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Garment wage hike won't hurt competitiveness: EU envoy

Star Business Report
Bangladesh's garment sector will remain competitive in the global market even after a hike in worker wage, William Hanna, head of the delegation of the EU to Bangladesh, said on Monday.
Still, there is scope to remain competitive and increase the wages, he said at a seminar on how to reinvent the garment sector, at Sonargaon Hotel in the capital.
Bangladesh Garment Manufacturers and Exporters Association organised the event as part of a three-day apparel and textile show starting tomorrow.
Hanna also urged garment makers to increase the wages annually, adjusting it with inflation.
"There needs to be a system, which reviews wages on an annual basis. And the wages have to be fixed through social dialogue."
"It remains an obstacle to sustainable development of the garment sector when no change is made in the wages for years."
"BGMEA has to be part of the solution, not the problem, and it should drive the process forward, rather than resisting it."
The BGMEA should have a strategic vision for the future of the sector and should not remain stuck in the past, he said.
The apparel makers' body should set example for its members and embrace sustainable development, quality, competitiveness and innovation to avoid seeing its orders shifting to the other countries, he said.
It should offer dialogue and negotiation as a way forward, not confrontation, he said.
Hanna said the BGMEA should work out solutions to the issues by negotiat-
ing with the retailers and brands.
The world is not going to accept another Rana Plaza disaster, and international firms are not ready to put their brands and reputation at risk, he said.
"We have to move to sustainable consumption and production."
The retailers should pay more fortheir purchases from Bangladesh to develop the sector, said Rubana Huq, managing directorofMohammadi Group.
The Rana Plaza tragedy, if seen differently, is also an opportunity to develop the sector, she said.
Buyers are anxious about the upcoming national election, she said. "But we want to assure the buyers that politics is divided, not the industry. ”
The garment sector earns $21 billion a year—almost 80 percent of the country’s total export earnings. It employs about four million workers, mostly women.