallas, Van-Collectors

Direct Sell
Sell these to the local Arotdars,
Vangari-dokan, Wholesalers

Then sell these to the local recycling factories

Grading on the basis of color of the plastic

Grinding into the small pieces

Washing and Drying under the sunlight

Selling the plastic granules to Production Factories of

Nowapara of Jessore and Islambagh of Dhaka

Heating and Melting to make plastic-lava

Produce different Plastics utensils and materials

Sell these products to the Households

Through vendors Through Sell Centers

In the following flow-chart it is shown that how at every stages there create an
employment opportunity for different stakeholders of plastic-recycling process. From
the field study, it is come to know that the intensity of women-labor involvement is at
the local recycling factories for grading, washing and grinding process. As these
unskilled cheap laborers are earning only TK.1000-1500 in exchange of their all-

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through-day hardwork. On the otherhand, huge numbers of child-labor are involved in

the plastic scrap collection process from door-to-door.
Discrimination of male-female wage
From the field survey it is found that there have intensive wage discriminations in
plastic recycling sector. In scrap collection, there engage both male and female
worker. Though they have to do same hard works, but they have severe discrimination
in their wage payment. The below figure shows the scenario:

Figure3: Wage Discrimination of male and female in Plastic Recycling sector

Wage Discrimination Scenario

3000

2500

2000
Wage at Processing
1500
Wage for Scrap
1000 Collection

500

0
Male Female

In the above figure, it is evident that the female workers are the victims of
exploitation in respect of wage. As from the field study it found that both male and
female have to do same hardwork.
Value addition & wage discrimination of child labor
From the field study it is found that huge numbers of child-labor are engaged in the
door-to-door plastic scrap collection. They are getting very little amount of wage
though they are the main source of collection of plastic scraps.
If we follow the value-addition process, we will see that the ratio of value-addition
from household to market has huge difference. From the study it is found that there
have huge ratio gap between child-labor and other labor wage. The below table shows
that the scenario of what observed in the field study:
Table1: Wage Discrimination Scenario
Working sector Male Wage Female Wage Child Wage
(TK./week) (TK./week) (TK./week)
Processing 3000-5000 1500-2200 0

Scrap collection 1000-2500 300- 800 50-150

Source: Field Survey, September, 2010

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Here, it is found that child-laborers are only involved in the scrap collection from
door-to-door. They get wage only Tk.50-150 for their whole week hardwork. But a
male and female worker get wage respectively Tk.1000-2500 and Tk.300-800. So, the
child laborers are one kind of exploited.

OBSERVATIONS
After analyzing, these followings are the concluding observations:
 The recycling factories in Khulna city are mostly unregistered. But they want to
be registered for getting loan facilities from the bank.
 A medium size plastic – recycling factory can provide job to 15-20 unskilled and
uneducated people where ¾ percent of laborers are women. But the wage of
female laborers is not more than ½ of male workers. Besides, the working
environment there is not secured for women. In spite of these wage discrimination
and environmental problems, women want to do work there as it provides them
full time, regular and permanent earnings. Thus the wage of women should be
increased. Moreover, the work places have to be secured and safe for the women.
Then more women will come here for job.
 The child also engaged here in collecting raw-materials from door-to-door for the
industry.
 The warehouses are very unhygienic, so working there is very harmful for health.
 The plastic recyclers collect raw-materials from retailers at 25-40 tk. per kg.
Whether retailers buy it from hawkers at 15-25 tk. per kg and from child laborers
at 5-10 tk per kg.
 The hawkers collect unused plastic from household in exchange of potatoes,
onion, Hawai Methai (one kind of sweet food) or buy at a very cheap rate.
 The supply of raw-materials come not only from the city area but also from other
districts like Satkhira, Dumuria, Kolagasi, Bagerhat, Fakirhat, Pirojpur,
Mothbaria, Jessore, Narail, Mongla etc.
 The cost of collecting raw-materials is 50 tk per trip by van. They need to collect
3 days in a week. One day needed at least two trips but may be more than it, based
on supply amounts of retailers.
 The weight of plastic scrap reduces 5-8 kg per 50 kg after washing than previous.
 The recyclers have to send plastic scrap to the plastic manufacturing factories at
Nowapara of Jessore and Islambag of Dhaka by truck as there exists no local large
scale plastic manufacturing factories in Khulna city which costs 10000 tk
monthly. The Nowapara plastic manufacturing industry takes only two or three
types of plastic scrap, while Islambag takes all items. The transportation cost of
both collecting raw-materials and supplying recycling plastic are paid by the
owner of recycling factories. Therefore, more plastic manufacturing should be
sated up in Khulna and its near cities for reducing transportation cost.
 The land of the factory is hired. As the factory needs huge place so, they have to
pay higher rent for the land.
 The machines of factory are operating in electricity. Due to excessive power cut,
the work of recycling is severely hampered.

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 The factories should turn under registration and Institutional loan should provide
them for the enlargement of the green business.
 It is a well source of unskilled and uneducated people of urban cities. More
industry can give birth more opportunity of getting job to poor people.
 There should have a hygienic baby-care center for keeping child of women
workers within the factory thus they can work without concerning about their
children.
 More public and private initiatives should be taken for the growth of this
environment-friendly green industry. In one hand it cleans the city and in other
hand it creates employment to the unskilled people. So the government should
give a motherly attention towards the plastic recycling industry. Besides, More
facilities should be given to the industry for its higher growth and prosperity.

CONCLUSION
The informal sector is un-organized, both at employers' and workers' level. Informal-
sector workers always get the poor working conditions and low wages. Thus it is
recommend that in the framework of employment policy, measures should be taken
which ensure a gradual development of this green industry.

REFERENCE
Aborjona O Paribesh, (Issue#5), A newsletter on waste management and recycling in
Bangladesh on September 2000.
PREGA (PROMOTION OF RENEWABLE ENERGY, ENERGY EFFICIENCY
AND GREENHOUSE GAS ABATEMENT), (August 2005), “Quantity and Quality
Assessment of Khulna City Solid Waste for Electricity Generation-A Technical Study
Report”. Prepared by the PREGA National Technical Experts from Bangladesh
Centre for Advanced Studies, Dhaka, Bangladesh.

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