BKMEA leader slams US threats of sanctions over labour rights

The United States lacks the moral rights to impose trade sanctions on Bangladesh concerning labour rights issues, said Mohammad Hatem, executive president of BKMEA, on Wednesday.

"If any political actions are contemplated against the country, they should be handled through diplomatic means," he said during a roundtable discussion at the National Press Club in Dhaka.

Hatem highlighted that, while the US frequently discusses labour rights and the trade union issue, it's important to note that the trade union matter was deliberated upon in the ILO Convention, a commitment ratified by Bangabandhu in 1974.

However, notable countries such as the US, China, India, and Bangladesh's competitive garment-producing counterpart, Vietnam, have not yet ratified this convention, he added.

"Among the eight core fundamental conventions about workers' rights, America has only signed two, whereas Bangladesh has endorsed all," said Hatem, emphasising the differing levels of commitment to international labour standards between Bangladesh and these influential nations.

The executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) questioned America's moral standing in discussing labour rights issues.

He emphasised that there is no justification for imposing trade sanctions or raising duties under any circumstances. However, if the US decides to take any political steps, Bangladesh will need to address the matter diplomatically. "As entrepreneurs, we pledge our support to the government during this process," he added.

Addressing the United States' concerns, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan clarified, "We have not breached any labour laws, and we are committed to ensuring compliance to prevent any such violations."

He emphasised that there is no justifiable cause for trade sanctions relating to labour matters.

The BGMEA president also mentioned that eight US Congress members forwarded a letter to their apparel and footwear importers' associations, urging member brands to raise clothing prices.

"This request was prompted by the new wage structure in Bangladesh, where wages have been increased by 56%," he said, adding, "Now that we have to augment wages, it is the responsibility of buyers to adjust product prices accordingly."

Faruque Hassan said, "We were concerned that 2023 would not be good because the situation in Russia-Ukraine has not yet ended. Consequently, price inflation is hiked, and consumers' purchasing power decreases," he said.

To control price inflation, every buyer country has increased interest rates; as a result, the business growth of every country in the world turns negative.

"Despite all challenges, we are capable of keeping export growth on a positive trend and will make the highest efforts to keep it that way in the future," he asserted.

"We are working on a $100 billion export target, where reducing interest rates is necessary to minimise the cost of funding," he added.

Engineer Md Shafiqur Rahman, president of the Institution of Textile Engineers and Technologists, mentioned that there has been significant progress in the apparel industry since the collapse of Rana Plaza.

"Our labour rights have improved. All the amendments to labour laws have been in favour of workers," he added.

Engineer Rahman mentioned that the industry is doing well to achieve export targets. The apparel sector is gradually expanding.

"Competing countries like India, Pakistan, China, and Vietnam are behind us. However, when I see cautionary news in newspapers, it creates concern. Labour unions are sometimes misled. Despite providing a 5% annual increment to workers, we always want our workers to be well," he added.

Shyamal Dutta, general secretary of the National Press Club and editor of the daily Bhorer Kagoj, presided over the event, while Dhaka University professors M Abu Yusuf and Subodh Devnath, Masco Group Executive Director ATM Mahbubul Alam Chowdhury Milton, Esquire Knit Composite Chief Executive Officer Debashish Kumar Saha, BGMEA Standing Committee Chairman (Trade Fair) Md Kamal Uddin, and Bangladesh National Garments Sramik-Karmachari League General Secretary Ruksana Akhter, among others, spoke.