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Mamunur Rahman Labour Market Assessment Ready Made Garments Sector in Bangladesh Annex 3

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Page 1: Ready Made Garments Sector in Bangladesh - Sudokkhosudokkho.org/wp-content/uploads/2016/06/RMG-Labour-Market-Asse… · and the Swiss Agency for Development and Cooperation. In order

Mamunur Rahman

Labour Market Assessment

Ready Made Garments Sector in Bangladesh

Annex 3

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Executive Summary The Ready Made Garments (RMG) industry in Bangladesh is the single largest export earning

industry of Bangladesh contributing around 80% of total export earnings and 18% of the GDP.

The RMG industry also provides employment to around 4.4 million Bangladeshis of whom 70

percent are women. The labour intensive Ready Made Garment sector faces a shortage of

skilled workers. RMG is one of the two targeted sectors for the Skills and Employment

Programme-Bangladesh (SEP-B) co-funded by UK Department for International Development

and the Swiss Agency for Development and Cooperation. In order to design the content and

management plan for the implementation of SEP-B programme a study was carried out to

conduct detailed scoping of the labour markets for the Ready Made Garments sector in

Bangladesh. The study was conducted following a combination of secondary data research

and primary data survey.

The ready-made garments industry in Bangladesh consists of many small to medium garment

factories, both registered and unregistered, that produce garments catering to foreign buyers.

In 2013, there were 5600 registered factories mostly located in Dhaka, Gazipur, Narayangong

and Chittagong districts. The RMG sector is maintaining an average growth rate of 12% per

year and the export earnings from RMG is expected to double by 2015 and triple by 2020

compared to the earnings of 2010. With the growth of the sector the number of RMG

employees is also expected to reach 8 million by 2020.

Readymade garments manufacturers in Bangladesh are divided mainly into three broad

categories based on their products namely woven, knit and sweater garments manufacturer.

Total 36 occupations are commonly used under different production processes among which

25 fall under worker role and the rests under supervisory or technical role. Sewing is the single

largest process employing 57% of total employees followed by Finishing process employing

20% of all employees. Both Sewing and Finishing processes are highly dominant by female.

The survey result shows that most of the occupations suitable for female and DAP also related

to sewing and finishing process. Considering skill level RMG employees are categorized as

unskilled, semi-skilled and skilled. Results of different study show the distribution of these

three categories as 17%, 20% and 61% respectively. The RMG sector is currently running at

under capacity with a shortage of 15-20% skilled worker. Sewing Machine Operator is at the

top of the list in terms of number of existing and projected labour demand followed by Overlock

Machine Operator and then by Sweater Knitting Operator. High turn-over of the employees is

one of the major challenges for the employers of RMG. The turn-over tendency of unskilled

employees is higher compared to semi-skilled and then skilled employees. Minimum wage of

RMG workers is determined by the Government and the current minimum wage is 5300 taka

for the lowest grade worker, usually the unskilled workers. The wage difference between

unskilled, semi-skilled and skilled worker are very minimum which is a clear disincentive for

workers to invest for skills training. Supervisors are on top of the list in terms of monthly

earnings followed by technician and then the workers. The workers involved in sweater

production process earn based on their produced pieces and usually earn more than other

workers. The unskilled and semi-skilled employees have potential to become skilled employee

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and even supervisor by learning skills and gathering experiences. The productivity of RMG

factories largely depends on the efficiency and skills of workers. Occupations with maximum

number of employees have also significant influence to the overall productivity.

At the worker level recruitments are done through interview and by skill test of the worker. No

standard certification system exists to assess the skill level of the worker. RMG employers

prefer at least class 5 level education while recruit workers and at least class 8 for the technical

occupations and supervisors.

In RMG sector the practice of formal training is still not so popular. Only technicians and

managerial staff undergo some formal training system but for the workers and supervisors the

skills are achieved mostly through informal training which is well known as on-the-job training.

Only a small number of entrepreneurs have been investing for developing the skills of their

workforce. These are mainly multinational companies in the export-processing zones (EPZ)

as well as some large manufacturers. The percentage of such companies having their in-firm

training centre is not more than 10 percent. The high turn-over rate of skilled workers and the

pouching tendency of skilled worker by other factories create disincentives for entrepreneurs

to invest into the skills training of their workforce.

The total number and capacity of current out-of-firm training centres is nowhere near to meet

the existing skills demand of the sector. The existing out-of-firm training provision catering to

the RMG sector and overseas market can be broadly classified in to four main categories –

Government initiative, private initiative, public private partnership and aided/funded programs.

The private initiatives are initiated by the two main private industry associations BGMEA and

BKMEA and also by some NGOs. Most of the private initiatives owned by the private

entrepreneurs are centred round the EPZ areas due to the high demand from worker side as

the factories in EPZ mostly use modern automatic machines and recruit mostly operators

having knowledge of operating automatic machines. These type of private training centres

offer low cost training courses and they are sustaining their business by their own efforts.

However the poor infrastructure, low capacity, lack of training tools and machineries are the

major challenges of these private training providers.

Based on the analysis of secondary and primary data, this study has put forwarded several

recommendations for SEP-B programme in order to better design the interventions for

RMG sector such as, focusing on four districts namely Dhaka, Gazipur, Narayangonj and

Chittagong; designing separate interventions to support both in-house and out-of-firm training

initiatives; considering NGO led training centres in parallel to private training centres for

partnership; selecting the occupations from the recommended list; targeting skills

development at different levels such as, unskilled - semi-skilled – skilled - supervisory skill;

regular updating the curriculum considering technological update and need of the sector and

the workers; providing additional support to RMG employers in development of effective HR

policy, introduction of skill matrix system, improvement of working condition; finally keeping

the training duration shorter and the cost within the affordable limits of the trainees.

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Table of Contents

Executive Summary ............................................................................................................... i

Table of Contents .............................................................................................................. iii

List of Abbreviations .......................................................................................................... vi

List of Tables .................................................................................................................... vii

List of Figures .................................................................................................................. viii

CHAPTER 1 .......................................................................................................................... 1

Introduction ....................................................................................................................... 1

1.1. Rationale ............................................................................................................ 1

1.2. Background of the study .................................................................................. 1

1.3. Objectives of the study ..................................................................................... 2

1.4. Structure of the report ...................................................................................... 2

CHAPTER 2 .......................................................................................................................... 3

Approach and Methodology ............................................................................................... 3

2.1. Methodological approach ................................................................................. 4

Secondary data research ............................................................................................... 4

Interviews, consultations and discussions ...................................................................... 4

Primary data collection ............................................................................................... 4

Compilation and synthesis of findings ............................................................................ 5

2.2. Challenges and limitations of the study .......................................................... 5

CHAPTER 3 .......................................................................................................................... 6

Basic Information about the RMG Sector ........................................................................... 6

3.1 Size and geographical distribution .................................................................. 7

3.2 Current GDP contribution ............................................................................... 11

3.3 Projected GDP contribution ............................................................................ 13

3.4 Current share of employment ......................................................................... 13

3.5 Projected share of employment ..................................................................... 16

3.6 Employee demographic information .............................................................. 17

Educational level of existing employees ....................................................................... 17

Age distribution of existing employees ......................................................................... 18

CHAPTER FOUR ................................................................................................................ 19

Labour Market Assessment of RMG Sector ..................................................................... 19

4.1. Occupations, employment and wage structure ............................................ 19

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Production process and major occupations .............................................................. 19

Current employment by occupation and gender ....................................................... 21

Current employment by skill level ............................................................................. 25

Existing and projected (5 years) labour demand by occupation and skill level .......... 28

Employee turn-over by occupation and skill level ..................................................... 29

Occupation-wise wage ............................................................................................. 32

Future occupations by employment potential ............................................................ 34

Occupations suitable to female and DAP .................................................................. 35

Occupations with greatest potential for career progression....................................... 35

Occupations with greatest potential for productivity improvement ............................. 36

Duration of training to achieve skills required for different occupations ..................... 37

4.2. Managing workforce demand and job access in RMG sector ...................... 38

Recruitment practices ............................................................................................... 38

Entry requirements by occupation and skill level ...................................................... 40

4.3. Skills development practices in the RMG sector .......................................... 42

In-house training facilities ......................................................................................... 42

Out-of-firm training facilities ...................................................................................... 44

Major constraints related to hiring and retaining skilled workers ............................... 46

Practice of supporting external training centre .......................................................... 47

Practice of hiring trained persons from external training institutions and level of

satisfaction ............................................................................................................... 48

Willingness and ways to collaborate with SEP-B ...................................................... 49

4.4. Summary of analysis and findings ................................................................. 49

CHAPTER 5 ........................................................................................................................ 52

Conclusions and Recommendations ............................................................................... 52

Recommendation-1: Selection of geographical location for SEP-B interventions: ........ 52

Recommendation-2: Selection of partners for SEP-B interventions: ............................. 52

Recommendation-3: Selection of occupations: ............................................................ 53

Recommendation-4: Targeted skill level:...................................................................... 53

Recommendation-4: Support updating curriculum and course materials ...................... 54

Recommendation-5: Support to retain skilled employees ............................................. 54

Recommendation-6: Training duration and cost ........................................................... 54

References ...................................................................................................................... 56

Attachments ........................................................................................................................ 57

Attachment-1: Minimum wage structure for the RMG sector ................................. 57

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Attachment-2: List of RMG industries surveyed ...................................................... 60

Attachment-3: List of individuals consulted ............................................................ 61

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List of Abbreviations

ADB Asian Development Bank

BB Bangladesh Bank

BBS Bangladesh Bureau of Statistics

BDT Bangladeshi Taka

BEPZA Bangladesh Export Processing Zones Authority

BGMEA Bangladesh Garment Manufacturers and Exporters Association

BKMEA Bangladesh Knitwear Manufacturers and Exporters Association

BMET Bureau of Manpower , Employment and Training

BOI Board of Investment

BTEB Bangladesh Technical Education Board

CPD Centre for Policy Dialogue

DAP Differently Abled People

DFID Department for International Development

EPB Export Promotion Bureau

EPZ Export-Processing Zones

FDI Foreign Direct Investment

FY Fiscal Year

GDP Gross Domestic Products

GSP Generalized System of Preferences

HSC Higher Secondary School Certificate

ILO International Labour Organization

KII Key Informant Interview

MoF Ministry of Finance

NGO Nongovernmental Organization

PROGRESS Promotion of Social, Environmental, & Production Standards

RMG Ready-made Garment

SEP-B Skills and Employment Program-Bangladesh

SSC Secondary School Certificate

TIDC Textile Industry Development Centre

TTC Technical Training Centre

TVET Technical and Vocational Education and Training

UNDP United Nations Development Program

US United States

USAID United States Agency for International Development

WDI World Development Indicators

WTO World Trade Organization

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List of Tables

Table 3.1: Growth of the Industry and Employment ............................................................... 8

Table 3.2: Contribution of RMG sector to the total export of Bangladesh (selected years) .. 11

Table 3.3: Characteristics of population and labour force over the years (in million) ........... 13

Table 3.4: Employment by broad economic sectors (percent) in 2010 ................................ 14

Table 3.5: Rate of unemployment (percent) by age group, sex and residence in 2010........ 14

Table 3.6: Rate of unemployment (percent) by level of education in 2010 ........................... 14

Table 3.7: Age distribution of RMG employees ................................................................... 18

Table 4.1: RMG factory distribution according to type of factory (product type) ................... 19

Table 4.2: Production process of RMG factories ................................................................. 19

Table 4.3: RMG occupation list ........................................................................................... 20

Table 4.4: Percentage of existing employees in different occupations separated by gender

and DAP ............................................................................................................................. 24

Table 4.5: List of occupations with greatest absorption capacity in RMG sector .................. 25

Table 4.6: Existing and projected (5 years) labour demand by occupation and skill level .... 28

Table 4.7: RMG occupation list with average monthly salary ............................................... 33

Table 4.8: List of top 15 occupations in terms of wage ........................................................ 34

Table 4.9: List of future occupations .................................................................................... 34

Table 4.10: List of occupations suitable to female and DAP ................................................ 35

Table 4.11: List of occupations with significant contribution to the overall productivity ........ 37

Table 4.12: Duration of training to achieve the skills required for different occupations ....... 38

Table 4.13: Recruitment practice of employers ................................................................... 39

Table 4.14: Minimum education demanded for most common occupations ......................... 40

Table 4.15: Key findings on in-house training practices among surveyed factories ............. 43

Table 4.16: Comparison of different types of training providers from a qualitative perspective.

........................................................................................................................................... 45

Table 4.17: List of major constraints related to hiring and retaining skilled workers ............. 47

Table 4.18: Expectations of private sector entrepreneurs regarding skills training ............... 48

Table 5.1: List of recommended occupations for SEP-B ..................................................... 53

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List of Figures

Figure 2.1: Study Approach................................................................................................... 3

Figure 3.1: Garments Industry of Bangladesh ....................................................................... 7

Figure 3.2: RMG factories distribution by major districts ........................................................ 9

Figure 3.3: RMG workers distribution by major districts ......................................................... 9

Figure 3.4: Geographical location of RMG factories in Bangladesh ..................................... 10

Figure 3.5: Share of RMG as percentage of GDP ............................................................... 12

Figure 3.6: Share of exports as percentage of GDP ............................................................ 12

Figure 3.7: Total labour force and RMG employees ............................................................ 15

Figure 3.8: RMG employees as percent of total labour force ............................................... 16

Figure 3.9: Current and projected employment (in million) in RMG ..................................... 17

Figure 3.10: RMG workers distribution by Education level .................................................. 18

Figure 4.1: Distribution of employees in woven garments production process ..................... 22

Figure 4.2: Distribution of employees in knit garments production process ......................... 22

Figure 4.3: Distribution of employees in sweater production process .................................. 23

Figure 4.4: Distribution of employees in RMG sector .......................................................... 24

Figure 4.5: Skill Profile of RMG workers according to CPD survey ...................................... 26

Figure 4.6: Skill Profile of RMG workers according to primary data survey .......................... 27

Figure 4.7: Comparison of the survey results on the skill level distribution of RMG employees

........................................................................................................................................... 27

Figure 4.8: Employee turn-over tendency by occupation and skill level ............................... 31

Figure 4.9: Typical career progression path of RMG workers .............................................. 36

Figure 4.10: Employers' expectation of minimum educational qualification for different

occupation .......................................................................................................................... 41

Figure 4.11: Classification of Out-of-firm training provisions in RMG sector ........................ 44

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CHAPTER 1

Introduction

1.1. Rationale

Bangladesh is a developing country in South Asia and is one of the most densely

populated countries in the world with around 156 million people living in a land area of 56,977

square miles (147,570 square kilometres)1. Around 30% of the population lives below the

poverty line2. Agriculture and industry are the first two contributors to country’s economy.

Although Bangladesh is not developed in industry, Ready Made Garment (RMG) has been

one of the most important industries in the country. RMG is the single largest export earning

industry of Bangladesh contributing around 80% of total export earnings and 18% of the GDP3.

The RMG industry also provides employment to around 4.44 million people of whom 70 percent

are women. The industry is growing constantly maintaining an average annual growth rate of

12% and creates employment opportunities for thousands of poor unemployed people every

year. This steady increase in employment opportunity is significantly contributing to improve

poverty indicators in Bangladesh.

The labour intensive Ready Made Garment industry encounters shortage of skilled workers.

In order to respond to the growing market demand of Bangladeshi garments and to remain

competitive, skills development of the workers has become an important issue for the

development of this sector. On the other hand, skills training can create opportunities for the

increasing number of unemployed people and increase their income.

