Bangladesh more than doubles garment workers' monthly minimum wage to $113

[Black_cats]

Bangladesh more than doubles garment workers' monthly minimum wage to $113​

Increase from previous $75 per month still decried by some labor groups as too small​

Associated Press
Published November 7, 2023 3:35pm EST

Authorities in Bangladesh announced a new salary structure on Tuesday for protesting garment factory workers with a 56% increase in the monthly minimum wage to $113 from the previous $75, a decision rejected by some workers' groups as too small.

State Minister for Labor and Employment Monnujan Sufian announced the decision after a meeting of a government-formed wage board made up of representatives of factory owners and workers. She said the new pay structure will take effect Dec. 1.

Critics say the influential factory owners should do more for the workers.

The decision came after weeks of violent protests by workers demanding a $208 monthly minimum wage. Workers have demonstrated in the streets, attacked factories, fought with police and burned vehicles.

The protests began after the Bangladesh Garment Manufacturers and Exporters Association offered to increase the monthly minimum wage by 25% to $90.

The last increase in the minimum wage was announced in 2018.

Garment workers demonstrate in the Dhaka-Mirpur area of Bangladesh, Thursday, Nov. 2, 2023. (AP Photo/Mahmud Hossain Opu)
Workers say they currently need to work overtime to make ends meet.

Kalpona Akter, president of the Bangladesh Garment and Industrial Workers Federation, said they were "extremely frustrated" over what she described as a paltry increase.

Akter said workers are struggling because prices of daily commodities are rising.

"This is very frustrating. We can't accept this," she said.

Bangladesh is the second largest garment-producing country in the world after China with nearly 3,500 factories employing about 4 million workers, most of them women, according to the manufacturers' association.

It says factory owners are under pressure because global brands in Western countries are offering less than before.

Owners argue that production costs have also increased because of higher energy prices and transportation costs.

Bangladesh annually earns about $55 billion from exports of garment products, mainly to the United States and Europe. The country is exploring new markets such as Japan, China and India.

Bangladesh more than doubles garment workers' monthly minimum wage to $113 | Fox News

Bangladesh announced a new salary structure for its garment factory workers on Tuesday, including a 56% increase in their monthly minimum wage.

www.foxnews.com

 

[SoulSpokesman]

Good work by SHW Govt. This will improve the standard of living of ordinary BD citizens and make garment industry more sustainable,

Regards

 

[Black_cats]

Bangladesh garment workers reject 56% pay rise​

November 07, 2023 11:12 pm | Updated 11:12 pm IST - Dhaka

Workers have gone on strike to demand a near-tripling of their wages, with violent scenes in recent days, while employers offered 25%​

AFP

Garment workers and activists take part in a protest in Dhaka on November 07, 2023. | Photo Credit: AFP

Bangladesh raised the minimum monthly pay for the country's four million garment workers by 56.25 percent on Tuesday, a decision immediately rejected by unions seeking a near-tripling of the figure.

The South Asian country's 3,500 garment factories account for around 85 percent of its $55 billion in annual exports, supplying many of the world's top fashion names including Levi's, Zara and H&M.

But conditions are dire for many of the sector's four million workers, the vast majority of whom are women whose monthly pay starts at 8,300 taka ($75).

Workers have gone on strike to demand a near-tripling of their wages, with violent scenes in recent days, while employers offered 25 percent.

The minimum wage is fixed by a state-appointed board that includes representatives from the manufacturers, unions and wage experts.

"The new minimum monthly wage for garment factory workers has been fixed at 12,500 taka ($113)," Raisha Afroz, the board secretary, told AFP.

The figure was immediately rejected by unions, which have been demanding a 23,000 taka minimum.

Unions say their members have been hard hit by persistent inflation, which in October reached nearly 10 percent, and a cost of living crisis partly triggered by the taka depreciating about 30 percent against the US dollar since early last year.

"This is unacceptable. This is below our expectations," said Kalpona Akter, head of the Bangladesh Garment and Industrial Workers Federation.

Hundreds of workers staged an angry protest just yards from the labour ministry after the announcement.

"I reject this new monthly minimum wage," said garment worker Sajal Mia, 21.

