...Development of Bangladeshi RMG Sector Introduction The Ready –Made Garments (RMG) sector has emerged as the biggest earner of foreign currency. The RMG sector has experienced an exponential growth since the 1980s. The sector contributes significantly to the GDP. It also provides employment to around 4.2 million Bangladeshis. An overwhelming number of workers in this sector are women. This has affected the social status of many women coming from low income families. History In the 1950s, labors in the Western World became highly organized; forming trade unions. This and other changes provided workers greater rights including higher pay; which resulted in higher cost of production. In order to control the level of imported RMG products from developing countries into developed countries, Multi Fibre Agreement (MFA) was made in 1974. The MFA agreement imposed an export rate 6 percent increase every year from a developing country to a developed country. In such restrictions, producers started searching for countries that were outside the umbrella of quotas and had cheap labor. This is when Bangladesh started receiving investment in the RMG sector. In the early 1980s, some Bangladeshis received free training from Korean Daewoo Company. After these workers came back to Bangladesh, many of them broke ties with the factory they were working for and started their own factories. In the 1980s, there were only 50 factories employing only a few thousand people. Currently, there are 4490...
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...Satisfaction of Ready Made Garment (RMG) Workers in Bangladesh? An Alternative Solution to Recent Unrest Background of the study Ready Made Garment (RMG) is one of the successful manufacturing sectors with greater contribution to the national economy of Bangladesh. The industry started its journey in late 1970s and enjoyed a rapid rise from 30 enterprises in 1980 increased to more than 5000 in 2014. Average growth rate of this sector was over 20% per over the last two decades. RMG is the main source of export for the last 25 years. This single sector alone earns about 80% of yearly foreign exchange of the country. Its contribution to GDP reaches 13% in fiscal year 2009-2010. This sector employs more than 3 billion people in Bangladesh of whom 90% are women from rural family. Thus this sector is playing a vital role in socioeconomic development of the country. But this sector is struggling with a number of problems. Conflict between owners and workers, labor unrest, shortage of gas and electricity, poor infrastructure, poor port facility, conspiracy of home and abroad are posing a great threat to its survival. In recent time, labor unrest in the RMG sector has been a matter of serious concern. Almost every day electronic and print media cover news of labor unrest in RMG sector in one place or another across the country. Job dissatisfaction have been the prime causes of recent labor unrests across the country. This job dissatisfaction of RMG workers resulted from improper work...
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...Industrial Disputes Industrial disputes are conflicts, disorder or unrest arising between workers and employers on any ground. Such disputes finally result in strikes, lockouts and mass refusal of employees to work in the organization until the dispute is resolved. So it can be concluded that Industrial Disputes harm both parties employees and employers and are always against the interest of both employees and the employers. An industrial dispute is simply a disagreement between employers and workers. Industrial disputes are manifested in strikes (withdrawal from work by a group of employees) and lockouts (refusal by an employer or group of employers to permit some or all of their employees to work). These disputes are mostly represented by trade unions. It is a disagreement between workers and management over pay, working conditions, hours of work, etc., especially one that includes strikes (workers refusing to work). 1 Causes of Industrial Disputes The causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes. The economic causes will include issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments. The non-economic factors will include victimization of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc. Wages and Allowances Since the cost of living index is increasing...
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...Introduction: Role of labour and industrial laws are of paramount importance. We know that the total economy of a country greatly depends upon the industrial sector. In addition, the growth of the industrial sector involves with some major aspect. These major aspects are the local investment policy, foreign direct investment policy, labour management etc. Besides the necessary infrastructure for investment natural resources are also important and it is very clear that if all these essential elements are not available then growth of industrial sector is unfeasible. Besides all these things labour issues are also very important. Proper management of labour is an essential matter for growth of industrial sector. Timely disposal of labour disputes are also important. We see that in most of the cases the labour law disputes do not solve with in short time. So the remedy which is essential from the case becomes delayed. The labour law is very much important in Bangladesh perspective. It is highly important for the industrial development of Bangladesh. We know that labour is a most important part of an industry. So, we can not think an industry with out labour. Labour right is most essential in Bangladesh. But the labours are in ignorance about their right. They don’t know properly about labour laws and education. It is a great problem. For this reason, they retrenched by the employee. Very often, they retrenched with out any legal process. Labour Laws in Bangladesh: In Bangladesh...
