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The decision to finalise the RMG Sustainable Council (RSC) framework is a long awaited move meant to deliver a proper business model benefiting the key stakeholders of the country's apparel industry. The draft framework is expected to be approved soon by the ministries of commerce; and labour and employment. Earlier, in its third meeting held in October this year, the Government Coordination Council (GCC) decided to finalise the proposed draft.
Setting up of this platform (RSC) is no doubt a turning point in so far as it promises to bring the entire chain of garment manufacturing in the country under a comprehensive overseeing mechanism. The council will be governed by a board of directors consisting of an equal number of representatives from the industry, brands and trade unions. It will operate within the regulatory framework of the laws of the country, closely cooperating with and supporting the regulatory functions of the government. It will also retain all health and safety inspections, remediation, safety training and complaints handling functions so long carried out by overseas garment retailers' representative- Accord. It may be noted that Accord, a platform of global apparel brands, retailers and rights groups mostly based in Europe, was formed immediately after the Rana Plaza building collapse to improve workplace safety in the country's apparel industry.
Details of the role of the RSC make one convinced about the usefulness of such a council. Observers aware of the country's garment export scenario will surely consider it a timely move in that the RSC is likely to not only streamline the country's most rewarding export sector but also address in a proactive manner some critically business-impeding difficulties facing the sector.
The RSC, in a nutshell, is a tripartite platform of apparel makers, buyers and labour rights groups to ensure workplace safety and compliance of standards in the garment sector. It may be recalled that following the Tazreen Fashion fire in 2012 and Rana Plaza disaster in 2013, the country's garment industry was in a tight spot as allegations about improper, risky workplaces were so widespread that industry leaders and the government agreed to launch a factory remediation scheme under supervision of two teams representing the two clusters of major international buyers - the European and North American (mainly US) buyers. These teams - Accord and Alliance were engaged for five years. It was a long and arduous task given the hugely varying nature of remediation needs involving among others inspection of structural designs and fire safety provisions in thousands of factories. There were occasional hiccups as inspection results demanded massive overhauling of a large number of factories. However, over the years most of the flawed factories have been set right.
The team representing the North American buyers and brands -- Alliance, has left the country on completion of its job in 2018. Accord, too, has done a commendable job, although a good number of factories from which neither the European buyers nor the North Americans source their imports are left out and currently these are being looked into by local inspection teams formed by the government.
Accord's tenure was to end in May, 2018. The government extended its stay as Accord wanted more time to complete its job. In May last year, the Supreme Court allowed Accord to continue its activities for 281 days after Accord and the BGMEA signed a memorandum of understanding (MoU) in this regard. As per the MoU, the proposed RMG Sustainability Council would be set up during this period and inherit both the Accord's staff and infrastructure after expiry of its tenure. The RSC thus will act as a successor of Accord in that it will conduct inspection, monitoring and certification for exporting factories. In so doing, the RSC will also take over all activities and staff of Accord.
The provisions under the framework, as reported in the media, have been well accepted by the exporters as well as the labour unions. As for the buyers, the response is more than just positive. As the European buyers' spokesperson has commented, "RSC is an unprecedented national initiative, uniting industry, brands and trade unions to ensure a sustainable solution, based on a unified compliance standard, to carry forward the significant accomplishments made on workplace safety in Bangladesh."
Once implemented, the RSC is expected to work in close coordination with the government's Department of Factory and Establishment Inspection (DIFE). The aim of the state entity DIFE and RSC is the same as both are working to ensure sustainability in the country's RMG sector. Under the framework, RSC will have to provide a safety report and summary of the factories to the DIFE every three months. RSC will create an interlinking database with the DIFE, containing available information about the list of factories, progress status, escalation status and other requirements set by the DIFE. Along with the DIFE the sustainability council will also prepare a common standard as per Bangladesh Labour Act and Rules, BNBC, Fire Act and other international standards, if necessary.
From the forgoing, it appears that RSC is going to be a foremost platform for ensuring the mandated works of workplace safety- and compliance-related matters. However, a good deal of its success will depend on holding regular dialogues with factory unions. No doubt this two-fold activity, if conducted in a fruitful manner, will place the RMG industry on a foundation stronger than ever before. This is where sustainability matters and the industry leaders surely will spare no effort to make sure that the RSC gets the right space in delivering a proper business model.