H&M And Next Bengal Factories Dismiss Thousands Of People And Punish Workers For Strike.
Bangladesh's clothing industry workers tried to raise their minimum wage by striking. Not only did they fail, but nearly ten thousand workers who took part in the strike were dismissed by the garment factory.
Last September, Bangladesh said that the minimum monthly salary for garment workers in 2019 will be raised from 5300 Taka to about 63 US dollars to 8000 Taka, or about $95, but the move is dissatisfied with the industry. Industrial workers hope to raise their minimum monthly salary to 16000 Taka, or about 191 US dollars.
As for workers' demands, Bangladesh clothing factory owners say they also face the pressure of global brands on cost control.
Bangladesh Garment Workers' trade Union Center Kazi Bangladesh garment workers union center Kazi Ruhul Amin said earlier this month that those who shouted slogans to leave the factory and joined the demanding pay raise, and those associated with the organization, are now losing their jobs.
Bangladesh Center for Worker Solidarity, Kalpona Akter, representative of Bangladesh workers solidarity center, said on Thursday that the arrest prevented that at least 5000 workers had been sacked so far, but the actual figure could reach 7000.
Bangladesh Garment and Industrial Workers Federation, Bangladesh apparel and industrial workers union head Babul Akhter said that in recent weeks, at least 7580 workers in 27 factories in Bangladesh have been sacked, including suppliers of brands such as H&M and Next.
However, Bangladesh Garment Manufacturers and Exporters Association Bangladesh garment manufacturer and exporter association president Siddiqur Rahman claims that the dismissed workers are not innocent, and accuse them of participating in the destruction, robbery, and other offences against the factory.
Siddiqur Rahman also represents the factory owner, saying that the business of the industry is very difficult, with large bank loans and other debts.
Some workers accused Siddiqur Rahman of lying, and even though he protested, he still went to work on time, because he was trying to form a trade union with other workers.
H&M parent Hennes & Mauritz AB (HM-b.ST) Haines Maurice group expressed deep concern about the recent events in Bangladesh's textile industry, and affirmed the freedom of protest. Spanish brand Mango and US brand Guess and Saks declined to comment. Zara parent Inditex SA (India) group said that the three factories that fired workers were not suppliers of the company.
At present, there are about 4 million garment workers in Bangladesh. Although the new minimum wage has been raised by 51% over the previous period, it is still difficult to reach the annual income of $1750 in the country.
On the contrary, clothing exports account for more than 80% of Bangladesh's total exports.
According to data from Bangladesh clothing manufacturers and Exporters Association of Bangladesh Garment Manufacturers & Exporters Association, the output value of clothing exports in the first 12 months ended in June 2018 was $30 billion 600 million, an annual increase of 8.8%, accounting for 83.5% of total exports.
The world's leading retailers include four fast fashion brands Zara, Uniqlo UNIQLO, H&M, Gap parent company Inditex SA (ITX.MC) Indy Textile Group, Fast Retailing Co. Ltd. (fast) sales group, Haines & amp; Maurice (Group), and the group of imports and exports from Bangladesh.
WTO data show that Bangladesh garment exports accounted for 6.3% of the market in 2016, second only to the overlord China, which accounted for 34.5% of the absolute monopoly.
In addition to fast fashion brands, European and American retail giants such as WalMart Inc. (WMT.N) WAL-MART, Macy's (NYSE:M) Messi department store, JC Penney Co Inc (JCP.N) Penny department store, Sears Sears (Sears) group, Sears, Italy, China, Spain, UK / Ireland, France, France, and Canada have all the Bangladesh as an important supply chain market.
Li & Fung Ltd. (0494.HK), the world's largest supply chain service provider, also makes Bangladesh and Vietnam as a purchasing base. Bangladesh's procurement business is almost entirely made of garments, with only a low single digit grocery purchase.
In April 25, 2012, one of the most tragic tragedies in human history was made by Bangladesh clothing industry. A 8 storey Rana Plaza garment factory on the outskirts of the capital of Dhaka collapsed, killing more than 1100 people. Two days before the incident, the building had cracks and reported it to the factory owner.
The disaster caused the European and American garment industry to be in a moral dilemma, but internal disagreement did not form a real alliance to help Bangladesh garment workers who had a lot of sweatshops.
On the other hand, as factories have to invest in factory hardware safety and staff training, wage increases and automation levels have increased, the factory size of Bangladesh garment industry has shrunk. In the past five years, the clothing factories have been drastically reduced by 22% to about 4500.
In 2013, a similar strike occurred in Bangladesh. The government raised the wages of industrial workers from 3000 tuckas to about $38 to 3600 Taka, which eventually encountered workers' protest. In those days, the minimum monthly wage of garment workers was raised from 3000 Taka to 5300 Taka.
The latest increase in monthly salary is the first time in five years that Bangladesh has been paid, and it is still in the background of elections.
The strike in January resulted in at least one death and dozens of injuries.
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