Slave Labor, Wal-Mart and Wahhabism: Bangladesh in turbulence

NILE BOWIE

The Bangladeshi elite are facing tough decisions in the wake of the Rana Plaza factory to curb the rampant abuse of the work force. Support for the government has been weakening and there has been a disturbing rise in radical Islam.

The streets of Dhaka have been awash with protests, violence, and killing in recent times as the Bangladeshi public expresses its resentment to the exploitation of garment workers in the aftermath of the country’s worst industrial disaster in its history, and the rising tide of Islamists demanding an end to the nation’s secular identity. The public relations departments of major retail transnationals like HnM, Gap, Wal-Mart, and Benetton have been in full defensive mode following the late-April collapse of Rana Plaza, a shoddily constructed building where sweatshop laborers toiled producing all the latest western fashions for export. The collapse took the lives of a shocking 1,127 workers, and still, Wal-Mart and Gap remain opposed to introducing broad agreements that would improve fire and safety regulations in factories, in fear of becoming entangled in legal liabilities; some corporations have refused to pay direct compensation to family members of the victims. Cost-benefit analysis yielded few benefits for the dead, unsurprisingly.

Tens of thousands of protesting Bangladeshi garment workers attempted to make their voices heard in the Ashulia industrial belt on the outskirts of the capital; worker demands for a fairer wage and safe working conditions were met with rubber bullets, stoking opposition and resentment against the ruling Awami League party, which is increasingly seen as a kleptocratic purveyor of the ‘Poverty Industrial Complex’ that promotes retail multinationals setting up shop in the dusty slums of Dhaka. Most garment workers make a miserable $38 per month, hourly wages between 17 and 26 cents. Anyone who has browsed the hangers of H&M or Benetton knows that a single piece of merchandise can pay the monthly wage of a Bangladeshi worker two or three times over. Behind the slick marketing campaigns of these retail giants, and the well-oiled cleavage and abdomens on their billboards, it is impoverished people that bear the burden of vapid consumerism and globalization.

Injustice is stitched into every fiber of the shirts on our backs, and the consumer looking to offset this abuse is faced with few choices. Three million workers are employed in Bangladesh’s garment industry, constituting about 80 percent of the country’s exports. In the face of massive boycotts or retail giants closing their operations, workers would lose their jobs; if they come to work, they are exploited as 21st century slave labor. For the Bangladeshi worker and the Third World man, it is a lose-lose situation. As multinationals rush to damage control after every disaster that interrupts their miserable production lines half-a-world away, it is the retail giants themselves that perpetuate extreme low-wage systems that brutally suppress the collective action of workers aiming to improve their conditions. Wal-Mart, Calvin Klein, Tesco, and their like operate by seeking out the cheapest possible means of production available, often with no safety standards or regulatory oversight, made possible through the politics-business nexus agreeable to the Bangladeshi ruling class.

The Bangladeshi elite found themselves in several ‘Let them eat cake’ moments following the Rana incident; Finance Minister Abul Maal Abdul Muhith remarked that the disaster wasn’t “really serious”. Sohel Rana, the owner of the Rana Plaza illegally extended the five-storey building to a total of eight storeys without proper consent from the authorities concerned, an act ignored due to Rana’s alleged political connections to the ruling Awami League. The public is now calling for Rana’s execution as reports surface that he ignored the warnings of engineers who examined the building and concluded that it was unsafe.

Following the Rana Plaza incident, and the deadly fire at the Tazreen Fashions complex in November 2012, Prime Minister Sheikh Hasina can’t help but look severely out of touch, as she claims that Bangladesh has good conditions for investment. The conditions she is referring to are only ‘good’ for investors and shareholders, reflecting a development orthodoxy that incentivizes global retailers to take advantage of lax safety standards and other sweatshop conditions.

Rising tides of Islamism

The opposition coalition, the Bangladesh National Party, has tightened alliances with hardcore Islamist groups, Jamaat-e-Islami, and its radical offshoot, Hefajat-e-Islam, presenting a notable challenge to the ruling Awami League in elections expected to be held by Janurary 2014. When Bangladesh isn’t making international headlines over industrial disasters, it is attracting worldwide attention for its controversial war crimes tribunal, which has charged leading members of the Jamaat-e-Islami with committing atrocities during the 1971 war for independence, and subsequent civil war. Activists who support the Jamaat-e-Islami party hurled stones and handmade bombs at security forces after verdicts condemning top party leaders to death by hanging were announced.