Designing an effective skills development programme, capable of increasing income for the

unemployed and under employed, requires an assessment of the existing skills gaps, current

and future skills demand and the expectations of different stakeholders engaged throughout

the sector. These efforts to strategically plan maximize efficiency within the RMG sector and

ensure Bangladesh remains a competitive industry supplier in the global market. As the

numbers of unemployed lessen, the Bangladesh economy strengthens to the benefit of society

as whole.

1.2. Background of the study

Private sector companies in Bangladesh consistently identify low skill levels within the labour

force as a fundamental constraint to Bangladeshi growth. The Ready Made Garments and

Construction sectors are developing rapidly, and have tremendous potential to absorb labour

1Bangladesh Bureau of Statistics (BBS). 2011, Population Census 2011. Dhaka, BBS 2 HIES 2010 3 Bangladesh Bank; Export Promotion Bureau 4 BGMEA website

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and offer employment to large numbers of uneducated men and women. However, a shortage

of skilled workers limits potential to fully capitalize on the opportunities.

The Skills and Employment Programme-Bangladesh (SEP-B) is a co-funded programme of

UK Department for International Development and the Swiss Agency for Development and

Cooperation which aims to stimulate private sector investment in training for poor people. The

£20.5 million, 5-year project, strives to cultivate an enabling policy environment and transform

private sector training markets to support the absorption of large numbers of disadvantaged

groups into skilled and semi-skilled employment. It will support skills training market that

targets the poor and those with limited education. The project interventions will be tailored to

employer needs in the Ready Made Garments and Construction industries, and linked to jobs

that improve earning potential and subsequently enable beneficiaries to graduate from

poverty. The SEP-B project is implemented by GRM International in partnership with

Swisscontact and the British Council.

Realizing that the success of SEP-B programme largely depends on the appropriate design

of content and management plan for implementation, this study was designed and carried out

during the inception period. It presents a detailed scoping of the labour markets for the Ready

Made Garments sector.

1.3. Objectives of the study

The overall objective of this study is to conduct detailed scoping of the labour markets for the

Ready Made Garments sector in Bangladesh.

The specific objectives of the study are as follows:

To map the largest firms/employers within the sector across all (7) divisions including

locations and assess their current and future demands for skilled and semi-skilled

workforce.

To assess and analyse occupations with the greatest absorptive capacity, greatest

earning potential, greatest potential for career progression, most attractive to

vulnerable groups, allowing sufficient skills development in a short training interval.

To analyse wage bands across grades.

To collect workers’ demographic information

To identify recruitment processes and entry barriers for employment, and bottlenecks

hindering sector stakeholder collaboration.

1.4. Structure of the report

Chapter 1 sets the rationale, background and objectives of the study. Chapter 2 describes the

approach and methodology adopted in this study. Chapter 3 presents basic information about

the sector including the current and projected GDP contribution and employment share of the

sector. Chapter 4 gives the assessment result of RMG labour market incorporating the results

of secondary research and primary survey conducted. Finally, Chapter 5 draws the

conclusions and provides recommendations.

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CHAPTER 2

Approach and Methodology

The study was conducted following a combination of secondary data research and primary

data survey. A schematic of the research approach is shown in Figure 0.1. The present

study made use of a mix of research techniques and tools. The choice and application of

tools and techniques were done based on the overall objective of the study, type and

quality of information at hand, resource and time constraints, and local situations. This

adaptive approach was necessary to conduct the study in most efficient manner. Research

was conceptualized based on review of existing literature and professional experience of

the researcher. The researcher has 9 years of working experience in the field related to

the Ready Made Garments sector in Bangladesh.

Figure 0.1: Study Approach

Study Approach

Conceptualization Analysis and

Synthesis Reporting

Primary Data Survey

KII

Survey of Employers

Consultation

Secondary Data Research

Literature Review

Data collection

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2.1. Methodological approach

Secondary data research

A total of 16 sources were utilized for secondary data analysis. The background report

on RMG for the study titled “Private Sector Training Certification and Employment

Services in Bangladesh” commissioned by UK Department for International Development

in 2012 was an especially key secondary document used for this study. Labour market

study reports of Unnayan Onneshan were collected and used as reference. Economic

data were collected from various sources such as Bangladesh Bank, Ministry of Finance,

Export Promotion Bureau and World Bank for analysis. Labour force data were collected

from Bangladesh Bureau of Statistics and World Bank. The Department of Inspection for

Factories and Establishments was the key source of data related to RMG factories and

worker. Data compiled by BGMEA and BKMEA, the two associations of RMG employers,

were also collected for analysis. A list of reference is given at the end of this report.

Interviews, consultations and discussions

In order to validate the findings from secondary research as well as collect new

information, concerned persons of the employers’ associations from BGMEA and BKMEA

were consulted. In addition, owners of Private Training Centres and RMG Employers were

also interviewed for the purpose of this study. A list of persons consulted is given as

ANNEX-2 and 3 of this report.

Primary data collection

For the purpose of primary data collection statistical sampling rule was followed. As per the

BGMEA, there are 5600 garment factories in the industry whereas BKMEA estimates this

number as 53005. These estimations clearly indicate absence of clear database. Therefore,

to be on safe side, total number of factories was considered as 5600 and following methods

have been used for calculating the sample size.

Population size : 5600 Confidence level : 90% Margin of error : 12% Sample size : 45

The following formula was used to calculate the sample size:

Sample size =

Z2 * (p) * (1-p)

c2

Where:

Z = Z value (1.645 for 90% confidence level)

p = percentage picking a choice, expressed as decimal (0.5 used for sample size

5 Based on consultation carried out at BGMEA and BKMEA headquarters on 07 May 2014.

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needed)

c = confidence interval, expressed as decimal (here .12 = ±12)

The available data show that 99%6 of the industries are located in four districts: Dhaka (40%),

Gazipur (38%), Narayangonj (10%) and Chittagong (11%) district. Hence samples were

selected using random sampling method proportionally from these four districts. An available

list of 1566 RMG factories was used to randomly select factories for the survey.

Given the time constraints and sensitivity of doing employee survey, interviews were

conducted only with the employers. A mix of quantitative and qualitative surveying would be

the ideal methodology of this study, but due to time limitations a qualitative assessment could

not be completed. A thorough and detailed questionnaire with both open-ended and close-

ended questions was prepared for collection of primary data focusing on major research

questions and is presented in ANNEX-4 of this report.

Compilation and synthesis of findings

The findings from secondary data research, primary surveying, key informant interview,

discussions, consultations and literature review were documented and summarized. The

results of analysis were summarized in tabular formats, charts and diagrams. Finally, the

findings were synthesized and are reported in Chapters 3, 4 and 5.

2.2. Challenges and limitations of the study

Limited Secondary Data- Due to lack of available data, several tables and charts

presented in this report are based on the author’s calculation combining available

secondary data. The distribution of RMG industries and employees by major districts is

an example of this.

Insufficient Study Time- Due to time limitation the sample size was determined with

high margin of error (12%). However, given the homogeneity of the industrial units and

considering the fact that the primary survey is to validate the existing secondary

information, 12% margin of error is still acceptable. In addition the survey questions are

of more qualitative nature and open ended. Hence high margin of error will not affect the

interpretation significantly.

Limited Staffing Resources for Delivery- Due to resource limitations in staffing the

primary data collection had to be outsourced to an external firm. However, the research

team guided the enumerators and monitored the quality aspect through- out the survey.

Sector Sensitivity- Considering the sensitivity and restrictions from employers’ side,

primary surveying was not conducted at employee level. The employee demography has

been collected from available secondary sources and has been incorporated into this

report.

6 Website of Department of Inspection for Factories and Establishments (http://www.dife.gov.bd), May, 2014

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CHAPTER 3

Basic Information about the RMG Sector

The Ready Made Garment (RMG) industry in Bangladesh is only thirty five years old since the

first garment exporting unit took the first step in the clothing export market in 1978. Currently

Bangladesh holds more than 4 percent share in the

global clothing export market and has positioned itself

as the third-largest garment exporting country in terms

of value after China and Turkey.

RMG roughly covers 80 per cent of the total export

revenue of the country and is the highest earning

industry in the economy.7 Total GDP of the country is

129.8 billion US$ (FY: 2013) where the RMG sector

contributes 18%. Around 6% of the total workforce is

employed by this sector.

The ready-made garments industry in Bangladesh

consists of many small to medium garment factories,

both registered and unregistered, that produce

garments catering to foreign market. In 2013, there

were 5,600 registered factories that employed 4.4

million workers8 of whom 70 percent were women.

RMG products are of two major types: knit garments and woven garments. Historically,

Bangladesh focused on producing knit garments but in recent times Bangladesh is more

successful in woven production as well. Recently Bangladesh enjoyed being the second

largest knitwear exporter in terms of volume in 2012. The knitwear and woven garments export

volume has grown at 10% and 15% respectively in FY 2012-13, which is higher than that in

FY 2011-129.

The competitiveness of garments exporters largely depends on the fulfilment of four main

expectations of buyers namely low cost, better quality, product variations and delivery in the

shortest possible time. It is obvious that ensuring high quality and having product variation

requires skilled workers. Improving productivity influences the maintenance of low cost and

ability to meet delivery dates. When garment factories are functioning optimally, management

can appropriate adequate attention to overcoming challenges such as the increasing cost of

raw materials, power crises and transportation bottlenecks. In order to respond positively to

7 Bangladesh Bank; Export Promotion Bureau 8 BGMEA website. 9 Bangladesh Bank; Export Promotion Bureau

Box 1: Key facts and figures of RMG sector:

More than 5500 RMG

factories in BD and rising

Average annual growth rate

is 12%

79.6% of export earnings

and 18% of GDP come from

the RMG sector.

40% (4.4 M) of the industrial

workforce or 6% of the total

workforce is directly

employed by the RMG

sector.

70% of workers in the RMG

sector are women.

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the growing market demand of Bangladeshi garments and to remain competitive, skills

development has become the most important issue for the development of the sector.

3.1 Size and geographical distribution

The broad Garments industry of Bangladesh is mainly divided into two sectors namely Textile

and RMG. Textile sector comprises of spinning mills and textile factories. Both spinning mills

and textile factories use imported and locally produced cotton as raw material to produce yarn,

fabric and home textiles. The yarn produced by the spinning mills and fabric by the textile

factories are used as raw materials by the RMG factories. The home textiles (such as bed

sheet, curtain, towel etc.) are also exported mainly to US and EU markets. RMG sector

comprises of woven garments factories, knit garments factories and sweater factories. These

factories use yarn, fabric and accessories (both imported and locally produced) as raw

materials to produce Ready Made Garments. The RMG products are mostly exported to

different parts of the world and a small portion is catering to the local market. Other than Textile

and RMG factories there are also tailoring shops catering to local markets only by making

tailored garments. Accessories manufacturers are also part of the Garments Industry who

produces accessories like button, zipper, label, packing materials etc. and supply to RMG

factories as well as the Tailoring shops. The following figure shows the overall picture of the

Garments industry in Bangladesh:

Figure 0.1: Garments Industry of Bangladesh

Source: Author’s compilation

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During the last two and a half decades, there has been a steady growth in the field of RMG.

The RMG industry enjoyed a tremendous rise from 30 enterprises in 1980 to 5600 in FY2012-

13. Data in Table 0.1 depicts the growth of the industry in terms of number of (registered) units

and workers employed in RMG sector.

Table 0.1: Growth of the Industry and Employment

Year Number of Garment

Factories

Employment in Million

Workers

1983-84 134 0.04

1984-85 384 0.12

1985-86 594 0.20

1986-87 629 0.28

1987-88 685 0.31

1988-89 725 0.32

1989-90 759 0.34

1990-91 834 0.40

1991-92 1163 0.58

1992-93 1537 0.80

1993-94 1839 0.83

1994-95 2182 1.20

1995-96 2353 1.29

1996-97 2503 1.30

1997-98 2726 1.5

1998-99 2963 1.5

1999-00 3200 1.6

2000-01 3480 1.8

2001-02 3618 1.8

2002-03 3760 2

2003-04 3957 2

2004-05 4107 2

2005-06 4220 2.2

2006-07 4490 2.4

2007-08 4743 2.8

2008-09 4925 3.5

2009-10 5063 3.6

2010-11 5150 3.6

2011-12 5400 4

2012-13 5600 4.4

Source: BGMEA website: http://www.bgmea.com.bd (accessed in May 2014).

There is a clear lack of reliable data on RMG factories in Bangladesh. The available data from

the Department of Inspection for Factories and Establishments shows that the RMG factories

are mostly located in Dhaka, Gazipur, Chittagong and Narayangonj district. Almost 99% of the

RMG factories are located in these four districts. The rest of the factories are scattered in

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Comilla, Narsingdi, Tangail, Mymensing and Manikganj. The following graph shows the

geographical distribution of the RMG factories in Bangladesh:

Figure 0.2: RMG factories distribution by major districts

Source: Author’s calculation based on available data from the website of Department of Inspection for Factories and Establishments (http://www.dife.gov.bd)

The distribution of RMG employees also follows the pattern of factories. Almost 99% of the

RMG employees are working in Dhaka, Gazipur, Chittagong and Narayangonj districts. The

following graph (

Figure 0.3) shows the geographical distribution of RMG employees in Bangladesh:

Figure 0.3: RMG workers distribution by major districts

Source: Author’s calculation based on available data from the website of Department of Inspection for Factories and Establishments (http://www.dife.gov.bd)

Dhaka, 39.78%

Gazipur, 37.87%,

Chittagong, 10.87%

Narayanganj, 10.13%

Dhaka

Gazipur

Chittagong

Narayanganj

Mymensingh

Manikganj

Tangail

Comilla

Narsingdi

39.8%37.9%

10.9% 10.1%

0.8% 0.3% 0.2% 0.0% 0.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Perc

en

tag

e

Districts

Female

Male

Total%

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Figure 0.4: Geographical location of RMG factories in Bangladesh

RMG Factories

Bangladesh Map

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3.2 Current GDP contribution

The economy of Bangladesh has undergone rapid structural transformation from an agrarian

base towards manufacturing and services. The contribution of the agriculture sector to GDP

has decreased from 49 percent in 1973-74 to around 18.7 percent in 2012-13. Over the same

period, the contribution of service sector has increased from 40 percent to 54 percent. The

industry share to GDP has also increased from 11 percent in 1973-74 to 29 percent in 2012-

13.10 The growth of industrial production has averaged more than 6% over the last 5 years.

The export sector has been the main contributor of industrial growth, where ready-made

garments played a leading role experiencing an average growth of 16 percent over the last 5

years. The bulk of exports are manufactured/processed products, ready-made garments and

knit wears11.

The country’s export-oriented RMG sector has been making significant contributions to the

economic development of Bangladesh since 1980. The earning of foreign exchange,

improving the balance of payments and dramatic employment creation, particularly for women,

has significantly contributed to poverty reduction. The sector is also encouraging the creation

of different forward and backward linkages contributing to the overall economic activities of

Bangladesh. The closely related sectors with the RMG sector are textile, transport, freight

forwarding, bank and insurance services, housing services, real estate, storage, machinery,

and cotton cultivation.

Contribution of the RMG sector to the total export has been presented in Table 3.2.

Table 0.2: Contribution of RMG sector to the total export of Bangladesh (selected years)

Year Export of RMG (in million US$)

Total export of Bangladesh (in million US$)

% of RMG to total exports

1983-84 31.57 811.00 3.89

1987-88 433.92 1231.2 35.24

1991-92 1182.57 1993.90 59.31

1995-96 2547.13 3882.42 65.61

1999-00 4349.41 5752.20 75.61

2003-04 5686.09 7602.99 74.79

2006-07 9211.23 12177.86 75.64

2007-08 10699.80 14110.80 75.83

2008-09 12347.77 15565.19 79.33

2009-10 12496.72 16204.65 77.12

2010-11 17914.46 22924.38 78.15

2011-12 19089.69 24287.66 78.60

2012-13 21515.73 27018.26 79.63

Source: BGMEA website: http://www.bgmea.com.bd/home/pages/TradeInformation (accessed in May

2014).

