Report

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Chapter 1: Introduction

1.1 Background of The Study

The Bangladeshi garment sector is a leading garment manufacturing industry in the world

that has been growing constantly during the last decades. According to the WTO,

Bangladesh is the fourth greatest exporter of clothing in the world, its share being 4.8% of

the total (data from 2014). In the fiscal year 2013-2014, the garment sector accounted for

78.6% of Bangladeshi total exports (BGMEA, 2014), bringing 23 billion US dollars into

the country and contributing to more than 13.5% of the total gross domestic product.

These numbers, a testimony of the importance of this sector for Bangladesh and its citizen

- 150 million of people - are certainly impressive, however, what is really astonishing is

the rate at which this industry has grown. After the independence war (ended in 1971),

the economy of the country was shattered and the industrial sector was practically non-

existent. The first investments in the garment sector arrived in the early 80s from Korea

and since then the industry have been exponentially growing year after year. To grasp the

size of this growth, consider that in 1984–1985 the total number of garment factories in

Bangladesh was of 384, while in 2011–2012 this number spiked to 5400 factories,

employing a total of 4 million workers. Most of exports are directed towards western

countries, mostly towards Europe (60%) and US (24%). Emerging markets such as

Russia, China and Brazil still don‟t account for much of the total export (10%) but their

share it‟s rapidly growing (20% increase from the 2011-12 period to the 2012-13 one).

A peculiarity of the Bangladeshi garment sector is that it specializes on ready-made

garment (RMG). A type of good that intrinsically leads to low margins of profits and

whose production does not require highly trained workers. Because of the latter,

Bangladesh, with its cheap labour force, attracted investments in the RMG sector.

However, cheap labour often means poor working conditions. It is undeniable that the

conditions in which the millions of people employed in the garment sector work are

unsatisfactory. This fact is particularly evident when thinking about recent tragedies such

as the Tazreen Fashions fire (2012) and the Rana Plaza collapse (2013), in which more

than a thousand people lost their life. Nonetheless, aside from these extreme examples,

poor working conditions are an everyday problem of RMG workers. The issues that

employees face encompasses a wide range of topics, such as workplace safety, working

hours, wage, job security, gender equality, child labour and so and so forth. What all these

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issues have in common is their being a consequence of non-conformances to the existing

legislation and to the rules of social accountability, that is, of lack of compliance.

In this era of competition it‟s the people who make all the difference. In readymade

garments (RMG) sector human resources play a vital role. And managing people to make

difference is not an easy job. That‟s why in this study I would like to share my experience

after working with HR department of a RMG company named Hannan Fashion Ltd. In

internship my project was in a broader perspective HR management of Hannan Fashion

Ltd.

1.2 Statement of The Research Problem

The research will mainly focus on the reoccurring and concerning issues in the garment

industry of Bangladesh. The problem to be dealt and studied in this research is to identify

and assess the compliance issues in garment sector of Bangladesh based on the

experience of working in Hannan Fashion Ltd.

1.3 Objectives of The Study

Board Objective:

To provide an overview of human resource compliance issues in Garments Sector of

Bangladesh

Specific Objectives:

To identify the legal provisions regarding human resource compliance issues in

Bangladeshi & International laws

To determine compensation Practices used in Hannan Fashion Ltd.

To find out other human resource compliance issues maintained in Hannan Fashion

Ltd.

To assess and compare the acceptance of compliance practices of Hannan Fashion

Ltd.

To suggest some options to be improve effectiveness of Compliance Practices of

HFL

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1.4 Scope of The Study

The scope of the research is not limited in great extent. The report will focus on general

conditions and legal provisions regarding human resource compliance issues prevailing in

the context of garments sector of Bangladesh. The report will represent all the

experiences of observing the practices of Hannan Fashion Ltd.

1.5 Limitations

The problems that may be faced in completing this study are given below:

At first, there may be a scarcity of required data. Sometimes, data may not be

found in needed format.

In some cases, it will take a long time to make conversation with officials because

they are quiet busy.

Lack of access to statistical data may be appeared due to confidentiality.

This type of organization is rigid to reveal the data associated with the employment

policy and labor relations As a result, it may became hard to collect and analyze

data required in this study.

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Chapter 2: Methodology

2.1 Research Design

In order to deal with the problem of the study and fulfill the objectives, a suitable study

plan is need to be chosen. This study plan includes discussion of theoretical and literary

framework to determine the factors to be studied and then these factors are to be analyzed

as per the data regarding international & national laws and real picture in Hannan Fashion

Ltd. collected by using different tools and techniques.

