BUFT Journal of Business and Economics

Investigation on Compliance in Ready-made Garment Factories in Bangladesh

Graduate School of Policy Science, Ritsumeikan University, Japan
Email: ps0424ki@ed.ritsumei.ac.jp

Abstract

Purpose: The objective of the study is to examine the compliance situation of Bangladesh's ready-made garment (RMG) factories. Methodology: For the analysis, survey data was collected from 88-export oriented RMG factories in Dhaka, the capital city of Bangladesh, and surrounding districts, including Gazipur and Narayanganj. Two workers from each factory were interviewed to explore the factory’s compliance status. The interviews took place from August to September 2019. The survey questionnaire used the main questions from the compliance assessment tool developed by the International Labor Organization, which contains various issues in compliance with international standards and national legislation. Findings: The study found that Bangladesh's RMG factories' compliance situation, especially the working environment, is improving. However, a highest level of non-compliance has been found in some areas such as trade union issues, payment of overtime, voluntary overtime issues, regular working time, leave facilities, and so on. Hence, significant improvement in these compliance issues is necessary. Limitations: This study has focused on the compliance issues of RMG factories from the workers' perspective. Hence, there is a scope for further study to measure the compliance situation of the RMG factories from the viewpoint of stakeholders. Practical Implication: This study discloses significant aspects of the compliance status of Bangladeshi RMG factories. The findings will provide inputs for policy design aimed at improving the factories’ compliance situation with the international standards. Originality: This study is particularly focused on compliance issues by using ILO formulated assessment tools and one of the studies in the area of Bangladesh RMG factories.