Socioeconomic Factors and the Labor Unrest in Readymade Garment Industry of Bangladesh

Posted: 27 Oct 2016

See all articles by Nazrul Islam

Nazrul Islam

Canadian University of Bangladesh

Date Written: October 20, 2016

Abstract

Readymade Garment (RMG) Industry is the prime source of foreign earnings of Bangladesh in last two decades. This sector contributed about 80% of the total export earnings of the country. About 5,100 garment companies have been established in Bangladesh and 3.60 million workers are working in this sector in which more than 85% of them are female who are mostly coming from the rural areas of Bangladesh. In the recent years, it is observed that the workers are coming down in the street and making insurgence on their demand and they try to destruct public properties and the national assets. As a result, companies are losing working-hours and production targets. It also hampers export earnings and the image of our country to the international buyers. Keeping this in mind, the study tries to find out the factors behind the unrest in the ready-made garment industry of Bangladesh and identify some measures to improve the situation. In this study, 244 workers were interviewed from the different garment factories located in Savar and Gazipur district. After collection of data, they were analyzed with regression model, factor analysis and by other suitable statistical tools. The results show that the main causes of labor unrest include lack of additional benefits and irregularities in payment of overtime, deferred festival bonus, lack of motivational training program, conflicting perception about the rich people of the society, and demand of minimum wage. If the policy makers of Bangladesh consider these causes and make policies to overcome the problems the labor unrest in garment sector will be eliminated or minimized.

Keywords: Labor unrest, readymade garment, minimum wages, deferred payment, facility and safety

Suggested Citation

Islam, Nazrul, Socioeconomic Factors and the Labor Unrest in Readymade Garment Industry of Bangladesh (October 20, 2016). Available at SSRN: https://ssrn.com/abstract=2856215

Nazrul Islam (Contact Author)

Canadian University of Bangladesh ( email )

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