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... Prepared for: Dr. Muhammad Ziaulhaq Mamun Course Instructor Research Method (K301) Prepared by: Nabeel Khan (ZR-29) Farwah Tasnim (ZR-40) Rasheeq Rayhan (ZR-45) Sayan Muhammad Rafi (ZR-48) Rafat Shamim (ZR-51) Ishmam Rahman Abedin (ZR-53) Bushra Barkat (ZR-54) Institute of Business Administration University of Dhaka June 30, 2012 30 June 2012 Dr. Muhammad Ziaulhaq Mamun Professor Institute Of Business Administration University Of Dhaka Dear Sir, Here we present the report “Impact of Global Recession on Ready Made Garments Industry of Bangladesh”. In this report we tried to analyze the current RMG industry scenario and the various factors associated with it which have been influenced by the global financial crisis. We believe our report will facilitate strategic planning for both the decision makers in the market and identify possible counter measures and new possibilities. We hope the report meets your expectations. We will be glad to answer any query about the report. Sincerely yours, Nabeel Khan (ZR-29) Farwah Tasnim (ZR-40) Rasheeq Rayhan (ZR-45) Sayan Muhammad Rafi (ZR-48) Rafat Shamim (ZR-51) Ishmam Rahman Abedin (ZR-53) Bushra Barkat (ZR-54) Table of Contents EXECUTIVE SUMMARY: i 1.0 INTrODUCTION 1 Background: 1 Issues: 2 Objectives: 6 Hypotheses: 6 ...
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...Introduction The Ready made garments (RMG) sectors emerged in late 1970s. The first Garments Industry named “DESH” Garment which was established in 1979s. By 1980s about 800 factories. There was very good growth in the 1990s; about 3400 factories came into operation. Today more than 4600 units exporting more than $5 billion an contribute about 48 percent of ours national export earning, 9.5 percent of GDP. The total number of workforce employed in this sector is 1.8 million, which is half of the total industrial workforce of the country. Besides this, more than 15 million people work in related industries from button-making to truckers to Insurance underwriters. Almost 85 percent of garments workers are women and most of them have come from villages. After introduction of the Multi Fibers Agreement (MFA). ASIA has become the world’s foremost exporters. Initially production was concentrated in the East Asian countries like Korea, Hong Kong, Singapore, and Taiwan, but by the middle of the 1980s others Asians countries become major producers like Bangladesh, Cambodia, Nepal, Haiti, Laos Madagascan and Myanmar emerge as major exporters of garments manufactures. Bangladesh is a good example of a country who was benefited from quota restriction on the countries export under MFA & General System of preferences (GSP) introduced in 1971 gave Bangladesh general access to European Union (EU), Canada and USA markets. BGMEA members export all kinds of woven, knit and sweaters...
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...Introduction Background of the study: * We are doing this assignment for completing the principals of management courses in the BBA department. * We are doing this report so that we can analysis the readymade garment (RMG) sector of Bangladesh and find out the problems and remedies of this sector. Objectives of the study: The main objectives of this report are * To gain knowledge about the industrial unrest in the readymade garments industry of Bangladesh. * To identify the problems of RMG sector of Bangladesh. * To analysis the problems of this sector. * To fine out the remedies that could solve the problems of RMG sector. * To gain in-depth knowledge about the readymade garments industry of Bangladesh. Data collection method: This assignment has been completed by taking information from different relevant sources. This assignment also consists of a significant amount of data obtained from some secondary sources. For the secondary data, we have taken some information from the internet. We also collect information from various industries’ web sites. Limitation of the study: Though our study is based on secondary data, there is a possibility of getting fake information. This study is weak in some points. The notable ones are as under: * This report has been made basis only on the secondary data. * The survey was conducted in a very short time so we were not able to collect more information. * This survey made on crisis situation...
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...2012 Recent Unrest in the RMG Sector of Bangladesh: Is this an Outcome of Poor Labour Practices? Chowdhury Golam Hossan (Corresponding author) Assistant Professor of Management College of Business Administrations, Abu Dhabi University Abu Dhabi, UAE Tel: 972-501-5710 E-mail: Chowdhury.Hossan@adu.ac.ae Md. Atiqur Rahman Sarker (Lecturer) Department of Business Administration, East West University 43 Mohakhali, Dhaka 1212, Bangladesh Tel: 88-017-4427-0243 E-mail: mars@ewubd.edu Rumana Afroze (Lecturer) Department of Business Administration, East West University 43 Mohakhali, Dhaka 1212, Bangladesh Tel: 880-181-888-3767 Received: July 2, 2011 doi:10.5539/ijbm.v7n3p206 Abstract The RMG sector of Bangladesh has experienced disputes and violent protest by the workers in recent times. This study explores the reasons for recent unrest in the garment sector. Since managers are mainly responsible for applying human resource practices, this paper has given particular attention to their views on recent attitude changes of workers. Results show that mutual understanding among workers and managers is absent in the RMG sector. This study also states that high-work load, poor behaviour of line managers, low skills and low wage rates are the notable reasons for high job turnover and social unrest. Poor relationship between workers and supervisors is the main source of conflict. This study finds that there is growing demand for work life balance among the workers of RMG sector. Keywords:...
