1. WORLD UNIVERSITY OF BANGLADESH
Welcome To Our Presentation

2. “Comparative Study of Compliant & Non-Compliant Issues
of RMG Factories in Bangladesh”
Submitted By
Ashikur Rahman [ID: WUB 08/12/16/442]
Md. Ariful Islam [ID: WUB 08/12/16/452]
Md. Rezwan Hossain [ID: WUB 08/12/16/453]
Md. Motaleb Hossain [ID: WUB 08/12/16/436]
Batch : 16th
Department of Textile Engineering
World University of Bangladesh
Supervised By
Prof. Dr. Shah Alimuzzaman Belal
Advisor
And
Co-Supervisor
Shabiha Akther
Lecturer
Department of Textile Engineering
World University of Bangladesh

3. Overview of the presentation
Introduction
 Objectives of The Study
 Literature Review
 Methods and Materials
 Findings
 Conclusion and Recommendation

4. Introduction
The ready-made garment (RMG) industry of Bangladesh started in the late
1970s and became a prominent player in the economy within a short period of
time. The industry has contributed to export earnings, foreign exchange
earnings, employment creation, poverty alleviation and the empowerment of
women. The availability of cheap labor is the main reason behind the success
of the industry. The core areas of social accountability are, basically based on
the principles of international human rights, local culture and tradition. The
prime objective of the system is to protect the human rights in readymade
garment industries. Thus, Bangladesh has a stiff challenge ahead to meet the
demand of world market.

5. Objectives of The Study
The objectives of the study are as follows:
• To Know the present situation of compliance issues in garments industry.
• To know the impact of compliance issues in RMG industry.
• To assess the exclusive compliance issues pattern in the RMG sector in
Bangladesh.
• To know the compliance rules and regulation.
• To find out the problems and prospects of compliance in garment industry.

6. Literature Review
Compliance: Compliance means to comply with something or yield to the
wishes of another. Compliance ensures all labor rights and facilities according
to the buyer code of conduct. The aim of compliance is to maintain strictly the
labor law.
Following some issues are especially for garment industry :
1. Working hours
2. Child labor
3. Health & safety
4. Discrimination
5. Forced labor
6. Wages
7. Environment policy
8. Security policy
9. Canteen
10. Overtime register etc.

7. Advantages of compliance in RMG:
 Gets higher price of products
 Free from labor unrest.
 Reduce worker turnover rate.
 Increased worker morality.
 Increased productivity.
 Increased product quality.
 Have global image and global recognition for their performance.
 Good public or community relation.
 Improved government-industry relation.
 Satisfaction of the buyer requirement.
 Can work directly with reputed buyers.
 Have consistency in order.

8. Importance of compliance in RMG
Sector
The international apparel trade is fiercely competitive. In light of growing
competition among RMG exporting countries and consumer preference for
products which meet internationally recognized social standards, it is essential
for Bangladesh’s RMG suppliers to improve social compliance in their factory.
Ready-made garment (RMG) is the most flourishing sector in Bangladesh and
it would be imperative and that each and every issue related to improvement of
the productivity and as well as quality is strictly followed, in order to survive
in the global market.

9. Methods and Materials
The study is mainly based on information which collected both from primary
and secondary sources. The collected data were quantified. The study is
conducted with a view to identify and analyze the effectiveness of the
compliance and non-compliance issue. In this thesis paper four RMG factories
have been taken as data source, from which two are compliant and two non-
compliant factories.
Two compliance factories are:
 Fakir Knitwear’s Ltd.
 AJI-Group Ltd.
Two Non-compliance factories are:
 Ethical Garments Ltd.
 Bantex Ltd.

10. Data Analysis
Table 1: Payment of wages in a month within particular period.
Types Company Name 5 Days 7 Days 10 Days 15 Days
Compliance
Factories
Fakir Knitwear’s Ltd. - 80% 20% -
AJI-Group Ltd. - 60% 40% -
Non-Compliance
Factories
Ethical Garments Ltd. - 20% 80% -
Bantex Ltd. - - 80% 20%

11. Graph 1: Payment of wages in a month within particular period.
From above table and graph it is found that compliance factories pay their
wage in first 7 days in their word.70% respondent are answered about pay
their wage in first 7 days whereas the non-compliance factories there are some
deviation for their wage.85% respondent are answered about pay their wage in
first 10 days.
0% 5%
85%
10%
Non-Compliance
factory
5 Days
7 Days
10 Days
15 Days
0%
70%
30%
0%
Compliance Factory
5 Days
7 Days
10 Days
15 Days

12. Table 2: Do you know is there any child labor in your Industry?
Types Company Name Strongly
Disagree
Disagree Neutral Agree
Compliance
Factories
Fakir Knitwear’s Ltd. 80% 20% - -
AJI-Group Ltd. 80% - 20% -
Non-
Compliance
Factories
Ethical Garments Ltd. - 20% 50% 30%
Bantex Ltd. - 40% 50% 10%

13. Graph 2: Do you know is there any child labor in your Industry:
From above Graph it is found that the compliance factories not use child labor
as their worker. Whereas the non-compliance factories use child labor
frequently.
0%
30%
50%
20%
Non-Complaince Factory
Strongly
Disagree
Disagree
Neutral
Agree
70%
15%
15%
0%
Complaince Factory
Strongly
Disagree
Disagree
Neutral
Agtree

