Members of Bangladesh's minimum wage board said on Wednesday that a new pay structure for ready-made garment workers will take effect on December 1, with workers receiving the new rate in January. The announcement came after the first meeting of the eighth minimum wage board, held at its office in Segunbagicha in Dhaka, according to BBC.
Representatives of both the employers and the workers briefed journalists after the session. Babul Akhtar, a workers' representative and general secretary of the Bangladesh Garment and Industrial Workers Federation, said the two sides had agreed that the new wages would apply from the first of December and that December's pay would be settled at the new rate in January. He said there was no disagreement between the parties on this point.
A B M Shamsuddin, an employers' representative and a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), also confirmed that both sides had agreed to complete the process of setting the new wage within December.
Why it matters
Bangladesh's garment sector is the country's dominant export industry and employs a very large workforce, so any change to the minimum wage affects both household incomes and the cost base of the factories that supply global clothing brands. The board's work also comes against a backdrop of unrest in several industrial areas, where workers have been pressing for higher pay. The Business Standard reported that exporters fear a continued unsettled climate could lead to a drop in orders.
The government formed the six-member board on November 1, following that dissatisfaction over wages in several industrial zones, according to BBC. The board is chaired by Syed Azad Subhani.
Timetable and the next steps
Subhani said industrial minimum wages are usually set within a six-month window, but that the current government had constituted the board as quickly as possible. He expressed hope that the board would be able to prepare its recommendations and submit them to the government within the allotted time.
The workers' side is due to submit its written proposal at the next meeting. Akhtar called on all workers' organisations to unite behind a single, reasonable wage proposal and present it to the board.
Beyond pay, the workers' representatives raised a range of other grievances at the meeting. These included implementation of labour law, the right to form trade unions, and ensuring leave and other benefits. They asked the government to turn its attention to these issues and resolve them in stages.
Akhtar also urged the authorities not to take harassing measures against labour leaders, to release arrested workers and labour leaders, and to refrain from any mistreatment of them.
The first meeting was also reported by Prothom Alo, which said the December date was disclosed by employer and worker representatives after the session concluded. The Daily Ittefaq had reported ahead of the meeting that the board was scheduled to convene at 11am.
What to watch: whether the workers' organisations can agree on a single written proposal for the next session, and whether the board meets its target of finishing its recommendations within December.