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...agriculture the primary engine of economic growth and employment generation but this approach has not worked. The Ready-Made Garments (RMG) industry occupies a unique position in the Bangladesh economy. Bangladesh has a total population of over160 million. Among of vast population about 3.5 million people are working in the garments industries. It is the largest exporting industry in Bangladesh, which experienced phenomenal growth during the last 20 years under the quota system of Multi-Fiber Arrangement (MFA). The abolition of quota system thus brings new challenges for Bangladesh’s apparel industry to continue its current status and enhance it in a free flow of apparel trade era. According to BGMEA, after the Liberation War of Bangladesh, in 1983 the Ready-Made-Garment (RMG) industry emerged to be a most promising sector in the socio-economic context of Bangladesh. From that point of time till now, this industry has grown and developed so rapidly that currently Bangladesh is exporting RMG products worth 5 billion USD every year to countries like EU, USA, Canada and other countries of the world. Now, Bangladesh enjoys the position of being the 6th largest apparel supplier to the USA and EU countries. The sector rapidly attained high importance in terms of employment, foreign exchange earnings and its contribution to GDP. Background of RMG industry in Bangladesh since beginning of ‘80s Export-oriented garment exports from Bangladesh were initiated in the beginning of the...
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...Current State of Textile Industries in Bangladesh Introduction: The textile and clothing sector is the largest manufacturing activity in Bangladesh. It provides direct employment to about than 5 million people, which accounts for 45 per cent of all industrial employment in the country. The sector contributes 10 per cent of the country’s GDP, 40 per cent of industrial value addition, and 78 per cent of export earnings. Major readymade garments exported by Bangladesh are knitted and woven shirts and blouses, trousers, skirts, shorts, jackets, sweaters and sportswear, and other fashion apparel. In the Table below provides a profile of Bangladesh’s textile and clothing sector. The sector can broadly be divided into primary textile sector (PTS) and export-oriented readymade garment (RMG) making sector. The PTS comprises spinning, weaving, and specialized textile units, traditional handloom sector and knitting and dyeing subsectors. Currently, there are now 350 spinning mills, 400 weaving firms, 310 dyeing and finishing units, and 4,500 garment factories. |Sub-sector |Number of units |Installed machine capacity |Production capacity |Employment | | | | | | | |Textile spinning |350 7.5 million |spindles |1...
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...Apparel Industry in Bangladesh Garment Industry Large-scale production of readymade garments (RMG) in organised factories is a relatively new phenomenon in Bangladesh. Until early sixties, individual tailors made garments as per specifications provided by individual customers who supplied the fabrics. The domestic market for readymade garment, excepting children wears and men's knit underwear (genji) was virtually non-existent in Bangladesh until the sixties. Since the late 1970s, the RMG industry started developing in Bangladesh primarily as an export-oriented industry although, the domestic market for RMG has been increasing fast due to increase in personal disposable income and change in life style. The sector rapidly attained high importance in terms of employment, foreign exchange earnings and its contribution to GDP. In 1999, the industry employed directly more than 1.4 million workers, about 80% of whom were female. With the growth of RMG industry, linkage industries supplying fabrics, yarns, accessories, packaging materials, etc. have also expanded. In addition, demand for services like transportation, banking, shipping and insurance has increased. All these have created additional employment. The total indirect employment created by the RMG industry in Bangladesh is estimated to be some 200,000 workers. In addition to its economic contribution, the expansion of the RMG industry has caused noticeable social changes by bringing more than 1.12 million women into labour...
