Shanto Mariam University of

Creative Technology
Assignment
On
An Analytical Report on Bangladesh garments industry during the
Covid 19 situation

Course Code- AMM-4219

Submitted to: Mr. Suhal Ahmed

Submitted by:
Mohammad Raim Razzak
ID-191057011
Group-A
Sem-11th
Date -4-6-2021
 ACKNOWLEDGMENT

I take this opportunity to express my profound gratitude and deep regards to my

guide Mr. Suhal Ahmed (lecturer) for the opportunity to let me do this
assignment and her exemplary guidance and constant encouragement
throughout the course of this assignment. His blessing, help and guidance shall
carry me a long way in the journey which I will embark.

I also take this opportunity to express a deep gratitude to my family, friends and
of course my group member for their cordial support and valuable information
which helped me in completing this task in the stated timeline.

Sign- Raim

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Introduction

COVID-19 today has gripped the attention all around the world due to its deadly impact
rendering the World to a standstill. It is subsequently named after SARS-Cov-2. Some
experts believe that its origin is from the wholesale food market at Hubei province in China.
Most of the infected persons in its incipient stage were related to this market such as stall
owners, retailers, employees, and consumers. Later this province was declared as the source
of the Covid-19 outbreak, and as a result in January 2020 market had been closed. After a
month, the virus started spreading to other countries notably in the USA, INDIA, BRAZIL,
ARGENTINA, RUSSIA, and SPAIN. This virus is contagious and spreads typically from
person to person by sneezing, coughing (droplet transmission) and touching a contaminated
surface. Many times, the infected person can be asymptomatic i.e. they could already be
infected with the virus but symptoms may not be visible. Symptoms generally show up in
about 14 days and transmission is hence possible before having any symptoms.
Recommended precautionary measures such as washing hands with hand wash, using musk,
avoid handshake, maintaining one-meter distance, self-isolation of 14 days for those who
travelled to infected areas or if someone is suspected as a possible victim are prescribed. The
origins can be traced back to China but the virus has suffused to almost every country today.
According to research, published in the Lancet, the research predicted that 6.4% of Covid-19
infected people older than 60 could die, but this could rise to 13.4% for those who are above
80 years of age. As of 20 October 2020, the USA is having the highest number of cases
followed by India, Brazil, Russia, Spain, Colombia, and Bangladesh enlisted as 16 positions
out of 216 countries.

Parents working in a garment factory located in Gazipur (near Dhaka) had to sell their
newborn baby, as they could not pay the hospital bill of BDT 25 000 ($295). The father of the
newborn baby said that they could not manage hospital bills as the garment factory, where
both husband and wife used to work, was closed because of the COVID-19 pandemic.
However, the local police rescued the baby and returned it to their parents.

The above story was published on 2 May 2020 in one of the most highly regarded national
daily newspapers (The Daily Prothom Alo) in Bangladesh. It is just one example of the
terrible toll COVID-19 has had on the readymade garment (RMG) industry workers in
Bangladesh. RMG workers were already established as a highly vulnerable group before
COVID-19, with the evidence of heightened risk being reported including the evidence of
rape and suicidal cases (during lockdown), infections and deaths related to COVID-19.

COVID-19 poses a serious threat to global public health in both developing and developed
countries. Bangladesh is at great risk from this public health emergency due to its insufficient
preparedness to manage this potentially fatal virus. Bangladesh, being a developing and
overpopulated country, has made a slow start toward COVID-19 preparedness only declaring
its first COVID-19 patients on the 8 March 2020. The late identification of COVID-19
infection in Bangladesh not only delayed preparedness to prevent and treat COVID-19
infections, but it also meant that those who are the most vulnerable and disadvantaged in the

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country have been more impacted by the disease. The RMG workers of Bangladesh are one
such group. These workers have little or no education, are unskilled, have low socioeconomic
and often rural backgrounds, and possess less bargaining power, resulting in their
identification as vulnerable. This discursive paper explores the potential impacts of the
COVID-19 pandemic on this recognized vulnerable group. The paper also outlines the
current and longer-term impacts of the COVID-19 pandemic on the RMG workers and
identifies existing support systems.

Impact of Covid-19 on garments sector in Bangladesh

Bangladesh reported its first confirmed coronavirus case on Sunday,8th March 2020. Two of
them were returnee from Italy and the remaining one was the family member of the infected
persons. It was the first wave of coronavirus in Bangladesh. Govt ordered to cease all
manufacturing activities in the Garment industry in late March as a result, the worker had to
move back to their homes.

