About pandemic effect on apparel industry.

1. Assignment
on
Bangladesh’s apparel manufacturing industry is also
affected badly due to the pandemic of Covid- 19.
Course Title: Industrial Psychology
Course Code: AMM3105
Submitted To:
Md. Abdur Rakib
Assistant Professor and Head
Department of Social Sciences
BGMEA University of Fashion & Technology
Submitted By:(Team-03)
Dept. of AMM
BGMEA University of Fashion & Technology
Date of Submission: 08-12-2021
Name ID
MD.MOSTOFA KAMAL 192-087-111
Md.zahidul Islam 192-096-111
Md.Al-Insaf Ali 192-097-111
Md. Shakil Khan 192-100-111

2. Introduction:
The export-oriented RMG sector has made a decisive contribution on Bangladesh economy.
Currently, almost 80% of Bangladesh's total export revenue comes from this sector. In 2020-
21, Bangladesh earned $ 31.45 billion from RMG exports. Now, Bangladesh is the second
leading Ready-made garments exports country in the world(BGMEA, 2020).This journey of
RMG sector starts on 1960 with a tailoring shop called “the Reaz store’ in Dhaka. In late 1973
they changed the store name to “Reaz Garments Ltd”. In 1978, for the first time they export
10,000 pieces of shirts in Paris for 13 million francs, after Bangladeshi RMG industry never
look back. About 4.22 million employees work at in RMG sector and currently, the male to
female ratio of workers is 41:59 (Shrestha, 2020).
Corona virus or (COVID19) is an infectious disease caused by the SARSCoV2 virus. The virus
can cause serious symptoms and even death, especially in the elderly and those with a pre-
existing condition. Originally confirmed in China in 2019, it became a pandemic in
2020.Research in Bangladesh indicates that the COVID-19 pandemic has had a huge effect at
the garment sector. Factories have been confronted with improved value of manufacturing even
as unit charges and orders declined. Not surprisingly, confronted with loss in employment and
income, people undergo the brunt. Our research found that in the early stages of the pandemic,
order cancellations and renegotiations were widespread by buyers. Strong evidence has been
found that individual buyer reactions have changed significantly towards a pandemic. On
average, BGMEA member plants recorded a sales decrease of almost 17.4% in 2020 compared
to 2019. Revenue losses varied widely from factory to factory. In 2020, we recorded a
significant decrease in sales. On the employment side, the impact seems to be moderate.
Employment declines in the second half of 2020 decreased by 7.4% compared to pre-COVID
19 levels, but began to recover towards the end of 2020. With regard to capital investment,
COVID19 has postponed or reduced planned investments, such as increased automation, at
some factories. Finally, in late 2020 / early 2021, an average of 3.6% of factory workers showed
symptoms of COVID19 or tested positive for COVID19. This is probably the lower limit of
true interest rates According to the Bangladesh Clothing Manufacturers and Exporters
Association (BGMEA), orders for $ 2.9 billion worth of 900 million pieces of clothing have
been canceled or suspended (BKMEA, 2021), another prominent body in Bangladesh's apparel
industry, said more than $ 3 billion was lost as most orders were canceled or suspended until
July. Insist (Boudreau, Naeem, 2021).

3. Literature Review:
This Literature review is about Bangladesh’s apparel manufacturing industry is also affected
badly due to the pandemic of Covid-19. Kabir, Maple& Usher (2021) described that COVID19
has already affected the health (both physical and mental health) and well-being of RMG
employees, leading to unemployment. We say that the COVID19 pandemic will have a long-
term impact on textile workers, especially in that they cannot pay for important things such as
health problems, financial difficulties, food, and future employment opportunities.
Stakeholders responsible for the global supply chain of the RMG factory (International
Retailers / Brands, Bangladesh Garment Manufacturers and Exporters Association, Bangladesh
Government, etc.) are responsible for the health and general of RMG workers during the
ongoing COVID 19 Pandemic. We need to rethink our happiness. Bhattacharjee (2020)
addressed that the ready-made garment industry (RMG), which is essential for Bangladesh's
economic growth, faces an uncertain future following the COVID 19 outbreak The industry,
the world's second-largest exporter of ready-made garment. The cancellation of the order was
the result of a lack of demand from the US and European markets after hundreds of stores were
closed due to a pandemic-centric blockade. RMG exporters have called for the international
community to work together to save the country's major industries and workers. According to
the Bangladesh Clothing Manufacturers and Exporters Association (BGMEA), orders for $ 2.9
billion worth of 900 million pieces of clothing have been canceled or suspended. Another
prominent body in the Bangladesh apparel industry, the Bangladesh Knitwear Manufacturers
and Exporters Association (BKMEA), claims that more than $ 3 billion was lost as most orders
were canceled or suspended until July. Mullins (2021) found that from early March 2020, when
Bangladeshi factory owners began reporting notices delaying the shipment of orders from
brands to the end of April 2020, orders worth approximately $ 3.2 billion were suspended or
canceled. By the end of May 2020, Bangladeshi workers had lost nearly 30% of their estimated
$ 502 million wages. The dramatic economic shocks experienced by workers have created
serious trade-offs between consumption and asset depletion. No impact on the RMG industry
Self-contained and has a serious impact on other industries, consumers and services businesses
Sector. Value contributions in the RMG industry are gradually increasing the back linkage
industry has evolved with a $ 136 billion investment, large industries are capital intensive The
textile industry was established to supply yarn and textiles to export oriented RMG. The textile
value chain currently has 1,461 production units, of which 425 engaged in yarn manufacturing,
796 in fabric manufacturing, 240 in dyeing and printing equipment. There are also many

