Home / Knowledge / News / Apparel/Garments / Orthodox trade unions may discourage investments in RMG sector
Orthodox trade unions may discourage investments in RMG sector
18
May '11
The export-oriented readymade garments (RMG) industry is a key achievement of Bangladesh over the last 30 years.

Not only has a top-notch export-oriented apparel sector evolved in the country during the period, but the sector even holds the potential to further grow into an extremely dynamic one, to prove greatly advantageous for the economy.

Today, the country houses over 5,000 garment units employing around 3.5 million workers.

However, the industry seems to be far from having attained a saturation point, as just like last year, the country's garments exports this year too are growing vigorously.

The country exports in bulk to traditional export markets like the US and Canada, and is also penetrating in new considerably bigger markets like the CIS nations, Japan, New Zealand, South Africa and Australia.

Looking at the present scenario, it seems that Bangladeshi RMG industry may soon grow its production capacity almost two-fold, so as to earn substantial foreign exchange earnings and to ease poverty situations in the country through employment generation.

However, when on one hand such positive developments are coming up, on the other hand the industry is facing fresh issues of workers discontent.

However, the garment sector entrepreneurs opine that, with a steady rise in workers' wages in adherence to a tripartite deal between them and the workers, there is no scope for such distress on part of workers.

Low-cost labour is the strength of Bangladesh and even after a rise in wages; the country's RMG industry still remains to be more economical in terms of wages as compared to China, and this has greatly helped the country to gain considerably in the current competitive regime.

However, a proposed upcoming amendment in the Labour Law, 2006, which proposes to permit 100 percent trade unionism in the sector, is likely to kill this economical labour advantage.

Orthodox trade union practices have the capacity to stem the flow of new investments in the fledgling RMG sector, said an expert.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Courtesy: Authentic Brands Group

Apparel/Garments | On 17th Jan 2017

Teen retailer Aéropostale reopens 500 stores in US

Teen apparel retailer Aéropostale has reopened 500 stores in the US,...

Courtesy: Centric Software

Information Technology | On 17th Jan 2017

Centric releases version 6.0 of PLM solution

Centric Software, the leading PLM solution for fashion, retail,...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search