The major buyers of Bangladesh including American and European fashion firms namely
GAP, ZARA, H&M, Primark, Marks & Spencer are slashed their imports and orders due to
financial crunch & fall in consumer spending because of the Covid-19. It is assumed that
nearly 6 billion order has been cancelled. According to Bangladesh Garment Manufacturers
and Exporters Association (BGMEA),982 million units of garment products which is worth
$3.18 billion had already been cancelled. On the other hand, Bangladesh depends heavily on
raw materials supplied from China. According to BGMEA 40% of the machinery and spare
parts for the RMG are imported from China that accounts for half of the REGULAR
IMPORTED RMG raw material. The supply chain of raw materials is severely disrupted due
to the unexpected outbreak of COROPNAVIRUS.

In June (2020), Only $2.12 billion had been earned for the final month of the immediate past
fiscal year. According to Bureau, Customs and Bangladesh Garment Manufacturers and
Exporters Association (BGMEA) the earnings were 11.43% lower as compared to the
previous year but up 72.4 percent from the previous month. The RMG witnessed a record low
in revenues; earnings from the sector stood only $0.37 billion, the lowest since triggered
booming occurred four decades ago. The following TABLE-3 shows export performance and
growth rate of Financial Year 2019-2020.

We can draw the conclusion that Covid19 brought a catastrophic impact on the Bangladesh
Garment Sector sector. This pandemic has not only disrupted economic activities but also
caused a migrant crisis. Thousands of workers lost their job due to deficient production and
2.28 million workers (Source: BGMEA) have tested positive. Around 850 factories are
operating with fewer workers due to inadequate facilities for maintaining social distancing.
They are vulnerable to getting infected while they are being recalled to report for work in
these unprecedented times.

On the contrary, if the garment factories remain shut and the owners were too asked to pay
the salaries in full, it would be unsustainable which will further cripple the industry. This is a
pressing concern that needs to be addressed before the situation goes beyond control. The

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owners, therefore, have decided to continue their operations in a staggered manner and pay
the workers for the work done accordingly instead of having to pay the workers without any
production, which seems more pragmatic. So accordingly, the Government, Employers, and
workers are cooperating to cope up with this challenging scenario and find a middle ground.
If such is not the case, there would-be large-scale unemployment which would eventually
push people towards poverty and hunger. About 21.8% of people live under the poverty line
in Bangladesh. The percentage is likely to increase manifold if people remain out of work. In
March 2020, $500 million has been announced as a relief package to the garment sector by
the Government, and later it has been increased to $8 Billion.

After months of lockdown economies of the EU, the USA, China and other countries are
opening up slowly. Some retailers and other brands have decided to keep their shops open to
facilitate some inflow of orders to the Garment sectors. The international orders are picking
up in Bangladesh, Government has taken steps to oversee that the garment sectors reopen in
phases so that the previous obligation of the buyers are honoured. Accordingly, the workers
are coming back to the factories for work. the International Labour Organization (ILO) noted
this development in Bangladesh and has urged the Government to maintain working
conditions conforming to the safety norms in Covid-19 because there is always an imminent
risk of spreading the virus in workplaces.

COVID-19’s impact on RMG’s supply chain.

The impact on the RMG industry will not be limited to itself and might have grave
repercussions on other industrial, consumer and service sectors. The value addition in the
RMG industry has increased gradually and stands at 63.2% as backward-linkage industries
developed.13 At an investment of $6 billion, a large capital-intensive textile industry has
been established for supplying yarn and fabric to the export-oriented RMG industry.14
Presently, there are 1,461 manufacturing units in the textile-value chain, of which 425 are in
yarn manufacturing, 796 in fabric production and 240 in dyeing-printing-finishing operations.
There is also a large number of accessories suppliers, mostly small and medium enterprises
(SMEs), who are providing buttons, zippers, hangers, threads and other accessories.

The RMG industry is a key contributor to other economic sectors, such as, banking,
insurance, real estate, packaging, hotels, recycling, consumer goods, utility services and
logistics. A World Bank survey revealed that 98% of RMG factories are clients of
commercial banks. All machines and plants are insured with insurance companies and,
additionally, 87% importers and 15% exporters get their imports/exports insured with
insurance companies. It is estimated that port usage fees earned from the RMG sector account
for more than 40% of the income of the port authority.15 The 4.1 million workers in the
industry have also created a large demand for low-cost consumer goods, such as cosmetics,
dresses, footwear, utensils and other products. The looming crisis in the RMG industry will
have a multiplied chain reaction on the whole economy and salvaging this industry will be
beneficial to other sectors as well.

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The situation with factory production

Many workers came back to the capital under the assumption that they would return to work
on 5 April, only to find out that closure would continue until 12 April. On 7 April, Commerce
Minister Tipu Munshi urged factory owners to pay the salary for the month of March to their
workers before 16 April. ‘You (owners) can’t fire any workers even though the factories
remain closed due to the Covid-19 pandemic in the country,’ he added. Garment workers of
at least 11 factories in Savar took to the streets on 12 April demanding wages of the previous
month, as some of them had not been paid the previous month’s wages, which are supposed
to be paid by 10th day of the month.

