RMG exporters want factories ready to go

Business
RMG exporters want factories ready to go
Garment factory owners and union leaders are at loggerheads over the imminent rough lockdown the government is set to impose in the united states to curb the growing conditions of coronavirus infections.   

Owners want to preserve their factories ready to go, while union leaders called for a closure of factories and a full repayment of the wages for employees during the lockdown period.

The government plans to get a large-scale lockdown from April 14 for seven days as its current efforts have not had many impact on decreasing the infection rate.

"We don't have the luxury to shut our factories as we have been on a recovery course from the devastating impacts of the initial wave of Covid-19," explained Fazlul Hoque, managing director of Narayanganj-established Plummy Fashions Ltd.

When international clients are inserting orders for another autumn and winter seasons, any pause in production will put the industry in deep trouble.

"The order could be shifted abroad as they have not imposed any lockdown. We are isolated from all of those other community if the lockdown is usually imposed. No competing countries such as for example China, Vietnam and Cambodia happen to be in lockdown right now," he said.

Regional suppliers will face order cancellation, deferral payment, discount for delayed shipment, or high-priced air shipment if the production is going to be halted as a result of lockdown, Hoque said.

"The lockdown will be suicidal for the garment sector as shipments are going on completely swing nowadays," said Mostafiz Uddin, managing director of Denim Professional Ltd, a Chattogram-based factory.

He is among the sufferers who had faced a whole lot of order cancellations through the initial wave of the pandemic. "My potential buyers want continuing shipment of goods because they likewise have a business plan."

"My buyers have previously said that they would not extend the order execution time. I will face expensive oxygen shipments of goods."

If factories are shut, Bangladesh will deal with fewer new orders.

"Buyers are exhausted because of last year's liability, retailer closure, and piling of stocks and shares," said a top official of a investing in house in Dhaka.

So, buyers may need to choose harder decisions such as for example cancellation without liability and shifting orders, he said.

Mohammed Abdus Salam, performing president of the Bangladesh Garment Makers and Exporters Association (BGMEA), said in the event the lockdown was imposed, the garment sector would go into a long holiday just like during Eid-ul-Fitr and Eid-ul-Azha.

"So, the sector will never be in a position to bear the losses."

Salam also the infection fee in the garment sector was too low as owners had taken a whole lot of safety measures according to the government's guidelines.

Mohammad Hatem, vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said no competing countries were on lockdown now.

"They will do business, and we'll lose our business," Hatem said, adding that factory owners had been running their products following health guidelines.

The lockdown will affect the sourcing decisions of buyers as the factories in other apparel-producing countries are open, said Faruque Hassan, president-elect of the BGMEA.

During Ramadan, factories usually ship two months' exact carbon copy of products so that you can offset the development closure during Eid holiday seasons.

"So, any lockdown found in Ramadan means we will neglect to carry out each one of these shipments. Buyers will hardly consent to consider them after 8 weeks," he said.

Because of the safety precautions taken by the factories, the infection level among garment employees has been nominal, he said.

"So, I believe the safety measures are enough to safeguard the personnel from Covid-19," he added.

Citing a survey of the US-based Personnel Rights Consortium, Faruque stated buyers cut the price by almost 30 per cent after the pandemic.

"We are already struggling to stay afloat. The existence of four million employees hinges on the industry. Therefore, factories cannot sustain and survive if any lockdown is normally enforced," said Hassan.

"I believe the lockdown is alright for a week. It should not become more than that," explained Sirajul Islam Rony, a past member of the minimal wage board for the garment workers.

"The sector may not face any big losses if a weeklong lockdown is normally imposed," he said.

However, factory owners should never deprive any employee of wages and additional incentives.

"Such incidents happened through the lockdown this past year. Many staff lost their careers and faced a decrease in salaries and festival allowances," he said.

Md Towhidur Rahman, president of the Bangladesh Apparels Workers' Federation, needed full repayment for the workers regardless if any lockdown is certainly imposed in the sector.

Nazma Akter, president of the Sammilito Garment Sramik Federation, said if the lockdown caused personnel' layoff, it could be very bad.

"Every worker should be paid fully through the lockdown. We must follow the federal government decisions."

The BGMEA, the BKMEA, the BTMA and the Exporters Association of Bangladesh would hold a joint press conference at the Pan Pacific Sonargaon Resort in Dhaka today to call on the government never to order any factory closure.
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