Bangladesh garment industry - case study

Bangladesh garment industry - case study

1. Competes with other countries like Vietnam & China.

2. Opened up working opportunities for women (3m)

   • A series of protests in 2010 meant an increase in minimum wages.
     • Support also from garment workers in Mexico!
     • Helped by support from foreign-based NGO's (Action Aid).
       • 'Western companies can afford to pay the higher wages'.

3. Established in the 70's.

   • By 2009, garment exports=80% of all exports, mainly to Europe & USA.
     • For retailers such as Zara, Wal-mart, H&M. M&S.

4. Global buyers place orders to firms - who then can outsource work to complete these orders.

   • These international buyers govern parts of the value chain.
     • Setting specific product requirements.
     • Following international labour regulations.
     • Ban on child labour.
       • The Bangladesh Garment Exports Manufactures Association, UNICEF, the ILO (International Labour Org) collaborate to ensure ban on child labour.
     • Enforcing good working conditions.
       • From 2010, factories not adhering to standards were not being used again.
         • Checks being made by independent auditors.
       • Lots of NGO's & retailers coming together to help improve these.