Dhaka, Bangladesh – Bangladesh garment workers’ wage increase sparks protests amidst economic challenges. In a move aimed at addressing the dire conditions faced by millions of garment workers, the Bangladesh government announced a 56.25% increase in the minimum monthly wage for these employees.
The decision, however, has been met with strong resistance from labor unions, who are demanding a near-tripling of the figure.
The country’s garment industry, responsible for a substantial 85% of its annual $55 billion exports and supplying renowned global brands such as Levi’s, Zara, and H&M, has long been plagued by concerns over low wages and poor working conditions.
Despite the industry’s economic significance, a significant portion of the workforce, predominantly women, start with a monthly pay as low as 8,300 taka ($75).
The government’s move to raise the minimum monthly wage to 12,500 taka ($113) was swiftly rejected by labor unions, who had been pushing for a minimum wage of 23,000 taka.
The disagreement has escalated into widespread protests and clashes, revealing the deep-rooted challenges faced by the government, employers, and workers in finding a balance between economic growth and workers’ rights.
The decision-making process involves a state-appointed board comprising representatives from manufacturers, unions, and wage experts. The board, which typically meets every five years, last increased the basic minimum wage in 2018 from 5,000 taka to 8,000 taka. In addition to the basic wage, garment workers receive a monthly attendance fee of at least 300 taka.
Workers and unions argue that their demand for higher wages is a response to the impact of persistent inflation, which reached nearly 10% in October, coupled with a cost of living crisis exacerbated by the taka depreciating by approximately 30% against the US dollar since early last year.
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The disagreement has led to violent clashes, with police resorting to tear gas to disperse thousands of protesting workers, some of whom set a bus on fire outside the capital, Dhaka.
As Bangladesh garment workers’ wage increase sparks protests amidst economic challenges, last week, approximately 600 factories producing clothing for major Western brands were forced to close due to the escalating protests, marking the most significant wage protest in a decade.
These protests have coincided with other violent demonstrations by opposition parties, who are demanding the resignation of Prime Minister Sheikh Hasina ahead of scheduled elections in January.
As tensions continue to rise, the challenge faced by the Bangladesh government, unions, and employers remains complex.
Finding a resolution that addresses the legitimate concerns of workers while sustaining the vital garment industry poses a formidable task amidst the backdrop of economic uncertainties and political unrest.
