Chapter 1: Introduction

1.1 Background of The Study

The Bangladeshi garment sector is a leading garment manufacturing industry in the world
that has been growing constantly during the last decades. According to the WTO,
Bangladesh is the fourth greatest exporter of clothing in the world, its share being 4.8% of
the total (data from 2014). In the fiscal year 2013-2014, the garment sector accounted for
78.6% of Bangladeshi total exports (BGMEA, 2014), bringing 23 billion US dollars into
the country and contributing to more than 13.5% of the total gross domestic product.
These numbers, a testimony of the importance of this sector for Bangladesh and its citizen
- 150 million of people - are certainly impressive, however, what is really astonishing is
the rate at which this industry has grown. After the independence war (ended in 1971),
the economy of the country was shattered and the industrial sector was practically nonexistent. The first investments in the garment sector arrived in the early 80s from Korea
and since then the industry have been exponentially growing year after year. To grasp the
size of this growth, consider that in 19841985 the total number of garment factories in
Bangladesh was of 384, while in 20112012 this number spiked to 5400 factories,
employing a total of 4 million workers. Most of exports are directed towards western
countries, mostly towards Europe (60%) and US (24%). Emerging markets such as
Russia, China and Brazil still dont account for much of the total export (10%) but their
share its rapidly growing (20% increase from the 2011-12 period to the 2012-13 one).
A peculiarity of the Bangladeshi garment sector is that it specializes on ready-made
garment (RMG). A type of good that intrinsically leads to low margins of profits and
whose production does not require highly trained workers. Because of the latter,
Bangladesh, with its cheap labour force, attracted investments in the RMG sector.
However, cheap labour often means poor working conditions. It is undeniable that the
conditions in which the millions of people employed in the garment sector work are
unsatisfactory. This fact is particularly evident when thinking about recent tragedies such
as the Tazreen Fashions fire (2012) and the Rana Plaza collapse (2013), in which more
than a thousand people lost their life. Nonetheless, aside from these extreme examples,
poor working conditions are an everyday problem of RMG workers. The issues that
employees face encompasses a wide range of topics, such as workplace safety, working
hours, wage, job security, gender equality, child labour and so and so forth. What all these
1

issues have in common is their being a consequence of non-conformances to the existing

legislation and to the rules of social accountability, that is, of lack of compliance.
In this era of competition its the people who make all the difference. In readymade
garments (RMG) sector human resources play a vital role. And managing people to make
difference is not an easy job. Thats why in this study I would like to share my experience
after working with HR department of a RMG company named Hannan Fashion Ltd. In
internship my project was in a broader perspective HR management of Hannan Fashion
Ltd.

1.2 Statement of The Research Problem

The research will mainly focus on the reoccurring and concerning issues in the garment
industry of Bangladesh. The problem to be dealt and studied in this research is to identify
and assess the compliance issues in garment sector of Bangladesh based on the
experience of working in Hannan Fashion Ltd.

1.3 Objectives of The Study

Board Objective:
To provide an overview of human resource compliance issues in Garments Sector of
Bangladesh
Specific Objectives:
To identify the legal provisions regarding human resource compliance issues in
Bangladeshi & International laws

To determine compensation Practices used in Hannan Fashion Ltd.

To find out other human resource compliance issues maintained in Hannan Fashion
Ltd.

To assess and compare the acceptance of compliance practices of Hannan Fashion

Ltd.
To suggest some options to be improve effectiveness of Compliance Practices of
HFL

1.4 Scope of The Study

The scope of the research is not limited in great extent. The report will focus on general
conditions and legal provisions regarding human resource compliance issues prevailing in
the context of garments sector of Bangladesh. The report will represent all the
experiences of observing the practices of Hannan Fashion Ltd.

1.5 Limitations
The problems that may be faced in completing this study are given below:
At first, there may be a scarcity of required data. Sometimes, data may not be
found in needed format.
In some cases, it will take a long time to make conversation with officials because
they are quiet busy.
Lack of access to statistical data may be appeared due to confidentiality.
This type of organization is rigid to reveal the data associated with the employment
policy and labor relations As a result, it may became hard to collect and analyze
data required in this study.

Chapter 2: Methodology

2.1 Research Design

In order to deal with the problem of the study and fulfill the objectives, a suitable study
plan is need to be chosen. This study plan includes discussion of theoretical and literary
framework to determine the factors to be studied and then these factors are to be analyzed
as per the data regarding international & national laws and real picture in Hannan Fashion
Ltd. collected by using different tools and techniques.