On 10 April, The Bangladesh Garment Manufacturers and Exporters Association (BGMEA)

and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) announced in
a joint statement that the readymade garment (RMG) factories would remain closed until 25
April. The statement added, ‘if any factory office remains open to disburse wages and other
payments during the period, the factory authorities will have to inform the respective trade
bodies and industrial police about this.’

On 25 April, BGMEA said it will set dates for reopening member factories gradually. ‘Until
any direction is received, you (factory owners) are requested not to ask workers to return to
Dhaka,’ BGMEA said. BGMEA issued a general directive to the member factories regarding
reopening the factories. In the first phase, starting 26 April, factories operations were to start
with 30% of the workforce, advising to ask only the workers living near their respective
factories to join. In the second phase, on 2 May, based on the success of following health and
safety guidelines, factories may invite back an additional 20% of the workforce. 

The guidelines advise factories to open using one or more of the following methods:

Prioritise workers that live nearby;

Those who returned to the villages should be discouraged to return, or not permitted on
factory premises until after the second phase

Exclude  vulnerable workers, or those most at risk, such as pregnant workers or workers over
age 50. The guideline furthermore mentions that factories should consider paid leave for
these workers

The planning team may decide to prioritise opening the finishing section, sample section or
part of sewing initially.

The guidelines also detail measures related to social distancing, use of PPEs, sanitation,
handwashing, having a medical team and a separate area for to assess and quarantine
suspected patients, etc.

Following the announcement to allow reopening, local news reported that 1,427 other export-
oriented units reopened on 26 April, followed by another 1,820 factories on 27 April. Despite
BGMEA’s directive not to ask workers (who are back in their villages) to return to

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Dhaka, hundreds of garment factory workers left their villages on foot or jammed into
whatever vehicle they could get to join work in Dhaka and its outskirts, thereby ignoring the
risks of contracting and spreading the coronavirus.

Experts and union leaders have expressed concerns. Many workers from different factories in
Savar, Ashulia, and Mirpur said the health and safety measures were inadequate and barely
anything had changed in the way they worked. A large number of garment factories are not
maintaining social distancing as per the health safety guidelines on the working floor and
factory entrances, increasing the risk of contracting the coronavirus. The article mentions that
‘a number of factories in Ashuli and Chattagram resumed operation with 70 to 80 percent of
their workers.’

A BGMEA official said the association had a field-level monitoring system – including

surprise visits from zone-wise teams. Referring to Tuesday’s monitoring report, the official
said, ‘We have conducted surprise inspections at 27 factories and found 25 of them in a very
good condition.’ BKMEA also indicated that it was monitoring the health and safety issues at
its member factories.

There have been reports of factories where workers were found infected with the coronavirus.
. BGMEA published on 12 June that 299 garment workers (out of 4 million) have contracted
COVID-19. However, worker leaders raised doubts about the figures, suggesting these are
much higher as they suspect factory managers may suppress news about infected workers in
order to minimise the impact on the business.

Local media reported protests, some of which turned violent, in different areas over closed
factories and inadequate safety measures in others. Further, ‘some workers at Savar and
Ashulia saw that other factories opened but their ones remain closed, which scared them
about their jobs,’ said Sirajul Islam Rony, president of the Bangladesh National Garment
Workers Employees League.

Several factories have laid off workers, citing that orders from international buyers were
cancelled. Layoffs were based on provisions 12 and 16 of the labour law (see also below).
Workers will get half of their basic payment and house rent during the layoff period,
according to the law. According to local media, BGMEA said the factories that have no work
because of the pandemic are within their rights to temporarily shutter as per provisions in the
labour law. Amirul Haque Amin, president of National Garment Workers Federation, retorted
that ‘laying off a worker during such a critical moment is illegal and unjust. The reason
being, workers will not get their full remuneration, but 53 percent of their gross salary.’

On 4 June, the BGMEA President mentioned the possibility of a 55% job cut during the

month of June due to lack of orders, and that sacked workers would be prioritised for re-
employment when the situation improves. This statement immediately drew massive
criticism from labour leaders. As a result of the labour leaders’ protest and widespread
criticism in social and print media, BGMEA clarified on 6 June that there was no
announcement on job cuts or lay-offs – rather, the President’s statement was a speculative
statement based on the turbulent situation. On 7 June DIFE published a circular urging

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BGMEA not to terminate any workers to avert labour unrest in the country. It mentioned that
labour leaders had approached DIFE to lodge complaints against termination.

More than 324,000 readymade garment workers have lost their jobs and 1,915 factories,
mostly subcontracting ones, have been shut since the coronavirus outbreak began in the
country in March this year, according to a Bangladesh Institute of Labour Studies’ study
report. The study titled ‘COVID-19: Decent Work in Readymade Garment Sector, According
to the report, more than 26,000 workers were retrenched from 87 RMG factories during the
pandemic.

