Bangladesh

“Compliance is not an issue of bargaining or discussion.” That was the sentiment among a group of experts who participated in a recent discussion on the importance of compliance in Bangladesh’s garment sector recently held at the Centre for Policy Dialogue. Participants at the conference emphasized that the desire to address compliance concerns should be independent of their potential impact on profits, even though many companies currently adhere to this mindset. They also noted that compliance issues must be approached differently for large and small operations. (The Daily Star)
 
Bangladesh is poised to remain as a major sourcing destination for global apparel companies, according to a new survey of Chief Purchasing Officers (CPOs) released by McKinsey and Company. The survey found that 48% of respondents said that Bangladesh would be among the top 3 sourcing destinations over the next 5 years, followed by Vietnam and India. Nearly 75% of respondents also said they planned to reduce their purchases from China over that same period. (McKinsey and Company)
 
The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) is urging the government to formalize bonus payments given before the Eid festivals each year in an effort to reduce the number of worker demonstrations that take place. In a letter to Bangladesh’s Labor Ministry, BKMEA President Salim Osman noted that inconsistencies and delays in Eid payments, including Eid-ul-Fitr earlier this year, has been a chronic problem that often leads to crippling worker demonstrations. While there is no requirement for production facilities to pay festival bonuses to their workers, many choose to offer it on moral grounds. (New Age BD)
 
A charge hearing for Delwar Hossain and 12 others connected with the deadly 2012 fire at the Tazreen Fashions factory has been postponed to September 3. This latest postponement comes after the prosecutors in the case said that they were not prepared for trial yet. All 13 defendants are charged with negligent homicide in connection with the incident. (New Age BD)
 
Bangladesh needs to focus on preparing itself for admission to Europe’s GSP+ (Generalized System of Preferences) program as the country would lose its regular GSP status once it reaches middle-income status, according to a Sajjad Karim, a member of the European Parliament who recently met with garment industry leaders in the country. Karim also insisted that Bangladesh begin implementing all of the conditions of the Sustainability Compact in an effort to improve workplace safety. (Fibre2Fashion)
 
Bangladesh’s Planning Minister Mustafa Kamal has proposed the establishment of a specialized bank to focus solely on the country’s readymade garment sector. Kamal says the bank would play an essential role in helping the country achieve its US$50 billion export target by 2021 by ensuring low-cost financing is readily available to garment producers. The proposal has also gained the support of industry groups like the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). (Fibre2Fashion)