2.2 Population Details

This research data will be collected from a survey study of all 12 staff and officials in the
HR & Compliance Department of Hannan Fashion Ltd. by using various research
techniques.

2.3 Methods and Tools of Data Collection

The required data are expected to be gathered from various sources. The concerned
sources can be discussion with managers and officials of HR & Compliance Department
of HFL, various documents & certificates of HFL, journals and websites to collect data
labor court law and other national laws regarding human resources compliance issues and
various international provisions in this regard.
The data will be collected by observing the functions of HR & Compliance Department,
using a questionnaire of 10 questions to be answered by all officials of HR & Compliance
Department of HFL and retrieving different websites.

2.4 Data Processing and Analysis

The studied data will be processed, analyzed and presented by applying different
analytical tools and techniques. Initially, some basic mathematical operations are to be
performed to convert the raw data from the depth interviews into meaningful information.
The findings of the questionnaire and observation will be subsequently analyzed and
compared with overall national and international dimensions with various types of
4

graphical models e.g. Pie Charts, Bar Diagran, Tables etc. Finally, subjective judgments
will be used to offer recommendations based on analyses and findings.

Chapter 3: Organizational Profile

3.1 Introduction
The journey of Hannan Fashion Ltd. started February 1998. Hannan Fashion Ltd.is a
Bangladesh based company with corporate office in Gazipur, Bangladesh operating under
Bangladeshi management with a team of experienced local Bangladesh employees, our
company shipment over 1.2 million pieces of clothing per year all over Europe, USA and
Japan
Hannan Fashion Ltd. can help you to oversee and control your already existing
production or if needed, help you to establish production through our existing network of
Manufacturing Unit.

3.2 Ultimate Goals of the Organization

To develop fashion and implement as per your requirements
To provide the quality as per you requirements.
To implement the lead time and ensure to reaches the product on time.
To ensure the low price but obviously maintain quality.
To ensure human rights and worker rights by maintaining the Rules and
regulation of the buyers demand.
To operate various research, training, survey program, seminar, and
symposium for improve the quality of product.
To motivate worker of the garments by providing appropriate
remuneration.
To implementing development in the manufacturing process of cut and
sew garments

3.3 Offices & Sourcing

Hannan Fashion Ltd. has operations from the most modern premises available in Dhaka.
Our office is equipped with all the modern means of communication such as e-mail,
overseas phone and fax capabilities.
We are the strongest sweater manufacture to source & handle fancy yarn; we are importing yarn
from different province of China, Taiwan, Korea, India, etc. Natural fiber, man-made fiber,
different qualities blended fiber etc. Our Designer participates in different yarn exhibition to see

the trend idea & colors of Autumn/Winter & Spring/Summer at different time of the year. We
also visit European fairs for trend ideas & do a lot of shopping across USA, EUROPE & JAPAN.

We invest energy & several million USD on sweater yarn research & development to
make trendy sweater collection so that we can bring latest collection to our customers.

3.4 Organogram
Below structure broadly illustrates the hierarchy layout and operational responsibilities of
the Board and the Leadership teams of Hannan Fashion Ltd. .

Figure 3.4.1: Organogram of Hannan Fashion Limited

3.5 Production Units

Our self-owned factory was engineered and purposely built for maximum efficiency in
production, consisting of five floors of each 20000 sqft (Approx.).

Ground Floor

First Floor

Second Floor

Third Floor

Fourth Floor

Ware House

Office & conference room

Sample Room

Winding

Washing Unit

Finishing section

Inspection Room

Knitting Inspection

Linking section

Knitting Neck

Trimming /Mending

Overlock/Bartack/Light Check

Knitting section (12 gauge, 7 gauge)

Knitting Section (5 gauge)

Day care center / Dining Room /Prayer Room /Doctors Room

All the working floors are well ventilated and clean with normal and emergency exits. we
are self-equipped with 900 KVA generator power to meet all our in-house demand

3.6 Products
Mens Pullover,

Womens Pullover,

Juniors Pullover

Mens Cardigan

Womens Cardigan

Juniors Cardigan

3.7 Customers
ESPRIT of Germany
STREET ONE of Germany
ERNSTINGS FAMILY of Germany
KATAG of Germany
8

 MQ of Sweden
LINDEX of Sweden
KAPPAHL of Sweden
EL CORTE INGLES of Spain
BEST SELLER of Denmark
CELIO OF FRANCE

