Garment industry environment undergoes radical transformation

In the past 11 years since the collapse of Rana Plaza in Savar, there has been a fundamental transformation in the garment sector workplace. Owners of these sectors, along with labor leaders and researchers, acknowledge this change. They said that following the tragedy that claimed the lives of 1,135 garment workers in Rana Plaza, factory owners, under pressure from European and North American buyers, have invested heavily to ensure safe working conditions. Western diplomats have also criticized the garment sector in Bangladesh at various times, acknowledging that it now publicly accepts its safe and compliant status.

Factory owners claim that while accidents used to occur almost every year in the garment sector, there have been no major accidents since 2015. This period has seen factories strengthened from within, as recommended by the Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Worker Safety, under the recommendation of European and North American buyers. As a result, garment factories have become more resilient from within. Consequently, instead of losing buyers, owners are exerting pressure to increase the prices of garments to recoup the investment. In the fiscal year following the collapse of Rana Plaza, i.e., in 2012-13, exports from this sector amounted to $21 billion. However, despite various ups and downs, it stood at $46.99 billion in the fiscal year 2022-23. In the first eight months of the fiscal year 2023-24 (July-February), exports from this sector amounted to $32.85 billion. Owners plan to increase the export earnings to $100 billion in 2030 by branding the story of transformation in the garment sector worldwide.

Leaders of the BGMEA have indicated that the circumstances from the inception of the garment sector to the collapse of Rana Plaza will be considered, and the significant changes in this sector will be highlighted. The U.S. Green Building Council has awarded LEED certification to 207 garment factories in Bangladesh, with 77 of them being platinum-rated. The BGMEA states that Bangladesh's garment sector leads globally in environmentally friendly industries. There is an initiative to increase the price of garments and improve conditions further.

They informed that after the collapse of Rana Plaza, Western buyers of Bangladeshi garments began protests against garments made in Bangladesh in front of the offices of influential brands. Three months later, in June 2013, the United States suspended Generalized System of Preferences (GSP) trade benefits 20 times, conditional on implementing 20 agenda items. Although these were considered crucial for GSP reinstatement, the government did not fulfill them. European countries also pressured the garment sector for timely renovations. Consequently, the Accord and Alliance began work on the renovation of Bangladesh's garment sector. Of the 2,254 factories audited under the Accord and Alliance, nearly 90% have been renovated. On the other hand, 194 factories have been declared unfit for business due to non-renovation. The renovation work of 625 factories has been completed from start to finish. In this renovation work, everything from fire suppression systems to electrical equipment has been tested to eliminate faults from the owners' end.

The factory owners said that during this time, the government has supported them by accepting corporate tax rates and reducing import duties on the use of fire suppression equipment in garment factories. In the past six years, small and subcontracted garment work in buildings like Rana Plaza has been either closed or relocated elsewhere. The government has also formed a parliamentary committee, giving top priority to the renovation of the garment sector. In the past 11 years, there have been no major accidents in this sector. Worker dissatisfaction has also decreased.

Regarding how far the garment sector has progressed after the collapse of Rana Plaza, former vice-president of BGMEA Siddiqur Rahman told Views Bangladesh that, "The world's best factories are now in Bangladesh. Building safety, fire safety, electrical safety - everything has been improved. The collapse of Rana Plaza was a wake-up call for us. The media of various countries, including the United States, say that Bangladesh's factories are now the safest in the world. Before 2015, we used to see many accidents, including fire accidents. Now, that is no more. No accidents have occurred so far due to strong fire safety."

He further said that, "Western buyers do not pay Bangladesh the price they pay for garments made in India. We did not have the opportunity to negotiate our rates due to the lack of a good image. That situation no longer exists. Increasing the price of garments is our main challenge now."

Former director of BGMEA and Member of Parliament from Dhaka-18, Khasru Chowdhury, told Views Bangladesh “Before the collapse of Rana Plaza, there were no green factories in the country. Currently, there are 215 such factories, including those categorized as platinum, gold, silver, and certified. No other country in the world besides Bangladesh has such a situation. Bangladesh has now reached such heights that are incomparable with any other country.”

When asked how much it is possible to fulfill the conditions of the United States to get GSP benefits in the market, he said, "After the cancellation of GSP, the United States had given many conditions, most of which have been fulfilled. We have not accepted a few conditions. Bangladesh has fulfilled the most conditions compared to other countries, as the United States has given many conditions to various countries worldwide."

Amirul Haque Amin, the president of National Garment Workers Federation, admitted the change in the garment sector in recent times. He said, "After the collapse of Rana Plaza, there has been significant improvement in the safety arrangements for workers inside the factories. The working environment in the factories has been ensured. The training of workers has increased, and their awareness has also increased. However, this work is not yet fully completed. It is necessary to continue the ongoing renovation programme to ensure a safe workplace."

Research Director of Center for Policy Dialogue (CPD) Khandaker Golam Moazzem said that there have been many structural changes in the garment sector. The factories have become safer, but there has been no improvement in the workers' conditions. In the future, more emphasis will need to be placed on improving the living standards of the workers.

FBCCI President and former Vice President of BGMEA Shafiul Islam Mohiuddin, stated, "After World War II, Japan and Germany did not want to import goods from any country. After their defeat in the war, there was a negative perception about them worldwide; however, they managed to change the situation by increasing the quality of their products. After the collapse of Rana Plaza, Bangladesh also faced a negative perception regarding its garments. With an additional investment of 5-30 crore in each factory, they have been made safer. Now, these efforts are being promoted to gain trust from the global community. Through this, we will be able to charge a fair price for our garments because the quality of our garments is much better compared to other countries."