Comparative Study of Compliant & Non- Compliant RMG Factories in Bangladesh

Compliance of RMG factories is key requirement for most of the reputed global garments buyers. Actually compliance ensures all labor rights and facilities according to the buyer’s code of conduct. Though Bangladesh is experienced with RMG from late 1970s, it is familiar with compliance issues from last few years. Now a days Compliance is more important factor to achieve a garments export order than the product quality. But only a small number of RMG factories in Bangladesh are complaint out of more than five thousand different scale factories. Because of the huge initial investment and running cost the factory owners are less interested to be a complaint factory owner. This paper presents a comparative study between complaint and noncomplaint RMG factories in Bangladesh in respect of Initial Investment, Initial cost for Compliances, Total running cost, Running cost for compliance and Annual turn over . The practical investigation and collected data represent that the Annual turn over for complaint factories is much higher than noncomplaint factories for same volume of investment including the cost involved for compliance. So every RMG factory should have to be complaint not only for more profit but also for protection of the human rights by maintaining compliance code of conduct. Index Term-Compliance, RMG, Labor rights, Fair Trade, Code of Conduct