In terms of GDP, RMG’s contribution is highly remarkable; it has reached 18.5 percent of GDP

by 2012 which was only about 0.54 percent in 1985. Figure 0.5 and Figure 0.6 below show

10 BBS, 1978; Bangladesh Bank 2014 11 Bangladesh Bank 2014

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the share of RMG exports and total exports as a percentage of GDP, respectively. The export

share of GDP is also showing a positive trend over the years, and this is mainly due to the

rapid growth of the RMG sector. The export share of GDP was 6% in 1985, which has

increased to 23 percent in 2012. It presents a positive trend, despite slight decline in 2009 and

2010 due to the global financial crisis.

Figure 0.5: Share of RMG as percentage of GDP

Source: WDI 2013 online database

Figure 0.6: Share of exports as percentage of GDP

0

2

4

6

8

10

12

14

16

18

20

1980 1984 1988 1992 1996 2000 2004 2008 2012

Sh

are

of

GD

P (

perc

en

t)

Year

Share of RMG as % of GDP

0

5

10

15

20

25

1980 1984 1988 1992 1996 2000 2004 2008 2012

Sh

are

of

GD

P (

perc

en

t)

Year

Share of Exports as % of GDP

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Source: WDI 2013 online database

3.3 Projected GDP contribution

Even after political turmoil, the incidence of devastating fire at Tazreen Fashion and the

building collapse of Rana Plaza, RMG export earnings assumed a positive and satisfactory

growth rate in FY 2012-13 and in the first eight months of this current fiscal year (FY 2013-

14). The main reason behind the success is increase in the non-traditional markets. The export

of readymade garments reached USD 12233.23 million comprising 81.7 percent of total export

receipts during July-February of FY 2013-14 compared to USD 10225.68 million comprising

80.2 percent of total export receipts during the corresponding period of FY 2012-13. During

July-January of FY 2013-14, export growth rate of readymade garments increased by 17.72

percent where the growth rate was 9.92 percent respectively in the corresponding previous

fiscal year. This gives a clear indication of further increase of the RMG share in total exports

and in GDP for the fiscal year 2013-14.

The Bangladesh RMG industry will continue to face growing demand. McKinsey has forecast

demand growth through 202012. Citing the trend of global buyers, the report forecasts that

Bangladesh would fetch up to US$ 42 billion annually from RMG exports in the next 10 years

by maintaining an annual growth between 7 and 9 percent. The report in its near-term estimate

also said that the earning would be double by 2015 and triple by 2020. The report said the

advantages in price, capacity, capability and trade regulations provide the base for positive

RMG growth in Bangladesh, which will be accelerated further in the future, driven by the

increasing demand of international buyers from Europe, the US and many emerging markets.

A shift in orders from China to Bangladesh, for cost competitiveness, is a major reason behind

the rise in exports.

The report, however, said that the country’s RMG sector would face some major challenges

to achieve the status of a global hub. The challenges include poor infrastructure, limited inland

transport alternatives and lack of a deep-sea port.

3.4 Current share of employment

At national level the latest labour force survey was conducted back in 2010. The survey reported total labour as 56.7 million of which 54.1 million as employed and 2.6 million as unemployed. The total country population was 147.74 million during 2010 whereas the population of Bangladesh as of 2013 was 156.3 million. So it can be assumed that since 2010 the labour force of Bangladesh has also increased significantly. The following tables summarize the key results of labour force survey 2010.

Table 0.3: Characteristics of population and labour force over the years (in million)

Year

population Working age Employed Unemployed

Ma

le

Fe

male

To

tal

Ma

le

Fe

male

To

tal

Ma

le

Fe

male

To

tal

Ma

le

Fe

male

To

tal

12 McKinsey (2011), Bangladesh’s ready-made garments landscape-The challenge of growth

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1999-00 64.09 60.26 124.35 38.30 35.90 74.20 31.10 7.90 39.00 1.10 0.70 1.80

2002-03 68.33 65.08 133.41 41.20 39.60 80.80 34.50 9.80 44.30 1.50 0.50 2.00

2005-06 70.04 67.26 137.30 43.01 41.58 84.59 36.10 11.30 47.40 1.20 0.90 2.10

2010 74.15 73.59 147.74 47.85 47.74 95.59 37.90 16.20 54.10 1.60 1.00 2.60

Source: Labour Force Survey (LFS), 2010

Table 0.4: Employment by broad economic sectors (percent) in 2010

Broad Economic Sectors

Total Male Female

Agriculture 47.56 40.18 64.84

Non-agriculture 53.07 60.71 35.21

Manufacturing 12.44 12.73 11.77

Other industry 5.28 6.87 1.55

Services 35.35 41.11 21.89

Source: Labour Force Survey (LFS), 2010

Table 0.5: Rate of unemployment (percent) by age group, sex and residence in 2010

Age group

Bangladesh Urban Rural

To

tal

Ma

le

Fe

male

To

tal

Ma

le

Fe

male

To

tal

Ma

le

Fe

male

Total 4.50 4.10 5.70 6.50 5.70 8.30 4.00 3.60 4.90

15-19 10.60 9.80 11.40 12.40 11.70 13.40 10.10 9.80 10.60

20-24 7.10 6.80 7.70 9.90 8.70 11.50 6.30 6.20 6.40

25-29 5.40 4.30 7.30 7.90 6.30 10.80 4.60 3.70 6.20

30-34 4.20 3.80 4.80 5.60 5.00 6.90 3.60 3.40 4.00

35+ 2.40 2.40 2.70 3.90 3.90 3.80 2.00 1.90 2.40

Table 0.6: Rate of unemployment (percent) by level of education in 2010

Level of Education

Bangladesh Urban Rural

To

tal

Ma

le

Fe

male

To

tal

Ma

le

Fe

male

To

tal

Ma

le

Fe

male

Total 4.50 4.00 5.70 6.50 5.70 8.30 3.90 3.60 4.90

No education 2.80 2.30 4.10 3.80 3.40 4.60 2.60 2.10 3.90

Class I-V 3.80 3.40 4.70 5.10 4.40 6.40 3.50 3.10 4.20

Class VI- VIII 5.20 4.80 5.90 5.60 5.10 6.90 4.60 4.70 5.70

Class IX-X 7.20 6.80 7.90 9.10 7.40 12.40 6.50 6.50 6.80

SSC/equivalent 7.30 7.50 6.80 9.70 9.40 10.60 6.20 6.70 4.80

HSC/equivalent 13.70 11.80 19.50 17.00 13.90 25.40 11.40 10.40 14.60

Degree/ equivalent 0.50 0.40 1.30 0.40 0.40 0.60 0.60 0.30 2.00

Master’s/equivalent 10.30 8.20 19.90 11.50 9.20 20.00 8.60 6.90 19.40

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Engineering/ medical 14.30 10.60 30.80 14.70 11.70 27.60 12.30 5.90 48.10

Technical/ vocational 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Others 2.90 0.00 9.70 0.00 0.00 0.00 3.90 0.00 23.40

As per the World Development Indicators database of World Bank the current labour force is 76 million as of year 2012. The following graph shows the trend of labour force from 1990 to 2012 and the number of employment in RMG sector.

Figure 0.7: Total labour force and RMG employees

Source: Author’s calculation based on data from World Bank and BGMEA The share of RMG employment in total labour force is gradually increasing over last two decades. Currently RMG employment is around 6% of the total labour force and 40% of the industrial workforce. The following graph shows the share of RMG employment in total labour force from 1990 to 2012.

0

10

20

30

40

50

60

70

80

Nu

mb

er

(in

millio

n)

Year

Total labour force vs RMG employment

RMG employment (in million) Total labor force (in million)

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Figure 0.8: RMG employees as percent of total labour force

Source: Author’s calculation based on data from World Bank and BGMEA

3.5 Projected share of employment

Industry leaders from the Bangladesh Garment Manufacturers’ and Exporters’ Association

(BGMEA) and Bangladesh Knitwear Manufacturers’ and Exporters’ Association (BKMEA) find

the shortage of workers crucial to full capacity utilization. According to them, the estimated

need hovers around 20% to fill up the vacant positions in the industry. At present employment

of the RMG sector is about 4.4 million. Considering 20% shortage of workers the current

employment capacity of the sector becomes 5.28 million.

As mentioned in section 1.1.2 McKinsey forecasted 7 to 9 percent annual growth of the RMG

industry till 2020. Considering 8% annual growth the projected number of employment in RMG

sector will reach 8 million by 2020. The following graph shows the current and projected

employment in RMG sector from 2000 to 2020.

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Perc

en

t

Year

Share of RMG employees as % of total labour force

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Figure 0.9: Current and projected employment (in million) in RMG

Source: Author’s calculation based on BGMEA data and McKinsey (2011) research report.

3.6 Employee demographic information

Educational level of existing employees

Although the national literacy rate for the population of age 15 and above is 57 percent (WDI

2011), among the garment workers surveyed by CPD in 2006, 95.4 percent are literate.

According to the survey 63 percent of the interviewed workers have an education beyond the

primary level, 33 percent up to class ten, and 21 percent up to a secondary school certificate

(SSC), 7 percent up to the HSC, and 2 percent bachelor and above.

1.8 1.8 2 2 2 2.2 2.42.8

3.5 3.6 3.64

4.44.75

5.135.54

5.996.47

6.987.54

8.14

0

1

2

3

4

5

6

7

8

9

Nu

mb

er

of

em

plo

ym

en

t (i

n m

illio

n)

Year

Current and projected employment in RMG

Current employment Projected employment

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Figure 0.10: RMG workers distribution by Education level

Source: CPD/GATE survey 2006

Age distribution of existing employees

According to the CPD survey (in 2006) Average age of a male worker in the sample was 25.4

years, while that of a female worker was 24.4 years. It appeared that a female worker ends

her working life in the apparel sector in most cases before she reaches 30 years of age

possibly because of marriage, stress of work, etc.

A recent survey report published in the ABC Journal of Advanced Research, Volume 2, No 2

(2013) shows that majority of workers are in the age group of 20-30 years. The following table

shows the age distribution of the employees of five garments factories surveyed in 2013.

Table 0.7: Age distribution of RMG employees

Age Percent

less than 20 years 11.3

20-30 years 66

30 years and above 22.6

Total 100

Source: Survey result published in ABC Journal of Advanced Research, Volume 2, No 2

(2013)

No Education, 5%

Primary, 32%

Up to Class Ten, 33%

SSC, 21%

HSC, 7%

Bachelor and above, 2%

Employee distribution by education level

No Education

Primary

Up to Class Ten

SSC

HSC

Bachelor and above

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CHAPTER FOUR

Labour Market Assessment of RMG

Sector

4.1. Occupations, employment and wage structure

Production process and major occupations

Ready-made garments manufactured in Bangladesh can be divided mainly into three broad

categories: woven, knit and sweater. Shirts, trousers, jackets are the main woven products

and undergarments, socks, stockings, T-shirts, polo-shirts and other casual and soft garments

are the main knit products. Sweaters can be broadly categorized under knit garments, but

because of the difference in manufacturing processes the product type is considered a

completely separate sub category. Depending on the type of products produced the garments

manufacturers are also divided into three types namely – woven garments manufacturer, knit

garments manufacturer and sweater manufacturer. The exact number of factories of these

three types is not available. The following table gives an estimate of the distribution of RMG

factories according to their type. The derived percentage also matches with national data on

commodity wise export earnings.

Table 0.1: RMG factory distribution according to type of factory (product type)

Source: Author’s calculation based on available data from the website of Department of Inspection for Factories and Establishments (http://www.dife.gov.bd) accessed in May, 2014

The woven garments manufacturers mostly import fabrics and perform Cutting, Sewing and

Finishing. Whereas the knit garments manufacturers are self-sufficient and perform Knitting,

up to Finishing. The production process of sweater is different from woven and knit garments.

The production steps involved in the three types of products are summarized in below table:

Table 0.2: Production process of RMG factories

Product type

Pro

duction

pro

cess Woven Knit Sweater

Cutting Knitting Winding

Sewing Dyeing Knitting

Finishing Cutting Linking

Printing Trimming

Embroidery Mending

Sewing Washing

Finishing Finishing

Type of factory Percent

Woven 55%

Knit 29%

Sweater 16%

Total 100%

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The occupations involved in the production processes of RMG can be broadly classified in 4

different categories –

Managerial: All managerial level staff including General Manager, Production Manager, HR Manager, Compliance Manager etc.

Supervisory: Sewing line supervisor, cutting supervisor, finishing supervisor etc. mainly assigned for the supervision of a group of workers.

Technician: Employees with technical knowledge like Machine Mechanic, Electrician, Boiler Operator, Generator Operator etc.

Worker: All workers including Assistant, Operators and Senior Operators who are responsible to perform operation(s) involved in the production of a complete garment. The Government has classified the workers of the RMG sector into 7 different grades for the purpose of defining minimum wages for each grade by the minimum wage gazette 2006 which was revised latest in December 201313. The lowest grade ‘VII’ is assigned for the unskilled worker known as ‘Assistant/Helper’ and from grade ‘VI’ up to grade ‘III’ are assigned for semi-skilled to highly skilled workers respectively. Grade I & II are assigned for the technical staff such as Chief Cutting Master, Quality Controller, Electrician, Mechanic etc.

Other than the managerial roles there are 36 occupations commonly involved in the production

processes of Woven, Knit and Sweater products. Out of these 36 occupations 6 are

Supervisory, 5 Technician and remaining 25 fall under Worker category. The following table

lists the 36 occupations related to RMG sector:

Table 0.3: RMG occupation list

Production Process Occupation

Type of factory Role

Wo

ven

Ga

rme

nts

Kn

it

Ga

rme

nts

Sw

ea

ter

Knit

Su

pe

rvis

or

Te

chn

icia

n

Wo

rke

r

Fabric Knitting Circular Knitting Machine Operator No Yes No No No Yes

Knitting Supervisor No Yes No Yes No No

Dyeing

Dyeing Machine Operator No Yes No No No Yes

Dyeing Supervisor No Yes No Yes No No

Washing Man No Yes Yes No No Yes

Cutting

Marker Yes Yes No No No Yes

Cutter Yes Yes No No No Yes

Band Knife Machine Operator Yes Yes No No No Yes

Cutting Master Yes Yes No Yes No No

Printing

Screen man No Yes No No No Yes

Printing Operator No Yes No No No Yes

Printing Supervisor No Yes No Yes No No

Embroidery Embroidery Machine Operator No Yes No No No Yes

Sewing Sewing Machine Operator Yes Yes No No No Yes

13 Ministry of Labour and Employment. (2013)

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Production Process Occupation

Type of factory Role

Wo

ven

Ga

rme

nts

Kn

it

Ga

rme

nts

Sw

ea

ter

Knit

Su

pe

rvis

or

Te

chn

icia

n

Wo

rke

r

Fusing Machine Operator Yes Yes No No No Yes

Overlock Machine Operator Yes Yes No No No Yes

Button Machine Operator Yes Yes No No No Yes

Kansai Machine Operator Yes Yes No No No Yes

Sewing Line Supervisor Yes Yes No Yes No No

Finishing

Iron Man Yes Yes No No No Yes

Quality Inspector Yes Yes No No No Yes

Folder Yes Yes No No No Yes

Poly Man Yes Yes No No No Yes

Packer/ Packing Man Yes Yes No No No Yes

Quality Controller Yes Yes No Yes No No

Sweater Production

Winding Machine Operator No No Yes No No Yes

Sweater Knitting Machine Operator No No Yes No No Yes

Linking Machine Operator No No Yes No No Yes

Mending Operator No No Yes No No Yes

Trimming Operator No No Yes No No Yes

Light Check Operator No No Yes No No Yes

Technical

Boiler Operator Yes Yes Yes No Yes No

Generator Operator Yes Yes Yes No Yes No

Electrician Yes Yes Yes No Yes No

Machine Mechanic Yes Yes Yes No Yes No

ETP Operator No Yes No No Yes No

Source: Author’s compilation based on discussion with RMG employers

The above list does not include ‘Assistant’ position as assistant can be assigned for any

process and for any occupation, for example Assistant Sewing Machine Operator, and they

are mostly the unskilled workers.

