Tk12,500 set as minimum RMG sector wage

Economy

TBS Report
07 November, 2023, 04:15 pm
Last modified: 08 November, 2023, 12:46 am
State Minister for Labour and Employment Begum Monnujan Sufian said the wage has been hiked by 56% from Tk8,000 following the instructions of Prime Minister Sheikh Hasina.

Despite protests from apparel workers demanding a minimum wage of at least Tk20,000, the government has set it at Tk12,500, in alignment with the proposal put forth by factory owners.

After the sixth meeting of the Minimum Wage Board for the ready-made garment sector on Tuesday, State Minister for Labour and Employment Begum Monnujan Sufian said the wage has been hiked by 56% from Tk8,000 following the instructions of Prime Minister Sheikh Hasina.

The announced wage was deemed "acceptable" by labour representative Sirajul Islam Rony, president of the Bangladesh National Garment Workers League.

"In light of the reality of the RMG industry and the prime minister's instructions, the workers will accept the board's decision," he said.

However, a section of worker bodies has rejected the announced wage, claiming that it fails to keep pace with the rising inflation. Some have demanded a fresh wage determination process, while others have appealed for the prime minister's intervention.

In recent days, garment workers have been agitating to press for a significant increase in their minimum wage.

On 22 October, their representatives at a meeting of the wage board demanded that their minimum wage be increased from the existing Tk8,000 to Tk20,390 while the owners proposed Tk10,400.

However, a number of workers' organisations have been demanding Tk23,000 to Tk25,000 as the minimum wage.

Workers started to take to the streets from 23 October and their protests gradually turned violent.

On 30 October, at least two people were killed and about 40 injured in massive clashes between police and workers in several industrial areas in Ashulia, Savar, and Gazipur.

Following the weeklong unrest, the factory owners on 1 November agreed to pay minimum wages higher than Tk10,400.

No decision on providing rations

State Minister Monnujan Sufian said gross wages have been raised  by 56%, with basic wages increasing by 63%. Additionally, the number of wage grades has been streamlined from seven to five.

Earlier, gross wages for the RMG workers rose by 51% in 2018, and 77% in 2013.

However, there has been no decision on providing rations for RMG workers.

"The workers have a demand for ration. However, the prime minister said family cards will be started for workers' families after which ration will be started," Monnujan Sufian said, without giving any details or deadline.

The state minister urged workers to maintain peace and cooperation, emphasising that any disruptions to the industry would ultimately harm them.

Acknowledging the recent labour unrest and acts of vandalism, she appealed to the owners to exercise empathy and understanding for the workers, saying, "I appeal to the owners, you will look at the matter with a forgiving eye."

Increased pay from Jan

Garment factory owners said the official notification regarding the new wages will be released soon. The revised wages will take effect from December of this year, meaning workers will receive the increased pay starting in January 2024.

Siddiqur Rahman, the owners' representative in the wage board and former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said at a press conference, "We have implemented the wage increase under the guidance of the prime minister."

Chairman of the Wage Board Liaquet Ali Molla said, "We discussed with factory workers across four industrial belts. Their expectations for the minimum wage ranged from Tk12,000 to Tk13,000. The finalised wage structure falls within this range."

Section of workers dissatisfied

Amid the wage board's proposal of Tk12,500 as the minimum wage, a group of garment workers expressed their disapproval through a protest held on Tuesday.

Taslima Akhter, president of the Garment Sramik Samhati, rejected the announced wage, labelling it a "mockery".

"The workers will not accept this wage proposal," she said, adding, "The workers' representative (Sirajul Islam Roni), the owners, and the government are all united against the workers. They do not consider workers as human beings. If he had considered us, he would not have made such a proposal."

She demanded a minimum wage of Tk25,000.

Nazma Akter, president of the Combined Garments Workers Federation, ALSO denounced the proposed wage. "These wages are unacceptable in any way. We refuse them. We demand a new wage determination process."

She highlighted that the wage increase in dollar terms since 2018 has been negligible, with the new proposed wage amounting to only $113, compared to $95 in 2018.

Md Tawhidur Rahman, president of Bangladesh Apparel Workers Federation, echoed Nazma Akter's view, urging the prime minister to intervene in the matter. He expressed concern about the workers' ability to cope with the rising cost of living on the proposed wages.

While sharing similar concerns, Khokon Mia, a garment worker in Gazipur's Konabari area, indicated that workers would refrain from street protests. "Tk15,000 would have been better," he remarked, but "we will go to work."

Fresh programme 

Meanwhile, a section of workers said they will hold a protest rally in front of the National Press Club on the morning of 10 November to press for a minimum wage of Tk25,000.

A bigger programme will be announced from that rally, Garment Workers Trade Union Center's Assistant General Secretary Manjur Moin said in a press release

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