2.2 Population Details

This research data will be collected from a survey study of all 12 staff and officials in the

HR & Compliance Department of Hannan Fashion Ltd. by using various research

techniques.

2.3 Methods and Tools of Data Collection

The required data are expected to be gathered from various sources. The concerned

sources can be discussion with managers and officials of HR & Compliance Department

of HFL, various documents & certificates of HFL, journals and websites to collect data

labor court law and other national laws regarding human resources compliance issues and

various international provisions in this regard.

The data will be collected by observing the functions of HR & Compliance Department,

using a questionnaire of 10 questions to be answered by all officials of HR & Compliance

Department of HFL and retrieving different websites.

2.4 Data Processing and Analysis

The studied data will be processed, analyzed and presented by applying different

analytical tools and techniques. Initially, some basic mathematical operations are to be

performed to convert the raw data from the depth interviews into meaningful information.

The findings of the questionnaire and observation will be subsequently analyzed and

compared with overall national and international dimensions with various types of

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graphical models e.g. Pie Charts, Bar Diagran, Tables etc. Finally, subjective judgments

will be used to offer recommendations based on analyses and findings.

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Chapter 3: Organizational Profile

3.1 Introduction

The journey of Hannan Fashion Ltd. started February 1998. Hannan Fashion Ltd.is a

Bangladesh based company with corporate office in Gazipur, Bangladesh operating under

Bangladeshi management with a team of experienced local Bangladesh employees, our

company shipment over 1.2 million pieces of clothing per year all over Europe, USA and

Japan

Hannan Fashion Ltd. can help you to oversee and control your already existing

production or if needed, help you to establish production through our existing network of

Manufacturing Unit.

3.2 Ultimate Goals of the Organization

To develop fashion and implement as per your requirements

To provide the quality as per you requirements.

To implement the lead time and ensure to reaches the product on time.

To ensure the low price but obviously maintain quality.

To ensure human rights and worker rights by maintaining the Rules and

regulation of the buyers demand.

To operate various research, training, survey program, seminar, and

symposium for improve the quality of product.

To motivate worker of the garments by providing appropriate

remuneration.

To implementing development in the manufacturing process of cut and

sew garments

3.3 Offices & Sourcing

Hannan Fashion Ltd. has operations from the most modern premises available in Dhaka.

Our office is equipped with all the modern means of communication such as e-mail,

overseas phone and fax capabilities.

We are the strongest sweater manufacture to source & handle fancy yarn; we are importing yarn

from different province of China, Taiwan, Korea, India, etc. Natural fiber, man-made fiber,

different qualities blended fiber etc. Our Designer participates in different yarn exhibition to see

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the trend idea & colors of Autumn/Winter & Spring/Summer at different time of the year. We

also visit European fairs for trend ideas & do a lot of shopping across USA, EUROPE & JAPAN.

We invest energy & several million USD on sweater yarn research & development to

make trendy sweater collection so that we can bring latest collection to our customers.

3.4 Organogram

Below structure broadly illustrates the hierarchy layout and operational responsibilities of

the Board and the Leadership teams of Hannan Fashion Ltd. .

Figure 3.4.1: Organogram of Hannan Fashion Limited

3.5 Production Units

Our self-owned factory was engineered and purposely built for maximum efficiency in

production, consisting of five floors of each 20000 sqft (Approx.).

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Ground Floor

Ware House

Office & conference room

Sample Room

Winding

First Floor

Washing Unit

Finishing section

Inspection Room

Second Floor

Knitting Inspection

Linking section

Knitting Neck

Trimming /Mending

Overlock/Bartack/Light Check

Third Floor Knitting section (12 gauge, 7 gauge)

Fourth Floor

Knitting Section (5 gauge)

Day care center / Dining Room /Prayer Room /Doctors Room

All the working floors are well ventilated and clean with normal and emergency exits. we

are self-equipped with 900 KVA generator power to meet all our in-house demand

3.6 Products

Men‟s Pullover, Women‟s Pullover, Junior‟s Pullover

Men‟s Cardigan Women‟s Cardigan Junior‟s Cardigan

3.7 Customers

ESPRIT of Germany

STREET ONE of Germany

ERNSTINGS FAMILY of Germany

KATAG of Germany

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MQ of Sweden

LINDEX of Sweden

KAPPAHL of Sweden

EL CORTE INGLES of Spain

BEST SELLER of Denmark

CELIO OF FRANCE

3.8 Equipment

Table 3.4.1: Equipment available in Hannan Fashion Limited

Equipment type Brand Country Quantity

Jacquard machine ( Multi guage (7-14 ) Shima Seiki Japan 20 nos

Winding machine (spindle) 10 set (120

spindle)