3.8 Equipment
Table 3.4.1: Equipment available in Hannan Fashion Limited

Equipment type

Brand

Jacquard machine ( Multi guage (7-14 )

Shima Seiki

Country
Japan

Winding machine (spindle)

Quantity
20 nos
10 set (120
spindle)

Knitting machines:

Flying tiger

Taiwan

200 sets

3.5 gg

150 sets

5 gg

250 sets

7 gg

200 sets

12 gg
Linking machines:

Flying tiger

Taiwan

12 sets

5 gg

48 sets

6 gg

120 sets

8 gg

100 sets

14 gg
Sewing machine

Juki

Japan

18 sets

Overlock machine

Juki

Japan

12 sets

Button hole machine

Juki

Japan

04 sets

Button stitch machine

Juki

Japan

04 sets

Flat lock machine

Juki

Japan

04 sets

Checking lamp

10 set

Boiler (470 kgs/hr)

Fulton

USA

02 set

Automatic washer (capacity 105 lbs)

Flying tiger

Taiwan

04 set

Hydro extractor (capacity 114lbs)

Flying tiger

Taiwan

02 set

Dryer (capacity 80 lbs)

Flying tiger

Taiwan

06 sets

Stem iron

Flying tiger

Taiwan

42 sets

Water pump & motor

Fulton

USA

02 Set

Heavy duty water pump

Fulton

USA

02 Set

Fiber glass water softener

Fulton

USA

02 Set

Computer

20 Set

Generator (450 kva)

02 Set

Source: Company Profile, 2015

3.9 Employees
Section

Number of Employees

Jacquard section

30 persons

Winding section

75 persons

Knitting section

600 persons

Linking section

200 persons

Overlock section

20 persons

Trimming section

80 persons

Lightcheck section

45 persons

Mending section

60 persons

Washing section

35 persons

Ironing section

100 persons

Sewing section

75 persons
10

Quality control

40 persons

Packing section

45 persons

Office staff

25 persons

Other

30 persons

Total employees

1460 persons

3.10 Certificates

Figure 3.4.2: Hohenstein Textile Testing Certificate

11

Figure 3.4.3: Certificate of ISO 9001:2008

12

Chapter 4: Literature Review

4.1 Elements of Compliance System

Compliance is the Certification or confirmation that the doer of an action (such as the
writer of an audit report), or the manufacturer or supplier of a product, meets the
requirements of accepted practices, legislation, prescribed rules and regulations, specified
standards, or the terms of a contract.
A definition is given by Baral (2010) Compliance means to comply with something or
yield to the wishes of another. Compliance ensures all labor rights and facilities according
to the buyer code of conduct. The aim of compliance is to maintain strictly the labor law.

Figure 4.1.1: Compliance Issues formulated by ILO

Source: ILO website, 2015

4.2 Provisions in National Laws

There are some laws such as BGMEA Code of Conducts, Labor Court Law 2006
and so on regarding human resource compliance issues in Bangladesh. The
common features and provisions of those laws are summarized below:

4.2.1 Employment standards

An employee or labour is defined as any person, including a
trainee/probationer, whether the terms and conditions of his/her
13

employment are expressly written or not, who is employed directly or

through a contractor/agency, for any skilled, unskilled, physical, technical,
business development or clerical job in any establishment or industry.
Retirement age for workers employed in any establishment is 57 .
Work hours are set at eight hours a day, 48 hours a week, with a weekly rest
day.
Overtime (OT) work is maximum of two hours a day. OT pay is twice the
hourly remuneration.
Workers are entitled to rest and meal in a day as follows: (i) one hour
interval for over six hours work a day; (ii) half an hour interval for more
than five hour work; and (iii) one hour interval once or half an hour interval
twice for more than eight hours work a day.
Workers are entitled to holidays, casual leave, festival leave, annual leave
and sick leave.
Every worker has the right to participate in company's profits/benefits.
No young worker is permitted to work in any establishment between the
hours of 7 p.m. and 7 am.
No children (under 14 years of age) are allowed to work in any occupation
or establishment. However, a child who has completed 12 years of age is
permitted to do light work not harmful to his health, development and
education.
A Minimum Wage Board is established to determine the minimum rates
of wages in different private sectors, taking into consideration varied
criteria: cost of living, standard of living, cost of production, productivity,
14

price of products, business capability, and economic and social conditions

of the country.
Employers are mandated to observe equal wages for male and female
workers for work of equal nature or value.
Forced labour is prohibited.

