Trade unions likely to propose Tk20,000 as minimum wage

Trade unions of Bangladesh’s RMG sector are likely to propose Tk 20,000 as the minimum wage as well as to reduce the number of grades, which the industry leaders termed as “unrealistic”.

The industrialists, however, said they might agree to reduce the workers’ grading system.

To review RMG workers salary structures, the newly formed wage board held its first meeting on Wednesday at the National Wage Board office in the capital, but failed to make any decision.

Board Chairman Liaquat Ali Mollah asked the representatives from both the workers and owners to place a concrete proposal in the next meeting, which is yet to be fixed.

The Business Post talked with several apparel manufacturers to find out what should the minimum wage for the RMG workers. Most of them advised the amount should be limited to Tk12,000-Tk14,000 considering the USD rate against taka and current inflation.

Seeking anonymity, a factory owner told this correspondent, “The minimum wage should not cross Tk14,000. Not only that, the global brands should increase their product price to effort by the factories.”

When contacted, Fatullah Apparels Chief Executive Officer Fazlee Shamim Ehsan said, “I am also agreed to reduce grading system and this should be limited to four grades: unskilled, operator, senior operator and high skilled operator.”

But the workers’ wage demands are not bearable to any factory owners, he said adding, “Even if the board sets Tk 12,000-13,000 minimum wage, most of the factories will have to struggle to bare it.”

“I am agreed to pay premium salary to the skilled workers and most of the factories are paying more than what is there in the existing wage board.”

On April 9, the Ministry of Labour and Employment formed the four permanent-member new wage board, headed by senior district Judge Liaquat Ali Molla, to review RMG workers’ wages.

The three other members are – Bangladesh Employers’ Federation representative Moksud Belal Siddiqui, Jatiya Sramik League leader Sultan Ahmed, and independent member Dhaka University Prof Md Kamal Uddin.

Besides, the ministry also announced the names of two members – former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Md Siddiqur Rahman and Bangladesh National Garments Workers Employees League President Sirajul Islam Rony as owners’ and workers’ representatives respectively.

Meeting insider told this correspondent that they have reviewed previous wage structures and discussed about how the board will work. Workers representatives, however, told the board that the previous grading system was not acceptable to the workers, and considering the ongoing economic crisis and inflation, the wages should be increased a significant level, and the workers have been demanding Tk 24,000 as monthly salary.

Owners’ representative, however, said they were increasing minimum 5% of the wage every year and inflation rate was also almost same except the last year. On the other hand, the RMG sector has been struggling to survive due to the ongoing global economic crisis.

So, they are expecting that the new wage would be acceptable to everyone.

While briefing media following the meeting, Liaquat Ali Molla said the board members introduced each other during the meeting. “Next meeting will be a review meeting. But, we want to complete the procedure within the binding period,” he added.

When asked, Sirajul Islam Rony said, “The trade unions already send letters to the Ministry of Labour demanding Tk 22,000-Tk 25,000 as minimum wage.

“We will hold a joint meeting with all leaders of the trade unions to set specific demands. The amount should not be less then Tk 20,000 and the grades should be decreased to three, which is now seven.”

Replying another question, owners’ representative Md Siddiqur Rahman said, “RMG sector has two apex bodies and we have discussed with them to set a proposal.”

As per the Bangladesh Labour Act and labour rules, the government will form a new wage board every five years and it will set a new wage structure.

In December 2018, the government-nominated board declared a new pay structure fixing minimum wages at Tk 8,000 per month.