Knitting machines:

3.5 gg

5 gg

7 gg

12 gg

Flying tiger Taiwan 200 sets

150 sets

250 sets

200 sets

Linking machines:

5 gg

6 gg

8 gg

14 gg

Flying tiger Taiwan 12 sets

48 sets

120 sets

100 sets

Sewing machine Juki Japan 18 sets

Overlock machine Juki Japan 12 sets

Button hole machine Juki Japan 04 sets

Button stitch machine Juki Japan 04 sets

Flat lock machine Juki Japan 04 sets

Checking lamp 10 set

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Boiler (470 kgs/hr) Fulton USA 02 set

Automatic washer (capacity 105 lbs) Flying tiger Taiwan 04 set

Hydro extractor (capacity 114lbs) Flying tiger Taiwan 02 set

Dryer (capacity 80 lbs) Flying tiger Taiwan 06 sets

Stem iron Flying tiger Taiwan 42 sets

Water pump & motor Fulton USA 02 Set

Heavy duty water pump Fulton USA 02 Set

Fiber glass water softener Fulton USA 02 Set

Computer 20 Set

Generator (450 kva) 02 Set

Source: Company Profile, 2015

3.9 Employees

Section Number of Employees

Jacquard section 30 persons

Winding section 75 persons

Knitting section 600 persons

Linking section 200 persons

Overlock section 20 persons

Trimming section 80 persons

Lightcheck section 45 persons

Mending section 60 persons

Washing section 35 persons

Ironing section 100 persons

Sewing section 75 persons

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Quality control 40 persons

Packing section 45 persons

Office staff 25 persons

Other 30 persons

Total employees 1460 persons

3.10 Certificates

Figure 3.4.2: Hohenstein Textile Testing Certificate

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Figure 3.4.3: Certificate of ISO 9001:2008

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Chapter 4: Literature Review

4.1 Elements of Compliance System

Compliance is the Certification or confirmation that the doer of an action (such as the

writer of an audit report), or the manufacturer or supplier of a product, meets the

requirements of accepted practices, legislation, prescribed rules and regulations, specified

standards, or the terms of a contract.

A definition is given by Baral (2010) “Compliance means to comply with something or

yield to the wishes of another. Compliance ensures all labor rights and facilities according

to the buyer code of conduct. The aim of compliance is to maintain strictly the labor law.”

Figure 4.1.1: Compliance Issues formulated by ILO

Source: ILO website, 2015

4.2 Provisions in National Laws

There are some laws such as BGMEA Code of Conducts, Labor Court Law 2006

and so on regarding human resource compliance issues in Bangladesh. The

common features and provisions of those laws are summarized below:

4.2.1 Employment standards

An employee or “labour” is defined as any person, including a

trainee/probationer, whether the terms and conditions of his/her

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employment are expressly written or not, who is employed directly or

through a contractor/agency, for any skilled, unskilled, physical, technical,

business development or clerical job in any establishment or industry.

Retirement age for workers employed in any establishment is 57 .

Work hours are set at eight hours a day, 48 hours a week, with a weekly rest

day.

Overtime (OT) work is maximum of two hours a day. OT pay is twice the

hourly remuneration.

Workers are entitled to rest and meal in a day as follows: (i) one hour

interval for over six hours work a day; (ii) half an hour interval for more

than five hour work; and (iii) one hour interval once or half an hour interval

twice for more than eight hours work a day.

Workers are entitled to holidays, casual leave, festival leave, annual leave

and sick leave.

Every worker has the right to participate in company's profits/benefits.

No young worker is permitted to work in any establishment between the

hours of 7 p.m. and 7 am.

No children (under 14 years of age) are allowed to work in any occupation

or establishment. However, a child who has completed 12 years of age is

permitted to do light work not harmful to his health, development and

education.

A „Minimum Wage Board‟ is established to determine the minimum rates

of wages in different private sectors, taking into consideration varied

criteria: cost of living, standard of living, cost of production, productivity,

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price of products, business capability, and economic and social conditions

of the country.