Table 4.2.1 Fourth Minimum Wage Structure for Garment Workers

Grading ( Main Posts)

Basic

House rent Medical

(40% of Allowance
Basic)

Net
Salary

Grade 1: Pattern Master,

Chief
Quality Controller

Tk. 6,500

Tk. 2,600

Tk. 200

Tk. 9,300

Grade 2: Mechanic,

Tk. 5,000

Tk. 2,000

Tk. 200

Tk. 7,200

Tk. 2,870

Tk. 1,148

Tk. 200

Tk. 4,218

Tk. 2,615

Tk. 1,046

Tk. 200

Tk. 3,861

Tk. 2,395

Tk. 958

Tk. 200

Tk. 3,553

Grade 6: Operator of General Tk. 2,230

Tk. 892

Tk.200

Tk. 3,322

Tk. 800

Tk.200

Tk. 3,000

Electrician, Cutting Master

Grade 3: Sample Machinist,
Senior Machine Operator
Grade 4: Sewing Machine
Operator, Quality Inspector,
Cutter, Packer, Line Leader
Grade 5: Junior Machine
Operator, Junior Cutter,
Junior
Marker
Sewing/Button Machine
Grade 7: Assistant Sewing
Machine Operator, Assistant
Dry washing man, Line Iron
Man

Tk. 2,000

Source: Minimum Wage Board, 2010.

15

4.2.2 Occupational safety and health

Establishments are required to put up for every 150 workers one first aid
box and one trained person per first aid box, and an equipped dispensary
with a patient-room, doctor and nursing staff.
Employers are required to take appropriate measures to protect workers
from danger and damage due to fire.
Every establishment is required to be kept clean and free from effluvia
arising out of any drain, privy or other nuisance.
The work room should not be overcrowded and injurious to the health of
the workers.
Every establishment should provide pure drinking water, sufficient light and
air, and separate toilets for its male and female workers.

4.2.3 Welfare and social protection

Gratuity is defined under the law as separation payment, at least 30 days,
for workers discharged from work and yet have worked not less than 6
months.
Factories are required to have an in-house canteen for every 100 workers.
Every establishment/employer is required to form a Provident Fund if threefourths of its workers demand it by written application, and a Workers
Participation Fund and a Workers Welfare Fund for its workers.

16

 Establishments with 200 or more workers should institute a group

insurance. Every employer should provide compensation to its workers for
work-related injury, disability and death.
Various womens issues are also covered: maternity leave of 16 weeks (8
weeks before and 8 weeks after child birth), no gender-segregated wage
structure, prohibition of any form of discrimination against women,
prohibition of women working between 10:00 p.m. and 6:00 a.m. without
consent, prohibition for women handling running or dangerous machines
(unless they are sufficiently trained to operate such machinery), prohibition
for women working under water or underground

4.2.4 Labour relations and social dialogue

Every worker employed in any establishment has the right to form and join
a trade union of their own choice. Trade unions have the right to draw up
their own constitution and rules and to elect their representatives. Also,
trade unions have the right to form and join in a federation and such unions
and federations have the right to affiliate with any international organization
and confederation of trade unions.
The trade union is allowed to serve as a collective bargaining agent in any
establishment.
In case of industrial disputes, the two sides can seek resolution through
negotiation, followed by conciliation and eventually arbitration if
negotiation fails.
17

 The collective bargaining agent is entitled to file a notice of strike (or

lockout in the case of the employer) with a 15-day cooling-off period.
Employers cannot recruit new workers during the period of a strike.
Employers are also prohibited in terminating workers in the course of trade
union organizing in the work place.

4.2.5 Enforcement
Government shall appoint the Director of Labour and such number of
Additional Director of Labour, Joint Directors of Labour, Deputy Directors
of Labour and Assistant Directors of Labour as necessary for monitoring
workplace activities.
The Government shall appoint a Chief Inspectors and requisite number of
Deputy Chief Inspectors, Assistant Chief Inspectors or Inspectors. These
officers have the power to enter, inspect and examine any workplace
premises and ascertain the observance of labour laws.
The Government has the power to establish as many Labour Courts as it
considers necessary. A Labour Court shall consist of a chairman and two
members (one representing employers and the other, the workers).

