Buyers concerned over RMG unrest, not placing new orders: BGMEA

RMG

TBS Report
12 November, 2023, 04:20 pm
Last modified: 12 November, 2023, 10:40 pm
Gazette published fixing minimum wage at Tk12,500 for apparel workers

Foreign buyers are concerned about the ongoing unrest in the readymade garments (RMG) sector and they are not placing new orders for the time being, said Faruque Hassan, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

"The damage that has happened is that the buyers are holding orders. They will not be placing new orders if the situation continues," he said at a press conference at the BGMEA office in the capital's Uttara on Sunday. 

"We are trying to explain to them [buyers] that only 5% of factories are affected [by the unrest] and we are trying to find a solution."
Faruque also said the new wage board should become effective before the general election, so the issue of polls does not come in between. 

"We will officially inform [the government], in this regard."

The BGMEA president said 130 garment factories went on temporary shutdown as of Sunday.

Pointing out that new recruitments will create an additional burden on the factories, Faruque said, "If a factory has more work pressure, it will get the work done from other factories that have less work. 

"It will maintain a balance and the overcapacity that has been created will be mitigated somewhat." 
However, the BGMEA president could not provide any information about the amount of financial loss due to the ongoing unrest.

Gazette published fixing minimum wage

The labour and employment ministry yesterday published a gazette fixing the minimum wage for the sector at Tk12,500.

If anyone has any recommendations or objections regarding the wages, they have the opportunity to inform the Chairman of the Minimum Wage Board Liaquat Ali Molla in writing within the next 14 days, states the gazette. 

The board will make recommendations to the government after considering the objections or recommendations received within this period, the gazette said.

Earlier on 7 November, the RMG wage board fixed the minimum wage for the sector at Tk12,500 after discussing with factory owners and workers representatives.

The protesting RMG workers in Dhaka and adjacent areas demanded a minimum wage of Tk25,000 for all workers in the garments sector in view of the rising commodity prices.

They also sought a 65% basic wage instead of the existing 50%, and an annual increment of 10% instead of 5%.

According to the gazette, after one year of working with the minimum wage adjustment, the workers will get a salary increment on an annual basis at the rate of 5% of the basic wages.

Meanwhile, the work hour, allowances and other benefits for the sector will be decided according to the relevant clauses and rules of Bangladesh Labour Act 2006 and Bangladesh Labour Rules 2015.

Grade-wise minimum wage

According to the gazette, the minimum wage for assistant operators or Grade-5 workers will be Tk12,500. Of the amount, basic salary has been fixed at Tk6,700, house rent Tk3,350, medical allowance Tk750, travel allowance Tk450 and food allowance Tk1,250. 

Besides, the minimum wage of Grade-1 workers will be Tk14,750. Out of this, the basic salary has been fixed at Tk8,200, house rent at Tk4,100, medical allowance at Tk750, travel allowance Tk450 and food allowance at Tk1,250.

The minimum wage of Grade-2 workers will be Tk14, 150. Out of this, the basic salary has been fixed at Tk7,800, house rent at Tk3,900, medical allowance at Tk750, travel allowance at Tk450 and food allowance at Tk1,250.

The minimum wage of Grade-3 workers will be Tk13,550. Out of this, the basic salary has been fixed at Tk7,400, house rent at Tk3,700, medical allowance at Tk750, travel allowance at Tk450 and food allowance at Tk1,250.

The minimum wage of Grade-4 workers will be Tk13,025. Out of this, the basic salary has been fixed at Tk7,050, house rent at Tk3,525, medical allowance at Tk750, travel allowance at Tk450 and food allowance at Tk1,250.

BGMEA seeks adequate security for factories

During the press conference yesterday, the BGMEA also urged the government to provide adequate security to run the garment factories amid the ongoing unrest.

Speaking at the briefing, the BGMEA president said, "We urge the government to identify those who are conspiring against the industry and take necessary measures. We also request adequate security to ensure the smooth operation of our industries."

He further said, "We have noticed that despite the increase in wages, various factories are being vandalised in the name of movement. Following the announcement of new wages, some unidentified people unleashed destruction inside several factories."

Expressing deep concern, Faruque said it is disheartening to witness various subversive activities surrounding the country's RMG industry, which is already grappling with the dual challenges of global pressures and financial strain.

He said the authorities can keep the factory shut to protect the industry and assets until the workers put an end to vandalism of factories as well as the law enforcement agencies ensure adequate security.

Senior leaders of the BGMEA were present at the press conference.

More RMG factories suspend operations

Meanwhile, the number of factories that suspended operations increased yesterday. According to the BGMEA, while 78 factories were closed on Saturday, the number increased to 130 yesterday. 

The factories are mostly located at Ashulia and Konabari of Gazipur. Of the closed factories that suspended operations yesterday 11 were from capital's Mirpur. A group of workers took to the street protesting factory closure and demanding better wages.

Meanwhile, factory and police sources told The Business Standard that some of the closed factories may reopen today.
Another worker dies

Another RMG factory worker who was wounded during the clash between workers and police in Gazipur on 8 November, succumbed to his injuries while undergoing treatment at Dhaka Medical College and Hospital (DMCH) in the early hours of Sunday. 

"Md Jalal Uddin, 40, died on Saturday around 12:30am while undergoing treatment," DMCH Police Outpost In-Charge Bachchu Miah told TBS.

Jalal Uddin used to work as a swing supervisor in a factory of the Islam Group in the Konabari area of Gazipur.

With the new casualty, the number of deaths so far from the ongoing incidences of protest reached four.

Workers on the run in fear of arrest

Some workers complained that after the case was registered, the law enforcement personnel were searching the workers' homes late at night.

Khokon Mia, a worker from Konabari area, told TBS many workers do not stay at night in the fear of arrest as the police are searching workers homes.

However, the police denied such allegations. Md Emran Ahmmed, additional SP of industrial police 2 (Gazipur) Md Emran Ahmmed, told TBS, "We don't harass anyone unnecessarily. After seeing footages, efforts are underway to arrest the criminals."

As of Saturday, 88 people were arrested in 22 cases in Gazipur.

A total of 3,000 people were made accused in 12 cases filed in connection with the attacks and vandalism in various factories in Ashulia.

Five people were arrested so far in these cases, Dhaka District Police Additional Superintendent of Police (Savar Circle) Md Shahidul Islam told TBS today.

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