Published in The Financial Express on Saturday, 1 March 2014.
RMG Sector Database
Apparel makers, buyers differ over contents
Monira Munni
Apparel makers have expressed their reservations about incorporating key information, especially on factory inspection and their trading profiles, in the proposed database fearing that their business secrets may leak out, industry insiders have said.
Instead, they want to make public the information on some selective areas in consultation with the apparel sector stakeholders and allow limited access to the database, they have further said.
Leaders of the country’s apparel sector raised their objection to the idea of making their crucial business information publicly accessible in meetings with foreign buyers and government officials on different occasions.
Experts also backed the apparel makers’ views about inclusion of the core business information and inspection reports in the database.
They, however, said all trade union-related information should be made public through inclusion in the database. They also suggested government monitoring of the whole process centrally.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Md Atiqul Islam told the FE: “The issue is very sensitive and should be dealt with cautiously.”
If the inspection report of a factory was made public, it might do damage to business of the factory, because it might drive away its buyers, the president said in a meeting with a forum of buyers.
The factory should be given a remediation period and in the event of its failure to attain the required level of improvement within the timeframe the inspection report could be made public, he added.
“But if the factory becomes compliant within the timeframe, they should not make the report public as the ultimate target is to improve the factory safety, not to damage its reputation.”
Md Shahidullah Azim, vice president of BGMEA, said it would not be wise to share the business strategy with the competitors as they could take the advantage of it.
About information on trade unionism, he said: “The garment sector is a labour-intensive sector and it is easy to create anarchy by spreading any misleading information.”
The information might be shared on a limited scale. Only the concerned ministries, BGMEA, owners and individual buyers should have access to all the information.
The information could also be misused, said Mr Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). Bangladesh should learn whether the competitor countries were making all their trade-related information public or not and, if yes, to what extent.
The apparel sector leaders, however, agreed that there should a central database in the greater interest of the sector.
Dr K G Moazzem, additional research director at the Centre for Policy Dialogue (CPD) favoured the view that the garment factory inspection report should be made public only after the factory’s failure to do the remediation within a given timeframe.
“But the database containing information on trade unionism should be made public and accessible to all,” he added.
He also opined that though the system was being developed by others due to the absence of necessary resources, the government should have its control on it with regular monitoring.
In the initial phase, the access should be limited only to the concerned authorities and then gradually be extended as a proper plan, he suggested.
Earlier, the US under its Action Plan and the Sustainability Compact recommended a publicly-accessible database encompassing reports on labour, fire and building inspection providing information on factories, their locations, violations identified, fines and sanctions administered, factories closed or relocated and the violations remediated.
It also suggested making public information on the status and final outcomes of individual union registration applications, including the time taken to process the applications and the basis for denial, if relevant, and information on collective bargaining agreements concluded.
The publicly-accessible database is one of the key requirements set by the US and the EU for restoration of the GSP (Generalised System of Preferences) benefit in the former and retention of the same in the latter’s markets.
The diplomats from the US, Canada, Germany, the Netherlands and the EU in a meeting pressed the government to create the database by March end.
The labour and employment ministry in cooperation with the International Labour Organisation (ILO) is preparing the database under the US Action Plan and the Sustainability Compact.
A senior official at the labour ministry said the two databases would have the basic information about factories and their location, the number of workers while the other will provide the information related to trade union.
“Before finalisation of the whole process, we’ll discuss it with the stakeholders including the owners,” he gave an assurance.