4.3 International Labour Standards

Globally a number of standards have been developed in order to help companies
address various aspects of CSR. These have included the ISO14000 series for
environmental management systems and related aspects, OHSAS18000 for
occupational health and safety, SA8000, WRAP (Worldwide Responsible Apparel
Production) and FLA for labour standards22. Beyond the standards are guidelines

18

such as OECD, United Nations Global Compact, World Business Council on

Sustainable Development and GRI.
Regionally, there have also been some interesting developments, with perhaps the
most important one Chinas homegrown social responsibly standard for the apparel
sector, CSC9000T, launched in May 200523. Similar to SA8000 (i.e. a
management systems approach), CSC9000T was developed and will be
administered by the China National Textile and Apparel Council (CNTAC), a
national non-profit organization of all textile-related industries set up to help
modernize China's textile industry. It is based on the relevant Chinese laws and
international standards, but does not call for freedom of association and collective
bargaining and simply notes that the ACFTU is the legal representative of workers
in China.
As a response on the increasing pressure from stakeholders, many brand
companies have developed their own corporate code of conduct on social
responsibility. An OECD study in 2000 found 246 codes of conduct, 37 of which
applied to the textile and clothing sector. Some of companies also participate in
international standards like SA8000, ETI and FLA.
The major standards for workplace conditions in supply chains are SA8000 (from
Social Accountability International and for use in any manufacturing sector),
WRAP (for apparel) and a number of initiatives based on a membership model
such as the Business Social Compliance Initiative (BSCI), Fair Labour Association
(FLA, for apparel), Ethical Trading Initiative (ETI, based in UK and with member
companies across a number of sectors, particularly retailers), Worker Rights
Consortium (WRC, with membership based on US colleges and universities in a
range of manufacturing sectors but mainly apparel), the Clean Clothes Campaign
(CCC, a European NGO based on apparel production), and the Fair Wear
Foundation (FWF, based in the Netherlands and targeting apparel).
To bring together key organizations different aspects of code implementation and
enforcement in a program of collaborative work, the Joint Initiative on Corporate

19

Accountability & Workers Rights (Jo-In) was established. Members of Jo-In are:
SAI, FLA, ETI, CCC, FWF and WRC.
The International Labour Organisation is a tripartite UN organization representing
governments, businesses and workers and has set up a legal and policy framework
for labour issues. The ILO has issued almost 200 conventions on working
conditions. Eight of these specify the fundamental labour rights:
Freedom of association and the right to collective bargaining;
A ban on forced labour;
A ban on child labour;
A ban on discrimination in the workplace and in professions.
Minimum Wages
The ILO conventions focus in particular on governments responsibilities with
respect to labour rights. The Tripartite declaration of Principles Concerning
Multinational Enterprises and Social Policy extends the ILO Conventions, listing
corporate responsibility with regard to labour issues and also including a number
of additional labour standards falling under the specific responsibility of
corporations. Most codes of conduct and social standards are based on these
conventions.

Table 4.3.1: Compliance of ILO conventions by different countries

Convention

Forced labor

Number
Rectification
date
Bangladesh
China
India
Thailand
Vietnam

C.29
1930

Freedom of
Discrimination Child labor
Association
C.105 C.87
C.98 C.100 C.111 C.138 C.182
1957 1948
1949 1951 1958 1973 1999

1972

1972

1954
1969

1972

1972 1998
1990
1958
1999
1997

2000
1969

Source: ILS, 2011

20

1972

Minimum
age
C.138
1973

1999

2001
2002

16

2004
2003

2001
2000

15
15

1980
1997

Provisions in those international laws can be summarized as follows:

Child Labour: No workers under the age of 15; minimum lowered to 14

for countries operating under the ILO Convention 138 developing-country
exception; remediation of any child found to be working;
Forced Labour: No forced labour, including prison or debt bondage
labour; no lodging of deposits or identity papers by employers or outside
recruiters;

Health and Safety: Provide a safe and healthy work environment; take
steps to prevent injuries; regular health and safety worker training; system
to detect threats to health and safety; access to bathrooms and potable
water;

Freedom of Association and Right to Collective Bargaining: Respect the

right to form and join trade unions and bargain collectively; where law
prohibits these freedoms, facilitate parallel means of association and
bargaining;
Discrimination: No discrimination based on race, caste, origin, religion,
disability, gender, sexual orientation, union or political affiliation, or age;
no sexual harassment;

