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WRAP Weekly Newsletter – Issue 133 (May 27, 2011)

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Bangladesh The World Bank (WB) has agreed to lend Bangladesh $120 million to help set up economic zones for the emerging manufacturing and services sectors. The governments' new economic zone policy builds on export-processing zones which began in the 1980s and now employ nearly 300,000 people. (The Daily Star)

 

The US apparel imports from Bangladesh so far in 2011 rose, in value terms, by 39 per cent. Products from Bangladesh, Cambodia, El Salvador and Honduras -- along with Pakistan -- were the cheapest among the USA's leading 10 clothing suppliers' in 2010. Their success reflects the fact that the US buyers continued to seek low-cost supplies as the recovery of the US economy still remains tentative. (Financial Express)

Brazil Invista, one of the world’s largest integrated producers of polymers and fibres, is investing more than US$100 million in a new Lycra fibre production plant in Brazil. Construction for the expansion project will begin immediately, with an expected opening in late 2012. (Knitting Industry)

Cambodia Cambodia’s clothing exports to the United States jumped 26 percent in the first quarter of 2011, compared to the previous year. Cambodia was one of the 10 cheapest suppliers for the US clothing market in 2010, along with Bangladesh, El Salvador and Honduras. (Voice of America)

 

China One of the electronics plants of Hon Hai, the world's largest contract manufacturer, had a deadly explosion which killed 3 and injured 15. China's government officials urge Taiwan companies to strengthen internal monitoring and take precautions to ensure safe production. China’s State Administration of Work Safety publishes warnings on its website about combustible dust, including one as recently as this month, but it is said that the national fire-protection standards are inadequate for preventing such accidents. (Wall Street Journal)

 

Colombia The Minister of Social Protection in Colombia has fined Sodexo $2,678,000 pesos ($1,425.00 US Dollars) each day they refuse to negotiate with Sinaltrainal and ordered Sodexo to "start direct talks with trade union organization National Union of Agro-System SINALTRAINAL without delay." Sodexo workers in Colombia have been trying to form a union to bargain higher wages, payment for overtime and other benefits for more than a year. (The Sacramento Bee)

Hong Kong The Labour Department launched a Minimum Wage Reference Calculator at its homepage and the GovHK website on May 25 to assist employers and employees to ascertain whether their wages are up to the statutory minimum wage (SMW) level. (7th Space)

India Textile mills across the country stopped production for one day on Monday (May 23) to protest the withdrawal of the incentives by the government and the curbs on cotton exports. The strike was called by the Confederation of Indian Textile Industry (CITI). Most of the nearly 2,000 mills in Tamil Nadu stopped production. (The Hindu)

Pakistan More than 26 labor organizations together on May 24 held a rally and a three-hour long sit-in on the Mall Road, protesting against the current price hike, unemployment, load shedding and asking for increase in laborers’ salaries. (Daily Times)

 

Philippines Labor and employers of garments and textile associations have agreed to support the SAVE Act bill in the US Congress. The passage of the bill will generate jobs for workers who were displaced when the quota regime ended in 2005. (Manila Bulletin)

 

The minimum wage in the Philippine capital Manila has been increased by PHP22 ($0.51) in a bid to help workers cope with rising living costs. (Just-Style)

 

Sri Lanka Sri Lanka will implement the long overdue Lanka-Bangladesh Joint Committee for Economic and Technical Cooperation. Sir Lanka will also speed up implementation of last month’s MoU between President Mahinda Rajapaksa and Prime Minister of Bangladesh Sheikh Hasina. Sri Lanka will also sign a Bilateral Investment Promotion Agreement (BIPA) with Bangladesh. (Lanka Newspapers)

 

Factory workers from the Katunayake free trade zone, Sri Lanka's largest trade zone, blocked the road to Bandaranaike International Airport this morning (24 May) in protest at government plans for a pension scheme for private sector workers. If the pension scheme is introduced, workers will not get this lump sum payout - instead they will get a small monthly pension payout. (Just-Style)

U.S.A. Workers who don't trust the boss to keep track of their wages can now do it themselves with a new smartphone application called DOL-Timesheet from the Department of Labor. But employers worry that the time sheet app, along with other new initiatives, could encourage even more wage and hour lawsuits. (Associated Press)

Vietnam The Vietnam Textile and Garment Association has announced that the garment export turnover in the first five months of the year is estimated to reach US$5.1 billion, an increase of 36% year-on-year. In May alone, the country’s garment export turnover reached $1.5 billion. (Saigon)