The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday again sought a price hike of garment items as the government is working to implement a minimum wage for four million garment workers from December this year.
BGMEA President Faruque Hassan said in a letter: “Firstly, we need our buyers to understand and internalise the wage dynamics from our respective contexts and priorities, and support us through rational price adjustments.”
He also wrote letters to the buyers who are operating through liaison offices in Bangladesh, Action, Collaboration and Transformation (ACT) and American Apparel and Footwear Association (AAFA), asking to recalculate the price for orders which will be processed from the beginning of December.
“Secondly, it’s time for us to think long term. The increase in cost and wage are unavoidable, and we cannot compete in certain product categories if costs continue on this upward trend, no matter how efficient we are,” he added.
He urged local garment suppliers to find new opportunities, underlining the need for constant improvisation, innovation and diversification into items that match the sector’s cost and competitive trajectory.
He added that there was no alternative to investment in machines, technology and skills.
“We need to find ways to optimise costs, trade off investments in technology with resource use and reduce wastage,” he added.
The BGMEA also urged the government to take appropriate measures to control inflation and to bring its workers under a special safety net programme including food rationing.
“We appreciate our buyers and development partners for their support and we urge them to find more areas to support us in ensuring the wellbeing of the workers. We are passing through a turbulent time but it’s not new to us.”
Source: The Daily Star
