Meeting With Accord
Owners seek time, fund for RMG factory relocation
Garment factory owners has sought five years to shift their production units from shared and rented buildings after a platform of European Union retailers asked them to relocate their units soon due to safety concern. At a meeting with the representatives of EU Accord on Sunday the factory owners said that the demand for prompt relocation of the factories from shared buildings was unrealistic.
They said the owners agreed to ensure workplace safety and to shift their units from shared buildings but they needed time and fund.
The factory owners, at the meeting at the BGMEA auditorium in the capital, demanded that Accord should provide the fund it promised to give to remove safety problems in the country’s RMG units.
‘We agreed to fulfil all the safety-related requirements of retailers including factory relocation subject to availability of fund and time,’ Bangladesh Garment Manufacturers and Exporters Association vice-president Shahidullah Azim told New Age on Monday.
He said that the factory owners demanded five years time for relocation of their units which are situated in the shared and ranted buildings.
The EU Accord announced its five-year plan on fire and building safety assessment on July 8 last year, he said.
Shahidullah said the retailers did not make any comment over the factory owners’ demand, they only said that they would discuss the issue in the meeting of their platform.
Sector leaders said a number of renowned European and American brands like H&M, Gap, Walmart and JC Penny had recently announced to pull out their business from the factories which are located in the commercial buildings.
Since the Rana Plaza building collapse, big buyers are not placing their orders to the garment factories located in shared or rented buildings and putting pressure to relocate those units.
Apparel exporters said that they agreed to shift their units which are located in vulnerable buildings but pulling out business by the retailers before carrying out safety assessment was unrealistic.
According to the BGMEA, 55 per cent buildings accommodating garment units are industrial purpose-made and 45 per cent buildings are shared and rented.
The number of BGMEA-listed factories stands at 5,674, while running factories are 3,500. About 2,000-2,200 units have taken utilisation declaration from the BGMEA. Of the 2,000 factories registered with the BKMEA, 800-1,000 units have taken UD from the trade body.
Reaz-Bin_Mahmood, another vice-president of the BGMEA, said that the retailers at the meeting did not set any timeframe for the factory owners to shift their units from shared buildings but urged for quick relocation.
‘We have requested them to refrain from withdrawing orders from the factories located in shared buildings as relocation is not possible overnight,’ he said.
To relocate the units from shared buildings, owners will have to consider the compliance of new factory building, availability of workers in new place and connection of gas and power, Reaz said. ‘So time and fund are key factors for relocation.’
He said that the EU retailers also imposed some ‘unexpected’ conditions like installing auto sprinkler in the factories which would be tough to meet by most of the owners.
-With New Age input
