Workers in Bangladesh gain from lean manufacturing

ETI members last week (21 January) heard how retailers including Marks & Spencer and Asda George have raised workers' wages in selected Bangladeshi supplier factories through increasing productivity.

Wages for Bangladeshi garment workers are among the lowest in the world. The minimum wage of 1664 taka (approx £13/month) has only been raised once in the past 16 years, and falls far short of any living wage estimates.

At a specially convened all-members' Action Forum on Wages, M&S and Asda George shared their respective experiences of working with the German development organisation GTZ to pioneer holistic approaches to increasing workers' wages.

Activities included introducing new lean manufacturing techniques, training for managers on productivity and human resource management, and training for workers on their rights.

As well as reporting higher wages and reduced overtime, both companies said that the working environment in the factories concerned is much improved, with supervisors and middle managers showing greater respect for workers.

Fiona Sadler of M&S said, "Workers said it was the first time they felt valued by their employers, as they had taken the time to train them."

Business benefits for the suppliers concerned included a significant increase in productivity, accompanied by a marked reduction in grievance handling, absenteeism and staff turnover.

Broad positive feedback from participants was tempered with the concern expressed by several participants that legitimate workers' representatives must be involved in future initiatives, to ensure that workers benefit from increased profits.

Said ETI Chair Alan Roberts, "There is no silver bullet to raising workers' wages. But the experiences shared today demonstrate that it can be done - so let's get on with it!"

Presentations from the Wages Forum (ETI members only)