The textile sector is breathing a sigh of relief with the rebound of apparel export orders,
export reports show optimism for recovery of the RMG industry. They’re on the path to a
quick recovery although prices remain below expectations, said millers. Both textile millers
and garment exporters say more and more of the production capacity of their factories was
coming to use for the higher inflow of work orders from retailers. On the other hand,
normalcy has returned to the supply chain with China, the main sourcing destination for
Bangladesh’s textile and garment-related raw materials. As a result, the business of textile
production and garment exports is witnessing improvements fast, according to industry
insiders.

In the export figures of July when Bangladesh earned $3.24 billion from apparel shipment
though the amount is 1.98% lower than a year earlier. However, garment export receipts in
July are 14.18% higher than the monthly target of $2.84 billion. Of the total garment
shipment, knitwear exports grew 4.30% year-on-year to $1.75 billion while woven exports
fell 8.43% to $1.49 billion, according to data from the Export Promotion Bureau. Earnings
from apparel shipment in April, May and June stood at $0.37 billion, $1.23 billion and $2.28
billion respectively.

Moreover, in July the total export of the country was $3.91 billion, which is highest in a
single month in the country’s history. As New Age reported on 4 August, this was due to the
increased in shipment of RMG products. As stated by factory owners, buyers have started
reviving most of the cancelled orders and now factories would be able to sustain themselves.

The government policies to support local businesses

On 25 March, Prime Minister Sheikh Hasina announced a bailout/stimulus package of Tk

5,000 crore (equivalent of 530 million EUR) for export-oriented industries to mitigate the
impact of the coronavirus on the country’s economy. The premier indicated that the money
from the package could only be disbursed in the form of salaries and wages for employees
and workers of those industries. The fund was extended, twice, with an addition of Tk2,500
crore and Tk3,000 crore. The size of the fund is now Tk10,500 crore.

On 1 April 2020, the finance ministry unveiled the guidelines for disbursement of the Tk
5,000 crore stimulus package. Businesses can avail of funds from the package at 2% interest
to pay their workers’ salaries for up to three months. The salaries must be paid to either a
bank or mobile financial service account. Management of export-oriented companies or

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factories have to provide salary sheets, workers’ lists and their mobile banking accounts to
banks so that salaries for April can be directly disbursed. The banks, afterwards, will forward
the same documents to Bangladesh Bank for reimbursement. The borrowers will get a six
month grace period, meaning that they will start paying back the borrowed money in
instalments to the government from the seventh month of receiving the money.

Garment workers’ salary disbursement from the stimulus package started as of 3 May.
Salaries of affected workers of factories that applied and qualify for support under the
Tk5,000 crore stimulus package will be disbursed directly to the workers’ accounts by the
government.  Following a tripartite meeting between government, worker representatives and
RMG industry owners, the state minister for labour said, ‘RMG workers who did not work in
April will get 60 percent of their salary for this month before Eid. Those who worked in
factories that remained open amid shutdown in April will get 100 percent salary. Besides that,
those who resumed work from April 26 will get 60 percent of their wages for the previous 25
days, and full wages for the last five days of this month.’ The salaries for April will be sent
through mobile financial services directly to the RMG workers’ accounts.

On 5 April, the Prime Minister announced four fresh financial stimulus packages of Tk

67,750 crore. The PM said the government simultaneously developed four programmes under
the plan, to be implemented in phases categorised as Immediate, Short and Long. The four
programmes are: increasing public expenditure, formulating a stimulus package, widening
social safety net coverage and increasing monetary supply.

HSBC Bangladesh announced a set of measures to help its textile and garments clients tide
over the economic fallout from the coronavirus pandemic. The bank will provide special
short-term loans of up to one year, with principal moratorium for four months, which can be
used for the purpose of supporting payroll bills and utility payments. The bank will also allow
three months’ moratorium against the existing term loans enjoyed by businesses belonging to
the textile and garments sector, according to a press release issued by HSBC Bangladesh.
During the moratorium period, clients will not be required to pay any instalments, and the
lender will also not seek any amount of repayment from them. The Bangladesh Bank has
asked banks to extend similar support to businesses.

On 25 March the Bangladesh Government sought $1 billion in support from the International

Monetary Fund and the World Bank as the country looks to support its people, businesses and
industries reeling from the pandemic.

The government policies and regulations to protect employees – the workers

The aforementioned bailout/stimulus package of Tk 5,000 crore (equivalent of EUR 5.3

billion) for export-oriented industries is to be disbursed in the form of salaries and wages for
employees and workers of the industries.

The bailout/stimulus package aside, when factories are forced to close for a certain period in
the event of a catastrophe, below legal provisions, sections 12 and 16 of the Bangladesh
Labour Act 2006 in particular may become of relevance.

