ACT members urged to negotiate apparel prices before new wages

Staff Reporter  :
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the ACT members to negotiate apparel prices considering the implementation of the new wage board for the readymade garment workers.

ACT (Action, Collaboration and Transformation) is a ground-breaking agreement between global brands and retailers and trade unions to transform the garment and textile industry and achieve living wages for workers through industry-wide collective bargaining linked to purchasing practices.

Not only the manufacturers but also all the stakeholders and beneficiaries of apparel industry should come forward to the welfare of the labours of the industry, the BGMEA thinks.

The National Minimum Wage Board is preparing to determine a new minimum wage for RMG labourers in Bangladesh and it is expected to be declared by December this year.

In a letter sent to the ACT members, the BGMEA President Faruque Hassan said, “Now, inflation and production cost hike including gas, electricity, fuel, transport and other costs, is squeezing our breathing space.”

“In fact the workers, who are the lifeline of this industry, are suffering the most from the inflation. We know that the price level has also gone a bit higher, but barely enough to cope up with the cost upsurge,” he added.

“However, your concern regarding the minimum wage is absolutely valid and we are equally concerned as the workers are the part and parcel of our industry and the lifeline of country’s economy,” the BGMEA president said.

“Considering the standard and cost of living of our workers, and the inflation, we also expect fair price and ethical sourcing from our valued buyers.

Therefore, we would urge you to engage with global brands, retailers and their representatives to be more empathetic and rational on pricing and sourcing practices,” the letter said.

“Amid the high inflation, managing supply chain has become difficult at retail end and we, the manufacturers are in a complete ‘nightmare situation’ to manage our capacities, supply chain, planning and forecasting,” he added.

“At our end, we are working relentlessly to improve the skill and efficiency level of our workers.

I think, such initiatives should have broader collaboration so that in one hand workers become more empowered and add more values to their factories,” the letter read.

Regarding the letter, BKMEA Executive President Mohammad Hatem told The New Nation, “All stakeholders like brands and retailers should take the new economic reality into their considerations.

Otherwise, it will be very difficult to manage supply chain for the manufacturers.”