Current employment by occupation and gender

The exact number of employees involved in different occupations is not available at

aggregated level. However because of the homogeneity of the factories and the production

processes it is possible to estimate the employee distribution per production process.

Figure 0.1 shows the employee distribution of woven garments factories. It is clear from the

graph that the majority of employees are involved in sewing process. The percentage of total

employees involved in sewing process is as high as 72.4%. Sewing is a highly female

dominant process. 78% of the employees working in different occupations under sewing

section are female. Finishing is the second largest process which employs around 24% of the

total workers. Finishing is also highly female dominant process and around 75% of the exiting

employees in finishing process are female. Remaining 3.6% workers are involved in male

dominant cutting process.

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Figure 0.1: Distribution of employees in woven garments production process

Source: Author’s calculation based on the employee data from woven garments factories

Figure 0.2 shows the employee distribution of knit garments factories. It is clear from the graph

that the majority of employees are involved in sewing process. Almost 60% of total workers

are employed in various occupations under sewing process among which 74% are female.

Finishing is the second largest process which employs around 17% of the total workers.

Finishing is also highly female dominant process and around 77% of the exiting employees in

finishing process are female. Remaining 23% workers are involved in knitting, dyeing, cutting,

printing and embroidery process. These processes are male dominant due to the involvement

of heavy machineries and physical labour.

Figure 0.2: Distribution of employees in knit garments production process

78%

75%3.6%

72.4%

24.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Cutting Sewing Finishing

Perc

en

tag

e o

f em

plo

yees

Production process

Distribution of employees in woven garments production process

Male Female Total%

74%

77%3.9%7.2% 7.0%

3.4% 1.5%

59.5%

17.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Knitting Dyeing Cutting Printing Embroidery Sewing Finishing

Perc

en

tag

e o

f em

plo

yees

Production process

Distribution of employees in knit garments production process

Male Female Total%

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Source: Author’s calculation based on the employee data from knit garments factories

Figure 0.3 shows the employee distribution of sweater factories. Sweater knitting involves

around 40% employees and the process is completely dominated by male. 96% of the existing

knitting employees are male. Trimming is the second largest process which employs 24% of

the employees and highly dominant by female. Linking and finishing are next two largest

processes which employ 18% and 12% employees respectively. Half of the employees of

these two processes are female.

Figure 0.3: Distribution of employees in sweater production process

Source: Author’s calculation based on the employee data from sweater factories

Now combining the data from Table 0.1: RMG factory distribution according to type of factory

(product type)’ and the distribution of employees in different types of factories shown above,

it is possible to estimate the distribution of employees according to the production process at

aggregated level for the overall RMG sector.

Figure 0.4 shows the employee distribution according to the production process at aggregated

level for the overall RMG sector. Clearly sewing is the single large process which employs

57% of the total employees of RMG sector. The process is highly female dominant and 77%

of the existing employees of sewing process are female. Finishing is the second largest

process by employing 20% of all RMG employees and also female dominant. Rests of the

processes employ remaining 27% of the employees and most of these processes are male

dominant.

96%

59% 93%

55%1.5%

39.8%

18.3%

24.2%

2.8%0.7%

12.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Winding Knitting Linking Trimming Mending Washing Finishing

Perc

en

tag

e o

f em

plo

yees

Production process

Distribution of employees in sweater production process

Male Female Total%

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Figure 0.4: Distribution of employees in RMG sector

Source: Author’s calculation based on the employee data from different types of factories and available data from the website of Department of Inspection for Factories and Establishments (http://www.dife.gov.bd)

The primary data survey result also supports the findings of above secondary data research.

The survey result shows that Sewing Machine Operator is the single largest occupation

employing 71.7% of the total employees and 67% of the existing Sewing Machine Operators

are female. The following table shows the percentage of current employees employed in

different occupations in the surveyed RMG factories:

Table 0.4: Percentage of existing employees in different occupations separated by gender

and DAP

Occupations Percentage of employee

Male Female DAP Total

Sewing Machine Operator 33% 67% 0.1% 71.7%

Overlock Machine Operator 43% 57% 0.0% 6.8%

Quality Inspector 40% 60% 0.1% 5.5%

Sweater Knitting Machine Operator 92% 8% 0.1% 4.3%

Cutter Man 66% 34% 0.0% 3.1%

Linking Machine Operator 29% 71% 0.2% 1.7%

Fusing Machine Operator 36% 64% 0.0% 1.7%

Printing Operator 71% 29% 1.3% 0.4% Mending Operator 7% 93% 0.0% 0.4% Machine Mechanic 100% 0% 0.0% 0.4%

Embroidery Machine Operator 34% 66% 0.0% 0.3% Winding Machine Operator 60% 40% 0.0% 0.0% Others 91% 9% 0.0% 3.8%

All current occupations 40% 60% 0.1% 100%

Source: Primary data survey 2014.

77%

76%

57.1%

20.3%

6.4%4.0% 3.9% 2.9% 2.0% 1.1% 1.0% 0.4% 0.4% 0.2% 0.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Perc

en

tag

e o

f em

plo

yees

Production process

Distribution of employees in RMG production process (combined)

Male Female Total%

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By comparing the results of secondary data research and primary data survey results it is clear

that more than 90% of the existing employees of RMG sector are working in occupations

involved in Cutting, Sewing, Finishing and some of Sweater production process. The below

table lists the occupations with greatest absorption capacity in RMG sector:

Table 0.5: List of occupations with greatest absorption capacity in RMG sector

Production Process Occupation

Type of factory Role

Wo

ven

Ga

rme

nts

Kn

it

Ga

rme

nts

Sw

ea

ter

Knit

Su

pe

rvis

or

Te

chn

icia

n

Wo

rke

r

Cutting Cutter Man Yes Yes No No No Yes

Sewing

Sewing Machine Operator Yes Yes No No No Yes

Fusing Machine Operator Yes Yes No No No Yes

Overlock Machine Operator Yes Yes No No No Yes

Button Machine Operator Yes Yes No No No Yes

Kansai Machine Operator Yes Yes No No No Yes

Finishing

Iron Man Yes Yes No No No Yes

Quality Inspector Yes Yes No No No Yes

Folder Yes Yes No No No Yes

Poly Man Yes Yes No No No Yes

Packer/ Packing Man Yes Yes No No No Yes

Sweater Sweater knitting No No Yes No No Yes

Linking Machine Operator No No Yes No No Yes

Source: Author’s compilation based on analysis

Current employment by skill level

The workforces employed in RMG sector are classified into three different skill levels – (a)

Skilled; (b) Semi-skilled and (c) Unskilled. Based on discussions with RMG sector experts,

definitions commonly used by senior management of the sector have been adopted in this

study.

Skilled Worker: A skilled worker is viewed to have the expertise and experience to conduct multiple operations without close supervision.

Semi-Skilled Worker: A Semi-skilled worker has the experience and ability to perform one operation effectively.

Unskilled Worker: An unskilled worker requires supervision and is limited to perform one duty only.

The GIZ/Progress Project conducted a survey in 2005 to capture the skill profile of the RMG

workers in Bangladesh. The survey results showed that more than two thirds (69%) of the

workforce is considered to be skilled workers, 14% are believed to be semi-skilled and the

remaining 17% are unskilled workers.

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For benchmarking minimum wages of the RMG workers, the Government Gazette of

November 2006 and thereafter October 2010 and December 2013 provide a classification of

workers from grades 1 to 7. For the purpose of a skill gap analysis CPD conducted a study in

2008 and categorized workers in the following four categories14:

Unskilled Worker: usually grade VII workers15 who are assistant operators or usually called helpers

Semi-Skilled Worker: Grade VI and Grade V workers who are mainly general operators and junior operators

Skilled Worker: Grade IV and Grade III workers, operators and senior operators, who are working for more than three years.

Professional: This category refers to management staff.

According to the CPD survey, 20% of the total workers of the RMG sector fall into the unskilled

category, 29.9% into the semi-skilled category, 44.3% into the skilled category and only 5.8%

into the professional category. The results from the CPD survey slightly differ from the results

of the GIZ survey.

Figure 0.5: Skill Profile of RMG workers according to CPD survey

Source: CPD/GATE survey 2006

14 The classification has left out two more categories namely grade I for pattern master, chief quality

controller, chief cutting master/cutting chief and grade II for mechanic/electrician and cutting master.

The professional category, however, includes both managerial and supervisory staff. Industry experts

define supervisor as those who are closest to the production floor and workers and provide the link

between the manager and the production operation.

15 See ANNEX-1 for the details of worker grading system.

Skilled44%

Semi-skilled30%

Unskilled20%

Professional6%

RMG employee distribution by skill category

Skilled

Semi-skilled

Unskilled

Professional

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The primary data survey conducted under this study revealed that14% employees are

unskilled 15% semi-skilled and remaining 71% are skilled category. This result again varies

from the CPD survey but very close to the results of the GIZ survey.

Figure 0.6: Skill Profile of RMG workers according to primary data survey

Source: Primary data survey

Comparing the results of GIZ survey in 2005, CPD survey 2006 and the primary data survey

conducted for the purpose of this study in 2014 it can be assumed that the percentage of

unskilled employee is between 15-20%, semi-skilled worker 15-30% and remaining 50-70%

employees are skilled. The following graph shows the comparison of the survey results on the

skill level distribution of RMG employees:

Figure 0.7: Comparison of the survey results on the skill level distribution of RMG employees

Source: Author’s compilation based on results from GIZ survey, CPD survey and Primary data survey.

Unskilled14%

Semi-skilled 15%

Skilled 71%

RMG employee distribution by skill level

Unskilled

Semi-skilled

Skilled

17%20%

14%17%

14%

30%

15%20%

69%

44%

71%

61%

0%

10%

20%

30%

40%

50%

60%

70%

80%

GIZ Survey 2005 CPD Survey 2006 Primary Survey 2014 Average

Distribution of RMG employees by skill level

Unskilled Semi-skilled Skilled

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Existing and projected (5 years) labour demand by occupation and skill level

Over last five years the number of RMG employees has increased by 26% (from 3.5 million

in 2008 to 4.4 million in 2012)16. McKinsey forecasted 7 to 9 percent annual growth of the

RMG industry till 2020. The sector is currently running at under capacity due to shortage of

employees. As per BGMEA and BKMEA officials the shortage of skilled worker is 15 to 20

percent. However the result of primary data survey revealed that the current shortage is only

5%. Reduced business order due to recent political turmoil, the incidence of devastating fire

at Tazreen Fashion, building collapse of Rana Plaza and forced shut down of factories under

risk of collapse can be the reasons for the decrease of existing labour demand. However the

survey result shows that the projected demand of employees for the next five years will be

around 16% of current employees among which 65% skilled, 25% semi-skilled and 10%

unskilled. Among the existing demand the percentage for Skilled, semi-skilled and unskilled

are 78%, 21% and 1% respectively. The below table summarizes the existing and projected

demand of RMG employees both in percent and in numbers. The number of employees has

been estimated considering the current employee as 4.4 million.

Table 0.6: Existing and projected (5 years) labour demand by occupation and skill level

Occupation

Skill level

Percent Estimated Numbers

Current Employm

ent

Existing demand (% of current employee)

Projected demand in next 5 years (% of

current employee)

Current Employmen

t

Existing demand

Projected demand in

next 5 years

Sewing Machine Operator

i) Unskilled 9.1% 0.1% 8.7% 402,403 220 34,929

ii) Semi-skilled 12.1% 7.9% 24.9% 532,315 41,840 132,546

iii) Skilled 50.4% 6.8% 10.4% 2,219,430 150,033 231,043

Total 71.7% 6.1% 12.6% 3,154,148 192,094 398,518

Over lock Machine Operator

i) Unskilled 1.1% 1.5% 19.6% 48,863 743 9,567

ii) Semi-skilled 0.8% 4.1% 45.5% 34,937 1,418 15,910

iii) Skilled 4.9% 2.3% 24.9% 215,400 5,040 53,613

Total 6.8% 2.4% 26.4% 299,200 7,202 79,091

Sweater Knitting Machine Operator

i) Unskilled 0.6% 2.3% 10.0% 26,807 614 2,683

ii) Semi-skilled 0.6% 4.0% 12.8% 26,801 1,077 3,422

iii) Skilled 3.1% 2.2% 20.8% 136,794 2,941 28,398

Total 4.3% 2.4% 18.1% 190,401 4,632 34,504

Quality Inspector

i) Unskilled 0.5% 1.2% 16.9% 21,184 263 3,580

ii) Semi-skilled 0.6% 1.4% 22.2% 26,209 362 5,813

iii) Skilled 4.4% 1.4% 27.9% 194,728 2,765 54,290

Total 5.5% 1.4% 26.3% 242,121 3,390 63,683

Cutter Man

i) Unskilled 0.3% 2.8% 46.1% 14,264 394 6,580

ii) Semi-skilled 0.2% 1.5% 24.7% 10,363 158 2,561

iii) Skilled 2.6% 1.7% 20.0% 112,222 1,897 22,456

Total 3.1% 1.8% 23.1% 136,849 2,448 31,596

Linking Machine Operator

i) Unskilled 0.2% 1.0% 48.3% 8,670 86 4,187

ii) Semi-skilled 0.2% 2.4% 29.9% 7,327 172 2,192

iii) Skilled 1.3% 1.6% 17.5% 58,002 945 10,162

Total 1.7% 1.6% 22.4% 73,999 1,203 16,542

Fusing Machine Operator

i) Unskilled 0.3% 0.0% 0.0% 13,446 - -

ii) Semi-skilled 0.5% 0.0% 14.3% 20,715 - 2,960

iii) Skilled 0.9% 2.6% 35.1% 39,003 1,006 13,682

Total 1.7% 1.4% 22.7% 73,165 1,006 16,643

i) Unskilled 0.0% 11.8% 47.1% 591 70 278

16 BGMEA data

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Occupation

Skill level

Percent Estimated Numbers

Current Employm

ent

Existing demand (% of current employee)

Projected demand in next 5 years (% of

current employee)

Current Employmen

t

Existing demand

Projected demand in

next 5 years

Machine Mechanic

ii) Semi-skilled 0.0% 7.1% 50.0% 1,948 139 974

iii) Skilled 0.3% 3.6% 38.2% 14,402 521 5,496

Total 0.4% 4.3% 39.8% 16,942 730 6,748

Printing Operator

i) Unskilled 0.0% 0.0% 34.5% 1,166 - 402

ii) Semi-skilled 0.0% 50.0% 150.0% 402 201 603

iii) Skilled 0.4% 2.6% 29.5% 15,685 402 4,626

Total 0.4% 3.5% 32.6% 17,254 603 5,631

Mending Operator

i) Unskilled 0.1% 0.6% 33.7% 4,344 24 1,464

ii) Semi-skilled 0.0% 0.0% 35.7% 513 - 183

iii) Skilled 0.3% 3.4% 41.0% 12,087 405 4,961

Total 0.4% 2.5% 39.0% 16,944 429 6,608

Embroidery Machine Operator

i) Unskilled 0.0% 0.0% 0.0% - - -

ii) Semi-skilled 0.0% 10.0% 40.0% 1,906 191 762

iii) Skilled 0.2% 2.8% 20.2% 9,414 266 1,905

Total 0.3% 4.0% 23.6% 11,320 457 2,668

Winding Machine

i) Unskilled 0.0% 0.0% 0.0% - - -

ii) Semi-skilled 0.0% 0.0% 0.0% - - -

iii) Skilled 0.0% 0.0% 18.3% 1,411 - 258

Total 0.0% 0.0% 18.3% 1,411 - 258

All Current Occupation

i) Unskilled 14.0% 0.4% 11.8% 541,739 2,413 63,672

ii) Semi-skilled 15.0% 6.9% 25.3% 663,437 45,558 167,929

iii) Skilled 71.0% 5.3% 14.2% 3,028,578 166,223 430,889

All categories

100.0% 4.9% 15.6%

4,233,754 214,193 662,490

Source: Author’s compilation based on primary data survey

The analysis of survey data shows that sewing machine operator is on the top of the list in

terms of current employment, existing demand and projected future demand. The existing

demand of sewing machine operators is near about 200,000 and the projected demand is

about 400,000. The analysis also revealed that the demand for skilled employees is highest

followed by semi-skilled and then unskilled. Overlock machine operator is in the second

position both in terms of existing demand (7,202) and projected demand (79,091). Interestingly

sweater knitting operator is in third position considering the existing demand (4632) whereas

considering projected demand quality inspector is in the third position because of higher

number as compared to sweater knitting operator (63,638 vs 34,504). The percentage of

projected demand over current employees is highest for machine mechanic and mending

operator both around 40% although in terms of number these are only 6,748 and 6,608

respectively. Overall the estimated number of existing demand of RMG employees is 214,193

and the projected demand in next 5 years is 662,490.

