1. Global Production and Trade of Raw Jute and Jute Goods: A Low Level Equilibrium Market 2. Production and Export of Jute and Jute Goods in Banglades

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1 Interactive Workshop on Gender Sensitization in the Jute Sector-Bangladesh Organised by International Jute Study Group (IJSG), Dhaka 24 February, 2011 Gender Disparity or Gender Parity Is There Any Difference in an Industry Operated at a Low Equilibrium Level? Dr Khondaker Golam Moazzem Senior Research Fellow Centre for Policy Dialogue (CPD) House 40/C, Road 11, Dhanmondi R/A, Dhaka

2 1. Global Production and Trade of Raw Jute and Jute Goods: A Low Level Equilibrium Market 2. Production and Export of Jute and Jute Goods in Bangladesh: Reflection of Low Level of Equilibrium 3. Structure of Employment in Jute Manufacturing Sector of Bangladesh: A Male-dominated Sector 4. Gender Disparity in the Jute Manufacturing Sector: Wage Discrimination 5. Gender Parity in the Jute Manufacturing Sector: Poor State of Factory Level and Social Compliances 6. Gender Disparity vs. Gender Parity: What Needs to be Done

3 Global production of jute and jute goods did not register substantive growth over the years. Particularly in major jute-growing and jute goods manufacturing countries Between and world production of jute products have marginally changed (2.2 million tonnes)

4 Global export of jute goods showed a rising trend in the first half of 2005, which has registered a decline since mid-2000s The downfall of global demand in view of the global financial crisis Compared to other major manufacturing industries growth of production and export of jute goods was slow It appears that jute manufacturing sector maintained a low equilibrium level Reflected in various aspects: growth of production, export, diversity in products and markets, technology use, productivity, profitability

5 World jute consumption was contracted mainly by Intensity of competition with, and the displacement by, the synthetic fibres and extension of commodity bulk-handling facilities. In developed countries the decline in consumption of jute products amounted to 40%, and in developing countries, the jute market contracted by 10%. During the last decade, the diversified use of jute accounted for small quantities of fibre. However, their share in the value of total exports is rising. Recent changes in global market both in demand for jute goods and polypropylene indicate better prospect for jute and jute goods in the coming years. 5

6 1. Global Production and Export of Raw Jute and Jute Goods: A Low Equilibrium Market Analysis shows that substitutability of jute and jute goods vis a vis polypropylene has been declining overtime. Demand for fibres is gradually met up by other natural fibres A low substitutability of polypropylene indicates that global jute market would sustain almost at the current level in the coming years. Global rise against the use of poly propylene would act favourably in use of jute and jute goods. UN has declared 2009 as the Year of Natural Fibre Consumers of developed countries are gradually showing more interest on environment friendly products. 6

7 Bangladesh manufactured about 600,000 m tons of jute goods. Production of yarn accounted for 60% of total production, sacking 30.4%, hessian 6.8% Although Bangladesh manufactured about 30% of global production of different kinds of jute goods, most of them suffered with lack of noticeable growth Demand for yarn has registered growth over the years Growth of export of jute goods is much lower compared to that of other manufacturing products (e.g. RMG)

8 Bangladesh is the single major source of raw jute supplies more than 97% of total raw jute. It supplies over 300,000 tonnes of raw jute in the global market Bangladesh exports over 600,000 tonnes of jute and jute goods, which accounted for 67% global demand. Although Bangladesh has natural advantage to take lead role in case of supplying raw jute and jute goods, it was never be able to take that role. Except yarn, growth of export of hessian, sacking and CBC has registered a decline.

9 3. Structure of Employment in Jute Manufacturing Sector of Bangladesh: A Male-dominated Sector Total employment in the jute manufacturing sector during FY was about Out of which were workers/operators (88.9% of total employment) Share of employment in the manufacturing sector was 3.9% Jute manufacturing sector is a male-dominated sector 97% of total employees are male and 96% total workers are male. The ratio of male and female workers in the jute manufacturing sector is about 30:1 The ratio is higher in case of jute processing and bailing perhaps related with nature of jobs Employment of female workers are relatively less in the jute sector compared to other sectors (e.g. RMG: about 70% are female)

10 3. Structure of Employment in Jute Manufacturing Sector of Bangladesh: A Male-dominated Sector Female workers are proportionately very low in public sector jute mills. Relatively large in number in case of BJSA mills Male-female ratio in different mills Female workers are largely employed in less skilled jobs. They are very few in numbers in case of weaving operations; and partly in spinning operations Male-female ratio in different sections of jute mills Average no. of male workers, 2007 Average no. of female workers, 2007 male : female ratio Batching Spinning Winding Weaving Damping Others

11 Workers wages varied widely between male and female workers. This is particularly related with nature of employment (involved in what kinds of jobs in different sections) or nature of job contract (temporary or permanent) Basic wages varied as low as Tk.500 to as high as Tk.6000 High paid jobs were largely occupied by male workers which were mainly skill-oriented Structure of employment inherently created causes for discrimination in the wages Wage structure in BJMC mills is relatively better Private sector jute mills could not provide competitive wages vis-à-vis those of other major manufacturing sector (e.g. RMG, off-farm jobs) Low-level equilibrium Jute mills suffered with switching of jobs at a large scale