Opposition supporters call this a politically motivated trial, and it’s easy to see why, several of the individuals charged on a list drafted by the Awami League were between 4 and 8 years old during the war in 1971, severely weakening the credibility of the charges against them. 

Although the opposition may have legitimate grievances, they represent a backwards program that would roll back the equal standing of women, make Islamic education mandatory, ban women from mixing with men, and essentially redress Bangladesh in the clothing of Wahhabism, a reactionary and medieval interpretation of Islam championed by Saudi Arabian missionaries throughout the developing world. In 2013, Jamaat demanded that the government pass a 13-point charter that would fundamentally dismantle the secular system promoted by the Awami League, met with pro-secular counter-protests calling the war crimes tribunal too lenient, and a ban on the Jamaat-e-Islami party. The Awami League is facing political pressure from opposing directions in a politically fragmented country, as one group of protesters call for a clamping down on fundamentalist groups, and the other accuses the government of manipulating the tribunal to ensure convictions of prominent opposition leaders.

The Islamists no doubt enjoy notable public support, as tens of thousands take part in mass rallies in support of their causes, putting Dhaka in regular deadlock. Hifazat-e-Islam, considered even more radical, is headquartered in Chittagong, a port city home to hundreds of madrassas that promote the Wahhabi worldview espoused by many of the militants and foreign jihadists active in Syria. The group calls for the introduction of a new blasphemy law that will execute ‘atheist’ bloggers whom they accuse of having insulted the Prophet Mohammed. The Bangladesh National Party’s coalition also includes an Islamist party, the Islamiya Okiyya Jote, which allegedly has connections to Al-Qaeda and the Taliban in Afghanistan. In the current climate of deepening religious and political polarization, the ruling party is carefully attempting to put across its pro-Islam credentials, which has resulted in the arrests of four atheist bloggers, but their efforts are ultimately seen as cosmetic to those pro-sharia Islamists who parrot painfully unoriginal political programs better suited to 14th century Arabia. The Awami League’s crackdown on dissent has alienated both secularists and Islamists, especially in the impoverished working classes.

Bangladesh’s slow morphing into a Caliphate promises uncertainty for the Hindu minority, who have been victimized by radicals that have burned down temples and destroyed deities, as well as the non-Islamist segments of the population who advocate greater modernity. Unfortunately for Bangladesh, both the ruling and opposition political forces fail to offer platforms that would significantly contribute to the furtherance of progressive measures to protect workers’ rights and advance the nation’s economic standing. In the run-up to the general elections, louder and angrier protests are on the cards, especially if Jamaat-e-Islami leaders are executed. The hawks of global retail have shed their crocodile tears and paid lip service to safety standards and pledges to enact across-the-board improvements as they did after the Tazreen fires, only to witness Bangladesh’s worst industrial disaster in the space of less than a year. Fortunately for global retailers, most people tend to forget these disasters in days, and little, if any, dent is made in their profit margins. It’s no surprise that garment workers continue their protests despite heavy-handed police suppression, they have nothing to lose but their chains.

First published in RT.com, May 26, 2013

Nile Bowie is a political analyst and photographer currently residing in Kuala Lumpur, Malaysia

Leaving Bangladesh? Not an easy choice for brands

Bangladesh factory deaths prompt some retailers to leave, but staying poses challenges too

JONATHAN FAHEY and ANNE D'INNOCENZIO, Business Writers with Associated Press

Bangladesh offers the global garment industry something unique: Millions of workers who quickly churn out huge amounts of well-made underwear, jeans and T-shirts for the lowest wages in the world.

But since the building collapse on April 24 killed at least 1,100 garment workers in Bangladesh, becoming one of the deadliest industrial tragedies in history, the industry has gone from one of the country’s greatest assets to one of its biggest liabilities.

”The risk factors have jumped off the charts,” said Julie Hughes, president of the US Association of Importers of Textiles and Apparel, a trade group that represents retailers who import garments. ”This is worse than what anyone had imagined.”

Working conditions in Bangladesh’s garment industry have been known to be grim, a result of government corruption, desperation for jobs, and industry indifference. But the scale of this tragedy has raised alarm among executives and customers.

The Facebook pages of Joe Fresh, Mango and Benetton, a few of the brands whose clothing or production documents were found in the rubble of the collapsed building, are peppered with angry comments from shoppers. Some warn they’re going to shop elsewhere now.

Retailers are also facing street protests. In the US, university chapters of United Students Against Sweatshops are helping to stage demonstrations against Gap in more than a dozen cities including Seattle, Los Angeles and New York. The group plans to target other retailers it believes are not committed to stricter standards for Bangladeshi factories.

