Wednesday, July 25th 2012
This article was distributed through the NewsCred Smartwire. Original article © Agence France Presse 2012
Bangladesh has assured international buyers that unrest will be settled, after 300 factories were shut down due to employee riots. Workers were demanding higher wages in the wake of rising food and rent prices.
Bangladesh's government has promised top Western buyers of the country's garments that it will address unrest in the textile sector over soaring living costs, it said Wednesday.
Last month, more than 300 major clothing factories were shut down for more than a week as tens of thousands of workers rioted for a 50 percent hike in wages, amid rising rent and food prices.
Representatives of 19 global garment buyers including Wal-Mart, H&M, Gap, Carrefour and Marks & Spencer met the labour minister to convey their concerns over the violence, the government said.
"Inflation is eating into the workers' earnings. The buyers said this issue should be resolved to prevent further unrest," said Labour Minister Khandaker Mosharraf Hossain.
"Their concern is continued unrest would hamper production that may lead to delay in delivering orders, which is not good for anyone."
Overseas garment sales were worth $19 billion last year, or 80 percent of total national exports, and the sector is the mainstay of the poverty-stricken country's economy, employing 40 percent of its industrial workforce.
Hossain said he promised the buyers the government would make available cheaper food for nearly half a million workers and curb spiralling house rents. Some factory owners also have pledged to increase wages.
Buyers attending the meeting -- who accounted for 80 per cent of annual clothing exports -- refused to talk to media.
Unions said they were waiting for the measures to be implemented.
Bangladesh's 4,500 garment factories -- which rely on cheap labour to be competitive -- were hit by months of unrest in 2010 that forced the government and factory owners to increase wages by 80 percent to a minimum $37 per month.
This article was distributed through the NewsCred Smartwire. Original article © Agence France Presse 2012
Bangladesh has assured international buyers that unrest will be settled, after 300 factories were shut down due to employee riots. Workers were demanding higher wages in the wake of rising food and rent prices.
Bangladesh's government has promised top Western buyers of the country's garments that it will address unrest in the textile sector over soaring living costs, it said Wednesday.
Last month, more than 300 major clothing factories were shut down for more than a week as tens of thousands of workers rioted for a 50 percent hike in wages, amid rising rent and food prices.
Representatives of 19 global garment buyers including Wal-Mart, H&M, Gap, Carrefour and Marks & Spencer met the labour minister to convey their concerns over the violence, the government said.
"Inflation is eating into the workers' earnings. The buyers said this issue should be resolved to prevent further unrest," said Labour Minister Khandaker Mosharraf Hossain.
"Their concern is continued unrest would hamper production that may lead to delay in delivering orders, which is not good for anyone."
Overseas garment sales were worth $19 billion last year, or 80 percent of total national exports, and the sector is the mainstay of the poverty-stricken country's economy, employing 40 percent of its industrial workforce.
Hossain said he promised the buyers the government would make available cheaper food for nearly half a million workers and curb spiralling house rents. Some factory owners also have pledged to increase wages.
Buyers attending the meeting -- who accounted for 80 per cent of annual clothing exports -- refused to talk to media.
Unions said they were waiting for the measures to be implemented.
Bangladesh's 4,500 garment factories -- which rely on cheap labour to be competitive -- were hit by months of unrest in 2010 that forced the government and factory owners to increase wages by 80 percent to a minimum $37 per month.
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