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Global apparel buyers should come forward to share a bigger portion of the 'true cost of production' to help entrepreneurs make more investment in reskilling and upskilling workers to ensure sustainability.
Price competitiveness is one of the major determining factors that bring global buyers to a producing country like Bangladesh and there should be an international order that reflects the true cost of production during price negotiations.
Senior commerce secretary Tapan Kanti Ghosh made the observations at a workshop styled 'Sustainable Business Growth of the Apparel Sector of Bangladesh: Improving Workers' Productivity and Resource Efficiency' as the chief guest on Tuesday.
"Unless you're price-competitive, everybody will go to other countries, go for lower prices and a huge bulk of order be taken away. Here comes the difficulty as our entrepreneurs and workers are undergoing all the circumstances, all the difficulties and getting less."
Solidaridad in collaboration with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) hosted the workshop at a city hotel.
Citing a study by the Centre for Policy Dialogue, Mr Ghosh also talked about power asymmetry in the supply chain, adding that only 21 per cent of the value of apparel product was kept in Bangladesh while the larger share or 79 per cent went outside.
To remove the supply chain disparity, he called on forging a strong partnership for better understanding of the supply chain and requested importing countries to take a larger share of the burden of the exporting country that they are taking in terms of maintaining all the standards, including curbing pollution.
Supported by the Dutch Ministry of Foreign Affairs, the Solidaridad Network Asia is implementing 'Reclaiming Sustainability (RS) in the Apparel Industry of Bangladesh' project.
Solidaridad is collaborating with the local apparel sector to address the issues of workers productivity by achieving environment, social and governance (ESG) standards and international corporate due diligence towards attaining a sustainable apparel sector.
Under the initiatives, efforts are designed around reskilling and upskilling the workers on occupational health and safety, inspiring women to take leadership position at workplace to adapt with new technologies and tools for their productivity enhancement.
Speaking there, Dutch Embassy Deputy Head of Mission Thijs Woudstra said, "We live in a turbulent time due to Russia-Ukraine war, the Hamas conflict aftermath of the Covid Pandemic."
Customers are uncertain and economic situation dire and the producing countries are suffering most and Bangladesh is not exception to that, he said Bangladesh is role model for occupational safety and leader in green garment factories.
"It's not all about occupational safety. We see the turbulence in the international market. The sector need to re-invest and re-invented itself," he added.
BGMEA president Faruque Hassan stressed the importance of enhancing workers' productivity and resource efficiency to promote sustainable growth in the garment industry.
He also emphasised the industry's need to balance short-term goals with long-term priorities through innovation, technological advancements and knowledge-based transitions.
According to Mr Hassan, the challenges the industry faces as the cost of manufacturing continues to rise each year.
"In recent years, the costs of fuel, electricity and gas have significantly increased, leading to higher transport and utility costs as well as increased manufacturing expenses," Mr Hassan said.
"Ensuring workers' well-being also means enhancing their efficiency through skills training and opportunities, ultimately enabling them to earn a better living."
RS partnership steering committee chair Isaac Gyamfi said, "Giving a strong focus on 'reclaim'."
Urging on the importance of producer-centered innovation as the pathway for sustainable development, he said, technology was playing a key role.
At the concluding remarks, Solidaridad Europe managing director Heske Verburg said increasing productivity went hand in hand with sustainability.
Talking about the challenges including poor wages, she said, "RMG workers in Bangladesh on an average earn only 45 per cent of what is needed to have affordable housing, access to healthcare, and to send their children to school."
Solidaridad Bangladesh country manager Selim Reza Hasan highlighted on RS in the apparel sector in his welcome remarks and emphasised to make it more inclusive.
He also shared the ongoing initiatives that Solidaridad is undertaking towards contributing to the sustainable business growth and to engage in dialogues with the relevant stakeholders to come-up with recommendations which are favorable for all the actors of the industry.
The workshop featured two panel discussions-reskilling and upskilling workers for productivity enhancement and resource efficiency: the needful and the way forward-with industry leaders, experts, and academia.
Cyclo Recycled Fibers director Mustafain Munir, Ms Verburg, former DCCI president Shams Mahmud and Dutch embassy senior policy adviser Tanzila Tajreen spoke at the first session moderated by BGMEA director Vidiya Amrit Khan.
Bangladesh Bank additional director Rabeya Khandaker, JM Fabrics Ltd managing director Azizur R Chowdhury and Group CEO and head of Business, IDS Group Abdullah Al Maher spoke at the second session moderated by Beximco Ltd chief sustainability officer Mohidus Samad Khan.
Energy and environment expert Dr Ijaz Hossain and Ms Neha, senior manager-gender of Solidaridad Network Asia, spoke on the current scenario of the energy situation of Bangladesh and way forward to mitigate the crisis and upskilling/reskilling of workers for productivity of the sector respectively.