Gazette issued with Tk10,000 minimum wage for textile workers, labour leaders unhappy

The government has set the minimum monthly wage for textile workers at Tk10,000, or $90, according to a gazette notification dated 27 February, published today. 

The gazette notification was signed by Senior District Judge Liaquat Ali Molla, chairman of minimum wage board.

This wage marks a 75% increase from the previous amount of Tk5,710 set in 2018. However, it falls short of the minimum wage for ready-made garment (RMG) workers, set three months ago at Tk12,500.

According to the notification, the minimum wage for 10th-grade workers in this sector varies based on location: Tk10,700 in divisional cities, Tk10,350 in district cities, and Tk10,000 in upazilas and other areas. For the highest grade (number one), the minimum wage will be Tk15,273 in divisional cities, Tk14,789 in district cities, and Tk14,304 in upazilas and other areas.

Labour leaders have criticised the Tk10,000 minimum wage as insufficient and unacceptable, considering current inflation and market prices. They demanded a wage that reflects the higher cost of living.

In defence of the proposed wage, textile entrepreneurs highlighted the 75% increase, which surpasses the 56% hike in the garment sector.

Monsoor Ahmed, acting secretary-general of the Bangladesh Textile Mills Association (BTMA), recently told The Business Standard that the 1,780 BTMA affiliated factories employ around 500,000 workers and the potential workforce can exceed 800,000 if non-member factories are considered. However, could not provide the exact number of non-member factories, when asked.

Md Shahjahan Saju, the worker representative on the wage board for the textile sector, told The Business Standard, "Our initial demand was Tk25,600. However, all parties on the board settled on Tk10,000."

Meanwhile, the international labour lobby, IndustriALL Global Union, deemed the new wage hike as "too little", considering Bangladesh's inflation rate.

In a press release, on 28 February, Atle Høie, IndustriALL general secretary, said, "Bangladesh's wage board needs to take into consideration the rising cost of living while fixing the minimum wage. IndustriALL calls on the government to engage with trade unions and seriously consider their demands."