Labor in Rmg Sector in Bngladesh

Labor: Bangladesh faces many bottlenecks to remain competitive. One is its low labor productivity. Labor productivity in the RMG sector of Bangladesh is lower than many of its competitors. Bangladeshi workers are not as efficient as those of Hong Kong, South Korea and some other countries. Beside, most factories in Bangladesh do not or cannot use the latest production technologies and management practices. The benefit of cheap labor is often neutralized by low labor productivity. As the industry has matured, the supply of skilled labor has become scarce. It is no longer true that employable labor is abundantly available. In response, BGMEA, the apex body of the garment manufacturers and exporters has embarked on skill development training programs for floor workers and managers. Beside, the infrastructure in the country is deplorably underdeveloped. A long hour of power outage substantially reduces labor efficiency and disrupts delivery commitment. Inadequate port facilities result in frequent port congestion, which delays shipment. All these increase the lead-time to process an order, i.e. the time from the date of receiving an order to the date of shipment. The industry leaders and government are aware of all these problems. The Sixth Five Year Plan has emphasized the need for skill development action plans, infrastructure development plans, and urgently resolve the power supply problems.

Employment in RMG Sector

Year | No. of garment factories | Employment (in million workers) |

2005-06 | 4,220 | 2.2 |

2006-07 | 4,490 | 2.4 |

2007-08 | 4,743 | 2.8 |

2008-09 | 4,925 | 3.5 |

2009-10 | 5,063 | 3.6 |

2010-11 | 5,150 | 3.6 |

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The government of Bangladesh sets minimum wages for various categories of workers. According of Minimum Wage Ordinance 1994, apprentices’ helpers are to receive Tk500 and Tk930 per month respectively. Apprentices are helpers who have been working in the garment industry for less than three months....