Profits of the tannery and textile companies were affected the most amongst that of all listed companies for the Covid-19 pandemic as their main period for sales was hit.
Many Bangladeshi factories supplying to international brands consolidated their businesses and some went under
The global pandemic meant the Bangladesh garment industry was hit by the closure of markets, suspended shipments, delayed payments and pay cuts, a new report has found, which offers recommendations for brands, unions and the government going forward. The Weakest Link in the Supply Chain – How the Pandemic is Affecting Bangladesh s Garment Workers , prepared by the Institute for Human Rights and Business (IHRB) and the Subir and Malini Chowdhury Center for Bangladesh Studies at the University of California Berkeley, claims Bangladeshi workers suffered an effective 35% pay cut during the lockdown month.
Bangladesh workers suffered what was in effect a 35% pay cut during last year s lockdown month
With Bangladesh s second lockdown currently underway, new research offers recommendations on how brands and supply chains should respond to ensure the well-being of workers in the country s garment industry.
The research by the Subir and Malini Chowdhury Center for Bangladesh Studies, UC Berkeley in collaboration with the Institute for Human Rights and Business (with support from UNDP Bangladesh and the Government of Sweden) includes surveys with senior brand executives and apparel suppliers.
And the resulting report,
The Weakest Link in the Global Supply Chain: How the Pandemic is Affecting Bangladesh s Garment Workers, finds workers in bangladesh s garment industry are the most vulnerable to Covid-19 fallout
Pandemic ruins lives of helpless Bangladeshi garment workers
Catholic official accuses factory owners of using Covid-19 as an excuse to exploit workers and violate their rights
Workers sew clothes at a garment factory in Bangladeshi capital Dhaka. A recent survey revealed that millions of garment workers have suffered job losses or pay cuts during the pandemic. (Photo: Stephan Uttom/UCA News)
Five years ago, Ripa Costa moved to Ashulia, an industrial hub about 20 kilometers from Bangladeshi capital Dhaka, with her husband and son to take a better-paying job in a garment factory.
The 32-year-old Catholic mother, who hails from Our Lady of Lourdes Church in Bonpara in Natore district, has been a garment worker since 2009. Her husband runs a tea stall to support the family.
Mainstreaming human rights in business to protect workers’ rights
A study led by the Centre for Policy Dialogue (CPD) revealed that more than 3,50,000 workers in the RMG sector have lost their jobs during Covid-19 pandemic while most of the workers have been laid off without proper compensation. A staggering official record is of 56372 workers being laid off. The report also finds that the high rate of retrenchment was occurred in small factories amounting to over 10% of total work force.
According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), at least 70,000 workers have been terminated in garment factories since April 2020. As per Bangladesh Garment and Industrial Workers Federation, 150,000 workers have already lost their jobs and termination occurs every day. The Penn State Center for Global Workers Rights has found that more than a million Bangladeshi apparel workers got laid off while 72.4% of them were sent home without pay.