4. accessory suppliers, most of them small businesses. Provides buttons, zippers, hangers, threads,
and other accessories. Fairwear, (2021) includes that the garment industry is notoriously
competitive in terms of delivery time and price. Across the global supply chain, margins and
buffers have consistently been too low. Due to the pandemic, underlying problems that have
existed for years have now risen to the surface, like the immense power imbalance between
brands and factories in garment supply chains, which resulted in increased pressure on factories
with lower order volumes and prices being pushed down further.
Methodology:
The study has made on descriptive research, is conducted to identify different dimension of
challenges in readymade garment industry in Bangladesh. To come up with the result,
researchers were not required to visit the factory. For this reason, researchers have ignored the
direct data collection and surveys. Consequently, the research technique has relied based on
information from secondary sources. Those data collected through Journals, Research articles,
Thesis papers, newspapers case studies, online news paper and survey reports, garments
Manufacturing Industries Annual reports, BGMEA Yearly report and Files. The data was
collected basically through skimming ad scanning out the findings of different secondary
source. After the completion of the data collection descriptive analyses was used illustrate the
data. This study did not use any unethical means to collect information.
Result and discussion:
On April 18, 2020, overseas buyers canceled or suspended $ 3.16 billion Value of delivery
from 1,142 factories that employ 2.26 million people. Over a million Bangladeshi garment
workers either returned unpaid or lost their jobs after trademark registration. According to the
data from BGMEA that described the effect of cancellation as "catastrophic", this is mostly
included $ 1.8 billion jobs already in production or completed. For BGMEA Accepted orders
already produced and appealed to international buyers to pay only wages Orders in production.
According to the Export Promotion Agency (EPB), this sector increased by 3.44%. Export
results for July 2020 January 2021 (year-on-year) Textile Company’s recorded
disproportionately low growth rates compared to knitwear Counterparts (negative growth of
10.85% and 3.84%, respectively). Recent government analysis Import data from the US and
European markets showed a $ 16 billion deficit in apparel imports in 2020.Mainly due to

5. canceled orders. According to a CGWR survey of 316 suppliers, 98% of buyers Refused to
participate in partial wages for workers on vacation (Uddin,Sharmin, Chowdhury &Islam,
2021).
Interviews were conducted at 54 factories in four production centers: Dhaka, Gazipur,
Narayanganj and Chittagong. Karmojibi Nari, a non-profit organization run by women,
conducted a survey of 500 workers (125 respondents from each of the above regions) to
determine the impact of the pandemic on female textile workers in Bangladesh. I investigated.
In addition, only 39% of dismissed workers are currently employed. Male workers worked,
among other things, as rickshaw pullers, vegetable sellers, workers, and street sellers, and
female workers, among other things, as tailoring and domestic servants. The median monthly
salary of these workers fell to 5,056 BDT, less than half the median monthly salary of pre-
pandemic worker (Fair Wear, 2021).
Figure 1: Total Export of Bangladesh
Source: Authors Calculation based on BGMEA Webpage, 2021
In year 2016-17 the total Export of Bangladesh was 34655.9. The year 2017-18 total export
was increase little bit and it was 36668.04. After the year, in year 2018-19, the total export of
Bangladesh was continuously increasing and it was 40535.04. The year 2019-2020, the total
export of Bangladesh was fallen down and it was 33674.09. This year was under first covid-19
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2016-17 2017-18 2018-19 2019-20 2020-21
34655.9
36668.17
40535.04
33674.09
38758.31
Total Export of Bangladesh