Working Hours: Comply with the applicable law but, in any event, no
more than 48 hours per week with at least one day off for every seven day
period; voluntary overtime paid at a premium rate and not to exceed 12
hours per week on a regular basis; overtime may be mandatory if part of a
collective bargaining agreement;
Discipline: No corporal punishment, mental or physical coercion or verbal
abuse;
Compensation: Wages paid for a standard work week must meet the legal
and industry standards and be sufficient to meet the basic need of workers
and their families; no disciplinary deductions;

21

4.4 Compliance Practices in Garments Industries of Bangladesh

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has
formulated its own code of conduct for the industry, in collaboration with the
major trade unions, and has set up a compliance unit that monitors labor conditions
in its members' factories (UNIFEM 2008). In 2006, the Government passed a new
labor code, after 12 years of deliberation and activism. It applies to all workers,
and the new sections relevant to the garment industry include written contracts and
identity cards, timely payment of wages, revised minimum wage, paid maternity
leave and explicit laws against sexual harassment.

The export-quota system and the availability of cheap labor are the two main
reasons behind the success of the industry (Haider 2007). But unfortunately in
many RMG factories the labors are often seen being deprived of their rights.
According to Amin (2009), Coordinator of the Bangladesh Garment Workers
Unity Council (BGWUC), The garment workers of Bangladesh may be the most
deprived labor force in the world. Most are paid between US$14 and US$16 per
month, the lowest salary in the world. He also added Only a few factories here
maintain international standards, and many of them do not implement any worker
health and safety measures. The Financial Express (2008), a daily English
newspaper of Bangladesh, referred to a recent study conducted by a local think
tank that has revealed that investors in the RMG sector have more than doubled
their earnings in the past seven years. Despite this increase, however, it is a
remorse that many owners are not paying their laborers regularly and all sorts of
extraneous arguments are put forward for non-payment of their salaries. New Age
(2009), another prominent daily English newspaper, reported that the majority of
garment factories do not yet comply with many wage and workplace standards
specified in the tripartite agreement of 2006. At the global level, campaigns have
drawn attention to abuses of workers' rights in global supply chains and put
pressure on international corporations to take greater responsibility for employees
through corporate codes of conduct. Local employers in the Bangladesh garment

22

industry must now demonstrate compliance with these codes to win orders from
international buyers (UNIFEM 2008). According to International Labor

Organization (2010), buyers make sourcing decisions based on four factors: price,
quality, how long it takes to get produce to the marketplace and social compliance,
including compliance with labor standards. In order to export readymade garments,
it is not only the quality parameters that are important towards acceptance of the
product as per the intended end use, but also the working environment, in which
the garments are to be produced, is equally important so that sweatshop concept is
totally taken care of and the code of conduct must be stretched towards achieving
the objectives of social compliance issues (Das 2008). Research showed that when
companies that dealt with foreign buyers adhered to codes of conduct, conditions
improved for the workers in the factories stated by (Mahmud) in one of her
articles. In some large factories, health and safety standards improved and other
benefits were introduced such as timely payment of salaries, proper overtime rates
and maternity leave.

The social dimensions of the RMG industry are getting more attention from
consumers, social workers, welfare organizations and brand name international
buyers. International buyers are very particular about compliance with codes of
conduct. Currently, many international buyers demand compliance with their
code of conduct before placing any garment import order. The factory working
environment is not very satisfactory.

So in order to sustain in the industry, Bangladesh needs to improve the factory

working environment and various social issues related to the RMG industry.
Informal recruitment, low literacy level, wage discrimination, irregular payment
and short contracts of service are very common practices in the RMG factories in
Bangladesh. Peoples Daily Online China (2008) reported that the Bangladeshi
23

caretaker government is to take stern action from August 1 against owners of

garment factories who failed to implement compliance issues like providing
minimum wage to workers. German Embassy (2010) stated that PROGRESS, a
joint project of the Bangladesh Ministry of Commerce and the German Federal
Ministry, has consequently turned its full attention to the area of social compliance
and assisting the government in the following areas: implementation of the new
labor law, media campaigns, training and retraining measures for compliance
inspectors, advisors, and the introduction of a new monitoring and evaluation
system. According to Hameeda Hossain, Convener of the Shromik Nirapotta
Forum, newspaper reports and statements by business leaders suggest that they
may now be willing to recognize genuine labor problems which is reflected by the
fact that BGMEA and BKMEA are reported to have conceded the need to revise
pay scales, issue employment letters, non-enforcement of overtime. The question
of safety conditions was also raised.

24