Decent work, upskilling vital for RMG’s global competitiveness
To overcome these challenges and prepare for the post-LDC graduation period, they urged the government, international buyers, factory owners and trade unions to share responsibility instead of placing the burden solely on manufacturers
Bangladesh's readymade garment (RMG) sector must move beyond basic compliance and invest in worker skills, decent working conditions and responsible business practices to remain globally competitive, experts said at a discussion. They said the industry faces mounting pressures from the energy crisis, rising production costs, technological disruption and climate risks.
To overcome these challenges and prepare for the post-LDC graduation period, they urged the government, international buyers, factory owners and trade unions to share responsibility instead of placing the burden solely on manufacturers. They made the remarks at a roundtable titled "Redesigning Systems for Decent Work and Global Competitiveness", jointly organised by CARE Bangladesh and The Business Standard at the TBS office on Thursday (20 August). Fatima Jahan Seema, Lead of Program Monitoring & Impact at CARE Bangladesh, presented the keynote and moderated the discussion.
Emebet Menna
Deputy Country Director-Programs CARE Bangladesh
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Ensuring decent work should be a shared responsibility of the government, buyers, factories and trade unions, rather than a burden placed solely on manufacturers, particularly amid inflation and rising production costs.
Decent work should not be treated merely as a compliance requirement but as a genuine shift in mindset. Better working conditions, workplace safety and workers' welfare are directly linked to productivity and global competitiveness. Improving productivity also requires effective workforce management and greater attention to workers' needs.
CARE has worked with buyers and factories, particularly in the readymade garment sector, as a development partner in Bangladesh for years. Amid changing economic and climate conditions, workers' health and wellbeing have become increasingly important. Greater collaboration among stakeholders is needed to strengthen workers' and factories' capacity and sustain such partnerships.
Fatima Jahan Seema
Lead Program Monitoring & Impact
The country's readymade garment sector is undergoing a critical transition amid LDC graduation, declining trade preferences, technological change and climate risks.
Garment exports reached nearly $42 billion in FY2021-22, she noted, but sustaining competitiveness will require a shift towards higher-value products, greater productivity and market diversification.
Trade preferences and preferential market access could decline after 2029, making early preparation essential. Automation and digitalisation will reduce demand for routine jobs while increasing demand for digital, technical, machine operation, quality management and supervisory skills.
Greater efforts are also needed to help women workers move from production-line jobs into supervisory, technical and management roles.
A greater diversification into higher-value products such as man-made fibre, sportswear, outdoor apparel and technical or functional clothing is needed. There is also growing importance of GTI, WPCs and other worker-participation mechanisms, such as positive behavioural changes found among workers, supervisors, production teams and management in assessments covering around 100,000 workers.
Market access, energy efficiency, water security, social performance and sustainable production are becoming increasingly important to global buyers.
The 2027-2033 period will be crucial for determining the sector's long-term competitiveness, as declining preferences, technological disruption, climate change and intensifying global competition make product and market diversification, worker upskilling and sustainable investment increasingly essential.
Coordinated action by the government, industry, workers, buyers and development partners is needed to strengthen the sector's long-term competitiveness.
Nishat Nahrin Hamid
Chairperson, BGMEA Standing Committee on Energy Optimization
Productivity must be at the centre of the readymade garment sector's efforts to remain competitive amid the energy crisis, inflation and rising production costs.
Workers' wellbeing and a good working environment should be treated as business investments, not merely compliance issues. Satisfied workers, better workplaces and effective workforce management can boost productivity, benefiting workers, factories and buyers alike.
Energy costs doubled in 2023, with factories bearing much of the additional burden. Rising inflation, declining orders, wages, taxes and other costs have further squeezed suppliers. If factories continue to bear the full cost of every crisis, sustaining long-term competitiveness will be difficult. The government, buyers, factory owners and workers must therefore share responsibility for improving working conditions.
International brands should also treat supplier factories as long-term business partners, not merely sources of products. Beyond wage increases, greater attention is needed to heat-related health risks, workplace safety, job security and non-wage benefits.
Helping women move into supervisory roles also requires addressing social and family barriers through counselling and supportive workplaces. Tackling these issues together is essential to raising productivity and strengthening global competitiveness.
Md. Arifuzzaman
Deputy Inspector General, Department of Inspection for Factories and Establishments, DIFE
Over the past decade, excessive focus on the garment sector has left gaps in workplace safety and workers' welfare in other industries.
