Readymade garments factory owners on Tuesday proposed Tk 12,500 minimum wages for the RMG workers in the Minimum Wages Board's meeting at Segunbagicha in Dhaka. The workers' representative has denied the proposal.
State Minister for Labour and Employment Begum Monnujan Sufian announced the new wage structure for RMG workers which will be effective from December 1.
However, both parties agreed to reduce the grade from the existing seven to five in the new wage structure, which is likely to be announced this November and will be effective from next January for five years as per the Bangladesh Labour Act, meeting insiders said.
The board has sent both parties proposals to Prime Minister Sheikh Hasina and is waiting for her response.
Garment workers in the capital and adjoining areas have been protesting for a week with the demand for a minimum wage of Tk 23,000.
On October 21, workers demanded that their minimum wage be increased from the existing Taka 8,000 to Tk 20,390 while the owners have proposed to increase it to Tk 10,400.
Since the beginning of last year, workers have been demanding Tk 23,000 as monthly minimum wage considering high inflation in the country, but their representative has proposed Tk 20,394 as minimum wage.
Besides, the Centre for Policy Dialogue (CPD) recently recommended Tk 17,568 as the monthly minimum wage for the RMG workers against the backdrop of skyrocketing inflation.
The think tank said that it will be possible for a garment factory to execute this plan if the buyers hike the cost of manufacturing (CM) by just $0.07.
In the written wage proposal to the wage board, workers demanded Tk 12,462 as basic and Tk 20,393 as gross salary for an entry-level worker. The figures were Tk 4,100 and Tk 8,000 in the last wage structure respectively.
They also demanded Tk 13,708 as basic and Tk 22,262 as gross salary for grade 4 such as ironman and cutter man. The wages were Tk 4366 and Tk 8,399 in the 2018 wage structure. For grade 3, they demanded Tk 15,079 as basic and Tk 24,319 as gross salary which were Tk 4,670 and Tk 8,855 in the last wage structure.
For grade 2, workers demanded Tk 16,586 as basic and Tk 26,579 as gross salary, which was Tk 4,970 and Tk 9,245 in the last wage structure. For grade 1, workers demanded Tk 18,245 as basic and Tk 29,068 as gross salary. The amount was Tk 5,152 and Tk 9,578 in the last wage structure.
In addition, workers’ representatives demanded a 10 per cent yearly increment which is now 5 per cent, auto grade promotion every two years, 6-month maternity leave instead 4 months, two festival bonuses every year and the amount will be minimum of one month basic salary for more than six months’ working period, and 15 days’ basic for less than six months.
They also demanded the implementation of the rationing system for RMG sector workers, providing education bonus for workers’ children, and gratuity for RMG workers.
On the other hand, owners proposed Tk 5,330 as basic and Tk 10,400 as gross salary for grade 5, Tk 5,700 as basic and Tk 10,955 as gross salary for grade 4, Tk 6,090 as basic and Tk 11,540 as gross for grade 3, Tk 6,500 as basic and Tk 12,455 as gross for grade 2, and Tk 6,930 as basic and Tk 12,800 as gross salary for grade 1.
Wage scenario in Bangladesh
An analysis of wages paid by different RMG exporter nations show that Bangladesh pays one of the lowest monthly wages to its workers. China pays a minimum $161 in RMG worker wages, while India pays $165, Vietnam $191, Pakistan $110, and Cambodia $200.
Bangladesh had fixed $100 or Tk 8,000 in 2018 as monthly wages for RMG workers. Due to the depreciation of the local currency, the wages now amount to $74.5 per month, show central bank data.
Bangladesh’s development partners had earlier said the country should move away from the low wage trap after graduating from Least Developed Country (LDC) status, as the existing minimum pay for RMG workers is not nearly enough to cover skyrocketing living costs.
Leading 15 US clothing brands, have written to the Prime Minister of Bangladesh recommending a hike in minimum wages for readymade (RMG) garment workers, to a figure that are sufficient to cover basic needs, provide discretionary income, and takes into account inflationary pressure.
Besides, on September 12, the Action, Collaboration, Transformation (ACT), a joint initiative between 19 international garment brands and retailers and IndustriALL Global Union, sent a letter to the BGMEA, EPB and Minimum Wages board to support the development of living wages in the RMG sector.