14. Table 3: How many hour you worked in a week?
Types Company Name 48 Hours 60 Hours 65 Hours 70 Hours
Compliance
Factories
Fakir Knitwear’s
Ltd
- 100% - -
AJI-Group Ltd - 100% - -
Non-
Compliance
Factories
Ethical Garments
Ltd
- 30% 70% -
Bantex Ltd - 10% 90% -

15. Graph 3 :How many hour you worked in a week?
From above table and graphs it is found that compliance factories use working
hour 60 hours per week. In this study it is found that non-compliance factory
working hour is 80 % respondents are answered is 65 hours.
0%
20%
80%
0%
Non-Compliance Factories
48 Hours
60 Hours
65 Hours
70 Hours
0%
100%
0% 0%
Compliance Factories
48 Hours
60 Hours
65 Hours
70 Hours

16. Graph 4: Is workers use gloves and/or masks while handling chemicals
and dyes and safety from clothing dust.
From above graph it is found that the compliance factories strongly use
Personal protective equipment (PPE) for their safety. Where in non-
compliance factories most of them are unconscious about using PPE.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Fakir
Knitwear's Ltd
AJI-Group Ltd Ethical
Garments Ltd
Bantex Ltd
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Rating(%)
Factory Name

17. Graph 5: Are fire extinguishers are available and fire fighters are
properly trained in case of fire disaster in the factory premises.
From above graph it is found that Compliance factories are very conscious
about firefighting activities where non-compliance factories little bit
unconscious about fire activities but they are trying to improve about
firefighting activities.
0%
20%
40%
60%
80%
100%
Fakir
Knitwear's Ltd
AJI-Group Ltd Ethical
Garments Ltd
Bantex Ltd
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Rating(%)
Factory Name

18. Findings of this Study:
From table 1 and graph 1: It is found that compliance factories pay their
wage in first 7 days in their word.70% respondent are answered about pay
their wage in first 7 days whereas the non-compliance factories there are some
deviation for their wage.85% respondent are answered about pay their wage in
first 10 days.
Violation: Non-compliance factory paid their wages in first 10 days, which is
not under in compliance rule.
Corrective Action: This is considered as a delayed payment. To comply with
The Payments of Wages Act of Bangladesh, 1937, wages shall be paid by 7th
of the next month up to 1000 workers
From table 2 and graph 2: From above Graph it is found that most of the
compliance factories not use child labor as their worker. Whereas some of the
non-compliance factories use child labor frequently.

19. Continue….
Violation: Child labor was found at the factory. It was confirmed from the
verification of personal document and the appearance of the employee. From
the workers interview, it was understood that some worker was less than 14
years old.
Corrective Action: According to The Factory Act of 1968 in the Bangladesh
Labor Code, any person who has not completed sixteen years of age is defined
as a child. Article 66 prohibits the employment of any children under the age
of fourteen. Factory management agreed to take care of this matter. Most child
laborers have been cleared out of Bangladesh’s RMG sector under
international pressure.
From table 3 and graph 3: It is found that compliance factories use working
hour 60 hours per week. In this study it is found that non-compliance factory
working hour is 80 % respondents are answered is 65 hours.

20. Continue……..
Violation: Employees punched their time cards two hours earlier (7 p.m.) than
the actual time of departure (9 p.m.) from the factory. Factory management
wanted to hide the actual working hours.
Corrective Action: To comply with The Payment of Wages Rules, 1936 of
Bangladesh, all working hours shall be recorded in the time Card.
From graph 4: It is found that 90% Compliance factories are very
conscious about protective hand gloves are in use by the fabric cutting
knife operators where 55% non-compliance factories little bit
unconscious about protective hand gloves are in use by the fabric
cutting knife operators.
Violation: It was found that in non-complies factory the worker are not
using hand glove as personal protecting equipment.

21. Continue……..
Corrective Action: In order to comply with The Factories Act, 1965, Chapter
– 3 and 4 of Bangladesh, management shall provide adequate gloves and/or
masks to the appropriate workers. They must be motivated through training to
use such protective equipment for safety.
From graph 5: It is found that 90% Compliance factories are very conscious
about firefighting activities where 40% non-compliance factories little bit
unconscious about fire activities but they are trying to improve about
firefighting activity.
Violation: Fire extinguishers were found blocked in some areas of the factory
and were not easily accessible.
Corrective Action: All fire extinguishers shall be cleared from obstruction at
all time. Area in front of fire extinguishers shall be marked on the ground with
yellow lines to indicate that the area must be kept clear at all times.

22. Conclusion
Compliance management should be compromised by current HR and
IR practices. An approach that pays attention to labor rights, global
labor standards, fair labor practices, safety workplace as well as decent
work in improving working conditions is needed. Further the Fair
Labor Act, the Factory Act, the Occupational Health and Safety Act,
Core Labor Standards, Code of Conduct, the ILO and the WTO
Conventions are all contribute to a better work environment.

23. Recommendations
After completing this study following things can be recommended for further
work or research -
 In this project, we investigate the compliance issues in four garments
industry.
 From the findings it is clear that, the Compliance factories are very
conscious about compliance issue where non-compliance factories are little
bit unconscious about working facility for their employees.
 Every organization has a common secret strategy of secrecy. So the
authority hesitates to disclose the important information to maintain
business secrecy, So we can't able to work the annual investment for
compliance.
 The employees are always busy on their tremendous workload. So they
could not extent their cooperation properly.

24. Thank You Everyone