Automation and the Future of Work: Bangladesh RMG Sector Seeks Way to Just Transition

The dialogue aimed to foster an inclusive discussion on the challenges and opportunities posed by automation, with a focus on ensuring a just transition that safeguard worker rights and aligns with global HREDD.

Abil Bin Amin, Country Manager of ETI Bangladesh, opened the event by emphasising the importance of keeping worker rights central to the automation process. He highlighted that while human rights due diligence (HRDD) was once voluntary, it has now become mandatory, as globally, responsible business legal requirements have increasingly become mandatory in recent years. Under the UN Guiding Principles, all business enterprises have a responsibility to respect human rights, and the process of continuously conducting HRDD is now mandatory for businesses (UNHR).  Amin noted that Bangladesh is trailing behind other countries like Vietnam and Cambodia in terms of automation adoption, and stressed the need for upskilling and reskilling interventions to ensure no one is left behind in this transition. He identified three major changes impacting the industry: climate change, the shift from brick-and-mortar to digital industries, and increasing investments in AI. Amin called for a collaborative roadmap involving all stakeholders to navigate these changes effectively.

Dr. Shyamain Wickramasingha, Research Fellow at the University of Sussex Business School, shared insights from her research on the global supply chain and automation. She highlighted that automation is inevitable and cannot be avoided, but it must be managed with a just transition perspective to ensure the rights of all stakeholders are protected. Dr. Wickramasingha stressed the need to prepare the Bangladeshi workforce for these changes, particularly focusing on gender inclusivity, as women are disproportionately affected during such transitions. She also noted that the participation of all stakeholders in the dialogue was a significant advantage for Bangladesh.

The panel discussion featured insights from industry leaders, Munir Uddin Shamim, Senior Manager - Programme, Evidence & Learning of ETI Bangladesh, moderated the panel discussion.

Vidiya Amrit Khan, Deputy Managing Director of Desh Group of Companies and former Director of BGMEA, pointed out that while automation is increasing efficiency, worker reluctance and limited skillsets remain significant barriers. She emphasised the need for result-oriented programmes and trainings to address these challenges.

Lt. Col Hasan Mahmud (Retired), Executive Director of Bitopi Group, highlighted that buyers are increasingly interested in automation due to its potential to reduce errors and carbon emissions. However, he also cautioned against the potential displacement of workers and called for more in-depth research on machinery-specific skills and opportunities for displaced workers.

Mashuda Begum, Senior Manager of Responsible Sourcing at TESCO, discussed the need for strategic work planning and collaboration to ensure effective upskilling and reskilling of workers. She also highlighted the importance of creating an enabling environment for women workers, including childcare facilities, to encourage their participation in the industry.

Rashedul Alam Raju, General Secretary of the Bangladesh Independent Garment Workers Union Federation, emphasised the limited involvement of the government in addressing the challenges of automation. He called for alternative strategies to manage worker retrenchment and the creation of alternative industries for displaced workers. Raju also stressed the importance of including trade unions in any dialogue on automation to ensure worker perspectives are adequately represented.

A K M Ashraf Uddin, Executive Director of the Bangladesh Labor Foundation (BLF), shared key findings from a recent research study on automation conducted in partnership with BRAC University. He noted that while automation has led to a tenfold increase in production, it has also resulted in a 30% reduction in the workforce, particularly affecting the sewing, sweater, and cutting sections. He highlighted that helpers are the most vulnerable to automation and called for the creation of technical institutions and government-funded automation simulation training programs. He also emphasised the need to consider two demographic categories for training: those yet to enter the industry and those who become redundant due to automation.

During the open discussion, participants emphasised the need for long-term commitments from brands to support suppliers in adopting automation responsibly. Suggestions included creating alternative wage compensation mechanisms, promoting NGO and federation initiatives, and learning from automation strategies in other supplier nations.

An example shared during the discussion about a group, which has successfully implemented automation strategies by prioritising worker training and sending workers to factories in other countries to learn best practices. Similarly, a brand highlighted its project to develop skills among the children of RMG workers, ensuring the next generation is prepared for the evolving industry.

In his closing remarks, Abil Bin Amin reiterated that the dialogue was just the beginning of a broader conversation on automation in the RMG sector. He called for a strategic and coordinated plan to ensure a just and inclusive transition.

Dr. Shyamain Wickramasingha stressed the need for continued collaboration between industry stakeholders, researchers, and policymakers to address the challenges of automation. She emphasised that the success of this transition will depend on the active involvement of all stakeholders, from factory workers to global brands.

The event concluded with a consensus on the need for further research, stakeholder collaboration, and policy development to ensure that the benefits of automation are shared equitably across the RMG sector in Bangladesh.