By Ruma Paul
DHAKA, Nov 4 (Reuters) – Bangladesh’s newly formed wage board is set to hold its first meeting on garment sector wages on Wednesday, as protests for higher pay entered their fifth day.
The government and garment manufacturers are under mounting pressure to raise the monthly minimum wage to 30,000 taka ($243) from 12,500 taka, as workers struggle with rising living costs.
The protesters have clashed with police in several industrial areas of Dhaka, forcing hundreds of factories to suspend operations and raising concerns about shipment delays in Bangladesh, the world’s second-largest garment exporter after China.
The sector employs about 4 million workers, generates more than 80% of export earnings and supplies brands including H&M , Inditex’s Zara and Walmart .
On Wednesday, clashes broke out between workers and police in Savar and Gazipur, two major garment hubs on the outskirts of Dhaka. Demonstrators blocked roads and highways, while police used tear gas and sound grenades. Several factories suspended operations amid concerns over further unrest.
The six-member wage board, which includes representatives of workers and factory owners, is expected to begin formal discussions on reviewing the industry’s wage structure.
Workers said the existing minimum wage was no longer sufficient to meet basic household expenses after years of rising food, housing and other living costs.
“Every month is a struggle,” said Bithi Begum, a garment worker. “After working hard all day, the money we earn is hardly enough to cover even our basic needs.”
International buyers are closely watching the situation as factories enter a key production period for spring and summer orders.
Swedish fashion retailer H&M told Reuters that some factories had closed temporarily, though it had not experienced major supply-chain disruptions.
NEED TO IMPROVE PRODUCTIVITY
Manufacturers said the industry was already under pressure from rising costs, stronger regional competition, energy market uncertainty linked to conflict in the Middle East and weaker demand in key export markets.
Experts said the wage board faced the challenge of balancing workers’ demands with the competitiveness of a sector that is central to Bangladesh’s economy.
Selim Raihan, an economics professor at the University of Dhaka, said Bangladesh could absorb a significant wage increase without necessarily losing its competitive advantage if factories improved productivity.
He said any wage revision should also reflect inflation, living costs and factories’ ability to pay, while international buyers should help support improved labour standards through fairer purchasing practices and prices.
Raihan said prolonged labour unrest could pose a greater threat to the industry than higher wages because it undermines delivery reliability and buyer confidence.
“Treating cheap labour as the industry’s permanent competitive strategy would be a mistake,” he said. “Bangladesh needs to move increasingly toward productivity, reliability, upgrading and higher-value products.”
(Reporting by Ruma Paul; Editing by Kate Mayberry)
