"Green shift worries RMG workers as businesses grow wary of new costs", 4 May 2025

Global buyers demand greener supply chains, but the financial pressure of transitioning to clean energy has raised serious concerns about its impact on workers who are the backbone of the country's ready-made garment (RMG) sector.

Factories are under growing pressure to install renewable energy systems, adopt energy-efficient practices, and meet sustainability certifications. This has given rise to fears that the new investments, while essential, may come at the cost of workers' welfare.

"If we don't even get our salaries on time before Eid, how will we survive if jobs are lost to solar panels or machines?" asked a garment worker in Gazipur, expressing the anxiety shared by many in the sector...

...the cost of energy transition is already trickling down to workers in the form of stagnant wages and job insecurity.

Shafiqul Alam, lead analyst for Bangladesh at the Institute for Energy Economics and Financial Analysis (IEEFA), noted that while automation may unfold over the next 15 years, the renewable shift is immediate-and must be handled carefully.

"Energy transition won't necessarily cut jobs, but without a coordinated upskilling and protection plan, it could deepen existing inequalities," he warned...

"A green transition must not create victims -- neither for the environment nor for the workers," said Md. Shamsuddoha, chief executive of the Centre for Participatory Research and Development (CPRD).

Stakeholders, however, point out that global buyers are not sharing the financial burden of the transition. Despite demanding cleaner production, they are not raising product prices to reflect the additional investment needed for renewable energy.

This gap between buyers' demand and financial support leaves manufacturers squeezed and leaning towards likely cost cuts by limiting wage growth or reducing their workforce.

On investments, factory owners cite major barriers: high upfront costs for solar infrastructure, limited rooftop space, expensive inverters, and difficult access to green finance.

Ferdous Ara Begum, CEO of Business Initiative Leading Development (BUILD), said, "There's a clear demand from buyers-at least 20 per cent of energy from renewable sources-but local factories are struggling to meet it under the current financial and policy constraints."

Bangladesh now boasts 220 LEED-certified green factories, and hundreds more are in the pipeline. These environmental strides have not translated into better conditions for workers. Many still earn around Tk 12,000 per month, barely enough to cover basic needs.

Labour leaders argue that while production has increased with the adoption of modern technologies, wages and job security have not kept pace.

Razequzzaman Ratan, president of the Socialist Labour Front, said factories are going green, but workers are left in the dark -- still underpaid, insecure, and now carrying the added fear of layoffs...

Recognizing these challenges, Labour Reform Commission Chairman Sultan Uddin Ahmed has proposed forming a national platform under the Ministry of Labour to map out a sociallyjust transition roadmap. The commission also recommends creating an emergency fund, to which companies would contribute the equivalent of two months' wages, to support workers in times of closure or crisis...

"Lighting up factories with solar energy while dimming workers' futures is not a fair trade," said Mr Ratan. "If the transition isn't just, then it's not sustainable."