12 Discrimination of income is also reflected in other payments such as payment of housing allowances. Female workers either received less housing allowances or did not receive allowances This is mainly attributed to their engagement in terms of type and contractual arrangement. A large number of workers, mostly male workers working in BJMC mills claimed that they have arrears with the mills. Number of female workers have arrears was much higher in BJMC mills

13 4. Gender Disparity in the Jute Manufacturing Sector: Wage Discrimination Because of low basic wage and less payment of housing allowances, a large section of female workers working in public and private mills have almost no savings. Male workers also suffer for lack of savings Amount of savings is higher for male workers compared to female workers Because of differences in income, savings of female workers was low Low income of the workers particularly for female workers is also reflected in the way workers and their family members live

14 4. Gender Disparity in the Jute Manufacturing Sector: Wage Discrimination Because of subsistence level of living, a large number of workers were not be able to take animal protein (fish and meat) everyday. The situation was worse in case of female workers Many workers could not afford to send their children to the school. Both male and female workers of public and private jute mills were unable to bear the cost of schooling of their children How often you take meat or fish? (no/week)

15 5. Gender Parity in the Jute Manufacturing Sector: Factory Level l and Social Compliances at a Poor State Most of the workers working in the jute mills live either in thatched or tin-roofs houses, mainly who work in the private sector jute mills Some workers (both male and female) live in pucca houses mainly those work in the BJMC mills and some in the BJSA mills Status of housing can be easily compared with those working in other sectors. Workers in the RMG sector largely live in tin-roof and pucca houses; very small number lived in thatched houses. 34% operators of knitwear and 20% operators of woven wear sectors stayed in pucca houses. There is scope for improvement of housing facilities for the workers of the jute manufacturing sector.

16 5. Gender Parity in the Jute Manufacturing Sector: Factory Level and Social Compliances at a Poor State While public mills provide identity cards to both male and female workers, some of the male and female workers in the private sector jute mills did not receive their identify cards. Although a section of male workers in private mills engage in overtime works for over 4 hours, female workers in private mills receive 2-4 hours of overtime work.

17 5. Gender Parity in the Jute Manufacturing Sector: Factory Level and Social Compliances at a Poor State Worker related compliances in jute mills require substantive improvement. A large section of male and female workers mentioned that they did not receive headphones or masks while they work in noisy and dusty places Lack of sufficient number of toilets is another problem in public and some private jute mills

18 5. Gender Parity in the Jute Manufacturing Sector: Factory Level and Social Compliances at a Poor State Because of lack of adequate facilities and safety measures, a large section of workers both male and female suffered with different kinds of diseases. The diseases include: headache, high/low blood pressure, back pain, allergy and cough etc.

19 5. Gender Parity in the Jute Manufacturing Sector: Factory Level and Social Compliances at a Poor State The availability of doctors, nurses and sick bed in the jute mills are found to not in a proper state. In large number of cases, authority did not have arrangements of medicines for sick workers.

20 5. Gender Parity in the Jute Manufacturing Sector: Factory Level and Social Compliances at a Poor State A poor state of compliance in jute mills is mainly happened because of lack of pressure from the buyers for improvement of compliance standard although buyers has a key role to play. Poor financial balance of jute mills is partly responsible for less improvement of compliance standard in the jute mills.

21 6. Gender Disparity vs. Gender Parity: What Needs to be Done? Changes in labour composition: In view of shortages of male workers in the jute sector, there are scopes of improvement of gender balance by employing more female workers. The nature of jobs in different sections of jute mills portrays that female workers may equally productive and efficient in major sections (e.g. spinning and weaving) of jute mills. While male workers received various kinds of technical training required for skill oriented operations, female workers usually deprived of getting such trainings. Female workers should receive adequate training.

22 6. Gender Disparity vs. Gender Parity: What Needs to be Done? In general, wage in the jute manufacturing sector needs to be increased (both for male and female) in order to retain the existing workers and to attract new workers in the sector. This will contribute to improve the livelihood of the workers in terms of housing, food, schooling and level of savings

23 6. Gender Disparity vs. Gender Parity: What Needs to be Done? Increasing Investment: A substantial investment is required in the jute manufacturing sector targeting improvement of compliances and development of human resources Both male and female workers are suffering because of lack of investment in these regards Investment for improvement of factory-level compliances needs to be ensured. This includes workers safety and security related compliances; reducing health hazards etc Investment is required for improvement of social compliances in case of ensuring availability of doctors/nurses, adequate toilets for female workers

24 6. Gender Disparity vs. Gender Parity: What Needs to be Done? Overall, for reduction of gender disparity and for improvement of gender parity in the jute manufacturing sector substantial investment is urgently required through a target oriented approach.

25 Thank You