RMG automation leads to 30.58% decline in workforce: Study

Automation in Bangladesh's ready-made garment (RMG) sector has led to a 30.58% reduction in the total workforce across production processes, with helpers being the most affected group, according to a recent study.  

The report revealed that automation, despite its positive impacts on economic growth and overall productivity, has also posed significant challenges to RMG workers, particularly impacting women, older individuals, those with lower literacy, unskilled laborers, and workers with low confidence.

The study, conducted by Solidaridad Bangladesh, Labour Foundation, and BRAC University, was presented during a dissemination ceremony held today at Hotel Amarillo in the capital.

As per the report, titled "Assessment of Technological Transition in the Apparel Sector of Bangladesh and Its Impact on Workers", the sweater factory sector saw the highest percentage of worker decline, with a 37.03% reduction per production line. Woven factories followed with a 27.23% decline. 

Among specific production processes, automation in cutting led to a 48.34% drop in workforce, while sewing recorded a 26.57% decline.

According to the study's executive summary, the reduced need for workers due to automation raises critical concerns about the concept of "just transition".

At the ceremony, Shahidur Rahman, professor at the Department of Economics and Social Sciences at BRAC University, presented the keynote address, mentioning that the research was conducted by BRAC University with the support of the Solidaridad Network Asia, between August and October 2024. 

The research utilised mixed methods – surveys of 429 workers from Dhaka, Gazipur, and Narayanganj, key informant interviews (KIls) with 26 stakeholders and four focus group discussions (FGDs) with workers, he added.

Addressing the event, BGMEA Support Committee member Miran Ali said worker efficiency in the RMG sector has been affected by external inefficiencies such as power shortages, port congestion, and road traffic.

Stating that worker efficiency will be higher than the current level, if these issues are addressed, he said, "We should work to improve these inefficiencies so that workers do not suffer as a result."

"The industry will not fully embrace automation, but there is potential to adopt partial automation, which can help improve worker productivity and health safety.," he added.

Additionally, Miran Ali suggested the government should focus on introducing automation not only in production processes but also within its own bodies, including the labour ministry, to enhance overall efficiency in the sector.

At the event, Sultan Uddin Ahmed, chairman of the Labour Reform Commission, said the automation process has already been started. "Now, it is time to think about how to cope up with the process and become competitive among peer countries."

"So, we need proper planning as a step of our preparation how many workers we can retain in this sector," he added

"It won't be fair that our workers would not be able to cope up with machines [automation]. Rather, we have to take preparation on how to utilise the existing workforce," he further said.

Speaking as the chief guest, AHM Shafiquzzaman, secretary of the labour and employment ministry acknowledged that avoiding automation is not an option if the RMG sector is to remain competitive globally.

"If we don't embrace it, their country will suffer. The RMG sector will suffer," he said.

He also called upon the workers to keep with the pace of automation.

The labour secretary further mentioned that his ministry plans to establish an "Employment Department" to better align labour market demand and supply.