June 22, 2012, 12:35 PM IST
The Foreign Hand Resurfaces, This Time in Bangladesh
The Foreign Hand Resurfaces, This Time in Bangladesh - India Real Time - WSJ
By Syed Zain Al-Mahmood
So it’s not only India that’s upset with the “foreign hand” meddling in its affairs. Now, Bangladeshi politicians are using the excuse to explain why factory workers in a suburb of Dhaka have been protesting in recent weeks.
On the face of it the factory workers in the Ashulia industrial belt want more money. With wages of around $50 per month, or a sixth of those in India, and double-digit inflation, garment workers say they’re finding it hard to get by.
That’s not a good enough reason to explain the protests for some Bangladeshi politicians. Like Indian Prime Minister Manmohan Singh, who earlier this year blamed U.S. activists for instigating protests against nuclear power plant construction, some in Bangladesh also are looking for the “foreign hand.” (One writer in The Hindu today has some things to say about the “foreign hand,” as well.)
On Wednesday, Syed Ashraful Islam, Bangladesh’s minister for local government, and a top official of the ruling Awami League, said “a powerful country” was using local agents to spur the unrest. Those committing acts of vandalism were not garment workers, Islam told a gathering of ruling party officials.
Unsure which country could be to blame? Here’s some more clues, this time courtesy of Abdul Moeen Khan, a senior leader of the opposition Bangladesh Nationalist Party.
“Textile lobbies in neighboring countries, unable to cope with our competitive edge, are deliberately creating chaos,” he told reporters at the Dhaka Press Club, citing intelligence sources. “The government’s failure to deal with the foreign elements has exacerbated the situation.”
Um, a neighboring country, you say? Could it be India?
In 2009, Bangladesh used its price advantage to overtake India to become the world’s second largest exporter of readymade clothing. Garments exports, which made up $18 billion of Bangladesh’s total export earnings of $23 billion in the fiscal year ending June 30 2011, offer a crucial lifeline to the poor South Asian country.
Now, Bangladesh is beginning to export more clothes to India. Finance Minister Abul Maal Abdul Muhith said this week he expects Bangladesh to export $1 billion in goods to India this year, double last year’s total.
But Bangladesh’s textile industry is facing challenges in keeping its wages low. Owners closed 300 private garment factories in Ashulia after clashes between workers and police. The factories resumed production Thursday after almost a week of clashes. Police officials said workers had returned to work peacefully.
The reopening of the factories came after hectic three-way talks between government ministers, manufacturers and workers’ unions. Factory owners said they had agreed to reopen the factories after receiving security guarantees from the government.
Protests by garment workers, who sew clothes for some of the top names in western retail, aren’t uncommon. The recent unrest started at a facility run by one of Bangladesh’s biggest garment export companies, Ha-Meem Group, which produces for global retailers including Gap, JCPenny and Phillips-Van Heusen. The situation turned violent on June 11 when several thousand people blocked a main road leading north from Dhaka, vandalizing factories, equipment and passing cars.
A labour union leader said the workers were demanding an increase in salaries, which he said had failed to keep pace with rising inflation. “The workers are playing a crucial role in earning foreign currency,” Quamrul Ahsan, general secretary of the left-wing Jatiya Garment Sramik Federation said. “They should be allowed to have a decent living.”
Factory owners say the demand is unreasonable since the government raised minimum monthly wages for the country’s 3.6 million garment workers by about 80% in July 2010. The official minimum wage was set at 3,000 takas ($35) a month, up from 1,662 takas in the first raise since 2006.
“We’ve heard the demands. We sympathize with all legitimate demands. But we have to keep in mind the capacity of the factory owners also,” State Minister for Labor Monnujan Sufian said after a meeting with the unions on Wednesday. She said the government would give ration cards to the workers to buy commodities at subsidized rates.
The labor minister also told union leaders that security forces had identified the killers of garment workers’ leader Aminul Islam, who was found dead in the first week of April, according to people present at Wednesday’s meeting. Mr. Aminul’s death came among mounting political instability in the country.
“The minister informed us the killers had been identified but had fled abroad,” said Quamrul Ahsan, a labor leader.
Rina Begum, a worker at the Madina Garments factory in Ashulia, said the high cost of living, especially spiraling house rent, was pushing workers to the edge. “The landlords raise rent three times a year, which is completely illegal,” she said, as she returned to work on Thursday. “How can we survive like this?”
Despite the reopening of factories in Ashulia, Shafiul Islam Mohiuddin, president of the Bangladesh Garments Manufacturers and Exporters Association, admitted that problems remained.
“This is a multidimensional issue,” Mr. Mohiuddin told India Real Time. “We’re working with the government, the workers’ representatives and the International Labor Organization to improve conditions in our factories. As part of the better work program of the International Labor Organization, we’ve improved conditions a lot in the last few years. We’ve succeeded in rooting out child labor from Bangladeshi garment factories.”
Bangladeshi manufacturers say they’re being squeezed by a slump in prices in the international market because of the global economic downturn. They also claim higher production costs due to a never-ending energy crisis and poor infrastructure.
According to Ahsan Mansur, executive director of the Policy Research Institute, a Dhaka-based think tank, one way to solve the problem could be to encourage trade unions in the factories. “If the workers had a proper voice, outbursts of violence could be avoided. Of course, the country’s experience with trade unionism in the state-owned enterprises is horrific. Entrepreneurs are keen to avoid the logjams that were created in the state enterprises.”
Industry association leader Mr. Mohiuddin believes the problem lies elsewhere. “The reason trade unions aren’t taking root inside the garment factories is the high rate of worker turnover,” he said. “As soon as a worker gains some experience, she’s off to another factory. How do you encourage trade unions when you’re starting the year with virtually a new work force?”
But what did he think about the foreign hand?
“This is not a conspiracy theory. During incidents of violence we see outsiders…coming and bunging bricks at factories. These are not our workers. We want to see the government find the culprits and prosecute them.”
Syed Zain Al-Mahmood is an investigative reporter and editor based in Dhaka. He writes on health, environment and sustainable development issues.
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