Employee turn-over by occupation and skill level

High turn-over rate of employees is one of the major challenges for the employers of RMG

sector. The overall employee turn-over rate varies from 10-25 percent17. The high

tendency of migration from one factory to another immediately after completion of training

is clearly a disincentive for the employers to invest in skills training for their employees.

However the survey revealed that turn-over rate of unskilled employees is higher than

17 Focus group discussion at BKMEA in 2012

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semi-skilled and skilled employee. Among all the respondents 21% rated the turn-over

rate of unskilled employee as high, 60% as medium and remaining 19% as low. Whereas

for semi-skilled employees the percentage of turnover rested at 3%, 59% and 38%

respectively for as high, medium and low respectively. The rate is even lower for skilled

employees. 25% responded the rate of turn-over of skilled employee as medium, 75% as

low and none as high.

The figure below shows employee turn-over tendency for different occupations and skill

levels based upon survey results of RMG employers:

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Figure 0.8: Employee turn-over tendency by occupation and skill level

Source: Author’s compilation based on primary data survey

0 10 20 30 40 50 60 70 80 90 100

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

All categories

Se

win

gO

pe

rato

rF

usin

gO

pe

rato

rO

ve

rlo

ck

Op

era

tor

Qu

alit

yIn

sp

ecto

rC

utt

er

Ma

n

Sw

ea

ter

Kn

itting

Op

era

tor

Lin

kin

gO

pe

rato

rM

en

din

gO

pe

rato

rW

ind

ing

Ma

chin

eM

achin

eM

echa

nic

Pri

ntin

gO

pe

rato

rE

mbro

ide

ry O

pe

rato

rA

llO

ccu

patio

n

Percentage of responses during the survey

Turn-over tendency of RMG employees

High Medium Low

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Discussion with RMG employers revealed that the unskilled workers, who are freshly

recruited in RMG sector, usually change their job very frequently with expectations of

getting better wage and improved working condition. Over time these employees adjust

themselves with reality and become stable. The fact of getting higher wage in a new

factory compared to the current factory also motivates the employees to switch

organization. The practice of not providing gratuity, provident fund and service benefit to

the employees is also adding impetus to employee turn-over. However it is expected that

the introduction of mandatory annual increment system18 in the revised minimum wage

gazette for RMG sector (effective from 1-Dec-2013) will motivate the employees to stay in

their current job.

Occupation-wise wage

The wage structure of the RMG workers is determined by Government. Employers are not

allowed to pay the workers less than the stipulated wage as defined in the minimum wage

gazette which was revised latest in December 2013. Due to the increasing pressure from

buyers, government and worker organizations, employers are mostly complying with the

minimum wage requirements. An analysis of wage data collected from several RMG factories

shows that the workers at grade VII (the unskilled workers) are receiving a minimum 5300

taka as monthly gross salary 19 per requirement by the law. High market demand for semi-

skilled and skilled workers result in average monthly salaries of workers between grades VI to

grade I much higher than the legal requirement. Due to tight shipment pressure and increasing

workloads, overtime work throughout the year is a common practice of the factories. As a

result, the RMG workers earn on an average 30% higher than the monthly gross salary20.

Workers involved in Sweater sector earn based on their production instead of a monthly fixed

salary and are referred to as ‘Piece Rated Worker’. Although the monthly earning varies

depending on production, a piece rated worker usually earns significantly higher than a

monthly fixed salaried worker. Wage data collected from several factories shows that the

average monthly earning of sweater factory piece rated workers is 8000 taka monthly (without

overtime allowance) against a similar graded worker of woven or knit factories at 6500 taka.

The below table (Table 0.7) summarizes the average monthly salary for the 36 common

occupations involved in RMG production processes.

18 5% of last basic wage 19 Gross salary = Basic salary + House rent allowance (40% of basic) + Medical allowance (250

taka) + Conveyance allowance (200 taka) + Food allowance (650 taka) 20 Overtime work is paid as 200% of the basic salary.

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Table 0.7: RMG occupation list with average monthly salary

Production Process

Occupation

Type of factory Role Average monthly

salary (BDT) - without overtime

Wo

ven

Ga

rme

nts

Kn

it

Ga

rme

nts

Sw

ea

ter

Knit

Su

pe

rvis

or

Te

chn

icia

n

Wo

rke

r

Fabric Knitting

Circular Knitting Machine Operator

No Yes No No No Yes 8000

Knitting Supervisor No Yes No Yes No No 12000

Dyeing

Dyeing Machine Operator No Yes No No No Yes 10000

Dyeing Supervisor No Yes No Yes No No 15000

Washing Man No Yes Yes No No Yes 7000

Cutting

Marker Yes Yes No No No Yes 6500

Cutter Yes Yes No No No Yes 6500

Band Knife Machine Operator Yes Yes No No No Yes 6500

Cutting Master Yes Yes No Yes No No 12000

Printing

Screen man No Yes No No No Yes 6000

Printing Operator No Yes No No No Yes 6500

Printing Supervisor No Yes No Yes No No 12000

Embroidery Embroidery Machine Operator No Yes No No No Yes 6500

Sewing

Sewing Machine Operator Yes Yes No No No Yes 6500

Fusing Machine Operator Yes Yes No No No Yes 6500

Overlock Machine Operator Yes Yes No No No Yes 6500

Button Machine Operator Yes Yes No No No Yes 6500

Kansai Machine Operator Yes Yes No No No Yes 6500

Sewing Line Supervisor Yes Yes No Yes No No 12000

Finishing

Iron Man Yes Yes No No No Yes 6500

Quality Inspector Yes Yes No No No Yes 6500

Folder Yes Yes No No No Yes 6500

Poly Man Yes Yes No No No Yes 6500

Packer/ Packing Man Yes Yes No No No Yes 6500

Quality Controller Yes Yes No Yes No No 13000

Sweater Production

Winding Machine Operator No No Yes No No Yes 7850

Sweater Knitting Machine Operator

No No Yes No No Yes 11500

Linking Machine Operator No No Yes No No Yes 7700

Mending Operator No No Yes No No Yes 7250

Trimming Operator No No Yes No No Yes 6000

Light Check Operator No No Yes No No Yes 6900

Technical

Boiler Operator Yes Yes Yes No Yes No 12000

Generator Operator Yes Yes Yes No Yes No 12000

Electrician Yes Yes Yes No Yes No 11000

Machine Mechanic Yes Yes Yes No Yes No 11000

ETP Operator No Yes No No Yes No 12000

Source: Author’s compilation based on discussion with RMG employers and analysis of wage records of RMG factories.

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The table below lists the top 15 occupations in terms of wage.

Table 0.8: List of top 15 occupations in terms of wage

Occupation

Type of factory Role

Average monthly salary/ earning (BDT) - without overtime

Wo

ven

Ga

rme

nts

Kn

it G

arm

en

ts

Sw

ea

ter

Knit

Su

pe

rvis

or

Te

chn

icia

n

Wo

rke

r

Dyeing Supervisor No Yes No Yes No No 15000

Quality Controller Yes Yes No Yes No No 13000

Knitting Supervisor No Yes No Yes No No 12000

Cutting Master Yes Yes No Yes No No 12000

Printing Supervisor No Yes No Yes No No 12000

Sewing Line Supervisor Yes Yes No Yes No No 12000

Boiler Operator Yes Yes Yes No Yes No 12000

ETP Operator No Yes No No Yes No 12000

Generator Operator Yes Yes Yes No Yes No 12000

Sweater Knitting Machine Operator No No Yes No No Yes 11500

Machine Mechanic Yes Yes Yes No Yes No 11000

Electrician Yes Yes Yes No Yes No 11000

Dyeing Machine Operator No Yes No No No Yes 10000

Circular Knitting Machine Operator No Yes No No No Yes 8000

Winding Machine Operator No No Yes No No Yes 7850

Future occupations by employment potential

Keeping pace with continual technological change, the existing traditional and manual

machines used in RMG sector are being replaced by modern automatic machines. This will

continue well into the future. The occupations involved in Ready Made Garments production

are very much linked with these types of machines. As a result the future demand of

occupations largely depends on the technological change that will occur in RMG sector. For

example, sweater factories located inside EPZ area and some large sweater factories outside

the EPZ area have already started using automated sweater knitting machines known as

“Jacquard Machines” instead of manual sweater knitting machines. The new machines require

skilled operators. Because of high productivity and product quality the use of such automatic

machines will increase in the future creating demand for relevantly skilled worker. With the

increase of Jacquard Machines, as replacement of manual knitting machines, it is expected

that the involvement of women in male dominant sweater knitting process will also increase.

The findings of primary survey also support the above concept as the respondents have

mentioned occupations such as Computer Operator, Jacquard Machine Operator, and

Machine Programmer as demanding occupations for future. The table below lists the future

occupations as perceived by the RMG employers:

Table 0.9: List of future occupations

Sl. Future Occupation

1 Auto Sewing Machine Operator

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2 Jacquard Machine Operator

3 Computer Operator

4 Line Quality

5 Finishing Supervisor

6 Machine Programmer

7 Packing Operator

Source: Primary data survey

Interestingly the employers mentioned Auto Sewing Machine Operator as most demanding

occupation for future. In fact this is not a new occupation rather it is ‘Sewing Machine Operator’

with added skill of operating automatic sewing machine. This indicates that in future the skills

required for currently demanding occupations need to be matched with the modern

machineries.

Occupations suitable to female and DAP

As discussed in section 4.1.2, occupations involved in sewing and finishing processes are

highly female dominant. 77% of all the employees of sewing processes are female and for

finishing process it is 75%. The results of the primary survey also support this statistics. 38%

of the occupations identified as suitable for females by the employers are related to the sewing

process, 23% related to the finishing process and the rest are related to sweater production

and embroidery. For Differently Abled People (DAP) the survey result shows that occupations

involved in the sewing and the finishing process are most popular. The table below lists the

occupations preferred for females and DAPs as perceived by the RMG employers during the

survey:

Table 0.10: List of occupations suitable to female and DAP

SL Occupations suitable to Female Occupations suitable to DAP

1 Embroidery Machine Operator Fusing Machine Operator

2 Flat Lock Machine Operator Line Supervisor

3 Fusing Machine Operator Linking Operator

4 Jacquard Machine Operator Mending Operator

5 Line Supervisor Overlock Machine Operator

6 Linking Machine Operator Packing Operator

7 Overlock Machine Operator Printing Operator

8 Pack Q. C. Operator Quality Inspector

9 Packing Operator Sewing Helper

10 Quality Inspector sewing machine Operator

11 Sewing Machine Operator Trimming Operator

12 Sweater Knitting Operator

13 Trimming Operator

Source: Primary data survey

Occupations with greatest potential for career progression

Usually RMG workers enter into the sector as unskilled workers and start their career as an

Assistant Operator. Over time after gaining experience and necessary skill, either by on-the-

job training or any form of formal/informal training, they are promoted to General/Junior

Operator or sometimes directly to an Operator position depending on their level of

performance and efficiency. The experienced operators with knowledge and skill of multiple

processes are promoted to Senior Operator. Only a few of the Senior Operators with

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substantial work experience and with knowledge of all processes become Supervisor or Line

Chief or Line Leader. The following process chart gives a typical career progression path of

RMG workers:

Figure 0.9: Typical career progression path of RMG workers

Assistant Operator

General Operator

Junior Operator

Operator

Senior Operator

Supervisor

Se

mi skill

ed

Skill

ed

Un

skill

ed

Typ

ica

l ca

ree

r p

rog

ressio

n p

ath

fo

r R

MG

wo

rke

rs

7

6

5

4

3

5300

5678

6042

6420

6805

12000-15000

Skill Level Designation GradeMinimum

wage (BDT)

Supervisors are not assigned

to any grade in the minimum

wage gazette for RMG sector.

Source: Author’s compilation

It is clear from the chart and above discussion that except supervisors all other occupations

have potential for career progression. With proper skills training and experience an unskilled

worker can be promoted from grade 7 up to grade 3. Grade 2 and 1 are assigned for technical

occupations like electrician, mechanic and require relevant technical knowledge and skill.

Occupations with greatest potential for productivity improvement

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The productivity of the RMG industry largely depends on the efficiency of workers. From the

analysis given in section 4.1.2 it is clear that majority of workers are involved in different

occupations under sewing and finishing process for Woven and Knit garments. For Sweater

garments the majority of workers are in knitting, trimming and linking processes.

The occupations under sewing and finishing contribute the maximum in the productivity of

woven and knit garments and similarly occupations under sweater knitting, trimming and

linking have maximum influence in the productivity of sweater factories. The production of

garments requires involvement of a large number of sewing machines. As a result, machine

mechanics play a vital role to reduce the machine breakdown time and hence improve

productivity. The following table lists the occupations with significant contribution to the overall

productivity:

Table 0.11: List of occupations with significant contribution to the overall productivity

Type of factory Occupation

Type of factory Role

Wo

ven

Ga

rme

nts

Kn

it

Ga

rme

nts

Sw

ea

ter

Knit

Su

pe

rvis

or

Te

chn

icia

n

Wo

rke

r

Woven and Knit

Sewing Machine Operator Yes Yes No No No Yes

Fusing Machine Operator Yes Yes No No No Yes

Overlock Machine Operator Yes Yes No No No Yes

Button Machine Operator Yes Yes No No No Yes

Kansai Machine Operator Yes Yes No No No Yes

Iron Man Yes Yes No No No Yes

Folder Yes Yes No No No Yes

Poly Man Yes Yes No No No Yes

Packer/ Packing Man Yes Yes No No No Yes

Sweater

Winding Machine Operator No No Yes No No Yes

Sweater Knitting Machine Operator No No Yes No No Yes

Linking Machine Operator No No Yes No No Yes

Mending Operator No No Yes No No Yes

Trimming Operator No No Yes No No Yes

Light Check Operator No No Yes No No Yes

Woven, Knit and Sweater

Machine Mechanic Yes Yes Yes No Yes No

Source: Author’s compilation based on discussion with RMG employers

Duration of training to achieve skills required for different occupations

In the RMG sector the practice of skills development through in-firm training centre is still not

so popular. The percentage of factories having in-firm training facilities for their workers is not

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more than 10 percent21. Most of the workers are recruited as unskilled or semiskilled and

acquire the necessary skills over time through on-the-job training. Factories with in-firm

training centres invest a portion of the production time of their workers for the skills training.