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Section 12: (Bangladesh Labor Act 2006) Stoppage of work

The employer may, at any time, in the event of fire, catastrophe, breakdown of machinery, or
stoppage of power supply, epidemics, civil commotion or any other cause beyond his control,
stop any section or sections of the establishment, wholly or partly for such period as the cause
for such stoppage continues to exist.

In the event of such stoppage occurring at any time beyond working hours, the employer shall
notify the workers affected, by notice posted on the notice board in the section or department
concerned or at a conspicuous place in such establishment before the work is due to begin
next.

In the notice mentioned in sub-section (2) direction shall be given indication as to when the
work will be resumed and whether such workers are to remain at their place of work at any
time before the actual resumption.

In the event of such stoppage occurring at any time during working hours, the workers
affected shall be notified, as soon as practicable, in the manner specified in sub-section (2)
indicating as to when the work will be resumed and whether such workers are to leave or
remain at their place of work.

In the case where workers have been directed to stay at their place of work following such
stoppage, the workers so detained may not be paid for the period of such detention if it does
not exceed one hour, and the workers so detained shall be paid wages for the whole period of
such detention if it exceeds one hour.

If the period of stoppage of work does not exceed one working day, a worker, unless entitled
to wages under sub-section (5), may not be paid any wages.

If the period of stoppage of work continues for more than a working day, a worker affected,
other than a casual or badli worker, shall be paid wages for day or day by which it will
exceed one working day.

If the period of stoppage of work extends beyond three working days, the workers may be
laid- off in accordance with the provisions of section 16.

A lay-off mentioned in sub-section (8) shall be effective from the day of stoppage of work
and any wage paid to a worker for the first three days may be adjusted against the
compensation payable for such subsequent layoff.

For the piece-rate workers affected, their average daily earning in the previous month shall be
taken to be the daily wage for the purpose of the sub-section.

Definition: (Lviii) ‘lay-off means the failure, refusal or inability of an employer on account of
shortage of coal, power or raw material or the accumulation of stock or the break-down of
machinery to give employment to a worker;

Section 16: (Bangladesh Labor Act 2006) Right of laid-off workers to compensation

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Whenever a worker, other than a badli or casual worker, whose name is borne on the muster-
rolls of an establishment and who has completed not less than one year of continuous service
under the employer is laid-off, he shall be paid compensation by the employer for all days
during which he is so laid-off, except for such weekly holidays as may intervene.

The amount of compensation as mentioned in sub-section (1) shall be equal to half of the
total of the basic wages and dearness allowance, and ad-hoc or interim pay, if any, and the
full amount of housing allowance, if any, that would have been payable to him had he not
been so laid-off.

A badli worker whose name is borne on the muster-rolls of an establishment shall cease to be
regarded as ‘badli’ for the purpose of this section, if he has completed one year of continuous
service in the establishment.

No worker shall, unless there is an agreement to the contrary between the worker and the
employer, be entitled to the payment of compensation under this section for more than forty-
five days during any calendar year.

Notwithstanding anything contained in sub-section (4), if during a calendar year a worker is

laid-off for more than forty-five days, whether continuously or intermittently, and the lay off
after the expiry of the first forty-five days comprises period or periods of fifteen days or
more, the  worker shall, unless there is an agreement to the contrary between the worker and
the employer, be paid compensation for all the days comprised in every subsequent period of
lay-off for fifteen days or more.

The amount of compensation as mentioned in sub-section (5) shall be equal to one-fourth of

the total of the basic wages and dearness allowance, and ad-hoc or interim pay, if any, and the
full amount of housing allowance, if any.

In any case where, during a calendar year, a worker is to be laid off after the first forty-five
days as aforesaid, for any continuous period of fifteen days or more, the employer may,
instead of laying- off such a worker, retrench him under section 20.

What are local stakeholders doing to lobby their government?

The Industriall website mentions the appeal of the IndustriALL Bangladesh Council (IBC) to

the Government of Bangladesh:

All the factories including the ready-made garments have to be closed down with due
payments to the workers until the situation improves.

No workers can be terminated or retrenched under this disastrous situation.

Special measures and treatment have to be ensured if any workers fall ill or are attacked by
the virus, including taking necessary steps to ensure good health and security for all workers.

Rationing for the workers has to be ensured in this difficult time.

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No factories can be closed/laid off without paying the worker’s dues.

In any emergency situation the government has to ensure cash money assistance to the
workers.

A tripartite (government, BGMEA employers’ group and IBC) monitoring taskforce has to be
established under the leadership of the Labour Ministry.

Brands and buyers are urged not to cancel their work orders.