The rising death toll may force Western brands to make a choice: Stay and work to improve conditions. Or leave and face higher costs, similar or worse worker conditions in other low-wage countries and criticism for abandoning a poor nation where per-capita income is just $1,940 per year.

Most retailers have vowed to stay and promised to work for change. Wal-Mart and the Swedish retailer H&M, the top two producers of clothing in Bangladesh, have said they have no plans to leave. Other big chains such as The Children’s Place, Mango, J.C. Penney, Gap, Benetton and Sears have said the same.

”Today’s economy is global, and it is not a question of if a company like H&M should be present in developing countries,” said Anna Eriksson, an H&M spokeswoman. ”It is a question of how we do it.”

But for some, the risk of being in Bangladesh has become too great. The Walt Disney Co. announced this month that it is stopping production of its branded goods in Bangladesh.

Industry experts predict others will quietly reduce their dependence on the country.

”Almost everybody is going to cut back on what they are sourcing from Bangladesh,” Hughes said. ”Not today, but by a year from now our imports are going to fall. The question is how much.”

But it’s not easy for retailers who make their clothes in Bangladesh to simply leave.

There is no shortage of cheap labor or available garment factories around the world. But it takes months or even years to establish relationships with new factories that retailers can trust to turn out large volumes of garments to their specifications on time.

Even if retailers move their business to other low-cost countries, they still face threats to their reputations.

Of the major garment-manufacturing countries, Bangladesh’s working conditions pose the highest risk to brands, according to Maplecroft, a risk analysis firm based in Bath, England. But Bangladesh ranks somewhat better than many low-cost countries on other labour issues, such as child labour and forced labour.

According to Maplecroft’s Labour Rights and Protection Index, which measures the overall risk of association with violations of labour rights, Bangladesh is the 17th-riskiest country in the world – and less risky than such garment-producing leaders as China, Pakistan, Indonesia and India.

Another reason it’s hard for retailers to leave is that Bangladesh is one of the few places in the world that has enough workers, manufacturing capacity and experience to provide what retailers demand: High volume, low prices, good quality and predictable service.

The garment industry in Bangladesh is the third-biggest exporter of clothes in the world, after China and Italy. There are 5,000 factories in the country and 3.6 million garment workers. Manufacturers have easy access to cheap raw materials, and the country’s political situation has been relatively stable.

And its garment workers command the lowest wages – by far – in the world. The average worker in Bangladesh earns the equivalent of 24 cents an hour, compared with 45 cents in Cambodia, 52 cents in Pakistan, 53 cents in Vietnam and $1.26 in China, according to the Worker Rights Consortium, a worker advocacy group.

On Sunday a Bangladesh cabinet minister said the government plans to raise the minimum wage for garment workers, and a new minimum wage board will issue recommendations within three months.

Between 15 and 25 per cent of the wholesale cost of a garment is for labor. Unlike raw material costs, which can vary, labor is the only major cost that retailers can control.

“It’s a country built for commodity products,” said Janet Fox, who arranged garment manufacturing overseas for J.C. Penney and Under Armour and now works as a consultant. “It’s not a highly skilled labor force, but they can make the basics.”

Bangladesh has long been a major garment producer, but in recent years its production has soared.

For decades, the global garment trade was controlled with a quota system called the Multi Fibre Arrangement that limited production from developing countries to protect higher-wage workers in developed countries.

When the system ended in 2005, retailers flocked to Bangladesh because of its low wages. Manufacturers scrambled to increase the size of their factories.

Land is scarce in Bangladesh, one of the world’s most densely populated countries. It packs 163 million people, about half the population of the US, into an area about the size of the state of Iowa. So the Bangladesh government, desperate to boost employment, looked the other way as companies converted unsuitable buildings into factories or crammed far too many workers and equipment into small spaces, creating fire hazards, labour activists say.

Since 2005, at least 1,800 workers have been killed in the Bangladeshi garment industry in factory fires and building collapses, according to research by the advocacy group International Labor Rights Forum.

In November, 112 workers were killed in a garment factory in Dhaka, the Bangladeshi capital. The factory lacked emergency exits, and its owner said only three floors of the eight-story building were legally built. Clothes destined for Disney, Wal-Mart and Sears were found among the building’s remains, though Disney has denied its suppliers used the factory.

But as horrific as that fire was, it wasn’t as bad as the April 24 collapse, the garment industry’s worst disaster. The eight-story Rana Plaza building housing five garment factories collapsed 15 miles north of Dhaka at the beginning of a workday.