As a result the duration of training for the required skills for different occupations largely varies

from factory to factory and depends on their individual arrangement and curriculum. However,

from the focus group discussion with RMG employers conducted in 2012 and from the

consultation with sector people it was possible to have an idea about the duration of training.

The following table summarizes the duration of training to achieve the skills required for

different occupations as perceived by the industry people:

Table 0.12: Duration of training to achieve the skills required for different occupations

Occupation Duration of Training

Garments machine operators (such as Sewing, Fusing, Knitting, overlock, iron)

1-3 months Quality inspectors, poly man, folder

Machine mechanic

Technical (such as Electrician, Generator Operator, Boiler Operator)

6-12 months

Supervisor Need substantial experience with multi skills

Source: Author’s compilation based on the focus group discussion with RMG employers conducted in

2012 under the study titled “Private Sector Training, Certification and Employment in Bangladesh” and

in consultation with the industry people.

4.2. Managing workforce demand and job access in RMG sector

Recruitment practices

At the worker level recruitments are done through interview and by skill test of the worker. No

standard certification system exists to assess the skill level of the worker. Although some of

the training providers issue certificates for their training courses these are not well accepted

by the employers. Bangladesh Technical Education Board (BTEB) is the main accreditation

body but the number of training centres having this accreditation is very negligible considering

the size of the sector. Also from the survey of RMG training providers it was revealed that

obtaining the BTEB accreditation is a cumbersome process. Maintaining service records in

the service book of employees is another way to track records of experience and skills of

workers. Though the government initiated to enforce the use of a service book system this

system is still not fully functional in most of the cases. Due to a lack of awareness the workers

21 Source: Results of Focus Group Discussion on RMG

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are not using the service book during recruitment and as a result employers are not

encouraged to issue service books to the workers.

Factories located inside Dhaka where most of the RMG workers reside have fewer issues of

finding skilled workers and have the option to recruit skilled workers through skill tests. Most

other factories face a shortfall of workers and they have no other way than to recruit whatever

workers they are able to collect through their own efforts such as:

By displaying notice at main entrance

By announcing inside the factory

Personal contact of existing employees.

Trough worker contractor.

Through advertisement at local satellite channels

Thus they are bound to recruit unskilled workers in order to meet the shipment deadlines and

fill sudden gaps due to a high rate of worker turnover, which is 10-25%22. This high migration

rate again reflects the poaching of skilled workers by neighbouring factories with higher

incentives.

The primary data survey result shows that ‘Walk-in and test’ is the most prominent recruitment

practice of the employers to recruit workers. Most of them also publish advertisement in

parallel to walk-in interview. Data in Table 4.13 show the percentage of responses of primary

data survey regarding recruitment practice of the employers:

Table 0.13: Recruitment practice of employers

Recruitment practices % of responses

1) Walk-in and test 68%

2) Advertisement 34%

3) Direct contact with training service providers 8%

4) Through labour contractors 7%

Source: Primary data survey

Supervisors are recruited based on their working experience. No certification system is used

to assess the skills of supervisors and hence they are recruited through interviews. Unlike

workers there is also a lack of skilled supervisors in this sector which triggers the employers

to promote better performing operators to supervisor. This practice creates motivation among

operators to acquire skills and perform better but on the other hand supervisors thus

developed lack leadership skills.

The use of formal certificates is the highest for recruiting Technicians like Boiler Operators,

Electricians, and Mechanics etc. Recruitment of competent technicians is also a legal

22 Rahman, (2012), Private Sector Training, Certification and Employment Services in Bangladesh:

Market Study and Design, Background Report No. 2 a Background reports on training in RMG industry sector, Dhaka: DFID.

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requirement. The recruitment of managerial staff does not require TVET certificates and is

mostly done based on experience and competence.

Entry requirements by occupation and skill level

The operations involved in production of Ready Made Garments hardly require academic

education except the literacy and numeracy knowledge. However occupations like Quality

Inspector, Cutter Man, Machine Mechanic and Supervisors require at least class 8 level of

education because workers of these occupations need to follow the instruction sheet and fill

in production reports, quality reports etc. The following table summarizes the minimum

educational qualification required for the most common occupations.

Table 0.14: Minimum education demanded for most common occupations

Occupation Minimum Educational Qualification Demanded

Sewing Machine Operator Literacy and numeracy

Fusing Machine Operator Literacy and numeracy

Overlock Machine Operator Literacy and numeracy

Quality Inspector Minimum class 8

Cutter Man Minimum class 8

Sweater Knitting Machine Operator Literacy and numeracy

Linking Machine Operator Literacy and numeracy

Mending Operator Literacy and numeracy

Winding Machine Operator Literacy and numeracy

Machine Mechanic Minimum class 8

Printing Operator Literacy and numeracy

Embroidery Machine Operator Literacy and numeracy

All supervisors Minimum class 8

Source: Training providers’ survey (2012) under the study titled “Private Sector Training, Certification

and Employment Services Bangladesh” commissioned by UK Department for International

Development

The primary data survey revealed that majority of the employers expects minimum class 5

level education for the overall surveyed occupations. Some specific occupations like Printing

Operator, Embroidery Operator and Machine Mechanic the expected minimum educational

level is class 8. Among all the interviewed occupations the expectation for minimum

educational qualification is highest for Quality Inspectors. Majority of the respondents expect

at least secondary level education for this occupation.

The figure below shows minimum educational qualification for different occupation and skill

level:

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Figure 0.10: Employers' expectation of minimum educational qualification for different

occupation

Source: Author’s compilation based on primary data survey result

0 10 20 30 40 50 60 70 80 90 100

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

i) Unskilled

ii) Semi-skilled

iii) Skilled

All categories

Se

win

gO

pe

rato

rF

usin

gO

pe

rato

rO

ve

rlo

ck

Op

era

tor

Qu

alit

yIn

sp

ecto

rC

utt

er

Ma

n

Sw

ea

ter

Kn

itting

Op

era

tor

Lin

kin

gO

pe

rato

rM

en

din

gO

pe

rato

rW

ind

ing

Ma

chin

eM

achin

eM

echa

nic

Pri

ntin

gO

pe

rato

r

Em

bro

ide

ry

Op

era

tor

All

Occu

patio

n

Percentage of responses during the survey

Employers' expectation of minimum educational qualification for different occupation

Class 5 Class 6 Class 8 SSC HSC

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4.3. Skills development practices in the RMG sector

In-house training facilities

As mentioned in section 4.1.2 the occupations involved in the RMG sector can be broadly

classified in 4 different categories such as, Managerial, Supervisory, Technician and Worker.

Among the four categories Technicians and Managerial staff undergo some formal training

system (like boiler operator training, industrial engineering training, compliance training etc.)

but for the Workers and Supervisors the skills are achieved mostly through informal training

which is well known as on-the-job training. Usually workers enter into RMG industry as

unskilled workers i.e. as assistant/helper and acquire skills by observing the operators and

become an operator after 1-2 years depending on their performance. Thus, operators (working

at the worker grade levels VI to III) have, in most factories, been trained as helpers, where

they pick up the skills of the operators they assist. Over time the operators gain experience

and become senior operators. Some of the senior operators with substantial years of

experience, better educational level and having skills of all operations of the process are

promoted to supervisors. With the maturing of the industry poaching of skilled employees (at

all levels) from other factories became a normal way to recruit skilled operators. These

developments created obvious disincentives for entrepreneurs to invest into the skills training

of their workforce.

At the same time, a small number of entrepreneurs have been investing comparatively more

into the skills of their workforce. These are mainly multinational companies in the export-

processing zones (EPZ) as well as some large manufacturers that require huge numbers of

workers and are producing garments of higher quality. These firms have formalised in-firm

training by establishing training lines for operator training, which is sometimes being

conducted along the lines of course-guidelines or even curricula. The percentage of such

companies having their in-firm training centre is not more than 10 percent23. Most of these

firms also have a more formalised approach to management training, for instance by

conducting traineeships for university graduates that enter the firms at the executive level.

As per the Bangladesh Labour Law 2006 employers are allowed to recruit workers as

“Apprentice” for 3 months allowing a further extension of maximum 3 months if required. In

addition the minimum wage gazette of 2013 permits to pay 4180 taka per month for a trainee

worker during the training period while the minimum wage for the lowest grade worker (grade

VII) is 5300 taka. In spite of this provision entrepreneurs are not so encouraged to recruit

workers as “Apprentice” because of the complicated rules stated by the Bangladesh

Apprenticeship Training Rules, 2008 that need to be followed in case of recruiting trainee

workers. Some of the requirements of these Apprenticeship rules are: provision of at least 20

percent theoretical class, approval of the training curriculum and trainers by the government

authority, overtime work not allowed for the trainees. Non-fulfilment of these requirements

results in non-compliance audit reports issued for the third party auditors on behalf of the

buyers. As a result employers recruit worker as helpers instead of “Apprentices” and train them

through on-the-job training or in-firm training centres.

23 Source: Results of Focus Group Discussion on RMG

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The in-firm training centres are initiated by the entrepreneurs solely to meet their own demand

of skilled workers. The skills demand of the factories largely varies from factory to factory by

quality and also by quantity depending on the type of the product and buyers they are working

for. As a result companies usually develop their own curriculum or customize as per their own

requirement. In general there are no links of these in-firm training centres with public and

private training centres. From the focus group discussion with the RMG stakeholders it was

learnt that factories need to re-train the trained workers from the public/ private training centres

in order to fine tune the workers with their own systems. There are some exceptions where

companies make contracts with the private training centres in order to get skilled workers

trained as per the company’s preferred curriculum on a regular basis. This reflects the

weakness of the out-of-firm training centres.

Entrepreneurs do not issue any certificates to on-the-job trainees. The only reflection of on-

the-job training is the worker’s work performance. If a worker can achieve the expected

performance after the on-the-job training he/she is promoted to the next level. The record of

this promotion is (or should be) recorded in the service book of the worker. So the service

book is an alternative way to keep records of the training and a worker’s skill and may serve

the purpose of a certificate to some extent. But still the service book system is not so popular

and not fully functional.

In order to better understand the current skills development practices of RMG sector relevant

data were collected from the RMG factories during the primary data survey. The survey result

shows that 20% of the surveyed factories have their in-house training facility for their workers.

Usually the training programs are separated for semi-skill and skill where the duration of semi-

skill training varies from 1-4 weeks and for skill training 1 week only. Only few of them use

instructor to provide the training and the majority provide training through the supervisors. The

below table summarises the key findings about in-house training of the surveyed factories:

Table 0.15: Key findings on in-house training practices among surveyed factories

Topics % of responses

Training duration

Semi -skill

1 week 11%

2 week 22%

4 week 67%

Skill 1 week 100%

Training delivery

Through Instructor 11%

Through supervisor 89%

Trainee assessment mechanism

Classroom test 89%

On the job performance 11%

Willing to do training for external trainees from other training providers

56%

Source: Primary data survey

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The survey result also shows that about 80% of the factories who do not have any in-house

training facilities train their workers through supervisor and the remaining 20% use their

existing skilled workers to train the unskilled and semi-skilled workers.

Out-of-firm training facilities

Formal workforce development programs were first introduced toward the end of the 1980s at

the initiative of donor agencies and the two main private industry associations: (1) the

Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and (2) the

Bangladesh Knitwear Manufacturers and Exporters Association (BKEMA). Foreign-owned

firms in the EPZ began to provide more systematic and organized in-house training, followed

by local firms around 1990, often through a combination of pressure and technical assistance

provided by buyers. Foreign buyers went on to establish small-scale training academies and

technical assistance projects financed through their CSR budgets, and with their preferred

suppliers24. In 1995, the public sector also started to offer skill formation programs offering

technical education and vocational training to supply the garment industry with qualified

workers at both the operator and mid-management levels. Thus the out-of-firm training

provision has started to meet the increasing demand of skills development in the RMG sector.

The out-of-firm training provision catering to the RMG sector can be broadly classified in to

four main categories – Government initiative, Private initiative, Public Private Partnership and

aided/funded programs with some further sub-categories. The chart below (Figure 4.11)

shows the classification of out-of-firm training provision that exists in the RMG sector:

Figure 0.11: Classification of Out-of-firm training provisions in RMG sector

Out-of-firm training

provision for RMG

sector

Government

Initiative

Private

Initiative

Owned by

Sector

Associations

Owned by

private

entrepreneurs

Buyers Initiative

Donors initiative

Aid/ Funded

NGO/

Foundation/

Trustee

Catering to local

market

Catering to

overseas market

Public Private

Partnership

(PPP) initiative

Source: Rahman, M. (2012)

In 2005, the government realized that strengthening skills in the textile sector would be the

key for driving the continued growth of this sector, and it began to address skills shortages by

setting up more technical and vocational institutes. It upgraded the Bangladesh College of

Textile Engineering and Technology to a textile university, opened textile facilities in all

technical universities, and offered textiles as a subject in the curriculum of all technical

24 Elmer (2010)

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schools, colleges, and technical institutes. Furthermore, the government converted TIDC into

a national institute to serve the needs of the national textile and garment industry as the

National Institute of Textile Training Research and Design project. The Bureau of Manpower,

Employment and Training under the Ministry of Labour and Ministry of Overseas and Welfare

today directs 38 Technical Training Centres in Bangladesh, of which 27 offer apparel-related

classes. Additional initiatives included start of donor-funded projects aimed at strengthening

the public TVET system for the garment skills development.

The most comprehensive technical assistance program catering to the garment industry is the

Promotion of Social, Environmental, & Production Standards (PROGRESS) and its successor

projects. PROGRESS is jointly sponsored by the Bangladesh and German governments, and

implemented by German Development Co-operation (GIZ)25. Since 2007, GIZ has been

sponsoring a range of skills development activities at both the operator and mid-management

levels. It aims to enhance the competitiveness of the sector and establish decent working and

living conditions in the garments sector26. Both BGMEA and BKMEA have initiated operator

training centres in poorer regions of Bangladesh in the north. These programs aim at providing

socially marginalized groups with free training and guaranteed job placement in the garment

industry around Dhaka. Some of those training centres have been operated jointly with

government, with funding provided by donors or the associations themselves. Several of those

operator training centres are public private partnerships, but not all of them have been

successful (Elmer, 2010). Private sector support of public programs has been limited because

it has been viewed as competition27.

In 2012 a survey of the private training service providers was conducted under the study titled

“Private Sector Training, Certification and Employment in Bangladesh” commissioned by UK

Department for International Development. From a qualitative perspective the survey report

classified the private training providers into three categories – formal; informal; overseas

purpose and compared their service as below:

Table 0.16: Comparison of different types of training providers from a qualitative perspective.

Formal Informal Overseas purpose

Name appears in most of the lists (BTEB, GIZ…)

Mostly located in Dhaka city area like Uttara, Dhanmondi.

Usually good infrastructure. Separate class room and workshop. 3000–10000sft.

Receives donor funds (GIZ, WB)

Offers several courses (mainly for mid management-main business).

