Garment workers and union leaders have protested against the Bangladeshi government's compromise decision to increase their minimum wage to Tk8,000 (US$96) per month, up from Tk5,300 (US$64).
While workers were demanding a minimum wage of Tk18,000 (US$215) per month, the owners’ association said employers could at best offer Tk6,300 (US$75). The wage board finally fixed the rate at Tk8,000 per month.
But Mahbubur Rahman Ismail, the coordinator of the Movement for Garment Workers’ Rights, said the figure was unacceptable. "It’s like a slap in our face," he added.
The minimum wage was last revised in 2013, immediately after the collapse of the Rana Plaza building, one of the worst industrial disasters in history that killed 1,129 people. Afterwards, the government’s wage board increased the minimum wage for entry-level jobs in the garment industry from Tk3,000 (US$36) per month to Tk 5,300 (US$64).
But Shamim Imam, a leader of the Bangladesh Garments Labour Liberation Movement union, said that within the new fixed amount of Tk8,000, the basic salary was only Tk4,100 (US$49), up from Tk3,000 (US$34). With the yearly increment of 5% that was set by the wage board, basic salaries will automatically rise to about Tk3,828 (US$45) after five years.
"So, it means that our basic salary has increased by only Tk372 (US$5) in five years. It’s a cruel joke to us," Imam said.
MM Akash, a Professor of Economics at Dhaka University and one of the wage board’s consultants, said that a six-member worker’s family needs about Tk28,620 ($341) per month to lead a decent life with basic facilities. "Considering the economic condition of the whole country and the capacity of the owners, I had recommended Tk16,000, which is the minimum," he told Asia Times.
The garment sector is significant for Bangladesh’s economy, with export earnings amounting to US$30.61 billion in the last financial year. It employs 40 million workers, mostly women, and contributed 83.49% to Bangladesh’s total exports of US$36.66 billion in the financial year 2018.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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Garment workers and union leaders have protested against the Bangladeshi government's compromise decision to increase their minimum wage to Tk8,000 (US$96) per month, up from Tk5,300 (US$64).
While workers were demanding a minimum wage of Tk18,000 (US$215) per month, the owners’ association said employers could at best offer Tk6,300 (US$75). The wage board finally fixed the rate at Tk8,000 per month.
But Mahbubur Rahman Ismail, the coordinator of the Movement for Garment Workers’ Rights, said the figure was unacceptable. "It’s like a slap in our face," he added.
The minimum wage was last revised in 2013, immediately after the collapse of the Rana Plaza building, one of the worst industrial disasters in history that killed 1,129 people. Afterwards, the government’s wage board increased the minimum wage for entry-level jobs in the garment industry from Tk3,000 (US$36) per month to Tk 5,300 (US$64).
But Shamim Imam, a leader of the Bangladesh Garments Labour Liberation Movement union, said that within the new fixed amount of Tk8,000, the basic salary was only Tk4,100 (US$49), up from Tk3,000 (US$34). With the yearly increment of 5% that was set by the wage board, basic salaries will automatically rise to about Tk3,828 (US$45) after five years.
"So, it means that our basic salary has increased by only Tk372 (US$5) in five years. It’s a cruel joke to us," Imam said.
MM Akash, a Professor of Economics at Dhaka University and one of the wage board’s consultants, said that a six-member worker’s family needs about Tk28,620 ($341) per month to lead a decent life with basic facilities. "Considering the economic condition of the whole country and the capacity of the owners, I had recommended Tk16,000, which is the minimum," he told Asia Times.
The garment sector is significant for Bangladesh’s economy, with export earnings amounting to US$30.61 billion in the last financial year. It employs 40 million workers, mostly women, and contributed 83.49% to Bangladesh’s total exports of US$36.66 billion in the financial year 2018.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
OTHER ARTICLES THAT MAY INTEREST YOU
Disney workers win US$15 minimum wage
A guide to minimum wages across the ASEAN
Malaysia raises minimum wage to boost productivity