The Centre for Policy Dialogue (CPD) in Bangladesh advocated for the following:

Suppliers should discuss with their brands/retailers about possible cooperation in order to
share revenue losses incurred for cancellation/deferment/withdrawal of orders

Scope to share the losses of business enterprises (partially/fully) with buyers/brands/retailers

Minimum support to maintain day-to-day expenses; support for retaining the staffs and
workers and rationing support facilities for contractual workers

Export-oriented sectors, such as the RMG sector, needs cash flow support to retain workers,
deferment of LC payment, deferment of import LC receipt, interest payment support to
banks, low cost credit support from development partners.

Reschedule loans on case by case basis for exporters: Bangladesh Bank can provide
guidelines to commercial banks in view of this to address loan repayment difficulties.

What are local organisations doing to support and protect the workers?

Awaj Foundation indicated that it is seeking donations for an emergency fund for workers
who have lost their jobs. This will mainly be in the form of cash disbursements to make sure
that their basic needs for food and shelter are met. Awaj Foundation indicated that it will also
continue to provide some health services and will connect workers with other resources when
they need more intensive help.

Workers continue protesting; trade unions have been leading protests in favour of several
demands such as wages, health and safety, job security, stopping lay-offs, festival bonuses
and vacation during the pandemic. They have gained international solidarity during this
period. Such acts of solidarity provide support and hope for national organisations and unions
to continue their struggle. The demands placed by trade unions and workers have been met to
a large extent. The workers received wages and some factories are following health safety
guidelines as a result of their activities. However, the print media did not highlight the
success stories of the protests.

The COVID-19 pandemic has put women garment workers in a more vulnerable state than
their male counterparts. SGSF reported a significant number of terminations of pregnant
workers while others continue to work in fear of losing their jobs. The federation’s President

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Nazma Akhter told the Guardian on 9 July, ‘We are seeing a real increase in gender-based
violence.’ In response to gender-based violence (GBV), SGSF and IndustriAll Global Union
joined forces and are using social media to call out the Government for ratifying the ILO
Convention C190 against sexual harassment in the workplace.

In a virtual roundtable organised by the SNV Netherlands Development Organisation in

association with The Daily Star on 26 July, discussants spoke about the lack of access to
sexual and reproductive healthcare during the pandemic and emphasised a holistic approach
through multi-stakeholder collaborative initiative to ensure workers wellbeing.

Following concerns over shortage of personal protective equipment (PPE) for doctors and
nurses, five organisations — Pay It Forward Bangladesh, Honest, Buet Alumni Association,
Rotary Club Dhaka North-west and Manush Manusher Jonno Foundation approached Marks
& Spencer with a request to produce 400,000 suits for doctors and nurses.

What have been the responses and requests of business associations to support the
industry?

The BGMEA is continuously monitoring the situation in garment factories. According to

the BGMEA website. To date (13 April), 1136 factories reported that it has lost USD$3.15
billion in cancelled/postponed orders, equivalent to 976 million pieces. A staggering 2.26
million workers are affected thus far. 

BGMEA President Dr. Rubana Huq released a video message in which she urged
international apparel buyers to come forward to support the apparel industry of Bangladesh
during this hard time.

Reported in several media outlets, BGMEA President Dr. Rubana Huq has also written to the
German Federal Minister for Economic Cooperation and Development Dr. Gerd Müller,
urging him to kindly immediately call for all their brands sourcing from Bangladesh to not
cancel or hold any shipments up.

BGMEA initiated the ‘Lactating mother aid fund‘, a project to provide financial aid for
lactating mothers. In collaboration with the government, the project will safeguard health
wellbeing for mothers and their infants. As they require better diets, more calories and
sufficient nutrition, beneficiaries will get Tk. 800 for 36 months. Global Alliance for
Improved Nutrition (GAIN), in partnership with Dhaka FM have designed a digital media-
based campaign. With the use of radio dramas, Facebook campaigns, webinars, jingles and
television programs, the campaign has been purposed to motivate all apparel industry related
stakeholders, i.e. brands, employers, factory management, and policy makers to pay heed for
the need of proper nutrition.

Initiatives are being taken to protect workers’ health, wellbeing and workplace safety.
According to The Business Standard, the factories that have reopened after eid holidays will
have to regularly practice health safety measures. These measures include: temperature
checks at the entrance, wearing masks, washing hands, using hand sanitiser and maintaining
social distancing when at work.

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BGMEA requested for another stimulus package from the government to pay workers and
Bangladesh Bank responded quickly. On 23 July, Bangladesh Bank confirmed that RMG
sector will receive another stimulus package to pay wages for July, August and September.
According to a letter sent to the finance minister by BGMEA, penned by the association’s
President Dr Rubana Huq, it might take exporters eight to nine months to receive payments of
previous shipments.

What are international brands doing to support suppliers and protect workers?

In response to urgent appeals, a number of brands including H&M, PVH, Inditex, Marks &
Spencer came forward with assurances to help garment suppliers by taking the shipment of
goods that have already been manufactured or ordered. However, media reports have also
come out saying that brands have decided to temporarily suspend placing new orders.

