Improving Social Compliance in Bangladesh's Ready-Made Garment Industry

9164 Words Jun 28th, 2013 37 Pages
Improving Social compliance in Bangladesh's Ready-made Garment Industry

Author FERDOUS AHAMED, Ph.D Faculty of Business, Economics and Law, La Trobe University, Australia Bachelor of Arts and Master of Arts in General History University of Dhaka, Bangladesh Master of Business Administration in Marketing and HRM Northern University, Bangladesh Master of Commercial Law (Studying), La Trobe University, Australia 42 Wilcox Street, Preston, Victoria 3086, Australia E-mail: ferdous72@gmail.com Tel: 0610433051172

Abstract

More than 78% of Bangladesh’s export earnings come from the garment industry. The ready-made garments (RMG) sector has a greater potential than any other sector in terms of employment and foreign exchange earnings to
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Compliance issues are recognised by ILO and WTO mechanisms (Anand, 2006).
3 2

2

informal

recruitment,

and

irregular

payment,

sudden

termination,

wage

discrimination, excessive work, and abusing child labour. Moreover workers suffer various kinds of diseases due to the unhygienic environment and a number of workers are killed in workplace accidents, fires and panic stampedes. Absence of an appropriate mechanism to ensure the enforceability of the available laws for protecting workers’ rights and maintaining workplace safety continues to be a concern in the RMG sector. As the sector is an important foreign exchange earning component, some changes are required.

Working conditions in the RMG sector frequently violate international labour standards, and Codes of Conduct (Qudus and Uddin S., 1993; Dasgupta S., 2002). Recruitment policies are highly informal compared to western standards and there are no written formal contracts and appointment letters. They are therefore vulnerable to losing their jobs at any time. However, fear of losing their jobs and lack of alternative job opportunities compel workers to continue in unsatisfactory employment (Bansari, 2010).

Kumar (2006) focusses; Garments

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