Accidents in garment factories have fallen by nearly 80%, while those in other factories have increased. Greater attention is now being given to leather, ceramics, re-rolling mills and other sectors.
Factory closures pose a major risk to the economy. Meanwhile, the Department of Inspection for Factories and Establishments (DIFE) faces manpower and budget shortages as its workload grows, making regular inspections of all factories difficult. Private-sector cooperation is also essential for workplace safety.
Higher wages alone do not improve workers' skills, just as longer working hours for lower wages do not increase efficiency. Greater attention is needed to psychosocial safety, social structures and workers' dignity.
A national minimum wage is also needed, as separate minimum wages are currently set for 42 sectors. A unified wage would simplify the process for workers and employers, while social dialogue and worker participation should guide its formulation.
Md. Babul Azad
Senior Coordinator, CARE Bangladesh
Every garment factory should have an effective, transparent, and accessible grievance management system in line with the amended labor law, covering workers, management, and other employees. Meanwhile, establish or activate a national dispute remediation cell to support industry owners in resolving business disputes with global brands, alongside stronger coordination among government, business associations, CSO and global brands. The RMG sector can further strengthen its resilience and competitiveness by supporting a skilled, adaptable, and healthy workforce to navigate emerging changes, including automation and just transition, heat stress, women's leadership, and workers' mental health and wellbeing.
It is necessary to ensure effective resolution of grievances raised by both workers and employers.
Parallelly, I would encourage factory management to activate and strengthen all factory-based committees, including Worker Participation Committees, Anti-Harassment/Grievance Management Committees, and Health and Safety Committees, as effective platforms for valuing workers' voices, strengthening representation, and promoting meaningful participation in the workplace.
Doulot Akter Mala
President, Economic Reporters Forum (ERF)
Inflationary pressure has been weighing on workers for a long time, with the gap between income and living costs contributing to growing dissatisfaction among workers.
Recent visits to several factories have shown that automation and new machinery have reduced the need for workers on many production lines. Production that once required a large workforce can now be carried out by a much smaller number of workers.
Technology and automation should be encouraged, but greater attention is also needed to where workers displaced by these changes are going, particularly women workers.
Workers need opportunities for upskilling and reskilling to keep pace with technological changes. A separate transition strategy is also needed to help women workers adapt to the changing nature of employment.
Maj (Retd) Md. Elias Hossain
Senior General Manager, HR, Admin & Compliance, Ananta Apparels Limited
Modern factories are trying to provide better working conditions for workers, but power shortages and other infrastructure problems are making it difficult to maintain those conditions. Prolonged poor working conditions can also push workers to move to other factories, making employee retention more difficult.
Brands need to build long-term and responsible partnerships with factories. Expecting factories to supply products at prices set several years ago creates unreasonable pressure, as the costs of inflation, energy, labour and technology investment have all increased. Product prices therefore need to be reviewed regularly.
Brands should focus not only on securing products at the lowest possible prices but also on fair pricing, workers' rights and sustainable production. Greater awareness among brands and regular reviews of pricing practices could help address many of the challenges facing the garment sector.
AKM Monirul Kobir
Senior Programme Officer, BILS
Workplace health risks, including heatwaves, need to be addressed through priority-based measures according to the level of risk. Proper implementation of existing labour laws and minimum wages set for different sectors also needs to be ensured.
Bangladesh also needs to strengthen its bargaining capacity with international buyers, as the same products are often offered at different prices in different countries. At the same time, factories need to promote gender-sensitive workplaces, human rights-based due diligence and digital transformation to improve the skills of both workers and organisations.
Shaheen Anam
Executive Director, Manusher Jonno Foundation
Energy shortages, factory closures and the growing use of technology are causing many women workers to lose their jobs. Recent closures of small factories have also left many women workers searching for new employment, highlighting the need for greater investment in their skills alongside technological changes.
Bangladesh has made significant progress in developing green and environmentally friendly factories. However, the benefits of this progress should also be reflected in workers' wages and working conditions. Garments produced with relatively low-paid labour are often sold at much higher prices in international markets, making fair value distribution an important issue.
Small factories have relatively less bargaining power and need greater capacity to negotiate fair prices with large manufacturers and international buyers.
Despite improvements in infrastructure-related compliance, significant gaps remain in social and workplace compliance, particularly in addressing workplace harassment.
Greater transparency and accountability are also needed in the use of workers' welfare fund money.
Mohammad Shah Alam
Deputy General Manager, Epyllion Group
Investment in workers' skills should be seen not only as a social responsibility but also as a business investment. Technical and soft-skills training can improve communication, leadership, problem-solving, time and stress management, and financial decision-making. But training alone cannot deliver lasting change. Management attitudes, workplace culture, production systems and buyers' expectations must also change.
