A looming RMG crisis

On September 17, 2024, a female ready-made garments (RMG) worker died during a clash between workers in Ashulia in Dhaka. The clash broke between the workers of two factories over whether they should join work or carry on their protests. Prior to this incident, more than a hundred factories remained closed over multifaceted issues including worker protests and clashes. Many factories have already witnessed arson and vandalism as well.

Since the last quarter of the 1970s, Bangladesh has emerged as a key manufacturer in the textile and apparel sector, securing its position as the second-largest garments exporter worldwide. The RMG sector has been considered as the lifeblood of Bangladesh’s economy, contributing $47 billion - about 80% of the country’s total export earnings - and employing 4.4 millionworkers, of whom 80% are women. 

Beyond economics, the RMG sector contributes to social development and transformation, by creating employment for millions of women, promoting gender equality, eradicating poverty by offering stable jobs for low-income people, and more.

As the country is now in a rebuilding process and facing a lot of challenges, this ongoing RMG crisis is something that Bangladesh can’t afford to allow to continue.

How the crisis formed

The crisis over the garments in Bangladesh took shape since the gas shortage from the damage to an LNG terminal in May 2024 compelled the factories to operate at less than 30% capacity or shut down entirely. 

The situation worsened in June-July when students started protesting for public service reformation. After the revolution, the RMG sector continued to face an unprecedented crisis, driven by political unrests, economic challenges, and deep-rooted labour grievances. The two-month long widespread demonstration, curfews, internet shut down, etc, compounded by ongoing energy crisis, have caused significant economic loss in the RMG sector. 

These months of July, August, and September, are peak seasonsfor Christmas shipments and the booking of next summer and spring season's orders.

After August 29, 2024, the crisis took a sharper turn as factories in industrial areas started to close over multifaceted complexities including workers’ demands on one hand and vandalism on the other. 

The Bangladesh army was deployed to ensure law and order in the industrial area. The army talked with all stakeholders and subsequently the situation lifted to some extent as several factories resumed their operations. However, the situation is yet to lift completely.

Reasons behind the protests

There are several key reasons behind this unprecedented and debatable scenario. The workers have placed several demands including equal opportunities regardless of gender, increased wages, improved benefits, and lighter workloads. 

In addition, they also want to eradicate delays in wage payments, alleged blacklisting of dismissed workers, and contentious issues surrounding unionization have fuelled anger and dissatisfaction.

While workers have placed these demands, many factory owners are alleging the external influence in the protest over scrap and reject business, popularly known as “Jhoot Business.” Many are also alleging conspiracies to bring down the main export industry of the country.

Old wine in a new bottle?

The labour unrest in the RMG sector are not new. Often protests take place over many issues including labour rights, wage demand, external pressure, economic disarray, etc. However, the current one is a bit complex considering the multifaceted issues and allegations.

The question remains, can Bangladesh afford to prolong it anymore? Simply put, Bangladesh cannot afford to prolong the situation anymore considering the adverse impact it is likely to face if such a situation prevails for a long time.

After August 5 many have termed the present Bangladesh as “Bangladesh 2.0.” In this new reality, many opportunities are prevailing for the country to address its past and pave a path for a better future. But it has also brought upon new challenges.

To begin with, the economic activities are still in disarray due to recovery from political turmoil and subsequent instabilities. Moreover, with the RMG sector as the lifeline for Bangladesh’s export sector, if any disruption takes place, it will invoke a domino effect that would affect the overall economy in every aspect.

Besides, factories are supposed to be busy this time of year fulfilling foreign buyers’ orders for winter clothes. If they fail to spend productive hours, it is likely that these buyers will have to cancel orders and look for alternative producers in other countries to meet their business interests. 

Furthermore, if the claims of alleged involvement of external conspiracy are true, then it is also a serious threat for Bangladesh’s economic, social, and political stability. 

Way forward

To overcome the situation, a multilateral negotiation is a must. The owners, workers, and union leaders must understand the gravity of the situation. They must refrain from violent activities in the first place.

The owners need to address the logical and timely demands of the workers. There is no denying that the workers have legitimate demands that should not be denied. Delays in salary, ensuring equality, improving welfare are some of the concerns that the owners must acknowledge. Again, the blacklisting system can end the career of a worker anytime and the system is often misused. It must be reformed especially as the current government is committed to ensure democracy and human rights. The owners also need to increase the involvement of workers with the production process to create a sense of ownership in their workplace.

In return, the workers must develop ownership and devotion toward their workplace and refrain from any vandalistic activities. The workers also need to understand the reality and opt for dialogue in solving the issues.

The government must facilitate dialogue among the concerned stakeholders. They should follow a multilateral approach that would include security officials, civil society, owners, union leaders, activists, and workers to find a common ground and form solutions. As the police have not yet been fully operational, the presence of an industrial police needs to be increased. 

The government should investigate the allegation such as the tussle over scrap business and external influence because of the gravity of the potential threats. Lastly, it would be wise to not only seek for a solution to the crisis, but use the crisis as an opportunity to develop effective coordination among all stakeholders and prevent future crises.