Researsh & Study
The Local Readymade Garment (RMG) Industry in Bangladesh has made silent revolution, covering around 80% of local consumption. The workforce in the local RMG workers came from the poor families. Child labour remains prevalent, and the industry has lack of formal regulations. Consequently, workers do not benefit from formal employment practices such as contract agreements, standard wages, or regular working hours. Studies reveal that worker-employer agreements are entirely verbal.
The Bangladesh Labour Foundation (BLF) is actively working to improve the working conditions in the local RMG sector. In 2017, BLF conducted a study to gather baseline data on the nature of local garment shops and the socioeconomic status of workers. BLF is now aims to compare wage scenarios between export-oriented and local market RMG industries and to recommend a wage level for local RMG workers that would ensure a decent standard of living.
Objectives: The objectives of the study are to know the comparative wage scenario of the RMG workers both at export oriented RMG industries and RMG industries for local market and to analyze the wage of local RMG workers in the perspective of current economic conditions of Bangladesh, etc.
Methodology: This report has been prepared based on collected data using both qualitative and quantitative methods. Data was gathered from both primary and secondary sources. Primary data was collected using FDGs, and KIIs with the local RMG workers and their union leaders. Secondary data was collected through a literature review, review of web/online contents, policy review and institutional reports’ review.
Findings: The minimum wage for the RMG Workers fixed by the government is not followed by local RMG factory owners but export oriented garments do. local RMG worker received less wages than the workers of export oriented RMG industries. The majority of the local RMG workers in pay on the basis of piece rate while export RMG workers get it based on working hours. The average working hour is higher in local RMG than export RMG and do not follow overtime rules. Female workers get less wages in compression to male workers and no maternity leave enjoyed by the female workers in local RMG. Workers in local RMG are deprived from the benefits and facilities which is enjoyable according to Bangladesh labour law. As an informal industry and not regulated under any rules and regulation, local RMG industries owner operated their industries as their wish.
Recommendations:
- Recognize local RMG industries as a formal industry and ensure the rights of the workers through administration and enforcement of relevant legal instruments.
- Wages should be given top most priority to evade unrest in the local RMG factories.
- To ensure that the factories install standard system of appointment, payment and leave facilities for the workers, the civil society organization and representative unions should organize the workers and enable them to exercise claimant and assertive behavior through training and mobilization.
