The New Nation - Internet Edition

THE president of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) has noted difficulties faced by entrepreneurs in the garment sector. One of the major problems surfaced with the price hike of fuel oil. The other problem is related to transport costs for inflow of raw materials and outflow of finished garment. The entrepreneurs in the sector have started bearing burden of higher costs for shipment of finished products. These problems arise from global factors that are beyond the control by entrepreneurs in Bangladesh.

Again, some factories in the industrial belts have remained closed for days and weeks due to strike by trade unions of workers. Demands for higher wages and allowances have increased. Those employed in garment factories usually join their workplaces without adequate skill and competence and owners of factories have to bear the cost of training of such workers, the BGMA president said.

Steps taken by the owners of garment factories for setting up training institutions have been appreciated by concerned agencies. Despite that the upgrading of skill of workers, mainly the young women workers, remains problematic. Some women workers reportedly leave their places of work without permission of the managements. As the demand for skilled workers has increased, some workers are found going from one factory to another just after obtaining training. The trade unions opt for raising demands and stopping production in factories to press demands.

The cost of production of finished garments has thus been increasing. The costs of inputs, equipment and machinery have increased. The garment sector may have to bear additional costs of around six hundred crore Taka due to price hike of oil. The buyers of garment products like those in the USA and European countries may start looking for alternative sources of supply if Bangladeshi garment do not remain competitive. The stiff competition from other producers of RMG products in different countries has to be faced effectively through corrective measures taken without loss of time. Owners should also take care so that their workers remain disciplined.