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NEW WAGE STRUCTURE

BGMEA seeks support from brands, buyers

Arifur Rahaman Tuhin
24 Sep 2023 22:01:57 | Update: 24 Sep 2023 22:16:44
BGMEA seeks support from brands, buyers

As the government is set to announce new wage structure this year, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) seeks support from all concerned, including brands, buyers, trade unions and consumers.

As per the move, the apex trade body has already sent several letters to the respective associations and unions, seeking their support in implementing the upcoming new wage structure for the readymade garment sector.

On September 12, the Action, Collaboration, Transformation (ACT), a joint initiative between 19 international garment brands and retailers and IndustriALL Global Union aiming to support the development of living wages in the RMG sector, sent a letter to the RMG Minimum Wage Board members, and also sent a carbon copy (CC) to the BGMEA President and Export Promotion Bureau (EPB) Chairman.

“We sincerely hope and urge that RMG Minimum Wage Board members reach a negotiated consensus that allows the setting of a new Minimum Wage in Bangladesh that will cover the minimum income necessary for a worker to meet the basic needs of himself/herself and his/her family including some discretionary income. This should be earned during legal normal working hour limits,” the ATC letter reads.

In a reaction to the letter, BGMEA started sending letters to all stakeholders, where remember their responsibilities to ensure workers’ rights and better wages.

The trade body believes that ensuring better life for workers is not only manufacturers’ responsibility, but brands, consumers, international organisations and trade unions also should raise their hand as they are also benefited.

In the letters, BGMEA said that it would not be possible to execute new wage structure if stakeholders do not cooperate considering the low prices of products despite high inflation and current global economic crisis.

The apex trade body also said that Bangladesh ensures the safest workplace for the apparel workers, and mentioned the country’s apparel sector’s progress, especially the green initiatives.

In some letters to the export destinations’ government authority, the BGMEA sought duty-free market access till at least 2032, even though Bangladesh will graduate from Least Developed Country (LDC) status in 2026.

Commenting on the issue, BGMEA President Faruque Hassan told The Business Post, “Workers are our lifeline and we are always trying to pay better wages. But buyers and brands have responsibility on their part. Ethical buying practice is the key issue to ensure the better life for workers.”

“As the government has already formed a new wage board, we will get new salary structure soon. Besides, the government is going to amend Bangladesh Labour Act, and most of the amend sections are going in favour of workers. We are also welcoming the government’s move.”

“But buyers, brands, consumers and trade unions have some responsibilities. If brands and buyers do not practise ethical buying, how will we pay the workers? Consumers and rights groups should clarify how much we are paid by the buyers for per piece of cloth and what is the retail price?” Faruque questioned.

In reply to ACT’s letter, the BGMEA President said that they appreciate the concerns and observations of the ACT letter. “I would like to reiterate that workers’ rights and wellbeing are of supreme consideration for us. We have made quite a progress in the area of ensuring improved rights and empowerment for our workers.”

“I gratefully acknowledge the support and collaboration from a few major brands, who are working with BGMEA to support the industry transformation on a larger scale. We need more handholding to pursue the area of possibilities.”

He added: “While having all these visions and aspirations, the reality is full of challenges. Your concern regarding the minimum wage is absolutely valid and we are equally concerned. Considering the standard and cost of living of our workers, and the inflation, we also expect fair price and ethical sourcing from our valued buyers.”

“Therefore, we would urge you to engage with global brands, retailers and their representatives urging them to be more empathetic and rational on pricing and sourcing practices,” the letter added.

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