Global Buyers Urge Improved Labor Conditions in Bangladesh’s Apparel Industry Amid Factory Suspensions

05 Nov Global Buyers Urge Improved Labor Conditions in Bangladesh’s Apparel Industry Amid Factory Suspensions

Global buyers sourcing apparel from Bangladesh are calling for enhanced law and order and improved labor conditions to fully capitalize on the country’s competitive advantages, such as high production capacity and low costs. At the Bangladesh Denim Expo, an unnamed international apparel representative emphasized the need for better labor relations and dispute resolution to address challenges in the industry. Recent suspensions of at least 30 garment factories in the Ashulia, Savar, and Gazipur industrial belts highlight the urgency of resolving labor grievances.

These factory suspensions, driven by demands for unpaid wages, annual pay increases, and additional allowances, underscore the importance of a constructive approach to labor issues. Despite these challenges, global buyers view Bangladesh’s apparel industry as highly competitive due to its capacity and cost benefits.

Bangladesh’s denim exports to the EU rose by 5.29% in early 2024, reaching $571.99 million, positioning the country ahead of Turkey and Pakistan in the European market. However, Bangladesh recorded a 4.30% decline in denim exports to the US, highlighting room for improvement in maintaining global market share.

Showkat Aziz Russel, president of the Bangladesh Textile Mills Association, noted that Bangladesh’s textile sector can produce 55 million yards of denim monthly, provided consistent gas supplies are maintained. With strong interest from international buyers and substantial investments in infrastructure, Bangladesh’s garment industry is well-positioned for growth, contingent on addressing labor issues and sustaining buyer confidence.