Bangladesh Garment Workers Stoppage For Funding

The pay increase failed. The People's Republic of Bangladesh Workers in garment factories in Ashulia district near Dhaka recently closed down. According to foreign media reports, Bangladesh clothing manufacturers and Exporters Association and Bangladesh knitwear manufacturing and export association decided in June 17, 2012 to temporarily close 350 garment factories located in the outskirts of Dhaka, Ashulia.

Reported that Bangladesh clothing workers this time at the current monthly 3000~5500 Dhaka (1 U.S. dollars to 81 Dhaka) monthly salary based on the rise of 1500~2000 Dhaka. The monthly salary of garment workers in Bangladesh increased by about 80% in 2010.

Nazma Akhter, President of the joint garment workers association, said: Ready-made clothes Factory owners should reconsider the decision to suspend business and adjust the wages of workers in order to cope with rising prices.

Bangladesh garment industry is the foundry of many famous brands in the world, such as Walmart, Zara, H&M JC Penny and Carrefour, etc., accounted for 80% of the annual export value of Bangladesh, and the total value of garments exported in the 2010~2011 fiscal year amounted to US $19 billion.

From the beginning of this year to the present, the United States imported 39% of clothing from Bangladesh, Bangladesh became the fastest growing country for clothing exports to the United States. In order to enhance the international competitiveness of some garment manufacturers, the Central Bank of Bangladesh reduced the lending rate of 270 ailing clothing enterprises from 15% to 8%, easing the cost pressure of enterprises.

In fact, Vietnam and Bangladesh textile exporters are favored by more and more businessmen in Europe and America. The biggest reason is that their salaries are much lower than those of China.

China's labor cost growth has already caused great pressure on the development of enterprises. Many production bases of domestic garment enterprises have shifted from coastal areas to western regions in recent years, and even to Southeast Asia. One analyst compared with ZARA and H&M that the reason why H&M lost three consecutive quarters last year is that its purchasing cost has increased by 25%, and 25% of its increase is mainly from China. The profit of ZARA is still growing, mainly because its procurement costs remain stable. 70% of the purchases come from Spain, Portugal and Turkey, and China accounts for only a small proportion.

According to a McKinsey study, Bangladesh's clothing exports are expected to grow by nearly 2 times by 2015 and 3 times over the next 10 years. The main buyers are shifting from China to Bangladesh.