The most troubled sector of recent times is Readymade Garments (RMG) sector of Bangladesh which is the backbone of our economy. This labor intensive industry has accommodated 4.5 million workers 80% of whom are women in the last fiscal year1. So there are about 5,000 garments factories scattered across the country. 78% of our foreign earnings come from this sector2. This sector keeps our economy moving but the industry has been facing numerous problems. Poor working conditions, bad industrial relations, low wage, arrogant and ruthless attitude of owners or management and lack of solid and positive initiative on behalf of successive governments has made this sector questionable to world market. It has lost GSP (Generalized System of Preference) advantage in the U.S market which has created image crisis for the industry. This is fear of loosing GSP advantage in the EU market as well. To save the employment generation and one of the largest foreign currency earning sectors, BGMEA, BKMEA and Government should adopt an integrated approach on the one hand and boost up image of this industry on the other. Key words: Bangladesh Readymade Garment Sector, Suspension of GSP in the US market, Image crisis, Fear of Suspension of GSP in the EU market. Statement of the Problem: Now the most pertinent question in the economic arena is suspension of GSP programme. Why did the USA suspend GSP programme from June 27, 2013? Bangladesh had been enjoying GSP in the US market excluding readymade garments. She has to face an export fall of about $40 million in the US market. However, direct impact would not be much less than 1% of Bangladesh’s $5 billion of annual export (mostly RMG products) to the US which falls under Washington’s GSP programm... ... middle of paper ... ...pment Research Working Paper Series, May 17, 2013. 12. Ibid. 13. Hossain Md. Forhad, Bangladesh in GSP Review, http://topnewswiki.blogspot.com, Accessed on February 28, 1014. 14. The Independent, July 12, 2013 15. Tasin, Faria GSP cut and its fallout, The Daily Star, July 04, 2013. 16. Dunn J. D. and M. Rachel Faruk, Wage and Salary Administration: Total Compensation System, McGrow Hill Book Company, 1971, U.S.A., pp.18. 17. Shahriar Asif, http://news.prio.com, Accessed on February 18, 2014. 18. Hasim Bin Mustofa, Bangladesh to get back GSP if there is no politics, http://news.prio.com, Accessed on February 13, 2014. 19. Faruk Omar, GSP Cancellation to destroy the Economy of Bangladesh, London based weekly Eurobangla, July 13, 2013. 20. Statistical Year Book of Bangladesh, 2012, Government of Bangladesh, P.266. 21. Tasin, Faria GSP cut and its fallout, Ibid.
Compensation is made of a base salary (paid by the hour, work or the year; excluding overtime or bonuses), variable pay (bonuses, profit sharing/stock options which work hand and hand with the performance of the company), and benefits (to include health insurance/savings plans – 401(k), or tuition reimbursement). The traditional way of determining base pay for jobs was to compare jobs in the same industry. Now industry and market, no long work by themselves, the current thinking is more person-based that considers knowledge, skills, and competencies of the work. This, however, is best suited for high-performing environments that remain flexible in their deployment of human capital.
...ontinues to drive global capitalism, as capitalist continue to expand and accumulate more capital. However, the cost cuts to the clothes we wear come at a high price for garment workers of Bangladesh. The exploitation the vulnerable workers from a country plagued with structural problems and the unsatisfied global expansion of capitalists’, results in the catastrophes like Rana Plaza. The globalization of the capitalist system was written about by Marx and Engels. The flaws in the capitalist systems that would bring its eventual downfall seem to be true at post Rana Plaza. The resentment of those who profit from their suffering; the government, the factory owners and the western retail chains, have brought on riots and demands of compensation. However, until the system is overturned as a whole, the dire work conditions of the Bangladesh garment worker will remain.
According to Schwartz (2010), successful implementation of Ricardian development strategies involves using existing comparative advantages such as agricultural outputs or other primary product exports to drive economic development. This can also extend to low-value industrial activities such as textiles and garments (59-60). These strategies rely on the resolution...
“Sweatshops Are the Norm in the Global Apparel Industry. We’re Standing up to Change That.” International Labor Rights Forum. N.p., n.d. Web. 6 Feb. 2014. .
