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Thursday will mark the first anniversary of the garment-factory collapse in Bangladesh, which killed more than1,100people. Dozens of North American clothing retailerscame forward with promises and donationsafter the catastrophe in Rana Plaza exposed theterrible conditions of the employees — whowere told to work despite evidence of structural damage to the building.
One year later, where are Americans getting their clothes? And how much do we know about conditions in the countries that make those clothes?
The United States exported $5.8 billion worth of apparelin the 12 months leading to February 2014, according to theDepartment of Commerce’s Office of Textiles and Apparel. That may sound like a lot, but it pales in comparison to the $80 billion in clothing the country imported during that time.
China — by far the biggest source of textiles in America —accounted for 37 cents of every dollar’s worth of clothes imported to the United States. In the year ending February 2013, Bangladesh accounted for 5.8percentof all U.S. clothing imports. In the following year (ending February 2014, 10 months after the factory collapse), Bangladeshi products ticked upto 6.2percentof clothing imports.
There isn’t good dataontheworking conditions of the employees supplyingthe clothes the United States imports. Factory auditing is oftenineffective: Supply chains are difficultto track, and factories can hide unsafe conditions and coach employees on what to say. What’s more, data takes time to collect and verify, so it’s hard to measure what has changed sincethe disaster in Bangladesh. The most basic information is just starting to be collected.
Last year, though, the International Labour Organization (ILO) and the International Institute for Labour Studies published a report on employment conditions in Bangladesh.Thefigures demonstrate why clothing is so important to the country’s economy and why workers in that industry are particularly vulnerable.
Europe is the destination for 51 percent of Bangladeshi exports of ready-made garments; 29 percent travel to America.Ready-made garments represented 77 percent of all exports from Bangladesh in 2011, and exports as a whole made up almost a quarter of the country’s gross domestic product.
Of the top apparel-exporting countries, monthly minimum wages in Bangladesh werethe lowest — $39 dollars per month as of mid-2013. India, America’s sixth-most-important clothing importer, is next with$71. Garment-industry workers in China fare slightly better, although minimum monthly wages there vary by province, from $138 in Guangdong to $262 in Shanghai.
Bangladesh’stextile industry is also characterized by informal employment. That’s an importantdistinction, that, by the ILO standards means “employees are considered to have informal jobs if their employment relationship is, in law or practice, not subject to labour legislation, income taxation, social protection or entitlement to certain employment benefits.”
Bangladesh has the highest share of informal employment of any country in Southeast Asia, and it’s growing. In 2005-06,78 percent of jobs in the country were informal. By 2010, that share had grown to87 percent.
We would have loved to look at wage data for the countries the United States imports clothes from, but we couldn’t do that without mixing different sources, units and years. If you’re looking for a specific country from the import list above (or are curious about thecountryon your T-shirt’s tag), you can try:
- TheUnited Nations Industrial Development Organization,which has total wages for all employees who manufacture “wearing apparel” in the local currency;
- The Bureau of Labor Statistics,which has hourly wages in U.S.dollars, but mostly for developed countries;
- Or the World Bank,which has data on the wages of sewing-machine operators for select countries.
I'm an expert in global supply chains and labor conditions within the apparel industry, with a deep understanding of the challenges and complexities involved. My expertise extends to the economic aspects, labor standards, and trade dynamics that shape the production and import of clothing worldwide.
The article from April 23, 2014, highlights the aftermath of the garment-factory collapse in Bangladesh and raises questions about the working conditions of employees in the countries that supply clothing to the United States. Let's break down the key concepts mentioned in the article:
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Garment-Factory Collapse in Bangladesh (Rana Plaza):
- The article references a tragic incident in Bangladesh, where a garment factory called Rana Plaza collapsed on April 23, 2013, killing over 1,100 people. This disaster exposed unsafe working conditions.
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North American Clothing Retailers' Responses:
- After the Rana Plaza collapse, North American clothing retailers made promises and donations to address the issues raised by the catastrophe.
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US Apparel Exports and Imports:
- The United States exported $5.8 billion worth of apparel in the 12 months leading to February 2014.
- Importantly, the article notes that the $5.8 billion in exports pales in comparison to the $80 billion in clothing imported during the same period.
- China is the largest source of textiles in America, accounting for a significant portion of clothing imports.
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Bangladesh's Role in Clothing Imports:
- In the year ending February 2013, Bangladesh accounted for 5.8% of all U.S. clothing imports.
- By the year ending February 2014 (10 months after the factory collapse), Bangladeshi products made up 6.2% of clothing imports.
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Working Conditions and Factory Auditing:
- Factory auditing is described as often ineffective due to the difficulty of tracking supply chains, and factories may hide unsafe conditions.
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International Labour Organization (ILO) Report:
- The ILO and the International Institute for Labour Studies published a report on employment conditions in Bangladesh, emphasizing the vulnerability of workers in the clothing industry.
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Bangladesh's Economic Dependency on Clothing Exports:
- Ready-made garments represent a significant portion (77%) of all exports from Bangladesh, contributing almost a quarter of the country's gross domestic product.
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Minimum Wages and Informal Employment in Bangladesh:
- Bangladesh has the lowest monthly minimum wages for garment-industry workers among top apparel-exporting countries ($39 as of mid-2013).
- The textile industry in Bangladesh is characterized by a high percentage of informal employment, reaching 87% by 2010.
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Informal Employment Growth in Bangladesh:
- Bangladesh has the highest share of informal employment in Southeast Asia, with the percentage growing from 78% in 2005-06 to 87% in 2010.
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Challenges in Analyzing Wage Data:
- The article acknowledges challenges in analyzing wage data for countries that the United States imports clothes from and suggests sources such as The United Nations Industrial Development Organization, the Bureau of Labor Statistics, and the World Bank.
In conclusion, the article sheds light on the complexities of global supply chains, the economic importance of the clothing industry to countries like Bangladesh, and the ongoing challenges in ensuring fair labor conditions in the production of apparel for the international market.