"It is an injustice to us. The authorities didn't take the situation of the market into the account. They're only concerned about their own interests," he added.

The panel normally sits every five years and in 2018 raised the basic minimum from 5,000 taka to 8,000. Garment workers also get at least 300 taka per month as an attendance fee.

Earlier Tuesday, police fired tear gas at thousands of workers who set a bus on fire outside Dhaka, as tensions rose ahead of the announcement.

Police said violence broke out in the industrial city of Gazipur as about 6,000 workers walked out of their plants and staged protests.

"They torched a bus. We fired tear gas to disperse them," Gazipur industrial police unit chief Sarwar Alam told AFP.

Police said around 600 factories that make clothing for many major Western brands were shuttered last week and scores were ransacked as the worst wage protest in a decade hit major industrial areas and a suburb of the capital.

Four factories were torched and at least two workers were killed in the violence, with tens of thousands of workers blocking highways and attacking factories.

There was no comment from top brands who source tens of billions of dollars of clothing from Bangladesh and for whom South Asian factories are a vital part of their supply chains.

But last month brands including Gap, Levi Strauss, Lululemon, and Patagonia wrote to Prime Minister Sheikh Hasina calling for a "successful conclusion" to wage negotiations.

"The consultations should seek to raise the minimum wage to a level that corresponds with a wage level and benefits that are sufficient to cover workers' basic needs and some discretionary income," they said.

The protests have coincided with separate violent demonstrations by opposition parties demanding the resignation of Hasina ahead of elections due in January.

 

[cloud4000]

Does this mean garment manufacturers are going to a hair cut to their profits? Or will they rise prices to compensate? We know how fungible the garment industry is.

 

[nahtanbob]

There are very little comments on this strike. It is of far greater importance to Bangladesh than all of the other shit that gets discussed

 

[Black_cats]

Bangladesh garment worker shot dead as wage protests turn violent​

A Bangladeshi woman was shot dead Wednesday in the latest violent protests by garment workers after they rejected a government wage increase offer, with the victim's husband blaming the police.

Issued on: 08/11/2023 - 14:13
2 min

Bangladeshi policemen patrol along a street in Ashulia on November 8, 2023.© Munir Uz Zaman, AFP
By:NEWS WIRES

The South Asian country's 3,500 garment factories account for around 85 percent of its $55 billion in annual exports, supplying many of the world's top brands including Levi's, Zara and H&M.

But conditions are dire for many of the sector's four million workers, the vast majority of whom are women whose monthly pay starts at 8,300 taka ($75).

A government-appointed panel raised wages on Tuesday by 56.25 percent to 12,500 taka, but striking workers demand a near-tripling of the wage to 23,000 taka.



"Police opened fire. She was shot in the head... She died in a car on the way to a hospital," said Mohammad Jamal, the husband of 23-year-old sewing machine operator Anjuara Khatun, a mother of two.

Jamal told AFP that police had fired on some 400 workers calling for wage increase in the industrial city of Gazipur, outside the capital Dhaka. "Six to seven people were shot at and injured," he said.

Bacchu Mia, a police inspector posted at Dhaka Medical College Hospital where the body was brought, confirmed the death but gave no further details.

Police said fresh violence broke out on Wednesday in Gazipur, home to hundreds of factories, after 4,000 people staged protests rejecting the wage decision.

"They (protesters) hurled bricks at factories, cars and police officers. We fired tear gas to disperse them," local police chief K.M. Ashraf Uddin told AFP.

'How can I survive?'​

The minimum wage is fixed by a state-appointed board that includes representatives from the manufacturers, unions and wage experts.

"The wage was low before, and it is still low after the new minimum wage announcement," said Mujahid Ahmed, 23, a sewing machine operator. "It is not enough to meet our basic demands."

Unions say their members have been hard hit by persistent inflation – which reached nearly 10 percent in October – and a cost-of-living crisis partly triggered by the taka depreciating about 30 percent against the US dollar since last year.

"I am widow, with two children. I get some 13,000 taka including overtime pay. How can I survive with this little income? My back is against the wall," said worker Shahnaj Akter, in the garment-producing town of Ashulia.

