Trade
2 years ago

BGMEA urges US brands to consider upcharge

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The apparel apex body BGMEA has called on the American apparel association AAFA to pursue US brands and retailers to consider a rational price upcharge for orders from next December.

It also reiterated a long-pending demand for a unified code of conduct for social compliance in order to save time and cost, reduce hassle and follow the code diligently.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan in a September 28 letter to American Apparel and Footwear Association (AAFA) president Stephen Lamar made the plea.

The response of the BGMEA came two months after the AAFA on July 27 called on the Bangladesh government to  tackle workers' welfare and raise minimum wages for garment workers.

About their social and environmental efforts, Mr Hassan said, "Considering the cost of living of our workers and current inflation, we also expect fair prices and ethical sourcing from our valued buyers."

"We urge you [AAFA] to engage with the brands and retailers under your membership to rationally adjust price level," he said requesting to consider a price upcharge for orders from December 01 onwards.

"This is important for a smoother transition to a new wage scale," Mr Hassan said expecting a new minimum wage to be declared before the end of this year.

He also sought support saying their efforts are not limited within social and environmental causes.

They are working on how to remain economically viable through innovation, digitisation and diversification, and stay more productive and resource-efficient.

Airing concern over the murder of unionist Shahidul Islam, the AAFA in its letter to Prime Minister Sheikh Hasina called for holding accountable those responsible for his death.

The association also insisted the BGMEA president for immediate action to ensure workers' rights here.

The AAFA represents more than 1,000 apparel, footwear and other sewn product companies and their suppliers with more than $490 billion in annual US retail sales.

Regarding the AAFA concern, Mr Hassan said, "We condemned it and sought proper investigation and expedited trial. The suspects are already arrested and law-enforcement agencies have taken the case…"

The USA is Bangladesh's single-largest destination for locally made apparel items.

In 2022 alone, Bangladesh fetched $9.74 billion from ready-made garment exports, which was only $4.94 billion in 2013.

munni_fe@yahoo.com

 

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