compliance issues on bd gmt

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Page 1: Compliance issues on bd gmt

TO MY PRESENTATION

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Jahid Hasan ID- 131 536 041

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Study On Compliance Issues In BD Textile Industry

Presentation Topic

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Bangladesh has emerged as a key player in RMG (Ready Made Garment) sector since 1978. Textiles and clothing account for about 85% of total export earnings of Bangladesh. Out of which, 76% comes from the apparel sector which covers the major products of knit and woven shirts, blouses, trousers, skirts, shorts, jackets, sweaters, sports wears and many more casual and fashion items. The sector currently employs approximately 10.5 million workers, mostly females from underprivileged social classes.

Introduction

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Compliance means conforming to a rule, such as a specification , policy, standard or law. Compliance in a regulatory context is a prevalent business concern, perhaps because of an ever-increasing number of regulations and a fairly widespread lack of understanding about what is required for a company to be in compliance with new regulation.

COMPLIANCE

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Regulatory compliance     It describes the goal that corporations or public 

agencies aspire to in their efforts to ensure that personnel are aware of and take steps to comply with relevant laws and regulation

Statutory compliance    statutory compliance means you are following the laws 

on a given issue. The term is most often used with organizations, who must follow lots of regulations.

Types of compliance

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1. E.R.C 2. I.R.C 3. Factory Labor License. 4. Factory Layout Plan Approval. 5. Boiler Certificate. 6. Fire License. 7. Environment Certificate. 8. Chamber of Commerce & Industry Membership

Certificate.

List of essential License & Certificate For a Garments factory compliance in Bangladesh:

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9. Membership & certification of Bangladesh Garments Manufactures & Exporters Associate (BGMEA)

10. VAT Certificate. 11. Trade License. 12. EPB Enrolment Certificate. 13. TIN Certificate. 14. Bank Solvency Certificate. 15. Article of Memorandum. 16. Certificate of Incorporation. 17. BOND License & General BOND. 18. PDB Testimonial.

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A code of conduct is a set of rules outlining the social norms and rules and responsibilities of, or proper practices for, an individual, party or organization. Related concepts include ethical, honor, moral codes and religious laws.

Code of conduct

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Child labor Forced labor Health and safety Compensation Working hours Discrimination Free association and collective bargaining

Code of conduct

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WRAP is an independent, objective, non-profit team of global social compliance experts dedicated to promoting safe, lawful, humane and ethical manufacturing around the world through certification and education. The WRAP Certification Program is based on 12 Principles focusing on compliance with local laws, workplace regulations, universal workers’ rights, the environment, customs compliance and security.

Code of Conduct (COC) of WRAP

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Compliance with Laws and Workplace Regulations Prohibition of Forced Labor Prohibition of Child Labor Prohibition of Harassment or Abuse Compensation and Benefits Hours of Work Prohibition of Discrimination Health and Safety Freedom of Association and Collective Bargaining Environment Customs Compliance Security

Code of Conduct (COC) of WRAP

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Social compliance of RMG factories is a key requirement for most of the worldwide reputed garments buyers. It ensures all labour rights, labour standards, fair labor practices and Code of Conduct according to the ILO.

ILO

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Forced Labour Freedom of Association and Protection of the

Right to Organize Right to Organize and Collective Bargaining Equal Remuneration Abolition of Forced Labour Discrimination Minimum Age Convention Elimination of the Worst Forms of Child Labour

The ILO governing body has developed eight fundamental conventions. These eight fundamental Conventions are:

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The Garment industry is the most important source of foreign currency. Bangladesh has about 2,500 garment factories and 10 million people are dependent one it directly or indirectly an about 80 percent garment workers are woman. The garments sector has become an important institution for reduction of poverty. But the workers face many problems during working time and outside. The main problems faced by garments worker are:-

Lower wages. No leisure time. Torture [physically and mentally] Negative outlook to them of the society.

Problem of workers

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In order to protect labour rights, job security and other benefits, workers should be provided with appointment letters detailing the conditions of employment. Fair labor, modern HRM practice and IR activities are needed to improve working conditions in the RMG sector.

The introduction of modern HRM would ensure that

>labor standards are addressed > that workers’ rights are not violated, >safe working environment >enhances job satisfaction >job security > introducing flexible working times > encouraging new technology and introducing rewards, benefits

and other fringe payments.

Solution

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Here is list of compliance in which some points are maintained fully and some are partially. Following points are specially for garments industry.

1. Compensation for  holiday2. Leave with wages3. Health register4. Time care5. Accident register6. Workman register7. Equal remuneration8. National festival holiday9. Overtime register10. Labor welfare11. Weekly holiday fund12. Sexual harassment policy13. Child labor abolition policy14. Anti-discrimination policy15. Zero abasement policy16. Working hour policy17. Hiring /recruitment policy18. Environment policy19. Security policy20. Buyers code of conduct21. Health and safety committee22. Canteen

Health:1. Drinking water at least 4.5 L/day/employee2. Cup availability3. Drinking water supply4. Water cooler ,heater available in  canteen5. Drinking water signs in native language and

English locate minimum 20 feet away from work place

6. Drinking water vassal clean at once in a week7. Water reserve at least  once a week8. Water center in charge person with cleanliness9. Suggestion box register

Toilet:10. Separate toilet for women and  men11. A seat with proper privacy and lock facility12. Urinal accommodation13. Effective water sewage system14. Soap toilet15. Water tap16. Dust bins17. Toilet white washed one in every four month18. Daily cleaning log sheet19. No-smoking signs20. Ladies /gents toilet signs both in native

language and English21. Deposal of wastes and effluent

Concluding Remarks:

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Fire: Sufficient fire extinguisher and  active Access area without hindrance Fire signs in both languages Fire certified personal photo Emergency exit

Safety Guard: Metal glows on good condition. Rubber mats & ironers First aid box one Ironers wearing sleepers First trained employees Motor/needle guard Eye guard Nurse Doctor Medicine Medicine issuing register Welfare officer

Others Facility: Room temperature Lighting facilities

So, compliance ensures the working environment of the industry as well as office. To protect the human rights every management should ensure the above compliance policy.

Concluding Remarks:

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