Wage protests pose a major challenge to Prime Minister Sheikh Hasina, who has ruled the country with an iron fist since 2009. A resurgent opposition has challenged her rule as she readies for elections due before January.

Security has been tight in key industrial towns outside Dhaka after unions threatened to hold new protests over what they described as the "farcical" wage hike.

Police said around 600 factories that make clothing for many major Western brands were shuttered last week and scores were ransacked in the biggest wage protest in a decade.

Four factories were torched and at least two workers were killed in the violence, with tens of thousands of workers blocking highways and attacking factories.

(AFP)

Bangladesh garment worker shot dead as wage protests turn violent

A Bangladeshi woman was shot dead Wednesday in the latest violent protests by garment workers after they rejected a government wage increase offer, with the victim's husband blaming the police.

www.france24.com

 

[Black_cats]

Does this mean garment manufacturers are going to a hair cut to their profits? Or will they rise prices to compensate? We know how fungible the garment industry is.

Apparel exporters urge global buyers to share burden of rising production costs

RMG​

Jasim Uddin
08 November, 2023, 10:50 pm
Last modified: 08 November, 2023, 10:52 pm

BGMEA president told TBS that he will be sending letters to all buyers and brands to inform them of the impending increase in the cost of apparel manufacturing due to the wage hike.​

Eighty exhibitors from 12 countries are taking part at the two-day 15th Bangladesh Denim Expo at the International Convention City Bashundhara in the capital. Photo: Syed Zakir Hossain/TBS

Eighty exhibitors from 12 countries are taking part at the two-day 15th Bangladesh Denim Expo at the International Convention City Bashundhara in the capital. Photo: Syed Zakir Hossain/TBS

Bangladeshi apparel exporters reiterate their call for global buyers and brands to bear a portion of the rising apparel manufacturing costs associated with the impending wage increase.

Moreover, several buyers have already demonstrated their commitment to supporting the adoption of the new wage structure by agreeing to share the associated manufacturing costs.

Both parties expressed this sentiment during a conversation with The Business Standard at the opening ceremony of the 15th Bangladesh Denim Expo 2023 at the International Convention City Bashundhara in Dhaka on Wednesday.

A total of 80 exhibitors from 12 countries are participating in the expo. About 5,000 visitors from home and abroad have registered to attend the two-day event.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said the new minimum wage was announced on Tuesday and it is their priority to implement it.

"I hope the buyers will also support us in this work," he said.

The BGMEA president told TBS that he will be sending letters to all buyers and brands to inform them of the impending increase in the cost of apparel manufacturing due to the wage hike.

He also mentioned that these letters will serve as a follow-up to previous communication sent last month, which notified buyers about Bangladesh's plan to implement a new wage structure, expected to take effect as early as December this year.

"We will talk with buyers' representatives [at Buyers Forum] asking them to share the burden of the additional costs with us," Faruque Hassan added.

Ziaur Rahman, regional head of H&M Group for Bangladesh, Pakistan, and Ethiopia, affirmed the brand's commitment to pay in accordance with the new wage structure.

"We want to state that H&M Group respects the [wage restructuring] process," he said, urging all stakeholders concerned to reach a consensus that allows fixing a new minimum wage.

Vested groups trying to prolong RMG labour unrest

Former BGMEA president Md Siddiqur Rahman has said vested quarters with political involvement attempting to instigate unrest within the ready-made garment (RMG) sector, cautioning that such actions could drive buyers to seek alternative sourcing destinations.

"If they continue this unrest, buyers may move to other sourcing destinations," he warned, underlining the importance of stability and cooperation to maintain the industry's global competitiveness.

Md Siddiqur Rahman was visibly frustrated as he expressed his bewilderment about the ongoing movement despite the recent wage announcement.

He criticised the RMG workers for continuing the movement even after getting a significant 56.25% increase in wages.

Siddiqur Rahman also noted the potential financial strain this wage hike might impose on certain garment factory owners.

"We understand that this hike may not be affordable to several garment factory owners, but we agreed with this hike only because it was the prime minister's directive," he said.

Regarding the recently declared minimum wages for the RMG workers, Commerce Minister Tipu Munshi said the government has tried to adjust the wages given the current inflation.