Names not available in any list (BTEB, GIZ etc.) BUT known to workers.

A number of training centres, located in industrial areas (like Gazipur, Tongi) closed their business due to financial crisis and unavailability of trainees.

At present mostly located near EPZ areas.

Usually very poor infrastructure – one small room (200-500 sft) used for all courses.

Involved in overseas recruitment business.

Acceptable infrastructure and training facilities.

Training fee average 5000-7000 Taka for operator level-still high for workers of local market.

Overseas job guaranteed (need to

25 New name of German Technical Cooperation (GTZ) 26 PROGRESS works in three main areas: social compliance; productivity improvement; and

environmental compliance with a focus on eco efficiency.

27 According to BMET, BGMEA and BMET signed an agreement to utilize the resources of all TTCs;

BGMEA works with 27 of the 38 TTCs with programs in the garment industry.

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Expensive (7000– 40000 taka for operator training) –out of reach of poor people

Operator level training run by donor funds only. Not commercial – no demand.

Well-known to donors, BUT unknown to poor people and workers.

Seeking more donor funds. Usually employs part-time

trainers as the training courses depend on availability of project or availability of students.

Provide little support for job placement.

Courses only up to supervisor level – all practical classes.

Never received donor funds. Run by training fees. Reasonable training fee (1000 taka

– 2500 taka: for operator course) Easy access to poor people. High demands to workers as

factories inside EPZ use automatic machines and require machine operation knowledge for recruitment.

Usually owner is the main trainer with one/two full time trainers.

Claim high capacity as they do not follow curriculum, only practical training, and enrolment all through the year is possible.

Provide good support for job placement.

pay extra money for visa, ticket etc.)

High number of enrolment per year.

Source: Training providers’ survey (2012) under the study titled “Private Sector Training, Certification

and Employment Services Bangladesh” commissioned by UK Department for International

Development

The survey also revealed that a number of private training centres that were operating on a

small scale had shut down their operation because of the workers are not interested to pay for

training for the following reasons:

The number of buyer funded/donor funded training has increased

Number of in-firm training has increased

The wage difference between unskilled and skilled workers is very low. For

instance as per the minimum wage gazette 2013 the wage for an unskilled worker

is 5300 taka and wage for semi-skilled or skilled worker is 5678 – 6805 taka (grade

6 – 3). So there is a clear disincentive from worker side to invest for training.

The survey also revealed that there are several training centres of ‘informal’ type in running

condition and operating for a long time, up to 14 years. Most of those training centres are

located near EPZ areas. The factories in EPZ mostly use modern automatic machines and

recruit mostly operators having knowledge of operating automatic machines. This is why the

demand of skills training to the workers still exists near the EPZ areas and hence the private

training providers are still surviving in those locations.

Major constraints related to hiring and retaining skilled workers

Given the lack of good quality out-of-firm training centres, so far the in-firm training processes

are the most useful and functional training method to meet the expectations of the employers.

Employers prefer in-firm training as they cannot depend on the quality of external training.

Also in-firm training allows the employers to train their worker as per their own requirements

and to fine tune the workers as per the company policies and systems. One of the big

challenges for in-firm training centres is the high turn-over rate of the trained operators. From

the focus group discussion with RMG stakeholders it was revealed that the turn-over rate of

trained operators immediately after the completion of training varies from 15% to80%. And in

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general the turn-over of trained workers is higher than the turn-over rate of all workers which

is obvious because of the high demand for skilled workers and the poaching practice of skilled

workers by neighbouring factories. The main reasons for the high turn-over of skilled workers

are:

Salary increment after the training is not significant.

Lack of skill grading system for the workers.

Poor working conditions.

Lack of effective HR system.

The primary survey result also shows that high rate of employee turn-over is the major concern

of the RMG employers. The below table shows the most common constraints related to hiring

and retaining skilled workers as perceived by the RMG employers during the primary survey:

Table 0.17: List of major constraints related to hiring and retaining skilled workers

Sl Major constrains Number of responses

1 Lack of career awareness 8

2 Frequent job switching tendency of worker 7

3 Available job opportunity for skilled worker 5

4 Home sickness 4

5 Transport problem 4

6 Irregular salary payment system 3

7 Wages Gap Between Large & Small Factories 3

8 Family problem 3

9 Change the job due to co-workers’ influence 2

10 Lack of job market knowledge 2

11 Supervisor and co-worker harassment 2

12 Accommodation problem of the workers 2

Source: Primary data survey

The high turn-over rate of trained workers creates a disincentive for the employers to invest

for in-firm training. In order to maintain the interest of the employers to invest in in-firm training

centres there is a scope to further formalise the in-firm training centres by:

Introducing a standard skill matrix to assess the skill of a worker. A skill matrix allows the employer to keep record of the employee’s skill for different types of machines and also allocate the workers as per their skill.

Introducing promotion guidelines after the training as per the skill matrix. Introducing standardised training curriculum by including the quality requirements of

the major RMG buyers.

Practice of supporting external training centre

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In RMG sector the practice of supporting external training centre is very rare. Some of the

large and renowned factories provide support to external training centres as part of their

Corporate Social Responsibility. The types of support are:

Organize on the job training

Develop curriculum and course manual

Provide instructors’ training

Practice of hiring trained persons from external training institutions and level of satisfaction

Given the skills gap that exists in the RMG sector, the skills development initiatives are

nowhere near sufficient to the need of this industry. The aggregated number of trained

workforce (10,000 per year)28 by all the skills development initiatives is not sufficient. The

results of focus group discussions29 with the stakeholders of RMG also supported this fact.

Even the large factories have little or no experience of hiring trained workers from existing

skills development programs. Entrepreneurs with experiences of recruiting workers trained by

out-of-firm training centres are not satisfied with the performance. As a result, sometimes they

are hired as unskilled workers (assistant) and train them in their own training centre. This

might be the reason why the RMG stakeholders have a very low opinion of the existing out-

of-firm training initiatives and cannot rely on the quality of the training providers. The result of

primary data survey also supports the above fact. 65% of all the respondents are not satisfied

with the performance of the workers trained by out-of-firm training centres.

Further analysis on this issue revealed that the lack of practical skills is an important issue for

such a low opinion of the stakeholders about the training programmes. Stakeholders possess

a high expectation from the trained workers and become disappointed as these trained

workers are not as productive as the existing operators trained on-the-job over years. This

limitation is obvious as the students do not have the opportunity to practice on a real production

floor and it takes time to achieve a high speed of production. Over time these trained operators

usually can progress faster compared to other operators provided the training quality and

curriculum is up to the mark.

The below table summarizes the expectations of the private sector entrepreneurs regarding

the training quality and modality of external training institutes:

Table 0.18: Expectations of private sector entrepreneurs regarding skills training

Issues Expectations of Private Sector Entrepreneurs

Practical skills of new entrants Basic sewing operation skill Multi process operation skill Knowledge on quality issues Basic knowledge on work study Basic knowledge on lean concept Basics of machine maintenance

28 Rahman, M. (2012) 29 FGD conducted at BGMEA and BKMEA during 2012 under the study title “Private Sector Training, Certification Services in Bangladesh” commissioned by UK Department for International Development

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Issues Expectations of Private Sector Entrepreneurs

Team work ability Numeracy knowledge

Training duration Minimum one month Maximum three months

Modality of training First basic training from out-of-firm training centre Then in-firm training

Subjects of school-based forms of training

Basic Sewing operation Multi process operation (4-5 types of machine) Quality issues Basic work study Basic lean manufacturing Machine maintenance Team work Numeracy and basic education

Source: Focus Group Discussion with RMG stakeholders (in 2012) under the study titled “Private Sector Training, Certification and Employment Services Bangladesh” commissioned by UK Department for International Development

Willingness and ways to collaborate with SEP-B

The willingness to collaborate with SEP-B project varies from organization to organization and

depends on the way of collaboration. Some of the large factories with their existing in-house

training facilities are already collaborating with other skills development programs such as,

“Promotion of Operators to Line Supervisors” and “Skill Enhancement of Existing Supervisors”

of GIZ, “Tesco Skills Foundation” etc. During the survey of RMG employers 71% expressed

their willingness to collaborate with SEP-B. However the ways to collaborate still need to be

discussed in discussion with the RMG employers. During the survey RMG employers

expressed their expectation from SEP-B to get support in the following areas:

Marketing and promotional activities Organizing on-the-job training Arranging tools, equipment & materials for the training Human resource development Linkage development with the employers & stakeholders Skills training and certification system

4.4. Summary of analysis and findings

The following table summarizes the major findings of this study:

Table 0.19: List of major findings

Issues Major findings

Geographical distribution of RMG factories

99% of the RMG factories are located in Dhaka (40%), Gazipur (38%), Narayangonj (10%) and Chittagong (11%) districts.

The distribution of RMG employees also follows the same.

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Issues Major findings

Current and projected number of employees

4.4 million employees up to 2012

8 million employees by 2020

Types of RMG factories

Woven (55%)

Knit (29%)

Sweater (16%)

Occupations with greatest absorption capacity

Sewing Machine Operator (72%) – female 67%

Overlock Machine Operator (6.8%) – female 57%

Quality Inspector (5.5%) – female 60%

Sweater Knitting Operator (4.3%) – female 8%

Cutter Man (3.1%) – female 34%

Current employment by skill level

Unskilled: 15-20%

Semi-skilled: 15-30%

Skilled: 50-70%

Existing and projected labour demand

Existing demand: 5-20% of existing employees (78% skilled, 21% semi-skilled, 1% un skilled)

Projected demand (next 5 years): 16% of existing employees (65% skilled, 25% semi-skilled, 10% unskilled)

Occupation wise wage

Supervisors: BDT 12000 – 15000

Technical (Boiler, Generator, Machine Mechanic, electrician): BDT 11000 - 120000

Sweater workers: BDT 6000 – 12000

Skilled workers: BDT 6400 – 7000

Semi-skilled workers: BDT 5600 – 6400

Unskilled workers: BDT 5300 – 5600

Future occupations Auto Sewing Machine Operator

Jacquard Machine Operator

Computer Operator

Line Quality

Finishing Supervisor

Machine Programmer

Packing Operator

Occupations suitable for female and DAP

Sewing Machine Operator

Embroidery Machine Operator

Flat Lock Machine Operator

Fusing Machine Operator

Jacquard Machine Operator

Linking Machine Operator

Overlock Machine Operator

Packing Operator

Quality Inspector

Trimming Operator

Entry requirements Quality inspectors: Class 8

Other workers: Class 5

Technical: Class 8

Supervisor: Class 8

Recruitment practice Walk-in and test: 68%

Advertisement: 34%

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Issues Major findings

Direct contact with training service providers: 8%

Through labour contractors: 7%

Major constraint to retain skilled worker

Lack of career awareness

Frequent job switching tendency of worker

Available job opportunity for skilled worker

Home sickness

Transport problem

Irregular salary payment system

Skills development practices

In-house training facility not popular: approximately 10%

Mostly on-the-Job training

Out-of-firm training insufficient, quality not meeting the expectation of the employers

Private initiatives by private entrepreneurs are sustaining and popular to the trainee because of low cost (BDT 1000 – 2500) but low capacity, insufficient infrastructure and training tools. Mostly located around EPZ area.

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CHAPTER 5

Conclusions and Recommendations

Considering the importance of Ready Made Garments sector for the economy of Bangladesh,

its current demand of skilled worker and the projected growth of the sector, Skills and

Employment Programme-Bangladesh (SEP-B) has rightly chosen RMG as one of the two

sectors to stimulate private sector investment in training for poor people. The success will

however largely depend on the appropriate design of content and management plan for

implementation. Based on the secondary data research and analysis of primary data, as

described in chapter 3 and 4, the following recommendations can be made:

Recommendation-1: Selection of geographical location for

SEP-B interventions:

Given that 99% of the RMG factories are located in four districts under Dhaka and Chittagong

divisions and the fact that the private training providers have tendency to operate in proximity

to the RMG factories, SEP-B interventions should focus in Dhaka, Gazipur and Narayangonj

districts of Dhaka Division and Chittagong district of Chittagong Division.

For further extension of locations in addition to these four districts, detailed worker

demographic surveys need to be conducted to identify the districts where the RMG workers

are from. Factors like districts with high tendency of people working in RMG sector, disaster

affected areas, districts with low agricultural potential, remoteness from formal educational

system, and areas where minority such as tribal people live in need to be considered for

addition of new geographical areas under SEP-B interventions.

Recommendation-2: Selection of partners for SEP-B

interventions:

The current capacity of the existing external training centres is nowhere near the demand of

the sector. In house training initiatives are mainly contributing to meet the existing demand. In

order to response positively to the existing and future skills demands of RMG sector, both

external and in-house training initiatives need to boost up in terms of capacity and quality.

Separate interventions need to be designed to support both external and in-house training

centres under SEP-B. NGOs are also playing vital role by providing skills training for the

unskilled and semi-skilled peoples. Considering the established networks of the NGOs and

their existing capacity; SEP-B project should also consider supporting NGO led skills

development initiatives in parallel to the private initiatives.

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Recommendation-3: Selection of occupations:

There are 36 occupations commonly required for the various production processes involved

in the production of readymade garments. It is not realistic to select all these occupations for

the SEP-B interventions. A careful selection of the occupations need be done considering the

factors such as, absorption capacity (current and future), potential for wage increase, attractive

to vulnerable groups, potential for career progression, potential to improve productivity,

allowing sufficient skills development in a short training interval. However, the need for formal

training also needs to be considered. For example occupations like ‘poly man’ has high

absorption capacity, very attractive to vulnerable groups still because of the simplicity of the

tasks such occupations should give less priority for formal training compared to occupations

like “Kansai Machine Operator” where technical skill is required. Considering the above factors

and based on the analysis of this study the following 15 occupations (ordered in rank) can be

recommended for SEP-B interventions:

Table 0.1: List of recommended occupations for SEP-B

Rank Occupation

Factors for ranking

ab

so

rption

ca

pacity

(cu

rre

nt

and

fu

ture

)

po

ten

tia

l fo

r w

ag

e

incre

ase

att

ractive

to

vuln

era

ble

gro

ups

po

ten

tia

l fo

r ca

ree

r

pro

gre

ssio

n

po

ten

tia

l to

im

pro

ve

pro

ductivity

po

ten

tia

l to

allo

w s

uffic

ien

t

skill

s d

eve

lop

me

nt in

a

sh

ort

tra

inin

g in

terv

al

1 Sewing Machine Operator High Medium High High High High

2 Overlock Machine Operator Medium Medium High High High High

3 Quality Inspector Medium High High High Medium High

4 Sweater Knitting Machine Operator Medium High Low High High High

5 Fusing Machine Operator Medium Medium High High High High

6 Linking Machine Operator Medium Medium High High High High

7 Machine Mechanic Medium High Low Low High High

8 Cutter Man Medium Medium Low High Medium High

9 Button Machine Operator Low Medium High High High High

10 Kansai Machine Operator Low Medium High High High High

11 Iron Man Medium Medium Low High High High

12 Printing Operator Low Medium High High Medium High

13 Embroidery Machine Operator Low Medium High High Medium High

14 Poly Man/Packer/ Packing Man Medium Medium High High High High

15 Jacquard Machine Operator Future occupation

Recommendation-4: Targeted skill level:

Given the skills gap exist at different skill level the SEP-B programme should target

upgrading skills from unskilled to semi-skilled level for both employed and unemployed as

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well as from semi-skilled to skilled; skilled to supervisory skill level for the existing

employed workers.

Despite 70% of the RMG workers are female; the participation of female at supervisory

level is rare. The female operators should be trained and motivated to become supervisor.

This will also solve the harassment issues by supervisor which is a big concern and source

of worker unrest.