6. year. After that year, the year 2020-2021, Bangladesh was getting new orders and the broken
shipments were starting again. The total export of Bangladesh was increasing again and it was
3874.31.
Figure 2: Average loss of working days during Covid period
Source: Authors Calculation based on BGMEA Webpage, 2021
In month March, The Average loss of working days during Covid period was 5.3. After that,
the govt’ ordered to lockdown and in month April, The Average loss of working days during
Covid period was 26.1. After in May, The Average loss of working days during Covid period
was 16.8. In June, The Average loss of working days during Covid period was 20.8. In July,
The Average loss of working days during Covid period was decreasing and it was 10.8. in
august, The Average loss of working days during Covid period was 3.7. And in September,
The Average loss of working days during Covid period was 1. So, in September the situation
was going normal. The Covid pandemic resulted in factory closures and workers missing work
days. The most severe loss of working days occurred in April 2020, followed by June 2020.
Workers could not work for an average of 26 days in April 2020, and 21 days in June 2020.
Beginning in July, this began to show signs of improvement (Hossain, Akter and Ahmed, 2021).
Figure 3: Percentage distribution of income from overtime during Covid
0
5
10
15
20
25
30
March April May June July August September
5.3
26.1
16.8
20.8
10.8
3.7
1
Average loss of working days during Covid period
(March 2020 - September 2020)

7. Source: Authors Calculation based on BGMEA Webpage, 2021
In March 2019, the percentage of income from overtime during covid was 56. After that in
month April, the percentage of income from overtime during covid fallen down in 3 for corona
virus. It was continuously growing upwards but not so much. In May the percentage of income
from overtime during covid was 18. In august the percentage of income from overtime during
covid was 42. In the month of April, the average income fell to its lowest point (BDT 5,425).
According to the survey statistics, average income began to rise gradually in May and had
nearly returned to pre-Covid levels by October. Overtime pay for workers had also decreased
during the pandemic, notably in April and May. In March, only 3% of respondents said they
earned money from overtime, and only 18% said they did in April. Since May, the situation
has steadily improved (Chart 3.4), with 79 percent of workers confirming that they were paid
overtime prior to the outbreak. The majority of those who took part in a focus group said they
worked extra during the Covid period but did not get paid for it (Hossain, Akter and Ahmed,
2021). Here the percentage of income from overtime during covid was growing very well. And
the month of November that was 67.
0
10
20
30
40
50
60
70
Percentage distribution of income from overtime
during Covid

8. Figure 4: Average wage loss of workers during Covid (BDT)
Source: Authors Calculation based on BGMEA Webpage, 2021
In March 2019, The Average wage loss of workers during Covid was (BDT) 497. In April, the
loss increase very much and The Average wage loss of workers during Covid was (BDT) 4891.
After that the loss was falling but not so much, in May, The Average wage loss of workers
during Covid was (BDT) 2714. According to the results of the survey, the biggest decline in
income occurs in April, followed by May. Despite the fact that workers' average pay gradually
improved from June to November 2020, there was still a wage loss. Thousands of workers and
their families were put at risk as a result of the loss of income (Hossain, Akter and Ahmed,
2021). In July that was fallen in 955. In October, The Average wage loss of workers during
Covid was (BDT) 303. In November the loss was 327.
497
4891
2715
1538
955 829
584
303 327
AVERAGE WAGE LOSS OF WORKERS DURING COVID (BDT)

9. Recommendations:
Always put the health of your employees first by following recommended COVID-19
prevention practices and reduces harm in every contingency.
To ensure your factory stays financially solvent, take this opportunity to review your
Make well-informed decisions by staying up-to-date on the pandemic spread and what
measures are available through governments and financial institutions.
Keep in touch with your workers and involve them in ongoing discussions on the
factory's position while maintaining good relationships with your buyers.
Work out a plan for the near future so you can respond to changes quickly and remain
resilience both during and following the Crisis.
Conclusion:
In conclusion we can say that, the corona virus pandemic was the major problem for the entire
world. It had already disrupted the world economy in and affected various sectors. It will take
a few more years for the country to return to normal in. Maintaining proper health precautions
and awareness of can reduce the impact of the outbreak. The government needs to invest more
in the research and development sector to invent vaccines and pay attention to these imminent
threats. The majority of those who are currently dying of COVID-19 are over 50 years old,
while the mortality rate among those aged 41 to 50 years was 11 last month (ASIA – PACIFIC,
2022). The health sector should also be reorganized with improved facilities and better
technology that we have access to. To confront unexpected events like the corona, the
government needs to install a special wing for us. The apparel sector is the largest contributor
to export revenues and can account for of Bangladesh's economy. Recently, some companies
are paying back, but due to the large number of order cancellations, the factory is unable to pay
employers and is unemployed, and the unemployment rate was higher during pandemic. Many
families are still struggling to survive this situation, which were largely dependent on this
sector. To raise the economic line, the Government of Bangladesh, BGMEA, and BKMEA are
trying to work with several industries to meet the basic needs of workers and introduce
subsidies on various topics. The workers in the garment industry need to be paid regularly as
soon as possible every month. After ensures health safety, we need to keep open factories for
continue production. Authorities need to contact buyers and suppliers to immediately recover
market losses in the sector.