The building wasn’t designed to hold factories, and three stories had been added illegally. Most of the victims were crushed by massive blocks of concrete and mortar falling on them.

Then as the death toll was climbing, a fire broke out at a sweater manufacturer on Wednesday in Dhaka, killing eight people including a senior police officer, a Bangladeshi politician and a top clothing industrial official.

Only a few companies, including Britain’s Primark and Canada’s Loblaw Inc., which owns the Joe Fresh clothing line, have acknowledged that suppliers were making clothes for them at the Rana Plaza site and have promised to compensate workers and their families. Loblaw’s CEO said suppliers were making clothes for as many as 30 brands and retailers at the site.

Benetton labels were found at the site, and the Italian fashion brand acknowledged that one of its suppliers had used one of the factories. The company said that before the collapse, the factory had been removed from its list of approved factories.

Mango, whose production documents were found in the ruins, has said it was planning to produce there but hadn’t started.

Clothing retailers often depend on a web of contractors and sub-contractors to produce goods for them. Fabric will be made at one factory, buttons at another, and the item will be sewn together somewhere else. Large orders are often placed with one contractor, who then farms out the work to several smaller factories.

Retailers said they have strict standards that they require their suppliers to follow, but they know little or nothing about conditions at individual factories that make their clothes because there are so many of them.

But retailers are very familiar with the general conditions in the countries where they do business, and their importance to local economies means they can push for improvements. Labour groups and other activists have said last month’s tragedy is just the most extreme evidence that brands haven’t done nearly enough to protect workers.

The retail industry hasn’t released estimates on how much it would cost to upgrade Bangladeshi factories to Western standards. But the Worker Rights Consortium puts the cost at $1.5 billion to $3 billion. If the money was spent over five years, it would be 1.5 to 3 per cent of the $95 billion expected to be spent on clothes manufacturing over that time. Put another way, it’s 10 cents added onto the cost of a T-shirt.

There are limits to what companies can do to improve conditions, though, said Matthew Amengual, a professor at the MIT Sloan School of Management who studies labour regulation and enforcement in developing countries. “Companies have a very important role to play, but they can’t do it just by auditing their supply chain,” he said.

The collapse of the factory in Bangladesh showed how safety issues in the country are in some ways too ingrained and complex for companies to monitor and change. It is much easier for a company to push for more fire extinguishers or make sure fire exits aren’t locked than to judge the structural integrity of thousands of factories.

Experts said if big retailers and the Bangladesh government don’t work together to improve standards and enforce them, more production will gradually move out of the country.

“There are huge risks to stay if there isn’t any progress,” said the Rev. David Schilling, of the Interfaith Center on Corporate Responsibility, a coalition of shareholders that pushes companies to be more socially responsible.

Disney, which has said that less than 1 per cent of the factories used by its contractors operate in Bangladesh, said it has told all its suppliers to stop production in the country by the end of March 2014. The company also said it would reconsider its decision if conditions improve.

Others have taken a different approach.

In the wake of the November fire, Wal-Mart, the world’s largest retailer, toughened its policies with suppliers. In January, it said that it would cut ties with any factory that failed an inspection, instead of first issuing a warning.

Last month, Wal-Mart said it will be tying some of the compensation of some executives, including CEO Mike Duke, to the success of its compliance program.

Forty garment buyers, including Wal-Mart, H&M, and J.C. Penney, met with labour rights groups on April 29 in Germany to discuss how the industry could improve safety conditions in Bangladesh.

The labour groups are setting Wednesday as the deadline for brands to sign up to a legally binding plan that would require retailers to pay for needed safety improvements and allow independent inspections of the clothing factories in Bangladesh.

Only two companies — PVH, the parent company of such brands as Calvin Klein, Tommy Hilfiger, and Tchibo, a German retailer — have signed up to the plan. Gap was close to signing last fall but then backed out and announced its own plan that included hiring an independent fire safety expert to inspect factories.

Adding to the pressure on retailers, Avaaz, a human rights group with 21 million members worldwide, has garnered more than 900,000 signatures on a petition pushing Gap and H&M to commit to the proposal.

“We would rather see companies stay in Bangladesh to compel and fund the renovations that are necessary to turn these deathtraps into safe buildings,” said Scott Nova, executive director at the Worker Rights Consortium.

First appeared in new.Yahoo.com , Sun, May 12, 2013

Jonathan Fahey and Anne d'Innocenzio are Business Writers with Associated Press, Farid Hossain in Dhaka, Bangladesh, contributed to this story