Worker unrest can reduce output up to 20%: Study

A new study has revealed that worker unrest can significantly impact productivity, leading to a decrease up to 20%.

The study, presented at the annual conference of the Bangladesh Institute of Development Studies (BIDS) on Thursday, also found that the effects of agitation can linger for at least six months.

Atonu Rabbani, economics professor at Dhaka University, presented the study, titled "Examining productivity within the Bangladeshi RMG sector: Dispersion, determinants and gender advancement."

Explaining why productivity declines for up to six months after worker agitation, Prof Atonu told The Business Standard, "Some workers may be fired. This has an impact on others. This leads to long-term effects, which affect productivity."

The research was conducted across 102 garment factories, encompassing over 3,000 production lines. It revealed that the average productivity of workers in these factories stands at 50%. However, the study also highlighted a significant opportunity for improvement.

By training workers on the most lagging production lines by those on the leading lines, productivity can be boosted by up to 50%.

The study also shed light on the under-representation of women in supervisory roles within the garment industry.

Prof Atonu attributed this to the misconception that women lack technical expertise and are less skilled for such positions. He emphasised that this perception is inaccurate, stating that women can acquire necessary skills through proper training, even exceeding the capabilities of their male counterparts.

"Even though women may be a little behind at first, after three months of training, they can acquire skills equal to or even better than men," Rabbani stated, highlighting the importance of training and skill development in overcoming gender biases.

The session was presided over by Sajjad Zihir, executive director of the Economic Research Group, while economists and experts spoke there.

Green transition in South Asia's labour market

In another session of the Bangladesh Institute of Development Studies annual conference, experts announced that policymakers in South Asia, with a particular focus on Bangladesh, are steering policies towards supporting a green transition.

Economic experts at the conference, presided over by Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), highlighted significant labour market impacts accompanying the shift away from fossil fuels in South Asia. The transition poses the risk of leaving many workers stranded in lower-wage jobs within declining industries.

Patrick Alexander Kirby, senior economist at the World Bank, pointed out that pollution-intensive jobs, predominant in manufacturing and construction sectors, account for a considerable portion of employment in South Asian countries, except India. In contrast, green jobs, while dispersed across various sectors, are less prevalent, constituting only a fraction of total employment.

Workers in pollution-intensive jobs, concentrated in low-skilled occupations, often face informal employment and lower wages. On the other hand, workers in green jobs tend to be better educated, less informally employed, and enjoy higher average wages.

The report highlighted that only 2% of Bangladesh's total workforce is engaged in green jobs, with the highest concentration found in the agricultural sector. CPD fellow Mustafizur Rahman emphasised that the green transformation is crucial not only for environmental development but also for increasing employment opportunities and market benefits.

Siddhartha Sharma, lead economist, World Bank addressed the vulnerability of Bangladesh and other South Asian countries to disasters, citing above-average GDP growth and a preponderance of domestic debt as significant challenges.