A high-level delegation from the American Apparel & Footwear Association (AAFA) and the Fair Labor Association (FLA) visited the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Tuesday. The visit aimed at discussing workers’ rights issues and exploring ways to enhance the partnership between the US and Bangladesh in the readymade garment (RMG) sector. The BGMEA delegation, led by Administrator Anwar Hossain, engaged in discussions with the AAFA and FLA representatives. Members of the BGMEA Support Committee — Miran Ali, Asif Ashraf, Rezwan Selim, ANM Saifuddin, Shehabudduza Chowdhury and Shams Mahmud accompanied the administrator. The meeting highlighted opportunities of cooperation in fostering a more sustainable and ethical RMG industry in Bangladesh while strengthening trade relations with the United States. They discussed elaborately the issues of workers' rights, workplace safety, labour law and reforms in Bangladesh. Read: Bangladesh Bank extends import bill payment period to 360 days Several key areas, including increasing trade access for Bangladeshi apparel in the US market, promoting responsible purchasing practices, and the industry’s impressive progress in sustainability initiatives got due importance in the meeting. The delegation also explored potential collaborations in workers’ training programmes and initiatives to further enhance workers’ welfare in the RMG sector. During the meeting, the BGMEA urged AAFA, which represents over 1,000 globally renowned brands, retailers, and manufacturers, and FLA to promote responsible purchasing practices that benefit both buyers and suppliers. BGMEA also requested AAFA’s support in advocating for Bangladesh’s trade interests in the US market, ensuring continued growth and mutual benefit. The delegation appreciated Bangladesh’s progress in workers’ rights and the government’s initiative of forming the labour reform commission and labour law reforms. Read more:Bangladesh's RMG exports reach $38.48 billion in 2024, with strong growth in non-traditional markets The delegation included Nate Herman, Senior Vice President - Policy, American Apparel & Footwear Association; Shelly Han, Executive Vice President and Chief of Staff, Fair Labor Association; Ismail Murad, Manager - Corporate Social Responsibility | Bangladesh & Jordan, Columbia Sportswear Company; Kate Miller, Social Impact Manager, KMD Brands Limited; Tayob Muhammed, Head of Finance/HR, Bangladesh, Perry Ellis International; Stella Mondol, Social Compliance Officer, Bangladesh, Perry Ellis International; Viola Wan, Director of Social Sustainability, Puma; Md. Mostafizur Rahman, Manager of Social Sustainability, Bangladesh, Puma; Moyeen Chowdhury, Branch Manager - Apparel & Accessories, Bangladesh, Puma; Bushra Baten, Manager - Corporate Responsibility, Bangladesh & Pakistan, PVH; Jessica Nursoo, Regional Director - South Asia and Indonesia, VF Corporation; Tiffany Rogers, Director - Innovation and Development, Manufacturing, Fair Labor Association; Chaimae Azmi, Fair Compensation and Member Engagement Manager, Fair Labor Association; and Hannah Larson, Social Compliance Associate, Fair Labor Association.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has written to President and CEO of American Apparel & Footwear Association, Stephen Lamar, seeking support in terms of responsible purchasing practices. “To ensure uninterrupted and smoother operation in the industry, it is important that prices of all goods which will be shipped from 1 December, 2023 are duly adjusted/ up-charged covering the increment in wage component,” BGMEA President Faruque Hassan wrote. The American Apparel & Footwear Association (AAFA) is a national trade association representing apparel, footwear and other sewn product companies, and their suppliers, which compete in the global market. From now onward, the BGMEA president said, all business negotiations and deals will have to be made adhering to the new minimum wage policy. Read: Owners are free to close their garment factories until vandalism ends: BGMEA “Therefore, I would humbly request you to kindly pursue the AAFA members to collaborate with their Bangladeshi suppliers with due empathy and consideration,” the BGMEA chief wrote in his letter. “With every effort and action we take, we mean to complement our long term goal, which is to grow mutually and sustainably. We are working with our government relentlessly to ensure more favorable environment for business,” Faruque said. “You are following the improvements made and progress by the government to create better infrastructure and policies supporting envisioned growth and efficiency. I am sure with your continued support and collaboration we will continue to thrive," said the BGMEA President. In his letter to Lamar, the BGMEA chief said the minimum wage in 2023 for garment workers was declared by the government on November 7. Read: BGMEA provides financial assistance to families of deceased workers The declaration was made based on the proposal submitted by the Minimum Wage Board, and was widely consulted and agreed by the stakeholders including workers’ and employers’ representatives, he said. As per the new minimum wage, the gross minimum monthly wage of the 7th grade workers has been set at Tk 12,500, equivalent to around USD 113.63 – a 56.25 percent increase of the gross wage while the basic wage has gone up by 63.41 percent. The new minimum wages comes at a time when the global economy is going through an unprecedented situation, so is Bangladesh’s economy, said the BGMEA chief. “The RMG industry in Bangladesh is feeling the heat of this crisis, especially with soaring inflation, all our input costs have increased significantly including fuel, gas, electricity, transportation,” he said. Read: BGMEA ready to implement new pay structure govt announces by Dec: BGMEA President From the first of July this year, Bangladesh Bank has increased interest rates which made trade and investment finance more costly. “You are aware that since 2013, the industry had to make a huge investment to ensure international standard workplace safety, which we have done diligently despite all the difficulties,” he wrote. “Now to align with global climate action agenda, our factories are making further investment to reduce GHG emission and be more resource efficient. Not only that, for ensuring workplace safety, comfort for our workers and to reduce fatigue, factories are upgrading machine, process and production method,” said the BGMEA president. “Through all these efforts, Bangladesh has emerged as a reliable, sustainable and one of the most preferred sourcing destinations,” Faruque said, adding that all these initiatives and investments have impact on the business, in relative and absolute term. Read: BGMEA seeks NBR support to sustain RMG industry's global competitiveness amidst ongoing challenges “Now, with the increase in the minimum wages, this industry has taken the challenge to ensure better living standards of the workers while maintaining competitiveness,” he said. The raise in the minimum wage, especially 63.41 percent raise in the basic wage, leads to higher benefit for the workers in terms of overtime benefit, earned leave encashment, festival bonus and other allowances, Faruque said. “The implementation of the new wage structure would exert a huge financial impact on the factories. This will be challenging for many of our factories to implement the new wage in the current economic and financial circumstances,” he wrote in the letter. However, Faruque said, ensuring decent living standards of the workers is a top priority for them, as well as for global brands and retailers. “Since we have accepted the new minimum wage, we will ensure implementation of it, and we need your support in terms of responsible purchasing practice,” the BGMEA president wrote in the letter to the CEO of American Apparel & Footwear Association.