The tragic incident of the Rana Plaza collapse at Savar that killed some 1,127 people last April shocked the entire world. The collapse came five months after 112 garment workers who died in a fire in another factory, Tazreen Fashion. This has put Bangladesh apparel industry in a very dire situation for the irresponsible action of both factory and building owner. Such failure must be tried quickly according to law and should act as a deterrent, according to the editorial of the current ICCB News Bulletin (April-June 2013 issue) of International Chamber of Commerce-Bangladesh (ICCB) released on Wednesday.

The Savar incident was widely covered worldwide largely because of Bangladeshs position as the number two apparel exporter in the world. The buyers are now pressing for safe work places, higher wages, right to trade union and other conditions for compliance. Following the event, many international NGOs as well as consumers campaigned for restricting purchase of Bangladeshi garments until the factories ensure workers safety and labour rights.

In view of the pressing demand, the situation has been improving everyday but it needs comprehensive attention on the part of the owners, regulators as well as buyers in order to achieve the desired results. However, to bring about the changes to the required standard it will take some time where the owners, buyers and workers must work in close cooperation.

The apparel manufacturers and experts are suggesting a set of reform roadmap for a sustainable apparel sector broadly dealing with: factory classification, factory health & safety standards, compliance monitoring, responsibilities of trade associations, new RMG Economic Zones, relocation of unsafe factories, financing the RMG reforms, minimum wage increase linked with efficiency & productivity, trade unions for better worker representation, formation of Workers Welfare Fund and branding through international public relations engagement.

The strength of the countrys apparel sector is well understood through its ability to supply high-end items to famous global brands. Currently, more than 30 per cent of total RMG export is high-end products. The sector generates a total of $21.5 billion in exports, employing more than 4.0 million workers dispersed among 5,400 factories, most of whom are rural poor women. Currently, the sector accounts for 80 per cent of exports and contributes 16 per cent to GDP.

After the recent shock, the garment manufacturers expresses the hope that instead of deserting the Bangladeshs apparel sector, the Western buyers should provide resources and financial support and work together to make Bangladesh factories more compliant. Bangladesh is one of the few places in the world that has enough workers, manufacturing capacity and experience to provide what retailers demand: high volume, low prices and good quality etc. Thus, it is of immense hope that most retailers will stay and work for changing working conditions and ensuring safety; the factory owners must come forward and take the initiative too.

According to McKinsey & Company, Bangladeshs apparel exports will reach $36 billion by 2020. Analysts believe that the countrys potentials are even greater as the present yearly global apparel export is $412 billion and Bangladeshs share is only 4.8 per cent. The EU and the US are the two largest importers of Bangladeshi garments, which accounts for 86 per cent of the total exports representing only 6.0 per cent of their total apparel demand. Whereas, China meets 30 per cent of total apparel demand of EU and US.

Therefore, the four main stakeholders – the government, suppliers, buyers and workers – must work together to develop a long-term implementable strategy to realise the potentials of Bangladeshs readymade-garments market.

The owners and the government, on the other hand, may consider setting up a foundation to provide support to the garment workers and their children for education, health care including the victims who are otherwise incapable of earning their living. The existing 5,400 factories could make yearly contribution of Tk. 0.1 million for the Foundation.

Nobel Laureate Prof Dr Mohmmad Yunus said the Social Business Team has suggested that if the buyers agree to pay a little extra for a “HAPPY WORKERS TAG”; the proceeds could be utilised for ensuring workers health, dormitory, pension, provident fund, childrens care facilities etc. The idea deserves serious attention of the buyers.