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Labor Unrest in the Rmg Sector

In: Business and Management

Submitted By bayazid
Words 18631
Pages 75
Labor unrest in the RMG sector–reasons and remedies
October 7, 2010
The prevailing worsening situation in readymade garment (RMG) sector is not good for country’s feeble economy. RMG sector accounts for 76% of our total annual foreign exchange earnings. Once, Jute was the only foreign exchange earning item. But the golden age of Jute is now over. At present, the RMG is our only dependable export item. The textile sector has emerged as a backward sector to this RMG sector. Spinning, weaving, Knitting; dying, finishing etc have emerged as a backward linkage industry. These areas of the of the textile sector are contributing to the economy of the country. So, if the RMG sector suffers any crisis, the repercussion will be felt everywhere in the rickety economy. Now, there are 350 spinning mills operating in the country, which is catering to the demand of the RMG sector and thus saving huge amount of foreign exchange. At present, the capacity of the spinning mills is 1.6 billion meters. There are 180 dying-finishing mills in the country with a capacity of 120 million meters per year. The production capacity of the knitting mills is 41 billion meters. What is important here is that they are capable of meeting local demand. The total workforce engaged in this sector is about 2.5 million, of which 60 percent is women. The total production is being exported to foreign countries.
The reasons and the remedies of the present crisis:
All of a sudden, labor unrest has increased in our country. But, it will be unjustified to say that this labor unrest has grown overnight. It has a long history too. Labor unrest got impetus towards the end of the 4-party led coalition government and in the immediate past care taker government it reached its peak. We shall now turn to the reasons for Labor unrest as well as its remedies.
1. The main reason of the RMG Labor unrest was the demand...

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