Manufacturing in Bangladesh gives every manufacturer the prime advantage of cheap and abundant labour, and the same has always been thought of as an advantage to the country. However, in the last two years, Bangladesh has seen an average countrywide labour shortage of 10% to 15% with Ashulia hub in particular the target of labour unrest making it difficult for exporters to smoothly run operations. Some very progressive companies in the hub are tackling the issues with operator management and engagement initiatives, successfully reducing labour-related problems. In an exclusive conversation with Apparel Online, Sohel Sadat, the young and visionary Chairman of Shin Shin Apparels Ltd., elaborates on the initiatives taken by him to make his company sustain its apparel manufacturing operations.
Ashulia has historically been the nerve centre for political unrest, and now handful of miscreants use the hub to demonstrate their strength and get their demands noticed, as even the slightest provocation can mobilize a mob, attracting media attention. “The area is so sensitive that the labour actually works as per their whims and fancies, egged on by the unions and power brokers, companies are compelled to bow to their demands, it is also because the workers have so many other options of work in the region, it is really hard to give them a reason to stay,” says Sohel.
[bleft] “I focus on knowing my people, and do not scold operators for poor performance, but rather speak to them and help them perform better. I try and give them a reason to work with the company.” [/bleft]
Despite being marked as a labour-sensitive location, Ashulia has scores of apparel manufacturing facilities and other industries, and to top it all, the Dhaka EPZ, just half-an-hour drive from here which houses many manufacturing giants. “It is not competition from big companies that worries us, but it’s the unavailability of workers due to inadequate housing facilities, owing to which cost of living for the workers has been very high,” adds Sohel. In fact, the disparities in the demand and supply have resulted in a 30% shortage of labour in the region, which is almost double to that witnessed in other parts of the country.
Strategy to retain workers…
Sohel has devised many schemes to motivate and retain workforce, which include productivity incentives, monthly performance flag, best line reward, best operator reward, best helper recognition, best performance, and many other such categories. “All the incentives are monetary rewards, as money is the greatest motivator,” says Sohel. “We also have daily incentive schemes like target based incentives; for example, if the target is achieved before an agreed time, even then the workers get overtime on the agreed term. Everyone gets Tk. 20 per day additionally on achieving their target and for continuously hitting the target for a month. Moreover, if the line is doing 5% more production, then everyone will get 5% additional salaries as incentive,” he adds.
The company has a proper earning chart on display at several places on the shop floor for easy understanding of the sewing operators, which indicates how much one can earn on doing certain number of pieces and types of operations. This helps the sewing operators calculate their own wages and he is not dependent on the Middle Management, who at times dupes the workers of their rightful share. The company also has two half-day working Fridays when the operators work from 8 AM to 1 PM, one immediately after the pay day, followed by the alternate Friday thereafter.
[bleft] The working efficiency of a sewing operator depends on several factors, ranging from the working environment to the type of garment and to the nature of his/her seniors and bosses. In Bangladesh operators are efficient and can easily give 50-55% efficiency if the supply chain and workplace environment are proper.
The primary agenda behind skill development is to reduce the number of helpers, and the first step in this direction was installation of sewing machines with under-bed trimmers, due to which the company reduced helpers per line from 20-25 to 12-15, and is now trying to reduce it to just 8 helpers per line. [/bleft]
A manual containing rights and duties, and published in the local language, has also been framed for the workers and the same is constantly updated. Shin Shin also has a scholarship program for its workers who wish to continue their education. Further, if any accident occurs within the working hours, the company pays for the complete medical bills. “I focus on knowing my people, and do not scold operators for poor performance, but rather speak to them and help them perform better. I try and give them a reason to work with the company,” he argues.
An extension to the company’s labour retention programmes are the in-house skill development initiatives, aimed at improving the skill set of the workers employed, by continuously working with them and upgrading their skills on using automated machines and doing critical operations.
The primary agenda behind skill development is to reduce the number of helpers, and the first step in this direction was installation of sewing machines with under-bed trimmers, due to which the company reduced helpers per line from 20-25 to 12-15, and is now trying to reduce it to just 8 helpers per line.“The focus of automation is on deskilling critical operations. We already have automated sewing machines for doing various critical operations like back pocket, belt loop and waistband attachment, and would be continuing in the same direction. In the future, we would like to reduce the number of sewing machines per line from 60 to maybe just 30-35 sewing machines,” adds Sohel. The second phase in the plan of action is automating various labour-intensive and critical operations.
Shortly, Shin Shin Apparels will commence a study with Impactt Limited UK, targeted at female workers to understand their skill levels of managing their houses. The study will focus on how much money they earn and whether they have the power to decide where and how to spend the same, if not then who spends their money in the family. This study would help in better understanding the psyche of the operators and help them manage money better. “We would be able to improve the productivity and efficiency in the workplace, since back home everything is managed properly,” reasons Sohel.
Post a Comment