|Bangladesh Garment Factories Going Bust|
|by Tom McGregor||Sun, Apr 13, 2014, 11:50 PM|
As global NGOs forced Bangladesh garment factories to implement higher wages and safety precautions for sweatshop workers, the local garments' industry is now going bust, and Western clothing chains are refusing to foot the bill.
Reuters reports that, "Bangladesh garment factory owners say they are soaking up much of the cost of nearly doubling wages as some global retailers balk at price hikes, leaving less money for safety improvements urged by chains after last year's Rana Plaza disaster."
Muzzafar Siqqique, CEO of Dhaka-based Clothing company, Simco Group, is quoted as saying that, "I approached one of my Western buyers to raise prices, and the relevant company said, 'It is your and you have to manage it ... you cannot slip it to us'."
According to Reuters, "The task of coping with a 79 percent increase in the minimum monthly wage to $68 (40.63 pounds), imposed last December at the urging of some chains, comes as competition intensifies among emerging markets producing garments for stores like Walmart and Zara. That is squeezing sales in Bangladesh's main export industry."
Higher wages have caused garment factories to manufacture clothing without earning profits. Clothing companies are shifting their operations to India, Vietnam, Indonesia and Cambodia.
To read the entire article from Rueters, link here:
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