A Research Brief from the Center for Global Workers’ Rights of Pennstate University in
Association with the Worker Rights Consortium, drawing from responses from an online
survey of Bangladesh employers, reported that more than half of Bangladesh suppliers have
had the bulk of their in-process, or already completed, production cancelled. This was also
reported in several media.

Role of RMG in urban poverty reduction

During 2010–2016, poverty in Bangladesh has decreased from 31.5% to 24.3%,

predominantly driven by a reduction in rural poverty by 8.5-percentage points to 26.4%.
During this timeframe, urban poverty has reduced by 2.4-percentage points to 18.9%, which
slowed down the overall country-wide poverty reduction momentum.16 According to the
World Bank’s Bangladesh Poverty Assessment report, more than half of Bangladesh’s poor
households will live in urban areas by 2030. The continued reduction in urban poverty is
primarily driven by the industrial sector, in general, and the RMG sector in particular. The
RMG industry has been playing a predominant role in reducing urban poverty and
compensating the slow progress of other sectors. During 2010–2016, RMG sector’s urban
poverty level has declined from 25% to 16%, while poverty alleviation in other major sectors
remains largely stagnant .

General Findings

In response to the COVID-19 pandemic, the Bangladesh Rural Advancement Committee

conducted a national survey (between 31 March to 5 April 2020) among 2675 respondents
from low-income backgrounds and found that 14% of the respondents had no food reserves at
home, whereas 29% only had enough food for 1–3 days. With such shortages, and in the

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lockdown conditions, starvation is a potential outcome of COVID-19 for the vulnerable and
those in the low-income bracket. Anthem warns of a potential hunger pandemic as a
consequence of the COVID-19 outbreak that could be the greatest humanitarian crisis since
the World War 2. In Bangladesh, this is already a reality, as one RMG worker explained: We
will die by starving before being affected by coronavirus (Female, age: 27, source: personal
communication, 23 April 2020). Bangladesh, as many other countries, is struggling to meet
the ongoing needs of their large population during the COVID-19 pandemic and is unable to
provide the support packages being offered in developed countries. As a result, the COVID-
19 lockdown and resulting economic recession will lead to major loss of income for the
working poor who will be forced to leave home, break isolation guidelines and risk infection
in an attempt to find ways to feed their family. One RMG worker told us he had to sell
vegetables in a market as a way to help feed his family (Male, age: 30, source: personal
communication, 25 April 2020).

On 25 March 2020, the Prime Minister of Bangladesh (Sheikh Hasina) announced a stimulus
package of BDT 5000 crore ($587 925 000) for the export-oriented sector to tackle the
COVID-19 pandemic. She advised the factory owners to use this money to pay the wages of
the workers and employees. Unfortunately, the factory owners did not pay the full wages to
the workers for the months of March and April 2020 and did not pay outstanding wages on
time, which forced thousands of workers to demonstrate on the street demanding their wages
be paid in full. RMG workers are performing work that brings billions of dollars (over $30.61
billion of exports in 2017–18 financial year) to the factory owners every year, yet the factory
owners are not seen to stand beside them during this critical crisis period. Some workers
complained that they had not been paid for 2 months or more.

Bangladesh is currently in the highest peak in terms of infections and death rates. As of 7 July
2020, the total number of infected and COVID-19-related deaths are 165 618 and 2096
respectively. During the ongoing infection (while COVID-19-related infections and death
rates are increasing), the BGMEA suddenly declared that garment factories would be re-
opening from 26 April 2020 with the permission of the government so that shipments of
previously ordered clothing items could be completed. RMG workers were reportedly
contacted by the management of the factories and told if they do not return to work they
would lose their jobs as well as any salary due. The return to work was made more difficult
as public transport was not available and no alternative transportation was provided to bring
them from their home villages, often in rural areas, to the factory location during the
lockdown. Therefore, workers had to arrange their own means of travel to return to work, and
these arrangements included using crowded trucks and small vehicles making them more
vulnerable to infection transmission.

Returning workers were not informed whether they would be able to maintain social distance
at the workplace or if they would have access to healthcare facilities in the case of becoming
infected with COVID-19. It has already been reported that social distance is not strictly
maintained inside the factories, and effective protective measures are not taken to protect
workers. RMG workers inability to practice physical/social distancing or access healthcare
facilities increases the risk of COVID-19 infections for the entire populationputting millions

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of lives at risk. New infections and deaths of RMG workers have already been reported after
the re-opening of the sector. Research on COVID-19 infections among the RMG workers,
conducted by the ‘Bangladesh Garment Shramik Sanghati’, found that 96 RMG workers have
been infected by COVID-19 between 9 April and 6 May 2020. In addition, the deaths of a
number of RMG workers with undiagnosed fever and respiratory symptoms have also been
reported.

