[Bangladesh] Unions demand minimum wage increase for garment workers

In Bangladesh, affiliates of the global union IndustriALL are calling on the government to immediately form a minimum wage board to review minimum monthly wages, IndustriALL reports.

Bangladeshi labour law requires the formation of a new wage board every five years to settle wage structures for every industry. The government last reviewed garment workers’ wages in 2018, when the minimum wage of an entry-level garment worker was fixed at BDT8,000 (US$75).

IndustriALL Bangladesh Council, together with Garment Sramik Karmachari Okko Parishod, reportedly demonstrated in front of the National Press Club in Dhaka before submitting a memorandum to the labour ministry on February 5. Their demands include fixing the minimum wage of an-entry level garment worker at BDT23,000 (US$215), with a yearly increment of ten per cent as opposed to the current five per cent. 

Other demands of workers’ unions include ration facilities for workers, considering the rising cost of living.

Between 2018 and 2022 the labour market situation has drastically altered. Skyrocketing inflation has made it impossible for workers to afford a decent standard of living. The inflation rate in Bangladesh reportedly crossed 9.5 per cent in August 2022, the highest in eleven years. While the RMG exports from the country increased by 14.31 per cent to US$27.418 billion during the period July 2022 to January 2023.

Amirul Haque Amin - president of IndustriALL Bangladesh Council - said, “The government must immediately reconstitute the national minimum wage board that includes workers’ representatives. Rising inflation has put garment workers in a dire situation. Their wages need to be revised accordingly, along with adequate social security measures.”

Unions are reportedly demanding that the basic wage is set at 65 per cent of the total wage; which includes both the basic wage and allowances. The basic wage for a garment worker is currently less than 60 per cent of the total wage. This matters because termination payments such as severance and gratuity are calculated based on the basic wage. 

In addition, there is a demand that the government removes two grades from the existing seven-grade wage structure for garment workers on the basis that the current grade system keeps the workers under-graded despite extensive work experience.

Apoorva Kaiwar - IndustriALL South Asia regional secretary - said, “IndustriALL fully supports the demands to increase minimum wages of garment workers. The current wages are extremely low and much less than what is needed for mere survival.”

Source: IndustriALL

(Quotes via original reporting)

In Bangladesh, affiliates of the global union IndustriALL are calling on the government to immediately form a minimum wage board to review minimum monthly wages, IndustriALL reports.

Bangladeshi labour law requires the formation of a new wage board every five years to settle wage structures for every industry. The government last reviewed garment workers’ wages in 2018, when the minimum wage of an entry-level garment worker was fixed at BDT8,000 (US$75).

IndustriALL Bangladesh Council, together with Garment Sramik Karmachari Okko Parishod, reportedly demonstrated in front of the National Press Club in Dhaka before submitting a memorandum to the labour ministry on February 5. Their demands include fixing the minimum wage of an-entry level garment worker at BDT23,000 (US$215), with a yearly increment of ten per cent as opposed to the current five per cent. 

Other demands of workers’ unions include ration facilities for workers, considering the rising cost of living.

Between 2018 and 2022 the labour market situation has drastically altered. Skyrocketing inflation has made it impossible for workers to afford a decent standard of living. The inflation rate in Bangladesh reportedly crossed 9.5 per cent in August 2022, the highest in eleven years. While the RMG exports from the country increased by 14.31 per cent to US$27.418 billion during the period July 2022 to January 2023.

Amirul Haque Amin - president of IndustriALL Bangladesh Council - said, “The government must immediately reconstitute the national minimum wage board that includes workers’ representatives. Rising inflation has put garment workers in a dire situation. Their wages need to be revised accordingly, along with adequate social security measures.”

Unions are reportedly demanding that the basic wage is set at 65 per cent of the total wage; which includes both the basic wage and allowances. The basic wage for a garment worker is currently less than 60 per cent of the total wage. This matters because termination payments such as severance and gratuity are calculated based on the basic wage. 

In addition, there is a demand that the government removes two grades from the existing seven-grade wage structure for garment workers on the basis that the current grade system keeps the workers under-graded despite extensive work experience.

Apoorva Kaiwar - IndustriALL South Asia regional secretary - said, “IndustriALL fully supports the demands to increase minimum wages of garment workers. The current wages are extremely low and much less than what is needed for mere survival.”

Source: IndustriALL

(Quotes via original reporting)