Employers are mandated to observe equal wages for male and female

workers for work of equal nature or value.

Forced labour is prohibited.

Table 4.2.1 Fourth Minimum Wage Structure for Garment Workers

Grading ( Main Posts) Basic House rent Medical Net (40% of Allowance Salary Basic)

Grade 1: Pattern Master,

Chief Tk. 6,500 Tk. 2,600 Tk. 200 Tk. 9,300

Quality Controller

Grade 2: Mechanic, Tk. 5,000 Tk. 2,000 Tk. 200 Tk. 7,200

Electrician, Cutting Master

Grade 3: Sample Machinist, Tk. 2,870 Tk. 1,148 Tk. 200 Tk. 4,218

Senior Machine Operator

Grade 4: Sewing Machine Tk. 2,615 Tk. 1,046 Tk. 200 Tk. 3,861

Operator, Quality Inspector,

Cutter, Packer, Line Leader

Grade 5: Junior Machine Tk. 2,395 Tk. 958 Tk. 200 Tk. 3,553

Operator, Junior Cutter,

Junior

Marker

Grade 6: Operator of General Tk. 2,230 Tk. 892 Tk.200 Tk. 3,322

Sewing/Button Machine

Grade 7: Assistant Sewing Tk. 2,000 Tk. 800 Tk.200 Tk. 3,000

Machine Operator, Assistant

Dry washing man, Line Iron

Man

Source: Minimum Wage Board, 2010.

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4.2.2 Occupational safety and health

Establishments are required to put up for every 150 workers one first aid

box and one trained person per first aid box, and an equipped dispensary

with a patient-room, doctor and nursing staff.

Employers are required to take appropriate measures to protect workers

from danger and damage due to fire.

Every establishment is required to be kept clean and free from effluvia

arising out of any drain, privy or other nuisance.

The work room should not be overcrowded and injurious to the health of

the workers.

Every establishment should provide pure drinking water, sufficient light and

air, and separate toilets for its male and female workers.

4.2.3 Welfare and social protection

Gratuity is defined under the law as separation payment, at least 30 days,

for workers discharged from work and yet have worked not less than 6

months.

Factories are required to have an in-house canteen for every 100 workers.

Every establishment/employer is required to form a Provident Fund if three-

fourths of its workers demand it by written application, and a Workers‟

Participation Fund and a Workers‟ Welfare Fund for its workers.

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Establishments with 200 or more workers should institute a group

insurance. Every employer should provide compensation to its workers for

work-related injury, disability and death.

Various women‟s‟ issues are also covered: maternity leave of 16 weeks (8

weeks before and 8 weeks after child birth), no gender-segregated wage

structure, prohibition of any form of discrimination against women,

prohibition of women working between 10:00 p.m. and 6:00 a.m. without

consent, prohibition for women handling running or dangerous machines

(unless they are sufficiently trained to operate such machinery), prohibition

for women working under water or underground

4.2.4 Labour relations and social dialogue

Every worker employed in any establishment has the right to form and join

a trade union of their own choice. Trade unions have the right to draw up

their own constitution and rules and to elect their representatives. Also,

trade unions have the right to form and join in a federation and such unions

and federations have the right to affiliate with any international organization

and confederation of trade unions.

The trade union is allowed to serve as a collective bargaining agent in any

establishment.

In case of industrial disputes, the two sides can seek resolution through

negotiation, followed by conciliation and eventually arbitration if

negotiation fails.

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The collective bargaining agent is entitled to file a notice of strike (or

lockout in the case of the employer) with a 15-day cooling-off period.

Employers cannot recruit new workers during the period of a strike.

Employers are also prohibited in terminating workers in the course of trade

union organizing in the work place.

4.2.5 Enforcement

Government shall appoint the Director of Labour and “such number” of

Additional Director of Labour, Joint Directors of Labour, Deputy Directors

of Labour and Assistant Directors of Labour as necessary for monitoring

workplace activities.

The Government shall appoint a Chief Inspectors and requisite number of

Deputy Chief Inspectors, Assistant Chief Inspectors or Inspectors. These

officers have the power to enter, inspect and examine any workplace

premises and ascertain the observance of labour laws.

The Government has the power to establish as many Labour Courts as it

considers necessary. A Labour Court shall consist of a chairman and two

members (one representing employers and the other, the workers).

