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RMG sector needs broad reforms to ride out crisis

Analysts show ways to improve factory standards

Star Business Report
Bangladesh should prepare a national restructuring plan for the garment sector for the next five to 10 years to help the industry ride out its current crisis and reap potential, the Centre for Policy Dialogue said yesterday.
"Many talk about the McKinsey Report and the potential of garment exports, but we do not see
measures to exploit the potential," said Debapriya Bhattacharya, distinguished fellow of the CPD.
"At the end of the day, the garment industry is an international sector. We don’t have an alternative to making a comprehensive plan to restructure the sector and move forward."
He spoke at a dialogue, Rana Plaza tragedy and beyond: an update on commitments and
delivery, at Brae Centre Inn in Dhaka.
In August last year, the thinktank launched a civil society initiative, in partnership with 15 rights organisations, professional bodies and media organisations, to monitor commitments and implementation of promises made by local and international organisations followingthe disaster.
Bhattacharya said the building
collapse has created a sort of opportunity, which has raised awareness but actions are not forthcoming.
It would not be possible to change the late of the workers just by changing the domestic conditions, he added.
"The major portion of the profit of the garment supply chain exists outside the country. It is not possible to do everything by squeezingthe 20 Bangladesh would have to bring some money from the international arena through bargains, which have to be ensured while fixing the prices.
If we play blame-game and trickery then we willbe weaker," hesaid.
CPD Chairman Rehman Sobhan said the sector is part of a global process so the international stakeholders have some responsibilities.
"This incident is something we should not tolerate as a civilised society."
M Syeduzzaman, a former finance minister, suggested the government form a separate apparel and textile ministry to look after the sector.
Ali Ahmed Khan, director general of Bangladesh Fire Service and Civil Defence said many problems of the sector would go once the National Action Plan is implemented.
He said his agency is working on setting up more fire stations. "We are also creating volunteers at industrial zones. It will be helpful if BGMEA supplies some workers who will also work as volunteers."
Labour Secretary Mikail Shipar said the government has already finalised a site in Gazipurforthe garment industries.
He also said 30 teams are working under the supervision of Bangladesh University of Engineering and Technology to complete the initial survey of 1,500 garment factories in association with the International Labour Organisation.
He said the Department of Inspection for Factories, which was set up in the 1970s for inspecting Adam jee Jute Mills and some other factories, could not keep pace with the changes in the country's industrial arena since 1980.
The secretary said the government is appointing more inspectois as about 50 percent of the posts of factoiy inspectors were vacant "Already 57 inspectois have been appointed. They also have been given training."
Hamida Hossain, chairman of Ain O Shalish Kendra, said trade unions and workers should be included in the factory inspection process as they know better about the working conditions and labour standards of the factory they work for.
Mohammad Hatem, acting president of Bangladesh Knitwear Manufacturers and Exporters Association, said the reality of Bangladesh would have to be taken into
consideration before setting any safety standards for the garment industry.
Zafrul Hasan, joint secretary general of Bangladesh Institute of Labour Studies, said the burial of unidentified bodies manifests the country's administrative inefficiency.
Architect fqbal Habib said a website should be built with details of the victims, the injured and the rescuers.
Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said 70 trade unions have been registered since the passage of the new labour law in July last year.
He vented anger against the third party auditors in the factory inspection process. "They are demanding more stringent labour standards than required."
Islam also said owners are improving factory conditions but they are yet to receive any financial assistance from abroad although promises were abundant.
Shariful Islam Mohiuddin, a former president of the BGMEA, said there are 800 factories that are not registered with BGMEA orBKMEA. "Who will take their responsibility if any disaster strikes those factories?"
Rob Wayss, country executive director of the Accord on Fire and Building Safety in Bangladesh, said 146 brands and retailers from Europe, the US, Canada, Australia and Japan have joined the initiative.
Under the Accord, 10 factories were inspected at the end of last year, he said.
Wayss said the Accord plans to roll out large-scale inspections with the help of 25 engineers to be appointed soon.
"We are also working to establish communication with the suppliers, brands and retailers so everybody understands their role; particularly in the monitoring component," he said. Babul Akter, president of Bangladesh Garment and Industrial Workers Federation, said compensation should be realised from the owners of the Rana Plaza building and the factories that were housed in the building.
He also said many injured victims do not want to work in the garment industry. "We should think about alternative jobs forthem."
Transparency International Bangladesh, Manusher Jonno Foundation, the Prothom Alo and The Daily Star are among the partners of the initiative.
Mustafizur Rahman, executive director of