Exporters keen to double denim export by 2030

Apparel exporters wish to double their denim export to global destinations to achieve the target of $100 billion in apparel export by 2030.

Commerce Minister Tipu Munshi said Bangladesh is the second largest apparel exporting country in the world, but in denim, Bangladesh is the largest exporter both to the EU and USA.

According to industry data, Bangladesh's denim export to the EU was about $800 million from January to August 2023, while the earnings were $1 billion in the same period of last year.

On the other hand, denim export to the USA market was $433 million from January to August 2023, while the earnings were $638 million in the same period of last year.

Former BGMEA President Md Siddiqur Rahman said that Denim and denim-related products account for about one-fourth of Bangladesh's total apparel export. So, to fetch the $100 billion apparel export target the country has to double its denim export by 2030.

Mostafiz Uddin, chairman of Bangladesh Apparel Exchange (BAE), said the Bangladesh denim industry has huge potential and his organisation has been working to unlock the untapped potential of the industry.

SM Mannan (Kochi), senior vice president of BGMEA, also spoke at the event moderated by Mohiuddin Rubel, managing director of the BAE and director of the BGMEA.

Apparel exporters urge global buyers to share burden of rising production costs

BGMEA president told TBS that he will be sending letters to all buyers and brands to inform them of the impending increase in the cost of apparel manufacturing due to the wage hike.

www.tbsnews.net

 

[saif]

I am for increasing the minimum wage because these poor workers work their a*ss off to make money for their owners. But the stingy owners are reluctant to pay what the garment workers are demanding. On an average a garment worker makes Tk. 2 lac for his/her owner in a month. So, their demand for Tk. 23000 as minimum monthly wage is very reasonable.

 

[Black_cats]

Bangladesh

US condemns violence against Bangladesh RMG workers during unrest for pay rise​

BySenior Correspondent

Published:8th Nov, 2023 at 11:27 PM


The United States has condemned recent violence against workers in Bangladesh protesting over the minimum wage.
It also condemned the criminalisation of legitimate worker and trade union activities in a statement issued by Matthew Miller, spokesperson for the Department of State.

Miller said they were saddened by the deaths of workers Rasel Howlader and Imran Hossian in the violence. Rasel died in clashes with police while Imran’s body was found inside a factory after an arson attack by protesters.

“We are also concerned about the ongoing repression of workers and trade unionists. We call on the government of Bangladesh to protect workers’ right to peaceful protest and investigate allegations of false criminal charges against workers and labour leaders,” Miller said.

“We commend the members of the private sector who have endorsed union proposals for a reasonable wage increase. The United States urges the tripartite process to revisit the minimum wage decision to ensure that it addresses the growing economic pressures faced by workers and their families.

“Governments must ensure workers are able to exercise their rights to freedom of association and collective bargaining without fear of violence, reprisal, or intimidation. Through our work in Bangladesh and globally, we are firmly committed to advancing these fundamental human rights,” the State Department said.

Retailers in the US and the European Union are top buyers of Bangladeshi readymade garments. The apparel sector contributes to more than 80 percent of the country’s total exports.

The Western buyers took measures to help Bangladesh improve workplace safety for workers after the disastrous Rana Plaza collapse and Tazreen Fashions fire over a decade ago.
Amid worker unrest for a pay rise, Bangladesh’s exports fell, according to latest data.

Although the government raised the minimum wage for garment factory workers by 56 percent to Tk 12,500 on Monday, several groups continued protests for more.

A female worker died in violence during the protests on Tuesday.

US condemns violence against Bangladesh RMG workers during unrest for pay rise

bdnews24.com

 

[@blue Ocean]

Bangladesh garment worker shot dead as wage protests turn violent​

A Bangladeshi woman was shot dead Wednesday in the latest violent protests by garment workers after they rejected a government wage increase offer, with the victim's husband blaming the police.

Issued on: 08/11/2023 - 14:13
2 min

Bangladeshi policemen patrol along a street in Ashulia on November 8, 2023.© Munir Uz Zaman, AFP
By:NEWS WIRES

The South Asian country's 3,500 garment factories account for around 85 percent of its $55 billion in annual exports, supplying many of the world's top brands including Levi's, Zara and H&M.

