[Bangladesh] Call to review RMG workers' wages annually

Researchers have called for an annual review and wage-setting process in Bangladesh rather than the current procedure where wages are reviewed every five years, The Daily Star reports.

The analysis - from researchers at Cornell University's Global Labor Institute (GLI) - found that, given current inflation rates, garment workers in Bangladesh who are paid the minimum wage are losing income year after year. Jason Judd, executive director of GLI, shared its findings with journalists in Dhaka on February 19.

At present, garment workers reportedly receive a nine per cent adjustment to their basic payment annually, primarily to adjust to inflation.

However, Mr Judd stated that, for instance, annual inflation may be even higher than nine per cent. He added that he has already submitted a set of recommendations to the members of the country's labour reforms commission.

The researchers noted that the current long-time minimum-wage policy - which reviews wages every five years - when compounded with high inflation, favours employers over workers. The study said that local 'purchasing power' in Bangladesh is significantly lower than that of workers in competing apparel-producing countries.

Researchers therefore called on the government to simplify the minimum wage structure and adjust wages annually. The study recommended that genuine trade union representatives, chosen by labour federations, be appointed to a wage board.

According to their analysis, the Cambodian government took a similar approach when overhauling its wage-setting policy a decade ago. It notes that wages have grown regularly alongside orders and output since then.

The study suggested that the government should institutionalise the annual review of minimum wages, announcing a review of the 2023-set minimum wage to take place in 2025. In addition, it recommended seeking explicit reassurances from brands, saying they would support the increase in the minimum wage via higher prices.

The study also reportedly suggested differentiation in the wage-setting process, and the more general social dialogue, between genuine worker representatives and others and extending freedom of association and bargaining rights to workers in export processing zones as complements to democratic representation of workers and wage enforcement efforts.

Source: The Daily Star

Researchers have called for an annual review and wage-setting process in Bangladesh rather than the current procedure where wages are reviewed every five years, The Daily Star reports.

The analysis - from researchers at Cornell University's Global Labor Institute (GLI) - found that, given current inflation rates, garment workers in Bangladesh who are paid the minimum wage are losing income year after year. Jason Judd, executive director of GLI, shared its findings with journalists in Dhaka on February 19.

At present, garment workers reportedly receive a nine per cent adjustment to their basic payment annually, primarily to adjust to inflation.

However, Mr Judd stated that, for instance, annual inflation may be even higher than nine per cent. He added that he has already submitted a set of recommendations to the members of the country's labour reforms commission.

The researchers noted that the current long-time minimum-wage policy - which reviews wages every five years - when compounded with high inflation, favours employers over workers. The study said that local 'purchasing power' in Bangladesh is significantly lower than that of workers in competing apparel-producing countries.

Researchers therefore called on the government to simplify the minimum wage structure and adjust wages annually. The study recommended that genuine trade union representatives, chosen by labour federations, be appointed to a wage board.

According to their analysis, the Cambodian government took a similar approach when overhauling its wage-setting policy a decade ago. It notes that wages have grown regularly alongside orders and output since then.

The study suggested that the government should institutionalise the annual review of minimum wages, announcing a review of the 2023-set minimum wage to take place in 2025. In addition, it recommended seeking explicit reassurances from brands, saying they would support the increase in the minimum wage via higher prices.

The study also reportedly suggested differentiation in the wage-setting process, and the more general social dialogue, between genuine worker representatives and others and extending freedom of association and bargaining rights to workers in export processing zones as complements to democratic representation of workers and wage enforcement efforts.

Source: The Daily Star