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Labour strife causes Tk 7.75 bn loss
Aug '10
As per calculations by apparel factory owners, the recent spell of worker's strife has rendered them a loss of Tk 7.75 billion. More over, the ready-made garment (RMG) sector will also have to work hard towards delivering international orders on time.

As announced by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), minimum wages have been recently hiked to Tk 3,000 per month and the $13 billion worth industry has mainly suffered three types of losses. These losses have been recognized as loss of production time, higher cost incurred for air freight than sea cargo and the harm caused to factories in a flurry of vandalism.

Production in majority of the 250 factories in Ashulia, which was suspended on account of labour strife, has now resumed with the announcement of new wage structure, reported BGMEA.

On the other hand, producers in China are faced with severe scarcity of labour, as workers are getting attracted towards better-paying jobs with automakers and manufacturers of electronic spare-parts.

Also, migrant workers are disinclined towards working in Chinese urban RMG factories as they now have factories in the vicinity of their households and hence, prefer working closer to home. This has lead to several orders from China being moved to Bangladesh.

Trade union leaders said that, post the recent informal agreement with government, garment factory owners, and labourers, tranquillity has been re-established in industrial hubs like Ashulia and Narayanganj.

In the meantime, labour representatives too consented to the new minimum wage for garment sector and pledged their assistance in resuming normal work environment.

Fibre2Fashion News Desk - India

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