4.3 International Labour Standards

Globally a number of standards have been developed in order to help companies

address various aspects of CSR. These have included the ISO14000 series for

environmental management systems and related aspects, OHSAS18000 for

occupational health and safety, SA8000, WRAP (Worldwide Responsible Apparel

Production) and FLA for labour standards22. Beyond the standards are guidelines

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such as OECD, United Nations Global Compact, World Business Council on

Sustainable Development and GRI.

Regionally, there have also been some interesting developments, with perhaps the

most important one China‟s homegrown social responsibly standard for the apparel

sector, CSC9000T, launched in May 200523. Similar to SA8000 (i.e. a

management systems approach), CSC9000T was developed and will be

administered by the China National Textile and Apparel Council (CNTAC), a

national non-profit organization of all textile-related industries set up to help

modernize China's textile industry. It is based on the relevant Chinese laws and

international standards, but does not call for freedom of association and collective

bargaining and simply notes that the ACFTU is the legal representative of workers

in China.

As a response on the increasing pressure from stakeholders, many brand

companies have developed their own corporate code of conduct on social

responsibility. An OECD study in 2000 found 246 codes of conduct, 37 of which

applied to the textile and clothing sector. Some of companies also participate in

international standards like SA8000, ETI and FLA.

The major standards for workplace conditions in supply chains are SA8000 (from

Social Accountability International and for use in any manufacturing sector),

WRAP (for apparel) and a number of initiatives based on a membership model

such as the Business Social Compliance Initiative (BSCI), Fair Labour Association

(FLA, for apparel), Ethical Trading Initiative (ETI, based in UK and with member

companies across a number of sectors, particularly retailers), Worker Rights

Consortium (WRC, with membership based on US colleges and universities in a

range of manufacturing sectors but mainly apparel), the Clean Clothes Campaign

(CCC, a European NGO based on apparel production), and the Fair Wear

Foundation (FWF, based in the Netherlands and targeting apparel).

To bring together key organizations different aspects of code implementation and

enforcement in a program of collaborative work, the Joint Initiative on Corporate

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Accountability & Workers Rights (Jo-In) was established. Members of Jo-In are:

SAI, FLA, ETI, CCC, FWF and WRC.

The International Labour Organisation is a tripartite UN organization representing

governments, businesses and workers and has set up a legal and policy framework

for labour issues. The ILO has issued almost 200 conventions on working

conditions. Eight of these specify the fundamental labour rights:

Freedom of association and the right to collective bargaining;

A ban on forced labour;

A ban on child labour;

A ban on discrimination in the workplace and in professions.

Minimum Wages

The ILO conventions focus in particular on governments responsibilities with

respect to labour rights. The Tripartite declaration of Principles Concerning

Multinational Enterprises and Social Policy extends the ILO Conventions, listing

corporate responsibility with regard to labour issues and also including a number

of additional labour standards falling under the specific responsibility of

corporations. Most codes of conduct and social standards are based on these

conventions.

Table 4.3.1: Compliance of ILO conventions by different countries

Convention Forced labor Freedom of Discrimination Child labor Minimum

Association age

Number C.29 C.105 C.87 C.98 C.100 C.111 C.138 C.182 C.138

Rectification 1930 1957 1948 1949 1951 1958 1973 1999 1973

date

Bangladesh 1972 1972 1972 1972 1998 1972 2001

China 1990 1999 2002 16

India 1954 2000 1958 1980

Thailand 1969 1969 1999 2004 2001 15

Vietnam 1997 1997 2003 2000 15

Source: ILS, 2011

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Provisions in those international laws can be summarized as follows:

Child Labour: No workers under the age of 15; minimum lowered to 14

for countries operating under the ILO Convention 138 developing-country

exception; remediation of any child found to be working;

Forced Labour: No forced labour, including prison or debt bondage

labour; no lodging of deposits or identity papers by employers or outside

recruiters;

Health and Safety: Provide a safe and healthy work environment; take

steps to prevent injuries; regular health and safety worker training; system

to detect threats to health and safety; access to bathrooms and potable

water;

Freedom of Association and Right to Collective Bargaining: Respect the

right to form and join trade unions and bargain collectively; where law

prohibits these freedoms, facilitate parallel means of association and

bargaining;

Discrimination: No discrimination based on race, caste, origin, religion,

disability, gender, sexual orientation, union or political affiliation, or age;

no sexual harassment;

