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RMG workers reject wage proposal, continue protests

Arifur Rahaman Tuhin and Raihanul Islam Akand . Gazipur
09 Nov 2023 00:33:31 | Update: 09 Nov 2023 11:38:56
RMG workers reject wage proposal, continue protests

Rejecting the Minimum Wage Board’s new salary proposal, aggrieved readymade garment workers on Wednesday organised massive protests in Gazipur, Savar and Ashulia areas, which led to clashes with police and the death of one worker.

Dozens, including eight policemen, were also injured during the clashes. The situation worsened in the afternoon after workers blockaded the Dhaka-Mymensingh and Dhaka-Tangail highways, and continued demonstrating demanding Tk 23,000 as monthly salary.

An Armoured Personnel Carrier (APC) also exploded during the clashes and left five policemen severely injured, said Gazipur Metropolitan Police (GMP) Commissioner Mahbub Alam.
One of the policemen even lost one of his arms, police source confirmed.

Workers’ demonstrations continued in several areas of Gazipur until 7pm. Afterwards, protesters left the streets for the night and police established normalcy in the areas.

Earlier in the morning, police fired rubber bullets, sound grenades and lobbed teargas shells to disperse the protesters in Gazipur’s Konabari, triggering a clash that left at least 11 people injured.

One of them, Anjuara Khatun, 30, died on the way to Dhaka Medical College Hospital, workers and police confirmed. She worked as a sewing operator at Islam Garments in Gazipur.

Before the protests began, 48 Border Guard Bangladesh (BGB) platoons were deployed alongside police in the morning in Ashulia, Savar, Mirpur, Gazipur and other parts of the country to ensure the security of RMG factories.

Nazma Akter, founder and executive director of RMG workers’ rights organisation Awaj Foundation, condemned the attacks on workers that have left three dead since October 23 and hundreds of others injured.

“We have rejected the Wage Board’s proposed minimum salary. Considering the labour unrest and deaths of three workers, it's better to negotiate the minimum wage instead of making police and goons to attack the workers,” she said.

Echoing Nazma’s remarks, Bangladesh Garment Workers Trade Union Centre Vice President Joly Talukder said, “We will hold a rally on Friday to push for our demand.”

Insufficient proposal

RMG workers have been demanding since last year for Tk 23,000 as the minimum monthly salary, and their demonstrations became more passionate and violent recently after factory owners proposed Tk 10,400 as the minimum monthly salary to the Wage Board.

During violent clashes between police and workers from October 23 to November 1, two workers died, hundreds were injured, two factories were torched and many factories and vehicles were vandalised — which forced owners to close over 500 garment factories.

On Tuesday, State Minister for Labour and Employment Monnujan Sufian announced Tk 12,500 as the new minimum salary for RMG workers and said, “Our Prime Minister Sheikh Hasina has fixed the figure verbally.”

Trade union leaders instantly rejected the proposal saying the amount was insufficient, and announced that their protests would continue.

According to the Bangladesh Bureau of Statistics (BBS), the country has been facing severe inflation since 2022 and low-income workers have been forced to live hand to mouth. This October, inflation advanced by 30 basis points to 9.93 per cent.

Addressing the issue, Zahid Hussain, former lead economist of the World Bank's Dhaka Office, told The Business Post, “As per the BBS, back in 2022, per person monthly livelihood cost above the poverty line in Dhaka city was Tk 4,922 and Tk 4,290 in Chattogram.

“Considering 10 per cent annual inflation, the amount reached Tk 5,414 in the capital in 2023.”

He continued, “If a worker has to cover two persons’ expenses, excluding him/her, he/she needs more than Tk 16,000 per month. Considering the government statistics, the minimum salary for the RMG workers is not sufficient. I think Tk 15,000 could be a decent minimum salary.”

Situation not in favour

Factory owners, however, claimed that their business situation is not in favour, and as per the Export Promotion Bureau (EPB) October data, the apparel sector posted more than 13 per cent in negative earnings year-on-year.

They also claimed that it would be tougher for many factories to implement the new wage structure.

If they implement the new wage structure, many factories will be forced to shut down due to the bad business situation, said BGMEA President Faruque Hassan, urging the workers to return to work.

“Although the gross minimum salary has been fixed at Tk 12,500, workers will still get attendance bonus and overtime. Also, the basic salary has been increased to 63 per cent from 51 per cent, which will help them earn more from overtime. That means an entry-level worker will get at least Tk 15,000 monthly as minimum salary,” he said.

Since early this year, brands, buyers, rights groups and the country’s development partners have been calling for ensuring a decent salary for nearly 4 million RMG workers. They also said that they are willing to increase product prices in line with the salary hike.

Talking to The Business Post on Wednesday, Bangladesh’s single largest export brand H&M’s Regional Country Manager Ziaur Rahman assured that they are determined to keep supporting the country to implement the new wage structure.

“Our chief executive officer [Helena Helmersson] also made the commitment when she met with the prime minister [Sheikh Hasina],” he said.

He added, “Regarding the ongoing wage negotiations, we want to state that H&M Group respects the process and urges the parties in the labour market to reach a consensus that allows the setting of a new minimum wage.”

The BGMEA president, however, said that buyers are yet to increase product prices even though factory owners will have to follow the new wage structure from December.

“Until they [buyers] raise product prices, we cannot make any comment. But we want to trust their assurances,” he said, adding that BGMEA will write to the brands and buyers in this regard.

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