Recommendation-4: Support updating curriculum and course

materials

With the frequent change of fashion, the design and quality requirements of the RMG buyers

also change rapidly. Moreover with the rapid technological change the traditional and manual

operations of readymade garments are being replaced by modern automatic machines. As

the skills requirement of RMG employees are highly linked with the design, quality

requirements and types of machine used, the curriculum and course materials need to be

reviewed and updated to match the demand of the sector. External training centres need more

support here to keep the curriculum up to date with latest technology and design.

Recommendation-5: Support to retain skilled employees

High rate of employee turn-over is one of the major constraints for RMG employers and a clear

disincentive for them to invest for skills training. In order to address the challenge the RMG

employers need to develop effective HR policy to retain the skilled employees. Introduction

and practice of employee skill matrix system and link the skill matrix with the wage increment

and career growth of the employees will help the employers to cope up with this challenge.

SEP-B interventions should also support in this regard by building capacity of RMG employers.

Recommendation-6: Training duration and cost

Cost of training is one of the most important barriers for the skills development of poor people.

The cost of training offered by most of the major private skills development initiatives is beyond

the affordability of poor people. As a result workers interested in skills training look for cheaper

training centres and shorter courses. The training duration should be shorter and the cost

Unskilled

Semi-skilled

Skilled

Supervisory skillUnemployed

and Employed

Employed Employed Employed

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should be within the reach of poor people either by subsidizing or by providing loan to the

trainees.

Recommendation-7: Certification of the trainees

The RMG employers prefer to test the employees during recruitment and assess the workers

as per their own system. The formal certification system at worker level is fully absent in RMG

sector. Even the mandatory employee service book, which contains the information about

skills and experiences, is not fully maintained. Considering the reality, formal certification

system may not work for RMG sector immediately. SEP-B project should observe and assess

the readiness of the sector before introducing formal certification system for RMG sector.

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References

ABC Journal of Advanced Research, Volume 2, No 2 (2013): Socio-Business Consideration

of Garment Workers in Bangladesh: A Statistical Review

BBS (2008) Report of the Labour Force Survey Bangladesh 2005-06. Dhaka: Bangladesh

Bureau of Statistics

Bangladesh Bank: www.bangladesh-bank.org

BBS (2010) Report of the Labour Force Survey Bangladesh 2010. Dhaka: Bangladesh

Bureau of Statistics

BGMEA: www.bgmea.com.bd

BKMEA: www.bkmea.com

CPD (2013) ‘Analytical Review of Bangladesh’s Macroeconomic Performance in FY2012-13’.

CPD Working Paper 101. Dhaka: Centre for Policy Dialogue

Department of Inspection for Factories and Establishments: www.dife.gov.bd

Elmer, D. (2010). The RMG Skills Formation Regime in Bangladesh: a Background Paper

(Report). Dhaka, Bangladesh: World Bank.

Maurer, M. (2011). Skill Formation Regimes in South Asia: A Comparative Study on the

Path-Dependent Development of Technical and Vocational Education and Training

for the Garment Industry. Frankfurt am Main: Peter Lang.

Ministry of Labour and Employment Bangladesh (2013): Minimum Wage Gazette for RMG

MoF (2013) ‘Bangladesh Economic Review 2013’. Dhaka: Ministry of Finance of the

Government of the People’s Republic of Bangladesh

Rahman, M., (2012), Private Sector Training, Certification and Employment Services in

Bangladesh: Market Study and Design, Background Report No. 2 a Background

reports on training in RMG industry sector, Dhaka: DFID

Unnayan Onneshan (2013) “Accumulation and Alienation: State of Labour in Bangladesh

2013”

Unnayan Onneshan (2014) “Export, Import, Remittance and FDI: Recent Trends;

Bangladesh Economic Update April 2014”

WDI. 2013. World Development Indicators online database, World Bank.

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Attachments

Attachment-1: Minimum wage structure for the RMG sector

Grade Designation / Classification of Workers

Revised wage effective from 1st December, 2013 (Bangladesh Taka)

Monthly Basic Salary

Tk.

Monthly House

rent (40% of Basic

Salary)

Monthly

Medical

Allowance

Monthly

Conveyance

Allowance

Monthly

Food Subsi

dy

Monthly Gross Salary

Grade-1

1. Pattern Master

8500 3400 250 200 650 13000 2. Chief Quality Controller

3. Chief Cutting Master/ Cutting Chief

4. Chief Mechanic

Grade-2 1. Mechanic / Electrician

7000 2800 250 200 650 10900 2. Cutting Master

Grade-3

1. Sample Machinist

4075 1630 250 200 650 6805

2. Mechanic

3. Senior Sewing Machine Operator

4. Senior Winding Machine Operator

5. Senior Knitting Machine Operator

6. Senior Linking Machine Operator

7. Senior Cutter

8. Senior Quality Inspector

9. Senior Marker / Senior Drawing Man / Senior Drawing Woman

10. Senior Line Leader

11. Senior Over lock Machine Operator

12. Senior Button Machine Operator

13. Senior Kansai Machine Operator

Grade-4

1. Sewing Machine Operator

3800 1520 250 200 650 6420

2. Winding Machine Operator

3. Knitting Machine Operator

4. Linking Machine Operator

5. Marker / Drawing Man / Drawing Woman

6. Cutter

7. Mending Operator

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Grade Designation / Classification of Workers

Revised wage effective from 1st December, 2013 (Bangladesh Taka)

Monthly Basic Salary

Tk.

Monthly House

rent (40% of Basic

Salary)

Monthly

Medical

Allowance

Monthly

Conveyance

Allowance

Monthly

Food Subsi

dy

Monthly Gross Salary

8. Pressing Man / Pressing Women / Finishing Iron man / Finishing Iron Women

9. Folder (Finishing Section)

10.Packer

11.Quality Inspector

12.Over lock Machine Operator

13.Button Machine Operator

14.Kansai Machine Operator

15.Poly Man / Poly Women

16. Packing Man / Packing Women

17. Line Leader

Grade-5

1. Junior Sewing Machine Operator

3530 1412 250 200 650 6042

2. Junior Winding Machine Operator

3. Junior Knitting Machine Operator

4. Junior Linking Machine Operator

5. Junior Marker / Junior Drawing Man / Junior Drawing Woman

6. Junior Cutter

7. Junior Mending Operator

8. Junior Pressing Man / Junior Pressing Women / Junior Finishing Iron man / Junior Finishing Iron Woman

9. Folder (Finishing Section)

10. Junior Electrician

11. Junior Packer

12. Junior Over lock Machine Operator

13. Junior Button Machine Operator

14. Junior Kansai Machine Operator

Grade-6

1. General Sewing Machine Operator

3270 1308 250 200 650 5678

2. General Winding Machine Operator

3. General Knitting Machine Operator

4. General Linking Machine Operator

5. General Mending Operator

6. General Fusing Machine Operator

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Grade Designation / Classification of Workers

Revised wage effective from 1st December, 2013 (Bangladesh Taka)

Monthly Basic Salary

Tk.

Monthly House

rent (40% of Basic

Salary)

Monthly

Medical

Allowance

Monthly

Conveyance

Allowance

Monthly

Food Subsi

dy

Monthly Gross Salary

7. General Collar Turning Machine Operator

8. General Over lock Machine Operator

9. General Button Machine Operator

10. General Kansai Machine Operator

Grade-7

1. Assistant Sewing Machine Operator

3000 1200 250 200 650 5300

2. Assistant Winding Machine Operator

3. Assistant Knitting Machine Operator

4. Assistant Linking Machine Operator

5. Assistant Mending Operator

6. Assistant Cutter

7. Assistant Marker / Assistant Drawing Man / Assistant Drawing Woman

8. Pocket Creasing Machine Operator / Creasing Man / Creasing Woman

9. Line Iron Man / Line Iron Woman

10. Assistant Dry Washing Man / Assistant Dry Washing Woman

11. Assistant Over lock Machine

12. Button Machine Assistant

13. Kansai Machine Assistant

14. Finishing Assistant

Trainee / Apprentice

Their training period will be highest 3 months. After completion of training period a worker will be appointed as corresponding graded worker.

2200 880 250 200 650 4180

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Attachment-2: List of RMG industries surveyed

Sl Name of Employers Address Contact person Contact number

1 K.B Apparels Limited 30,46, 47 Postogola I/A, Dhaka- 1204 Md. HabibrRahaman 7440780

2 Blooming Tex Ltd. Buriganga, Setu Market, 16/1, New Jurain, Postogola, Dhaka

Albert Madhu 01670444763

3 Wonder Apparels Ltd. 413, New Jurain, Alam Super Market, Dhaka

Md. Julhas Uddin Ahmed

01919354877

4 Jams Sewater (Pvt.) Ltd.

Jams Knitwear Pvt. Ltd. 14 New Jurain, Postogola, Dhaka-1204

Md. Abdul LatifBhuiyan 7440604

5 Premier Apparels Ltd. 79/8, North Jatrabari, BibirBagicha, Gate No.4, Dhaka-1204

M.A. Hashem Masum 7543801

6 Target Fine Wear Inds. Ltd.

Alauddin Chowdhury Tower, Outpara, chaudonaChowrasta, Gazipur

Md. Hamiduzzaman 9263640

7 Fashion Crafts & Design Ltd.

Plot-47, Tagnogpara, Chandona, Gazipur

Mr. Khalid Ahmed Khan 9261896

8 Trade Sweater Factory Ltd.

Block-D, Holding-GA, Satmosjid Super market, (4th Floor), Mohammadpur, Dhaka-1207

Md. Humayan Kabir 9110447

9 FAR Apparals Ltd. Chong Won Ars Sweater Ltd.

North Jatrabari, Dhaka-1204 Md. Shafiqul Islam 7548699

10 National Apparels Co. Ltd.

13, Ring Road, Shyamoli, Dhaka Md. Mizanur Rahman 01715467148

11 R.R Acrylic Ltd. Plot- A-35, A-39, BSCIC I/E, Konabari, Gazipur

Habibur Rahman 9297377

12 FRENCH Fashions Knitting Ltd.

125-126. Adamjee EP2, Narayanganj Israt Hossain Ettza 7691536-7

13 HOP LUN Apparel Ltd. Shaheen&Sheema Complex. Plot-23, Shatish Road, Tongi, Gazipur

Md. Jahirul Islam 8933841

14 YUNUSCO Group Shore to Shore Garments & Textiles Ltd., Plot- 224-233, Adamjee EPZ, Shiddhirganj, Narayanganj

Md. Shahjahan 7691085

15 Viyellatex Ltd. 297 Salaish Road, Khortoli, Gazipur, Tongi, Gazipur

JubayadAhud 01919818481

16 Jinnat Apparels Ltd. Sardaganj, Kashimpur, Gazipur Md. Abdul Hashem Patwary

7790060

17 Sinha Designers Ltd. Sinha Complex. Kanchpur, Narayanganj, Dhaka-1212

Major Md. Omar Faruque (Rtd.)

7617766

18 Mark Sweater Ltd. Nayapara, Kashimpur, Gazipur Samar Chandra Roy 01938887306

19 AnantaHuaxiang Ltd. Plot: 222-223, H2, H3, H4, Adamjee EP2, Narayanganj

Abu Hanif 8810502

20 Rupa Knitwear (Pvt.) Ltd.

Gazipur Md. Jahid Hossain Khan

9291563

21 TEXEUROP Ltd. Vogra Joydebpur, Gazipur Md. Abdul Jalil 9261986

22 Creative Seaters (Pvt.) Ltd.

; 1/A, Shilpa Plot, Darus Salam, Road, Mirpur-1, Dhaka

Md. Jashim Uddin 9003711

23 Metro Knitting & Dying Mills Ltd.

Ramarbag, Kutubpur, Fatullah, Narayanganj

PalashSaha 7647649

24 Vertex Fashion Ltd. 3-4, 50-2B Comm. Plot, Supermarket-1, Darus Salam Road, Mirpur-1, Dhaka

Asrafunnesa Chowdhury Libu

9003933

25 Babylon Group Babylon Garments, 2-B/1, Darussalam Road, Mirpur, Dhaka

Md. Shah Alam 9023495

26 Shahrin Fashion Wear Ltd.

Plot-411-8, North KhaikurZamiruddin Khan Road, National University, Joydevpur, Gazipur

Md. Jahid Hossain 9293781

27 L'Usine Fashion Ltd. 36, Gazipur, Tongi, Gazipur-1712 Shawakat Hossain 9816127

28 Fakir Knitwears Ltd. Kayenpur, Fatullah, Narayanganj Sultan Mahmud Hosseinee

7641379

29 Modele Group Modele De Capital &Goumati Knitwear, Talla Road, Khapur, Fatullah, Narayanganj

Arup KamarSaha 7644227

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Sl Name of Employers Address Contact person Contact number

30 AMANTEX Limited Boiragirchala, Sreepur, Gazipur Ahmed Zia Fahmi 01926665368

31 5M Knitewars Ltd. Shirirchala, Bhabanipur, Gazipur SK Kutub Uddin 01678036229

32 Ehsan Garments & Moonlight Garments Ltd.

Kuniarchor, Taragacha, Gazipur Md. Abu Naser 9291372

33 SF sweaters Ltd. South Salna

Salna Bazar. Gazipur Golam Mohammad Kibria

9205726

34 Amex Knitting & Dying Ind. Ltd.

Sufia Plaza. 327/3/B, South Jatrabari. Dhaka

AKM Sarwar Alam Sarkar

01819996717

35 SEO WAN Bangladesh Ltd.

Plot-12, Street: 2, Block-E, sector: 1, Mirpur, Dhaka

Md. Tannaurul Hasan 8034189

36 Image Garments Ltd. Baby Super Market, 1014/A, BaizidBostami Road, Chittagong

Md. Jamal Uddin 01712282092

37 Chowdhury Fashions Wears Ltd.

82, Nasirabad, I/A, Chittagong ZulfiqaraliMasud 682423

38 BSA Group House- A-5, Block- B, BSCIC, I/A, Sagorika Road, Pahartoli, etc

Md. Sarwaruzzaman khan

01817044479

39 Salim & Brothers Ltd. A/3, BSCIC I/A, Sagarika Road, Chittagong

Farah Prince 01710935588

40 AFRAH Dresses Ltd. 75/B, Sagorika Complex, CDA Market, Pahartoli, Chittagong

Md. Jashim Uddin 01922113119

41 Friends & Friends Apparels (PTF) Ltd.

754/827, Mehedibag, Mehedi Super Market, Chittagong

A.A. Ghulam Faruque

42 Section Seven Limited 21-26, S#3, R-4, EPL, Chittagong Md. NurunNabiNayon 01713148117

43 BLP Warm Fashion Ltd.

Rahman Tower, Muradpur, Chittagong

Shawkat Ali 31681422

44 Pacific Jeans Ltd. P-16-19, S-S, EPZ, Chittagon; M.N.Huda

45 Azim Group ;269 Dewanhat, Chittagong Abu Masud Al-Momen 01817759347

Attachment-3: List of individuals consulted

Sl. No. Name of person Designation Organization

1 Prodeep Paul Sr. Manager (Factory Operations) Turag Garments & Hosiery Mills Ltd.

2 Engr. Rupali Biswas Chief Coordinator (PIC) BKMEA

3 Umme Saira Sr. Deputy Secretary BGMEA

4 GulshanNassrin Chowdhury Chairperson Radiant Institute of Design

5 Md. Rana Manager, Research and Development

Babylon Garments Ltd.

6 Md. Shah Alam Manager, Admin and HR Babylon Garments Ltd.

7 Mr. Kamruzzaman Head of HR Pioneer Knit BD Ltd.