Apparel exporters form joint committee to determine minimum prices

An intelligence agency under the Ministry of Home Affairs has worked out a set of seven recommendations for Bangladesh’s small and medium apparel factories to survive in a challenging world and avoid unhealthy competitions by offering ever decreasing prices to get foreign orders.

It said the garment associations and the government should work together to lobby the buyers strongly to increase simultaneously the prices of the products and the number of orders.

The agency also found out that the owners of some 125 export oriented garment factories were not able to pay the workers their wages for March and Eid bonuses.

Prepared by the Public Security Division of the Ministry of Home Affairs, the report feared that the workers of those unsound factories may agitate anytime demanding for their unpaid wages and festival bonuses.

It said the apparel factories in Tongi-Gazipur industrial districts are in greater risk of facing protest than factories in Chittagong and Mymensing.

The department is afraid that if the wages and allowances before Eid are not paid, there remains a risk for labour unrest erupting.

The report prepared by the police has also made a list of factories which could contribute to the looming crisis because of their inability to clear the dues.

The report has been sent to the government departments and directorates concerned for further action.

Those seven recommendations written by the agency could avert the crisis, according to the commerce ministry sources.

Although supervised by BGMEA, the apex body of the garment owners, the organisation does not seem like playing any significant role in holding arbitrations to pay the workers their unpaid dues.

The recommendations include the apparel associations will take necessary measures to lay off financially inefficient factories or advise retrenchment so that they sustain efficiently.

Another suggestion is that the factory owners should create amicable working environments for the workers and the government should take necessary steps for averting any unrest before it brews.

The suggestions are meant for keeping any unrest at bay and keep the factories running smoothly. The highest emphasis has been laid on the regular payment of wages and allowances to the seamstresses, possibly by 10th of each month.

It has called for adopting new technologies, diversifying products and augment factory efficiencies. It asked the stakeholders to look for new markets for Bangladeshi products as exports to Russia have been stalled because of its war on Ukraine.

The small and medium factories should be provided with financial and technological aid and incentives to face any global challenges, the agency report said.

“It is true that unhealthy competition should be stopped immediately to improve the image of the country and to maintain good relations among ourselves,” Muhammad Hatem, executive president of Bangladesh Knitwear Manufactures and Exporters Association told the Business Insider Bangladesh.

He said the apparel associations BGMEA and BKMEA have formed a joint working committee to formulate a policy guideline for setting up the minimum prices of Bangladeshi apparels.

“Special EGMs of BGMEA and BKMEA will be convened to formulate the policy after Eid-ul-fitr.”