Working Hours: Comply with the applicable law but, in any event, no

more than 48 hours per week with at least one day off for every seven day

period; voluntary overtime paid at a premium rate and not to exceed 12

hours per week on a regular basis; overtime may be mandatory if part of a

collective bargaining agreement;

Discipline: No corporal punishment, mental or physical coercion or verbal

abuse;

Compensation: Wages paid for a standard work week must meet the legal

and industry standards and be sufficient to meet the basic need of workers

and their families; no disciplinary deductions;

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4.4 Compliance Practices in Garments Industries of Bangladesh

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has

formulated its own code of conduct for the industry, in collaboration with the

major trade unions, and has set up a compliance unit that monitors labor conditions

in its members' factories (UNIFEM 2008). In 2006, the Government passed a new

labor code, after 12 years of deliberation and activism. It applies to all workers,

and the new sections relevant to the garment industry include written contracts and

identity cards, timely payment of wages, revised minimum wage, paid maternity

leave and explicit laws against sexual harassment.

The export-quota system and the availability of cheap labor are the two main

reasons behind the success of the industry (Haider 2007). But unfortunately in

many RMG factories the labors are often seen being deprived of their rights.

According to Amin (2009), Coordinator of the Bangladesh Garment Workers

Unity Council (BGWUC), “The garment workers of Bangladesh may be the most

deprived labor force in the world. Most are paid between US$14 and US$16 per

month, the lowest salary in the world.” He also added “Only a few factories here

maintain international standards, and many of them do not implement any worker

health and safety measures.” The Financial Express (2008), a daily English

newspaper of Bangladesh, referred to a recent study conducted by a local think

tank that has revealed that investors in the RMG sector have more than doubled

their earnings in the past seven years. Despite this increase, however, it is a

remorse that many owners are not paying their laborers regularly and all sorts of

extraneous arguments are put forward for non-payment of their salaries. New Age

(2009), another prominent daily English newspaper, reported that the majority of

garment factories do not yet comply with many wage and workplace standards

specified in the tripartite agreement of 2006. At the global level, campaigns have

drawn attention to abuses of workers' rights in global supply chains and put

pressure on international corporations to take greater responsibility for employees

through corporate codes of conduct. Local employers in the Bangladesh garment

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industry must now demonstrate compliance with these codes to win orders from

international buyers (UNIFEM 2008). According to International Labor

Organization (2010), buyers make sourcing decisions based on four factors: price,

quality, how long it takes to get produce to the marketplace and social compliance,

including compliance with labor standards. In order to export readymade garments,

it is not only the quality parameters that are important towards acceptance of the

product as per the intended end use, but also the working environment, in which

the garments are to be produced, is equally important so that sweatshop concept is

totally taken care of and the code of conduct must be stretched towards achieving

the objectives of social compliance issues (Das 2008). Research showed that when

companies that dealt with foreign buyers adhered to codes of conduct, conditions

improved for the workers in the factories stated by (Mahmud) in one of her

articles. In some large factories, health and safety standards improved and other

benefits were introduced such as timely payment of salaries, proper overtime rates

and maternity leave.

The social dimensions of the RMG industry are getting more attention from

consumers, social workers, welfare organizations and brand name international

buyers. International buyers are very particular about compliance with codes of

conduct. Currently, many international buyers demand compliance with their

“code of conduct” before placing any garment import order. The factory working

environment is not very satisfactory.

So in order to sustain in the industry, Bangladesh needs to improve the factory

working environment and various social issues related to the RMG industry.

Informal recruitment, low literacy level, wage discrimination, irregular payment

and short contracts of service are very common practices in the RMG factories in

Bangladesh. People’s Daily Online China (2008) reported that the Bangladeshi

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caretaker government is to take stern action from August 1 against owners of

garment factories who failed to implement compliance issues like providing

minimum wage to workers. German Embassy (2010) stated that PROGRESS, a

joint project of the Bangladesh Ministry of Commerce and the German Federal

Ministry, has consequently turned its full attention to the area of social compliance

and assisting the government in the following areas: implementation of the new

labor law, media campaigns, training and retraining measures for compliance

inspectors, advisors, and the introduction of a new monitoring and evaluation

system. According to Hameeda Hossain, Convener of the Shromik Nirapotta

Forum, newspaper reports and statements by business leaders suggest that they

may now be willing to recognize genuine labor problems which is reflected by the

fact that BGMEA and BKMEA are reported to have conceded the need to revise

pay scales, issue employment letters, non-enforcement of overtime. The question

of safety conditions was also raised.