Apparel Online Bangladesh Magazine December Issue 2018 | Page 18

COVER STORY – CHALLENGES FOR 2019
Face -to -F ac e wit h t he BGMEA Presid ent
Apparel Online Bangladesh speaks to President of the Bangladesh Garment Manufacturers and
Exporters Association (BGMEA) Md. Siddiqur Rahman to know his views on various challenges
facing the industry, and the way forward…
AOB: After the new minimum wage
is implemented, what would be its
implications on the future of the apparel
sector... What is the official stand of
BGMEA on this issue?
Md. Siddiqur Rahman: The Minimum
Wage Board for the RMG sector has
set the new minimum wage at the
amount of US $ 97 per month. This is for
unskilled workers who have just joined
the industry with no knowledge about
factory. This is a 51 per cent increase
compared to the earlier figure and will
certainly create pressure on our factories
as we are competing globally. However,
ensuring the well-being of the workers
down the supply chain is a core element
of responsible and sustainable business.
We will do our best to comply with the
new minimum wage and I believe buyers
will come forward by paying justified
price, as they have been also asking
for increasing the minimum wage. The
President of the American Apparel &
Footwear Association (AAFA) sent a
letter to the Honourable Prime Minister
of Bangladesh Sheikh Hasina requesting
her intervention to increase the minimum
wage of the workers, and the letter was
copied to many including BGMEA. At
Md. Siddiqur Rahman, President of the Bangladesh Garment Manufacturers and
Exporters Association (BGMEA)
the same time, workers shall also have
to come forward, take responsibility to
improve productivity and cooperate with
the factories to tackle the impact. So it’s
not only about the factories but also the
other players playing their roles to help
the industry sustain. I hope by enhancing
the minimum wage, we have shown our
commitment towards the well-being
of the workers in addition to what we
have been doing for the last five years to
ensure their safety. Bangladesh, being an
LDC, now offers a wage much higher than
many developing countries and we take
it as a progress toward establishing a
sustainable industry in Bangladesh.
AOB: Despite boasting of second
highest number of green factories (some
top-ranked globally), manufacturers are
increasingly getting disillusioned due
to lack of fair pricing. What is the way
forward?
Md. Siddiqur Rahman: Sustainability is
a global agenda now and one of the most
important pillars for future business.
And it’s amazing to notice how the
apparel manufacturers in Bangladesh
are increasingly embracing sustainability
initiatives. Making huge investments for
workplace safety and establishing green
factories are testifying this fact. However,
the disappointment happens when
factories don’t get real appreciation from
buyers in the form of price incentive. But
I think this is a transitory phenomenon.
Though we have made huge progress to
transform our apparel industry, it remains
largely unknown around the world. A
number of brands and retailers are still
unaware that some of the best factories
globally are located in Bangladesh. So
there is a huge opportunity for the global
brands to benefit themselves by sourcing
from Bangladesh, not only economically
but also socially and environmentally.
As we keep progressing, the change
will be more prominent and visible and
eventually we will have a stronger footing
to get better price.
18 Apparel Online Bangladesh | December 2018 | www.apparelresources.com
AOB: Has the European Union
delegation, which was supposed to
assess the labour rights scenario (a
condition to continue trade benefits
to EU) during its visit, expressed
satisfaction on the overall scenario or
has it suggested any remedial steps? In
the long run, will there be any adverse
implications on apparel export due to
labour issues?
Md. Siddiqur Rahman: The
delegation from the European Union
came to Bangladesh to discuss about
the labour rights and the ongoing labour
law reform issues. During their visit,
they have discussed with different
stakeholders including the Government
and BGMEA. We have shared with
them the progress we have achieved so
far regarding safety and rights issues
including amendment of the labour
law in Bangladesh. The delegation
expressed their satisfaction on the
overall improvements and showed their
willingness to remain engaged. In fact
Bangladesh is a country which ratified
seven core conventions of ILO out of eight
which many developed and developing
countries did not ratify. We are taking
steps to align our laws and regulations
with those conventions and are making
amendments in the law in consultation
with ILO.  
AOB: Bangladesh is expected to
graduate into a developing nation.
What impact would it have on
the garment industry considering
it enjoys free market access and
duty benefits as an LDC in many
other nations?
Md. Siddiqur Rahman: Yes, we will lose
the privileges that we enjoy as an LDC on
graduation but there is still a long way to
go for that to happen. Currently, we are
discussing and deliberating on the way
forward including even the Government
as it also needs to play a crucial role in
the whole process.