Bangladesh Garments Manufacturer and Exporter Association (BGMEA) 2020 Sustainability Report

The full report is available HERE

Key findings:

The ready-made garment industry (RMG) is critical to Bangladesh economically. In 2018, RMG accounted for 84% of the country’s total exports and 11% of Bangladesh’s gross domestic product (GDP). The RMG industry supports about 4.1 million workers (including 65% female) in Bangladesh directly and additional 40 million workers through backward and forward linkage industries. North America and Europe are the two major destinations of RMG exports from Bangladesh.

Led by BGMEA, the Bangladeshi RMG industry has made efforts to improve in its social responsibility and environmental sustainability practices.

  • Specific initiatives include regularly monitoring workplace safety & compliance, providing social standards training for factories, offering guidance for sustainable use of natural resources and green buildings, and improving workers’ various benefits (such as fair wage, skill development, gender equality and better working condition).
  • The gender wage gap in Bangladesh was 2.2%, much lower than the 21.2% of the world average.
  • The Bangladeshi RMG industry has also made efforts to promote freedom of association and collective bargaining, an important aspect of human rights for workers defined by the International Labor Organization (ILO).  The number of trade unions in the RMG industry has increased from 138 in 2012 to around 800 in 2020.

The Bangladeshi RMG industry still faces several major challenges that need to be addressed. For example:

  • A lack of skilled labor force and skill development opportunities. In some cases, the RMG factory owners have to pay more costs than they assume due to the fact that unskilled workers need more working hours than skilled workers.
  • Pressure from competition and production cost. While RMG factories have to spend more on remediation and compliance investment, they are facing a declining selling price of their products. As a result, factories are struggling to maintain their social and environmental compliance while sustaining the business.
  • Looking into the future, international buyers sourcing apparel from Bangladesh care most about the country’s safe working conditions, fair wages to the workers, no use of forced or child labor, social and environmental sustainability, and good business environment. In comparison, workers in the Bangladeshi garment industry care most about fair wages, bonuses on due time, a safe working environment, overtime, and job security.

Summarzied by Hailey Levin

FIBERcast8: Two Years After the Rana Plaza, What Has Changed?


Panelists:

  • Zara Hayes, Director of Clothes to Die For
  • Sarah Hamilton, Producer of Clothes to Die For
  • Mara Burr, Senior vice president from the Albright Stonebridge Group
  • Avedis Seferian, President and CEO of Worldwide Responsible Accredited Production(WRAP)
  • Marsha A. Dickson, Professor of Department of Fashion and Apparel Studies, Irma Ayers Professor of Human Services, Co-Director of Sustainable Apparel Initiative, University of Delaware

Panel discussion questions:

  • What does the Rana Plaza tragedy bring out those aspects of the garment industry that many people don’t know?
  • What was it like going to Bangladesh and talking to survivors of the Rana Plaza? What are the behind the scene stories of filming the documentary Clothes To Die For?
  • What changes are happening in the Bangladesh garment industry after the Rana Plaza? Particularly, what people in Bangladesh are doing to prevent tragedies like the Rana Plaza from happening again?
  • The Alliance for Bangladesh Worker Safety (the Alliance) is a major effort from the U.S. business community in response to the Rana Plaza tragedy. What the Alliance has being doing, what major accomplishments have been achieved and what is the future work plan of the organization?
  • Has corporate social responsibility (CSR) practices in the Bangladesh garment industry critically improved after the Rana Plaza? Compared with other leading apparel manufacturers in the world such as China, Vietnam, India, Cambodia and Indonesia, is Bangladesh still significantly lagging behind in terms of corporate social responsibility practices?
  • How does the academia look at the Rana Plaza? Does the tragedy lead to some new research questions? What is the “academic” recipe for improving the CSR practices in the Bangladesh garment industry?
  • Will enhanced factory inspection increase production cost and make apparel “Made in Bangladesh” lose price competitiveness?
  • To prevent tragedies like the Rana Plaza from happening again, what each individual consumer can do or should do?
  • Sub-contracting is regarded as an indispensable part of today’s global apparel supply chain. But factories undertaking sub-contracting work operate in a “black box”—many of them are off the chart for inspection and audit. Any progress or new thinking on how to solve the sub-contracting issue in the garment industry?