Background

Bangladesh’s Ready Made Garments (RMG) industry is facing a crisis of considerable magnitude.  With the upcoming final phase-out of the Multi Fiber Agreement (MFA) on 31^st December 2004, Bangladesh will lose much of the guaranteed market access that has fostered and sustained the industry in the context of highly competitive global apparel markets.  The country’s competitiveness in comparison to other garment exporting nations is relatively low; while its factories offer importers low cost production, they are seen as lacking in the crucial areas of productivity, quality, and relative turnaround time compared to major competitors like China.  Bangladesh’s position in the global market has also been impacted by such agreements as the United States Trade and Development Act 2000, which gave preferential trade access to 35 least developed countries (LDCs), as well as other bilateral trade agreements signed between major importing countries and other exporting nations.  The overall impact of these changes on Bangladesh will likely be severe, a worrying prospect for an industry that currently provides 76.6% of the country’s total export earnings (2002).   As 2003 began, the warning signs of the crisis ahead were readily apparent, as 502 of a total of 3,696 factories had already closed, forcing 150,000 workers out of their jobs (source: BGMEA 2003).

The magnitude of the crisis in Bangladesh cannot be understood merely by analyzing cost figures and foreign exchange earnings.  The challenges ahead will be most directly felt by the country’s garment workers; as of 2002, there were approximately 1.8 million workers in the industry, 80% of whom were women source: BGMEA).  Most of the women in Bangladesh’s factories are young and single and have few alternative employment options. The women are highly dependent upon the wages they earn in the garment factories and they often provide crucial support to their families and communities. These workers are highly vulnerable and unfortunately their voices are often ignored in the conference rooms and legislative forums in which trade and industry policies are debated and finalized.  In the coming months and years, it is crucial that policymakers both inside and outside of Bangladesh focus on the livelihood issues of these workers.  Workers still in the industry need support in achieving proper working conditions in the face of competitive pressures and retrenched workers need assistance in finding alternative employment options and providing for their families and communities.

 Given these circumstances, Nari Uddug Kendra (NUK) spearheaded the development of the Bangladesh Garment Workers Protection Alliance (BGWPA) on 5 December 2001 with 24 organizations including NGOs, trade unions, and garment workers organizations.  These organizations have invested their time and resources to ensure that the rights of the workers are protected and their voices heard during discussions on solutions to the crisis in the RMG sector in both domestic and international forums.

Statistics on the numbers of factory closures and the displaced workers are unreliable. Nevertheless, it is clear Bangladesh is losing its market share. Caribbean countries now enjoy duty-free and quota-free access to the American market, India and Pakistan have been given concessions by the U.S. for their cooperation in the "war on terrorism", and China, as a new member of the WTO, dominates the RMG market in the region. 

Given these circumstances, Nari Uddug Kendra (NUK) has spearheaded the development of an alliance with NGOs, trade unions, garment workers organizations, and other associations that are concerned about the rights of garment workers. Twenty-four organizations have joined force to form the Bangladesh Garment Workers Protection Alliance (BGWPA).