BGMEA urges buyers for price in line with new RMG wage

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has written to the American Apparel and Footwear Association (AAFA), seeking a readjustment of prices in line with the increment in minimum wage from 1 December and onward.

"To ensure uninterrupted and smoother operation in the industry, it is important that prices of all goods which will be shipped from 1 December 2023 are duly adjusted/ up-charged covering the increment in wage component," BGMEA President Faruque Hassan wrote to Stephen Lamar, President and CEO of AAFA. 

The letter pertains to the new minimum wage for apparel workers, fixed after weeks of unrest. The new wage structure was rejected by a large section of trade unions and unrest continued. 

The agitation, however, in Gazipur's Konabari mostly subsided yesterday. According to the Industrial Zone Police, all but four factories were operational on Monday.

The BGMEA reported that the number of closed factories decreased from 130 on Sunday to 99 yesterday, indicating that 31 factories resumed operations on Monday across the country.

Meanwhile, around 16,000 people face accusations in a total of 34 cases filed in connection with the arson attacks and vandalism in various factories in Ashulia and Gazipur, according to law enforcement sources.    

On 7 November, the government announced an increase in the wages of garment workers from the existing Tk8,000 to Tk12,500.

The next day, two workers lost their lives in a clash with the police when the workers took to the streets demanding increased wages. Even before this, the workers had been agitating. A total of four workers died in the wage hike movement.

The letter to AAFA

The American Apparel & Footwear Association (AAFA) is a US-based trade association representing apparel, footwear and other sewn product companies, and their suppliers, which compete in the global market.

The BGMEA letter – dated November 8 and released to the media on November 13 – said all business negotiations and deals will have to be made adhering to the new minimum wage policy from now onward.

"….Therefore, I would humbly request you to kindly pursue the AAFA members to collaborate with their Bangladeshi suppliers with due empathy and consideration," the BGMEA chief wrote in his letter.

"Now, with the increase in the minimum wages, this industry has taken the challenge to ensure better living standards of the workers while maintaining competitiveness," the letter said.

Faruque said, ensuring decent living standards of the workers is a top priority for them, as well as for global brands and retailers.

"Since we have accepted the new minimum wage, we will ensure implementation of it, and we need your support in terms of responsible purchasing practice," the BGMEA president wrote in the letter.

16,000 accused in 34 vandalism cases 

In Gazipur metropolitan area alone, over 12,000 individuals have been accused in 17 cases related to arson attacks and vandalism during the RMG unrest in the past three weeks.

According to Gazipur Metropolitan Deputy Police Commissioner (DB North-Media) Mohammad Ibrahim Khan, some 122 people have been arrested in these cases as of Sunday. 

Among the accused, 107 have been named, while the identities of over 12,000 individuals remain unknown, with the majority believed to be garment workers.

In Ashulia, the total number of cases also reached 17 with five news cases filed yesterday, Additional Superintendent of Police (Savar Circle) Shahidul Islam told TBS. 

"Seven people have been arrested over unrest in Ashulia, and the number of accused in the 17 cases is estimated to be around 3,500 to 4,000," he added.

Joly Talukder, vice president of the Garment Workers' Trade Union Centre, thinks the situation is not conducive to normal production work. 

"Normal production is not possible by arresting, intimidating and displacing workers. Arrests, cases must be closed, workers' wages must be negotiated and those involved in the killing of workers must be arrested," she said.