Research & Study
Assessment of Technological Transition in Apparel Sector of Bangladesh and Its Impact on the Workers
February, 2025
This research study on the impact of automation on workers is crucial in the context of several global and national commitments and obligations. At the global level, the study contributes to the Sustainable Development Goals (SDGs), particularly Goal 5 on gender equality, Goal 8 on decent work, Goal 9 on industry, innovation and infrastructure and economic growth and Goal 10 on reducing inequalities. These global commitments are designed in such a way that they uphold labour rights. Nationally, the study addresses the country’s development goals for 2030 and 2041. Ensuring the sustainability of this industry is crucial for Bangladesh to maintain its preferential market access, such as the GSP+ status, and its transition to a Middle-Income country by 2026.Understanding the gendered impacts of automation is important for addressing power dynamics and promoting gender equality in the industry. It is also relevant to gain the goals of National Women Development Policy 2011 (Ministry of Women and Children Affair 2011) as apparel has been portrayed as a wheel of women empowerment model in Bangladesh.
Key Words: Technological Transition, Apparel Sector, Just Transition, HREDD, 4IR
Background
Bangladesh is the second highest RMG exporter in the world after China, contributing 7.87% of the national GDP and 81.29% of the country’s exports in FY2024. Bangladesh is now home to 61 of the top 100 highest-rated LEED-certified factories in the world, with 229 LEED-certified green factories. The world is now shifting towards a technological transition like 4IR. However, the technological transition brings out drastic changes in the industries like RMG, textiles, etc., posing challenges for the workers (i.e., job loss, skills, decreased overtime, etc.) as well as manufacturers (i.e., investment, training, productivity, alternative jobs for the workers). Considering this, the Bangladesh Labour Foundation (BLF) commissioned this study on “Assessment of technological transition in Apparel sector of Bangladesh and its impact on the workers,” with the support of the Solidaridad Network Asia, which was conducted by BRAC University between August and October 2024. The research utilized mixed methods: Surveys of 429 workers from Dhaka, Gazipur, and Narayanganj, Key Informant Interviews (KIIs) with 26 stakeholders and 4 Focus Group Discussions (FGDs) with workers.
Objectives
- To explore the current-status of technological transition and automation in the apparel industry
- To understand the impact of automation on garment workers and its effects on workers’ livelihoods
- To evaluate the readiness of the stakeholders towards technological transition and automation
Key Findings
- The status of automation is still at a low to medium level, only 3 phases are fully automated which are spinning, dying, and finished fabric preparation.
- The official capacity of automated machines is about 200 pieces per hour, while a factory using manual machines can only make 50 to 60 pieces per hour. the efficiency was increased by 3% to 5%, optimized production was possible.
- 85% of surveyed workers reported reduced physical strain, particularly in knitting tasks, with notable productivity gains from automated machines and the number of errors has reduced by more than 50% with automation.
- The total decline in workers across processes is 30.58% and the majority of them were helpers.
Recommendations
- Develop a strategic plan for sustainability to ensure a just transition for workers and smooth business operations.
- Ensure responsible business conduct (RBC) and ethical trading practices & conduct impact assessments to evaluate and update the social and economic effects of automation on workers and suppliers.
- Coordinate and collaborate with employers, employers’ associations, brands, Government, and CSOs to initiate structured capacity development program that equip workers with skills for new roles in automated environments.
- Develop a National Plan of Action on just transition prioritizing workers welfare that includes job creation, skill development, and social security for those affected by the automation.
Whether a factory will embrace automation or not, it depends on different critical factors apart from a direct positive impact on productivity. Usually leading factories do a cost-benefit analysis of labour cost versus automation. In most cases, the factories argue that the labour cost, although the minimum wage has increased, is still the lowest compared with Vietnam, the competitor of Bangladesh. The factories that cannot afford expensive machines do not see the use of labour with the manual machines as a major obstacle to doing business. The other determinant factors are design of garment, expectations of brands and the current skills of workers. Moreover, the industry remains unprepared for a Just Transition and compliance with Human Rights and Environmental Due Diligence (HREDD) standards. The lack of structured reskilling programs puts low-skilled workers, especially women, at high risk of displacement. Additionally, weak labour protections and limited social safety nets could exacerbate inequalities, leaving workers vulnerable to job losses and wage suppression, threatening livelihoods and export competitiveness, including GSP+ eligibility. Our policymakers, employers and trade unions also lack strategies on how to ensure reskilling, social protection and responsible business practices.
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Publication Details
Date: February, 2025
Contact
Bangladesh Labour Foundation (BLF)
107 Bir Uttam C.R. Datta Road
Dhaka – 1205
Bangladesh