Give due recognition to garment workers - Chairman, SLAEA

by Gamini WARUSHAMANA

The negative perception of the public on garment sector workers has in joining created a situation where the younger generation is less interested in joining this industry, said the Chairman of the Apparel Exporters Association Rohan Abayakoon.

There are vacancies in the industry at operator level and we don’t think this is a result of remuneration. The garment industry is spread around the country with most of the factories in rural areas. It provides employment opportunities for rural women close to their home.

The contribution of the apparel industry to the national economy and the important role played by these workers have not been recognised by the nation and as a result they do not get due recognition and respect. Abayakoon said that the industry needs the support of the government to address this kind of issue in the industry.

The garment industry has a lot to offer. The Apparel Exporters Association has prepared a five year plan for the industry. Our main target is to increase the export revenue to $ 5 billion from $ 3.5 billion today. To achieve this target the industry needs the support from the government, he said.

Abayakoon said that the authorities should understand the importance of the apparel industry to the national economy although new opportunities and industries are emerging.

The apparel industry survived and grew during the most difficult period the country faced. With all security threats, the phase out of the Multi Fibre Agreement and even after the abolition of GSP+, the industry was resilient and survived. It is the largest foreign exchange earner and largest employer in the country.

The apparel industry can generate over 1,000 employment opportunities with Rs. 2-3 million investment but some sectors can only generate a few jobs even hundreds of millions are invested. We inject over US$ 100 million in to national economy every month. These facts are over looked when decisions are made, Abayakoon said.

Abayakoon said that up to now any negative impact of the abolition of GSP+ cannot be seen and this year export revenue of the industry may remain unchanged or less than a 5 percent drop compared to last year.

Earlier we anticipated a 15 percent revenue drop. Yet our order books are full and if there is an impact it will be visible around April next year.

However, the abolition of GSP+ made it difficult for the industry and in terms of cost there is a 9.6 percent gap to bridge. This is not easy. Fortunately other external factors created a favourable condition for us. China is experiencing cost increases while there is a capacity limitation in Bangladesh.

He said that the export development reward scheme introduced by the government in 2009 to face the global economic crisis negatively impacts on the apparel industry as they lost a lot of money to qualify for its criteria. A lot of factories had to cut their margins as a result. Rs. 16 billion is allocated for this reward scheme but the apparel exporters have received only Rs.1 billion to date.

He said that except for a few decisions budget 2011 is progressive and favourable to businesses. A lot of proposals presented by the apparel industry have been included in the budget.

The electricity tariff increase is a major issue and the apparel industry will have to face a serious problem. Based on usage it will increase our cost by 20-40 percent. The private sector pension scheme and gratuity payment upfront are other issues that will affect our cash flow, Abayakoon said.