But conditions are dire for many of the sector's four million workers, the vast majority of whom are women whose monthly pay starts at 8,300 taka ($75).

A government-appointed panel raised wages on Tuesday by 56.25 percent to 12,500 taka, but striking workers demand a near-tripling of the wage to 23,000 taka.



"Police opened fire. She was shot in the head... She died in a car on the way to a hospital," said Mohammad Jamal, the husband of 23-year-old sewing machine operator Anjuara Khatun, a mother of two.

Jamal told AFP that police had fired on some 400 workers calling for wage increase in the industrial city of Gazipur, outside the capital Dhaka. "Six to seven people were shot at and injured," he said.

Bacchu Mia, a police inspector posted at Dhaka Medical College Hospital where the body was brought, confirmed the death but gave no further details.

Police said fresh violence broke out on Wednesday in Gazipur, home to hundreds of factories, after 4,000 people staged protests rejecting the wage decision.

"They (protesters) hurled bricks at factories, cars and police officers. We fired tear gas to disperse them," local police chief K.M. Ashraf Uddin told AFP.

'How can I survive?'​

The minimum wage is fixed by a state-appointed board that includes representatives from the manufacturers, unions and wage experts.

"The wage was low before, and it is still low after the new minimum wage announcement," said Mujahid Ahmed, 23, a sewing machine operator. "It is not enough to meet our basic demands."

Unions say their members have been hard hit by persistent inflation – which reached nearly 10 percent in October – and a cost-of-living crisis partly triggered by the taka depreciating about 30 percent against the US dollar since last year.

"I am widow, with two children. I get some 13,000 taka including overtime pay. How can I survive with this little income? My back is against the wall," said worker Shahnaj Akter, in the garment-producing town of Ashulia.

Wage protests pose a major challenge to Prime Minister Sheikh Hasina, who has ruled the country with an iron fist since 2009. A resurgent opposition has challenged her rule as she readies for elections due before January.

Security has been tight in key industrial towns outside Dhaka after unions threatened to hold new protests over what they described as the "farcical" wage hike.

Police said around 600 factories that make clothing for many major Western brands were shuttered last week and scores were ransacked in the biggest wage protest in a decade.

Four factories were torched and at least two workers were killed in the violence, with tens of thousands of workers blocking highways and attacking factories.

(AFP)

Bangladesh garment worker shot dead as wage protests turn violent

A Bangladeshi woman was shot dead Wednesday in the latest violent protests by garment workers after they rejected a government wage increase offer, with the victim's husband blaming the police.

www.france24.com

Monthly salary was fixed at Tk8300 per month when the value of dollar was Tk83. It means it was $100 per month.

Now the owners/ exporters will get Tk 111 for a dollar. The salary at Tk12500 means also about $112. It is now lower if one considers the high inflation rate in the country.

Very sad, The minimum salary must be raised to Tk20,000 per month. The country’s govt will not initiate metal-based industrial development until it depends upon the cheap garment production.

I expect our @IndianLite will endorse my thinking and the great BAL philosopher @SoulSpokesman will support it.

 

[saif]

The RMG workers are being mistreated by the govt. Our entire economy is banking on these RMG workers but the govt. and the owners are depriving them of their reasonable demand for Tk. 23000 minimum wage. These stingy and insensitive factory owners should be forced to pay Tk. 23000 minimum wage for the RMG workers.

 

[Black_cats]

Rather than minimum salary owners should introduce profit sharing for the workers. It’s a win win scenario for all. Workers will work hard for profit, owners will have no obligation to pay higher minimum wages and government will get more tax revenue as garments owners with under and over invoicing hide actual income which may not be possible in this case as workers will keep an eye on it for getting a share from profit.

The minimum salary should be competitive compared to other RMG producing countries, otherwise Bangladesh will loose market share. Alternative is to move to higher value product producing.

 

[Abu Shaleh Rumi]

Government should introduce a minimum hourly rate, profit sharing and German style insurance system for every corporate sector in Bangladesh.
.
Profit sharing will increase productivity...

 

[-=virus=-]

lol

 

[StraightEdge]

If inflation is 10%, obviously they would expect decent hike in salary. Also need to consider that they were earning pretty low amount, so inflation will bite them a lot.