Factories often make commitments to buyers but later backtrack, citing financial and pricing constraints. Compliance alone is therefore not enough; measures must be regularly assessed for their effectiveness for workers, management and businesses. Third-party assessment and verification are also important.
The energy crisis remains a major challenge for industry. Gas shortages are disrupting production around Dhaka, while 100 factories have reportedly shut down in Narsingdi. Rising energy costs have forced some factories to keep up to 80% of their fans switched off, increasing health risks and disrupting production. Delays are also affecting shipments and raising the risk of order cancellations, potentially undermining buyers' confidence in Bangladesh.
Bangladesh, once the world's second-largest apparel exporter, now ranks third. Maintaining its position will require a swift resolution to the energy crisis alongside higher productivity and better working conditions. Entrepreneurs, workers, the government and other stakeholders must take responsibility for their respective roles and work together rather than blame one another. A collective effort is essential to ensuring decent work and strengthening the sector's future.
China Rahman
General Secretary, Federation of Garments Workers (FGW)
Decent work means more than fair wages. It also includes workers' rights to speak up and organise, as well as safe and dignified working conditions. Despite years of discussion on decent work, its full implementation has yet to be achieved.
Improving a factory's external environment or obtaining certifications alone is not enough. Greater attention is needed to workers' wellbeing, working conditions and quality of life inside factories. This requires a positive mindset and genuine efforts from factory owners, the government and worker representatives.
The reasons behind women workers leaving the RMG sector also need to be identified. Greater attention should be given to why workers are quitting, why absenteeism is increasing and why excessive working-hour pressures are emerging. Regular discussions and roundtables alone will not solve these problems; effective measures must be taken based on their root causes.
Rajekujjaman Ratan
Labour Rights Advocate
Ensuring decent work requires not only workplace discipline but also a democratic environment and workers' bargaining power. Without giving workers a voice and meaningful participation, decent work cannot be ensured.
The Department of Inspection for Factories and Establishments (DIFE) has 442 inspectors against 724 approved posts, leaving 282 vacancies. With nearly 40% of posts unfilled, its capacity to ensure workplace safety and workers' rights remains a concern.
The country's labour force stands at around 76 million, while the Labour Ministry receives only Tk467 crore. Given the size of the workforce, inspection capacity must be strengthened and vacant posts filled to ensure safe workplaces and protect workers' rights.
Decent work should not be treated merely as a compliance issue, which often stems from obligation rather than awareness. Policymaking should focus on improving workers' quality of life, while buyers should adopt more ethical sourcing practices instead of prioritising the lowest possible production costs.
If garment-sector competitiveness remains focused on cost-cutting, Bangladesh risks being trapped in low-wage, labour-intensive production. Declining female employment could further underutilise the labour force and create uncertainty over the future workforce.
Developing workers' skills should not be the sole responsibility of factories. The government, educational institutions and other organisations must build a long-term system for producing skilled workers instead of assuming that skills will simply be available in the market.
Workers' bargaining power is equally important. Without it, neither the state nor employers can effectively negotiate with buyers. Trade unions alone cannot protect workers' rights unless worker organisations and collective bargaining mechanisms are genuinely effective.
Strong unions can also strengthen employers' position in telling buyers that lower prices cannot be sustained alongside fair wages and decent working conditions.
Ensuring decent work ultimately requires three priorities: a change in mindset, democratic practices and shared responsibility among the government, employers and workers.
Bablur Rahman
Country Manager, Fair Wear Foundation
Bangladesh needs an effective national product code or business code of conduct for all international brands operating in the country. Stronger national standards and institutional capacity would require brands to follow responsible business practices set by Bangladesh.
Warnings about gas shortages and the need to shift to renewable energy emerged more than a decade ago, with studies by development organisations also highlighting the risks. The current energy crisis cannot therefore be blamed on any single party; the government, factory owners and other stakeholders must share responsibility for addressing it.
As the RMG sector makes a major contribution to the economy, prolonged gas and electricity disruptions could have wider consequences. Long-term planning for the sector's energy security is therefore essential.
Discussions on setting minimum or reasonable garment prices have continued for around 15 years, but business organisations have yet to reach an effective agreement. Bangladesh also needs to strengthen its bargaining position in negotiations with international brands.
Responsible purchasing by buyers and manufacturers is essential to ensuring decent work while maintaining competitiveness. Garment prices should therefore reflect a reasonable assessment of production costs.