10. Reference:
The Bangladesh Garment Manufacturers and Exporters Association. (BGMEA, (2021).
Export Performance, Retrieved from https://www.bgmea.com.bd/page/Export_Performance
NisthaShrestha, 20 December 2020, One Health, Volume 11
Laura Boudreau, Farria Naeem (23 July 2021). The Economic Effects of COVID-19 on
Ready-made Garment Factories in Bangladesh. Retrieved from
https://pedl.cepr.org/publications/economic-effects-covid-19-ready-made-garment-factories-
bangladesh
Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) (2021). Export
Performance of RMG of Bangladesh. Retrieved from http://www.bkmea.com/facts-
figures.html
Kabir, H., Maple, M., & Usher, K. (2021). The impact of COVID-19 on Bangladeshi
readymade garment (RMG) workers. Journal of Public Health, 43(1), 47-52.
JOYEETA BHATTACHARJEE, (APR 28 2020). Bangladesh: COVID-19 badly impacts
garment industry. Retrieved from https://www.orfonline.org/research/bangladesh-covid19-
badly-impacts-garments-industry-65275/
Nancy Reyes Mullins, ( 28 April 2021). How the Pandemic is Affecting Bangladesh’s
Garment Workers. Retrieved from https://www.ihrb.org/focus-areas/covid-19/how-the-
pandemic-is-affecting-bangladeshs-garment-workers
Fairwear, (2021). New reports uncover the impact of COVID-19 on the garment sector in
Bangladesh, Retrieved from https://www.fairwear.org/stories/two-fair-wear-commissioned-
reports-uncover-the-impact-of-covid-19-on-the-garment-sector-in-bangladesh/
Mahtab Uddin, EshratSharmin, Omar Raad Chowdhury, Farhin Islam, (April 2021). THE
IMPACT OF THE COVID PANDEMIC ON THE COST OF PRODUCTION AND
ORDERS IN BANGLADESH. Retrieved from https://api.fairwear.org/wp-
content/uploads/2021/07/The-Impact-of-the-Covid-19-Pandemic-on-the-Cost-of-Production-
and-Orders-in-Bangladesh.pdf
Fair Wear, (14 July, 2021). New reports uncover the impact of COVID-19 on the garment
sector in Bangladesh. Retrieved from https://www.fairwear.org/stories/two-fair-wear-
commissioned-reports-uncover-the-impact-of-covid-19-on-the-garment-sector-in-bangladesh/
Jakir Hossain, Afroza Akter, and Mostafiz Ahmed,(1 February 2021). THE IMPACT OF
COVID PANDEMIC ON THE GARMENT WORKERS INBANGLADESH. Retrieved

11. fromhttps://api.fairwear.org/wp-content/uploads/2021/07/The-impact-of-the-Covid-
pandemic-on-garment-workers-with-a-specific-focus-on-women-workers.pdf
Jakir Hossain, Afroza Akter, and Mostafiz Ahmed,(1 February 2021). THE IMPACT OF
COVID PANDEMIC ON THE GARMENT WORKERS INBANGLADESH. Retrieved
fromhttps://api.fairwear.org/wp-content/uploads/2021/07/The-impact-of-the-Covid-
pandemic-on-garment-workers-with-a-specific-focus-on-women-workers.pdf
Jakir Hossain, Afroza Akter, and Mostafiz Ahmed,(1 February 2021). THE IMPACT OF
COVID PANDEMIC ON THE GARMENT WORKERS INBANGLADESH. Retrieved
fromhttps://api.fairwear.org/wp-content/uploads/2021/07/The-impact-of-the-Covid-
pandemic-on-garment-workers-with-a-specific-focus-on-women-workers.pdf
WORLD, ASIA – PACIFIC, ( 02.01.2022). Bangladesh reports sharp rise in COVID-19
infections amid omicron fears Retrieved from https://www.aa.com.tr/en/asia-
pacific/bangladesh-reports-sharp-rise-in-covid-19-infections-amid-omicron-fears/2463423