AUTOMATION IN THE RMG INDUSTRY
Our world today stands on the brink of a technological revolution that may fundamentally alter the way our economic system works. Artificial intelligence is already around us, from automatic cars and drones to virtual assistants. The impressive progress has been driven by exponential progress in computing power. Although we are yet to grasp the speed and breadth of this new revolution entirely, one thing is clear, organisations leveraging these technologies throughout their operation will be the winners in the race.
But for an emerging market like ours, the adoption may do more harm than good. Advanced technologies will enhance productivity and make operations environmentally sustainable. However, the newly introduced machines without human factors will substitute workers and carry on the same work more efficiently. Therefore, as the less efficient input in production, blue-collar workers will be driven out of jobs or seek employment elsewhere. How logical is it to race for competitiveness at the expense of livelihoods?
THE APPAREL INDUSTRY MAKES UP AROUND 80% OF EXPORT EARNINGS
The debate is essential for countries like Bangladesh, as we are now at a crossroads. Whichever path we take will decide what our future looks like. On the one hand, we have the lives of four million workers, and on the other, the possibility of losing out on advantages and a huge source of foreign earnings. At our current capacity, radical transfer of workers from the apparel industry to other industries is impossible. Thus, many may find themselves out of jobs. Women may be the worst sufferers in this case as they have historically been subject to discrimination and have had limited access to education, training, and upskilling.
At the same time, letting human hands carry on the production process might cost us in the longer run. We are already behind competitors like India and China in terms of efficiency. As global trends pick up with sustainable and higher tiers of manufacturing, we will have to upgrade accordingly or otherwise pay the price.
PROSPECTS OF JOB CREATION
However, the fourth industrial revolution may have different employment implications as well. No matter how advanced a machine is, it still is second to the human brain that champions it. The human brain functions through instinct, while machines follow orders under supervision. In this sense, automation will never zero out the demand for human labour but lessen it to some extent. The engines and instruments are also subject to wear and tear and thus, needs repairs and maintenance. It creates a prospect of new job opportunities.
However, the newly created jobs are different from what we currently see in the industry. They require technological understanding, sound knowledge about machines and basic education. To our dismay, almost 90% of our RMG industry workforce is unskilled or semi-skilled, which poses a further challenge as we may not have enough people to fill these posts. The scantiness becomes even more pronounced across gender. A Centre for Policy Dialogue (CPD) study highlights that male workers are better equipped to operate machinery as they have received more training. The gender-based difference is trivial as empirical studies show that given the right amount of training, females too can operate machines as efficiently. But factory owners are still reluctant to invest in them as they fear a diversion of focus towards family on a woman’s part.
THE TRADEOFF
The RMG sector flourished as an export-oriented industry in the late 1970s. Established in 1960, Reaz Garments was the first direct exporter of garments from Bangladesh. The industry soon provided the largest employment opportunity to the neglected section of the population, thus radically solving the populous unemployment burden of the country and transforming its socio-economic landscape.
The point to be noted here is that the progress and development have been human-centric. The introduction of technology might reverse the progress made so far unless the workers have made substantial and progressive changes in their lives, like investing in training and education. But for a developing country like Bangladesh with a reputation of exploiting cheap labourers, the matter is unlikely as the wages received by the workers are minimal and often do not suffice necessities. As such, 10 will lose their job for every 11 to 12 workers, and the value chain will transform radically.
If not, we will risk directing production to industrialised nations. Anti-dumping duties imposed on China opened the gates for RMG sector proliferation in Bangladesh. But if product quality is compromised, US and European markets may divert attention to other economies, and we will lose out on a large portion of exports. Foreign investors might also reallocate their businesses searching for a skilled labour force.
We are already behind competitors like India and China in terms of efficiency. As global trends pick up with sustainable and higher tiers of manufacturing, we will have to upgrade accordingly or otherwise pay the price.
THE FUTURE SEEMS RATHER BLEAK FOR BANGLADESH
The automation process has already started in Bangladesh in the face of mass public debate on whether we carry on with it. However, the rate of change is still relatively slow. Aligning with the fourth industrial revolution requires trained labour availability and high capital investment, and the process might take years to accelerate fully, if not decades. A study carried out among 30 Bangladeshi factories with buyers including H&M, GAP, Marks & Spencer, and Walmart outlines that workers still do many sophisticated works, and machines’ contribution to improving productivity is still very minimal. Factories are transitioning to automated machines in the cutting, fitting and support services sections. In the sewing section, factories buy new machines but remain un-automated. Thus, the assembled beings are less likely to have an immediate effect on the overall welfare of labourers. The current response in factories with an increasing level of automation is to move workers to other departments with different tasks or other garment factories within the same industrial group. However, this might not be the case within the next seven to ten years as factories with high-tech machinery will secure fresh orders. As for the added expense, factory owners believe they can recover the cost quickly.
According to Bangladesh Garments Accessories and Packaging Manufacturers and Exporters’ Association (BGAPMEA), around 100 new factories are adapting advanced technology in their apparel making process. The onset of the global pandemic accelerated the rate of automation, especially in the sample approval process. Currently, we have 250 futuristic factories operating in Bangladesh, and the percentage will go up to a quarter by 2023. But are we prepared to face the transition? Employment opportunities in the manufacturing sector have been highly concentrated in Ready Made Garments, especially for women. A study by a2i and the International Labor Organization (ILO) predicts that machines will replace 60.8% (5.38 million) of garment workers by 2030. When the change finally takes place, other industries will not have enough to absorb everyone.
ARE ROBOTS COMPLEMENTS OR SUBSTITUTES?
Due to this excessive unemployment rate, machines are turning more into substitutes for human labour rather than supplementing their capacity. Historically, the automation of industries invariably resulted in job cuts and layoffs. Like the invention of the ATM in the 1970s dragged many tellers out of business. But at the same time, this is far more convenient. Thus, machines will become an inevitable part of our lives. Rather than vote against its use and implementation, we need to master the skill to bring them under control to complement our effort. Rivalry among humans and machines will end the day we realise devices are meant to enhance our standard of living, not to take away our means of living itself.
The current response in factories with an increasing level of automation is to move workers to other departments with different tasks or other garment factories within the same industrial group.
WAY FORWARD FOR BANGLADESH
In the coming decades, we will need a multi-stakeholder approach to tackle the issue of job cuts and layoffs. The newly created jobs will demand advanced skills and a better understanding of machinery. The Government can divert some of the human resources in other industries upon giving them proper training to get accustomed to the changes. It will require investment in the human capital building.
Furthermore, the public sector needs to ensure favourable labour laws and improve social protection, especially women. Workers will not be motivated to invest in training if they go starving because they learn instead of working. Social protection, in this case, will provide a more solid incentive to undertake skill development. Building support facilities such as daycare centres will reduce the social barriers female garment workers face.
Bangladesh also can realise the demographic dividend by restructuring the education system. It will reduce our dependence on expatriate managers and help curb youth unemployment. Moreover, the government targets raising export earnings from the RMG sector. Therefore, the government must take immediate action to prepare our labour force and the economy for the challenges ahead and facilitate the smooth transition of the RMG industry to a higher value-added sector.
