Multi-stakeholder safety enforcement: Implications for employment and factories in Bangladesh’s export-oriented RMG industry

Industrial workplace safety and workers’ rights remain vulnerable in many developing countries. Safety enforcement, wherein existing safety assurance mechanisms are underdeveloped, may impose additional costs, resulting in consequences for workers and industries. This study examines the effects of the post-Rana Plaza multinational stakeholder-led safety measures in the Ready-Made Garment (RMG), or apparel, industry in Bangladesh. A difference-in-difference approach is applied to compare the industry’s size in apparel- and non-apparel-dominant sub-districts (upazilas) before and after the inception of safety enforcement. Dhaka district was closely investigated by linking factories or establishments. The findings suggest that, in the decade prior to the 2013 safety initiatives, places where apparel was the dominant manufacturing industry experienced substantially higher employment growth than those where the industry’s footprint was limited. In the following decade, registered employment and the number of establishments declined in apparel-dominant upazilas, while they increased in other upazilas. Although the industry’s steady export performance over the period indicates an increasing productivity or technological advancement, the results suggest an adverse impact of safety enforcement on employment and the number of establishments. • Workplace safety improvement requires a strong safety culture and resources. • Safety measures affect industry’s performance, employment, and number of factories. • Post-Rana Plaza safety enforcement in Bangladesh adversely impacted the RMG industry. • The measures likely induced capital investment and worker replacement with technology. • A multifaceted approach could help achieve optimal gains from workplace safety measures.