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Upgrading Bangladesh's export-earning apparel industry happens at a cost as automation of the production processes eliminates 30.58-percent jobs, with helpers handed higher cuts, a latest study shows.
The cutting section of the garment-making experienced the highest percentage of labour wipeout-48.34 per cent--while the sewing process showed a lower reduction of 26.57 per cent.
It also reveals that automation has posed significant challenges to readymade garment (RMG) workers, particularly women, the aged, less literate, unskilled and low-confident ones, notwithstanding its several positive impacts on economic growth and overall productivity.
The study, titled 'Assessment of Technological Transition in the Apparel Sector of Bangladesh and Its Impact on Workers', also found sweater factories witnessing the highest percentage of worker decline, with a 37.03-percent reduction per production line. The rate was 27.23 per cent per line, slightly lower, for woven factories.
Dr Shahidur Rahman, professor at the Department of Economics and Social Science of BRAC University, shared the study findings at an event held Sunday in a city hotel.
The survey on technology's impact on the labour-intensive industry was jointly conducted by Solidaridad Bangladesh, Bangladesh Labour Foundation (BLF) and BRAC University.
Presenting the findings, Mr Rahman said out of 10 stages of production from spinning to shipment, only three phases-spinning, dyeing and finished-fabrics preparation--are fully automated. The backward operation-spinning--is also fully automated.
He, however, said the advanced level of automation was not found in the manufacturing stage as the sewing section, where the majority of workers are employed, still stayed semi-automated.
Beyond production stage, automation has taken place in the system and data management.
Technologies in the system have initiated digital IDs, fingerprint scanning, mobile payments, IoT-enabled systems, streamline processes such as attendance tracking, quality monitoring, and resource management.
"Data automation enables manufacturers to track production metrics, energy use, and maintenance schedules in real time, support Just-In-Time (JIT) operations and reduce waste," he said about the spin-off benefits.
The study reveals that the efficiency was increased by 3.0 per cent to 5.0 per cent. Regarding spreading fabrics, the factory requires only one worker, instead of seven in manual process, which saves labour cost worth US$1020 with a payback time of four years.
It also shows factory increased productivity per hour from 90 to 140 and reduced rejection from 10 per cent to zero per cent after introducing back moon machine to produce knit polo shirt.
Automation, however, raises production target to 64.21 per cent pushing workers to take more pressure.
"Weekly overtime has dropped from an average 20 hours to 11 hours largely due to faster production cycles enabled by automated machine," the study report says about the owners' business boon out of machine replacing man.
Some 62 per cent out of the 419 surveyed workers stated women were replaced either by reassigning to different roles or, in some cases, fire.
It also reveals that factories are not yet ready as the cost of implementation of technologies and automation is quite heavy and access to finance has become a big roadblock.
The study has made a number of recommendations that include a coordinated approach from all stakeholders, including factories, training institutions, buyers, trade bodies and government, to ensure equal benefits of automation.
Speaking there, labour secretary AHM Shafiquzzaman said there is no alternative to automation and the issues are how to deal the challenges that emerge from automation.
Terming availability of skilled workforce big challenge yet for the decades-old sector, he stressed skills development as per the demand of the industry.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Support Committee member Miran Ali admitted that garment workers' wages are low here in the country but other cost of production is high.
"Inefficiencies in other areas like delays and complexities in customs procedures, raw-material import, logistics issues are creating pressure on workers," he told the meet.
He underscores addressing these inefficiencies so that workers do not suffer and also recommends partial automation, saying that the industry can't fully embrace automation.
He, however, suggests that the government should focus on introducing automation not only in production processes of the industry but also within its own agencies, including labour ministry, to enhance overall efficiency.
BLF executive director AKM Ashraf Uddin, Solidaridad Bangladesh country director Selim Reza Hasan, National Coordination Committee for Workers' Education chairman Badal Khan and labour-reform commission chairman Syed Sultan Uddin Ahmed, among others, also spoke.