Taslima Yasmin
Associate Professor, Department of Law, DU
Gender-based violence and sexual harassment have become increasingly important concerns as women's workplace participation grows. Bangladesh has ratified ILO Convention 190 and amended labour law accordingly, but adopting policies or forming committees is not enough. Their effectiveness in practice and ability to ensure safe workplaces for women are more important.
The law does not clearly specify consequences for organisations that fail to form committees or prevent them from functioning effectively. Employers' responsibilities and accountability therefore need to be defined more clearly. Women's representation should also be ensured in labour law reforms.
The protection framework should cover informal-sector workers, dismissed employees and third parties, reflecting Convention 190's inclusive approach. A separate law is also needed to prevent sexual harassment in workplaces and educational institutions.
Factory inspectors should receive specialised training to identify sexual harassment and gender-based violence alongside fire and structural safety risks. Where necessary, a specialised inspection mechanism should be established to address these concerns.
Rani Chowdhury
Brand Ambassador, CKDL Group
Increasing employment and inclusion of transgender people in the garment sector is important. A transgender employee who joined a garment factory as a junior executive now works as its chief transgender brand ambassador. Transgender employees are also working in the administration, HR and compliance departments of the workplace, demonstrating that members of the community can perform their responsibilities effectively when given opportunities.
There are many skilled and talented people among the transgender community, but they are often denied employment opportunities. The government, BGMEA, BEPZA and industrial establishments should therefore take effective steps to promote their inclusion. Policies or circulars requiring garment factories to employ transgender workers at a specified rate could also help increase their participation in the sector.
Providing a respectful workplace and bringing transgender people into mainstream employment would play an important role in building a more inclusive industrial system.
Md Ryhan Ibn Rahman
Director (HR & Admin), Natural Group
To remain competitive globally, Bangladesh needs to develop a skilled workforce, but the country still lacks enough training centres and long-term training programmes for skills development. A planned and long-term training system, similar to those used by the military or police, is needed to prepare skilled workers for the industrial sector.
Thousands of workers from diverse socioeconomic backgrounds are working in RMG factories with discipline, which is commendable. However, factories also need a standard salary structure for staff, which could help retain employees and reduce unhealthy competition among companies.
Protecting workers also requires ensuring the survival and sustainability of industries and entrepreneurs. Many factories are currently under pressure from energy shortages, rising production costs and higher wages, with smaller factories facing greater difficulties. The government therefore needs to support struggling factories to help them survive.
Sekender Ali Mina
Member Secretary, Safety and Rights Society (SRS), Member Secretary, Sramik Nirapotta Forum
Bangladesh needs to give equal importance to ensuring decent work and strengthening its global competitiveness. The focus should move beyond compliance, audits and certifications towards improving actual workplace safety and productivity.
Certification alone does not guarantee a safe workplace. Accidents can still occur even at factories that are certified as green or compliant. The sector therefore needs to move beyond the certification trap and focus on real improvements in working conditions and worker safety.
After graduating from LDC status, Bangladesh will face challenges including reduced trade benefits, energy insecurity and climate change. Stronger coordination among workers' and employers' organisations in Global South countries is also needed to effectively protect Bangladesh's interests at the international level.
Spending on workplace safety and workers' wellbeing should not be seen simply as a cost but as a business investment. At the same time, more paid internship opportunities should be created to help workers develop skills while gaining practical workplace experience.
Sharmin Nipa
General Manager (HR), Elite Garments Inds. Ltd
There is no alternative to technical education in developing a skilled workforce to maintain the future competitiveness of Bangladesh's readymade garment sector.
Government agencies, industry bodies, development partners and brands are working on skills development, but the available funds and opportunities need to be used properly. In many cases, funds allocated for skills development remain unspent, which also reflects a lack of commitment among the stakeholders concerned.
Factories are also providing training to workers to improve both hard and soft skills. However, greater coordination is needed among the government, industry bodies and development partners. With a stronger sense of responsibility and commitment to the country, Bangladesh can further develop its RMG sector by building a skilled workforce.
Key recommendations
- Make decent work a shared responsibility
- Develop long-term national skills strategy
- Expand technical, digital, soft-skills training
- Create transition support for displaced workers
- Increase women's participation in leadership
- Promote responsible purchasing practices
- Strengthen workers' voice and bargaining power
- Strengthen measures against sexual harassment
- Ensure transparency in workers' welfare funds
- Adopt national code of conduct for international brands