When America's cotton is sent to China, it is made into T-shirts in the sweatshops of China by laborers working 12-hour days and being paid subsistence wages. When the finished T-shirts re-enter the U.S., they are protected by the government through subsidies, tariffs, taxes, and protectionist policies that ensure that these foreign products will not provide too much competition to American-made shirts. Government regulations control how many T-shirt can be imported from various countrie...
The correlation of expansion in Footwear International fell within the same time constraints as Bangladesh’s political history. As power transferred in 1971, the Manager Director of the company was recognized as being an integral part of the independence movement of Bangladesh. Two years following President Ershad gaining office, Footwear Bangladesh seen as the number one growth potential within Footwear International’s strategic plan. Sales were in excess of 10,000,000 pairs of footwear and gave the company 15% of the national market (L...
the case in the textile industry, having before created most of the textiles in smaller quantities in the home
Garment factories in the collapsed building are not H&M’s suppliers. But H&M is one of the largest buyers of garments from Bangladesh, owning 166 suppliers. After the disaster, global retailors, especially H&M, joined the safety plan as well as government pledged to raise wages for garment workers and
Globalization and industrialization contribute to the existence of sweatshops, which are where garments are made cheaply, because they are moving production and consumption of those cheap goods. Industrialization has enabled for global distribution, to exchange those goods around the world. They can also set apart the circumstances of consumption and production, which Western countries as mass consumers, are protected from of producers in less developed countries. These factories are usually located in less developed countries and face worker exploitation and changes in social structures. Technological innovation allows for machines to take the place of workers and do all the dirty work instead of workers doing hours of hard work by hand.
While the price of cotton textiles decreased by 90%, the output had grown to cover the demand at affordable prices. Now, cotton will be gotten from Brazil, Egypt, southern United Sates and all this meant a...
...nd financial corruption (17). Some of the difficulties are even starting within the local market. There is a lack of raw materials inside the local market, which then causes needs of importation. Advances in technology have been made in terms of communication, emails, and business to business and business to customer interaction worldwide. Nonetheless, the local market is still being held back because of the high cost of fuel, electricity, and transport. “Given this scenario, production costs have remained high, thereby increasing the end product costs and reducing the demand for the locally manufactured products” (6). Unemployment is another factor. This means income is insufficient, which negatively affects living conditions and consequently health of the citizens. The infection rate of HIV-AIDS is 16% and citizens are only expected to live to 40 years old (17).
Although the origin of the GFC might have been the housing and financial crisis in the US, it affected both developed and developing countries in a devastating way. More specifically, the crisis has destroyed global financial systems and government budges, strike the confident and security of financial markets. It was universally recognized the worst global economic downturn since the Great Depression in the 1930s (Ciro, 2012). Before the financial crisis, the increasing food and oil prices had affected the non-producers and because of the developed economies are more integrated within the global financial systems and markets, they were the worst affected by the GFC in the short term. Developing countries were looking more optimistic in the short term as their economies were not as integrated into the global financial market system. Nevertheless, the escalated impact of the crisis did affect the real economy of developing countries especially on the export-orientated nations. As the demand of goods and services has been weakening from the developed countries, the output of manufacturing or services companies decreas...
Remuneration management is defined as the sum received for an employment or service delivered, this includes the money received on a monthly basis as well as benefits given as rewards (investopedia,para.1 ). Individualism need to be taken into account when implementing these remuneration structures or reward schemes, equal pay plays a role in balancing earnings among the diverse workforce (Shen, Chanda, D’Neetto and Monga,2009,p.241). The Woolworth’s Holdings uphold remuneration policies which have the purpose of making sure to attract and hold on to the best talent, that they are congruent with the strategies of the company and are the determinants of performance during the short and long phases. The policy considers the board members and the employees. This policy manages employees of the company by giving...
As soon as the shift to a free trade regime appeared along with the competition with countries such as China and Indonesia the quick collapse of Bangladesh’s textile industry has been predicted. However, the opposite occurred. We can highlight three major reasons to explain what happened:
The companies have to take care of people who are involved in all the phases of supply chain, from the product’s inception to the post consumption phases. The big apparel company could have persuaded the suppliers in Bangladesh for the better working conditions to avoid these types of disasters.