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...Tactics of Commercial Activities PREPARED BY Saiful Islam Biplob | CAN-150221 | Date of Submission: Dec 07, 2015 Executive summery Exporting is a challenging job in the garments sector. Now it’s an adopting concept in garments industry. In this regard commercials play an important role in the RMG manufacturing company. The Commercial Officer is an executive-level position whose occupant is responsible for the commercial strategy and development of an organization. It typically involves activities relating to marketing, sales, product development and customer service to drive business growth and market share. As a corporate officer position, the commercials generally reports directly to the chief executive officer (CEO) and is primarily concerned with ensuring the integrated commercial success of an organization. The role typically must combine technical knowledge of the relevant field with strong marketing and business development skills. This means that they are closely linked to the organization's strategic management function, in drafting, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. Merchandiser has to understand the buyer’s requirements after receiving specification in the sample order. In many cases, there are modifications pertaining to the specifications in the order to dispatch on time and the right quality. He has to talk with the in-house veterans...
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...Sirajum Munira; ID-121113001 Sec: A History of Textile industry in Bangladesh Introduction While agriculture for domestic consumption is Bangladesh’s largest employment sector, the money gained from exporting textiles is the single greatest source of economic growth in Bangladesh. The Bangladesh Textile Industry has a long history of many centuries and has been seen as the part of an economy of undivided India and later on of Pakistan. It was only after the liberation of Bangladesh that the Textile Industry had to be considered independently to meet the needs of the large population. Until 1990s the Textile Industry was basically meeting the local needs. Following the increase in the export of readymade garment industry, the textile industry started catering to the export market in the 1990s. The Government Policy in Bangladesh always favored the backward linkage industry. However, the most dynamic policy was the announcement of Textile policy in 1992-1994 when textile was declared as a Thrust Sector and an alternative cash assistance of 25% given to garments exported using local fabric to compensate for the benefit/advantage and subsidies given by other countries and also to encourage the local backward linkage industry. The aims of this policy were: 1. To increase the value addition of the RMG (Ready Made Garments) export this was at that time 25% of the FOB value. 2. To retain higher level of foreign currency within the country. 3. To reduce lead-time for export...
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...PROFILE OF GROUP \ Serial No. Name Roll 01 Md. Ibrahim Khalil Chowdhury 02 02 Mousumi paul 04 03 md. sirajul mostafa 06 04 md. azizul mostafa 08 05 Moshfik- ur-rhaman 10 06 md. miraj talukder 12 07 Jenifar karim 14 08 md. saidul meher 16 09 Morium benta mahabub 18 Group No. 01 Course no. 221 Submitted to: Mr. Samir Kumar Sheel Associate Professor Department of Marketing University of Dhaka Submitted by: Name: Id: BBA 15th Batch Department of Marketing University of Dhaka Date of Submission: November 10, 2010 Letter of transmittal November 10, 2010 Dr. Samir Kumer Sheel Associate Professor Department of Marketing University of Dhaka Dear Sir, We the members of group one are truly happy to present our “term paper”on “Investment Environment in Bangladesh”. This term paper was assigned to us as a essential requirement of the ‘Macroeconomics” course in the forth Semester. The Project program was an experience of rediscovering our potentials. This report has given us an opportunity to apply our theoretical expertise, sharpen our views, ideas, and communication skills, and bridge them with the real world of practical experience, which will be a good head start for our future professional career. During the preparation of the report we faced some problems that have been erased out with your propound lecture and assistance in class lecture. Lastly we would be thankful once...
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...Garment (RMG) Sector in Bangladesh Now a days textile sector of Bangladesh retains it's top position in global market. This can't be gained overnights. Bangladesh can get it's present position by dint of merit and industry of people of Bangladesh. The base of textile sector was first established in 60th decade of the last century."mercury shirts"which is originated from Karachi started the rmg business first.the industry exported shirts to the European market in 1965-66 first. | | In 1977-78 only 9 exporting industries were available in this country which deal with 10 million used every year.there were 3 big industries available in that time.they were: 1. Riaz garments 2. Jewel garments 3. Paris garments. Of them, Riaz garments was the most well known and oldest industry in that time.In urdu road of Dhaka it started it's business with some tailoring shop first.In that time it was known as Riaz store.In 1973,it was named Riaz garments.In 1978,it started exporting products abroad.it exported 1 million pieces of shirts to the Olanda,a South Korean company. Another garments known as Desh Garments ,also treated as the pathfinder of textile sector in Bangladesh. In 1979 Desh Garments opened a joint venture project with south korean company "Daiyuu". At present RMG sector of Bangladesh deals with 22 billion USD every year.4 million people directly depend on the ups and downs of the sector.the 81% of the total export earnings are come from this textile sector. The...
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