New Delhi, May 14 (KNN)  India may not stand to gain in any significant way from an adverse focus on Bangladesh apparel industry following a spate of fire and building collapse incidents which had led to causalities among workers.

Following pressure from global brands and outrage against bad working conditions of Bangladesh workers, Bangladesh government is bringing strict regulations for ensuring labour welfare. This may increase cost on the garment production houses.  But will it help the Indian apparel industry which is in direct completion from Bangladesh in the global market?

“Whatever increase they make to salaries, Bangladesh would still be a cheaper option for the international brands,” said Acting Secretary General, Apparel Export Promotion Council, Vijay Mathur.

Average monthly salaries for garment workers in Bangladesh, he said were around USD 65 while in India, they range from USD 110-140 per month.   Further, last year apparel exports from Bangladesh amounted to USD 21 billion while from India it was USD 13 billion. 

“Bangladesh is a major garment exporter and hence the country has garment centric laws, and garment exporters in the parliament probably outnumber those in the opposition.  They will certainly bring in legislation to change their image which has taken a beating with the garment building collapse,” he added.

As far as the international brands are concerned, “they normally pick a factory that can deliver to them at the right time and price, as long as they are able to maintain their profit margin, irrespective of the country.”

“Although they source from different companies, they always consider what sells, how quickly and who can fill their demand within their time frame.  Speed to the market is of essence,” Mathur said.

In this case, there have been reports of the international buyers offering financial relief packages to families of the victims.  And with positive changes to legislation, they are bound to return to Bangladesh with fresh orders.

Greater benefits to garment workers and fewer restrictions to forming labour unions figure in the changes to the nation labour laws that Bangladesh’s cabinet has approved.

The move comes in the wake of public outcry over the pathetic conditions that led to the April-24 collapse of a garment factory in an industrial suburb of Dhaka, the capital of Bangladesh that killed 1,127 people. 

However, the changes are yet to be approved by the country’s parliament. 

In Bangladesh the clothing industry which pays the lowest wages in the world is critical to the nation’s economy.

Earlier the neighbouring government had promised higher pay to employees besides making efforts to comply with international labour standards and improve conditions for workers.

Other changes that the garment industry in Bangladesh can expect are increase in severance payments for workers with longer tenures at factories; annual payments under a welfare fund to be equalized so that every garment worker, regardless of the size of their factory, will receive the same amount.

Further, factories will be pushed to modernize management practices and provide workers with banking accounts and direct deposit to protect against abuses by lower-level managers, like withholding or delaying wages. 

Bangladesh is the world’s second leading garment exporter, trailing only China, and has become a popular manufacturer for top global brands by delivering lower costs, largely because of rock-bottom wages.  (KNN)