RMG workers returning to the workplace fear infection with COVID-19 because of the
increasing amount of new infections and the number of deaths that have been reported in the
national electronic and print media. Perceiving the virus as severe has also impacted the
mental health status of the general public, and the individuals who are working during this
pandemic. Fear of becoming infected with or dying due to the COVID-19 pandemic has the
potential to impact mental health, and the RMG workers are no exception. It is also worth
noting that RMG workers’ mental health is also affected by the tensions about their future in
this sector. Unexpected outcomes, such as reported rapes and suicide cases during the
COVID-19 pandemic period, may impact female RMG workers’ mental health status into the
future. For example, one rape case and one suicide death by a female RMG worker has been
reported in the national daily newspapers during the COVID-19 pandemic period, which
would definitely increase anxiety and fear for safety among the female RMG workers.

What is already known on this topic

The global supply chains have been disrupted during the COVID-19 pandemic. It is thus
worth considering the longer-term impacts of the COVID-19 pandemic on the nature of
clothing supply chains. Clothing orders from the international brands/buyers have been
canceled considerably since the COVID-19 pandemic outbreak. The ‘Centre for Global
Workers’ Rights’ and ‘Worker Rights Consortium’ conducted a study on the impact of the
COVID-19 crisis in Bangladesh RMG sector on 27 March, with the participation of 316
Bangladeshi suppliers. The study reported that international brands and retailers have
suspended clothing orders from Bangladesh for up to $3 billion. From a country-specific
perspective, ‘Mosaic Brands’, one large Australian retail company (which owns Katies,
Rivers, Noni B, Rockmans, Millers, Autograph, W.Lane and Beme) is holding or canceling
orders and delaying payment worth a total $15 million. This outcome has the potential to
create joblessness and lesser bargaining power for the RMG workers about wages and other
rights-related issues. It is already evident that >1 million RMG workers have been dismissed
from their jobs during the COVID-19 pandemic and RMG workers have marched on the
street for reinstatement of their jobs. Although the workplace may be unsafe, fear of losing
jobs will eventually make them more voiceless in this already exploitative employment
sector. Irregular wage payment has been a major problem in the RMG sector. Disruption to
the existing supply chain may justify factory owners’ to continue to pay their workers’ wages
at irregular intervals.

Treatment facilities during COVID-19 may not be accessible to the vulnerable, including the
RMG workers of Bangladesh, because of high costs, fear of deportation and
discrimination. The existing support systems in Bangladesh have already been questioned

1
mainly due to the lack of treatment facilities such as COVID-19 testing places, availability of
testing kits and personal protective equipment for service providers and receivers. The GoB
has already declared compensation/incentives (in case of their infections and deaths related to
COVID-19) for the government officials who are working on the front line during the
COVID-19 pandemic; however, no such declaration has been announced for the RMG
workers in regard to factory re-openings.

What my study adds

Although infection and death rates related to the current pandemic may be low in Bangladesh
due to the relatively young population, it is important to focus on preparedness (available
treatment facilities, human capacity, emergency response system, etc.) of a specific country
to reduce the risk of developing this potentially fatal infection.43 Unfortunately, no such
preparedness was observed before the re-opening the RMG factories by the state or BGMEA
in order to protect the RMG workers from potential health risks. Rather, the re-opening of the
factories has been a purely economic decision.

The prevention of further transmission among the vulnerable people is the main challenge for
Bangladesh now. No doubt, state and factory owners have chosen the option of protecting
their ‘livelihood’ over the ‘lives’ of their workers by making the decision to re-open the
factories at a time when the COVID-19 pandemic remains at a serious level. Although the
European and North American countries are currently fighting the second wave of COVID-
19 following importation, countries (such as Bangladesh) with a comparatively fragile
healthcare system are in a state of public health crisis.

Conclusion

As sufficient evidence is not yet available to determine the lifespan of COVID-19 on various
surfaces (such as fabric, metal, plastic, etc.), it is possible that the virus may be transmitted
across the border if the clothes are made by the COVID-19 infected workers. Therefore,
Bangladesh RMG sector requires urgent coordinated and effective actions by all actors
including global health communities, BGMEA, international brands/retailers, the GoB, and
the International Labour Organization to safeguard workers’ health and overall wellbeing
during the COVID-19 pandemic as well as the health of people in other countries. In
addition, the global supply chain and RMG trade needs to be tenured for the long term to
support the economic sustainability of Bangladesh. The production of clothing during the
COVID-19 pandemic must not go ahead without an urgent overview of the system and the
development of a plan to ensure the health and safety of workers. In conclusion, it is worth
noting that the United Nations Development Programme has initiated a prompt assessment
for global trades to conduct human rights due diligence in relation to the COVID-19
pandemic. It is time for the Bangladesh government and the RMG industry to heed this
warning.

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