The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has issued a heartfelt appeal to brands, retailers, and buyers’ representatives to extend their support in implementing the new minimum wages for garment workers, effective from January 1, 2024. In a letter dated December 20, 2023, BGMEA highlighted the significance of this development and provided details of the revised wage structure.
BGMEA President Faruque Hassan opened the letter by extending warm greetings during the festive season, celebrating the recent Victory Day of Bangladesh and expressing hopes for a prosperous New Year. Acknowledging the positive projections for U.S. holiday spending, BGMEA emphasized the potential for a better and prosperous year ahead.
The letter reiterated BGMEA’s previous communications dated September 20, November 8, and November 17, 2023, regarding the ongoing negotiations for minimum wages. BGMEA informed recipients that the government had officially published the final gazette on December 20, 2023, outlining the new minimum wages. These changes, effective from December 1, 2023, will see workers receiving the new wages in January 2024.
According to the letter, the new wage system reduces the number of grades from 7 to 4. Grade IV replaces the previous Grade VII, while Grade III combines the former Grades V and VI. The gross monthly minimum wage for unskilled Grade IV workers remains at Taka 12,500, representing a 56.25% increase. For Grade III, the gross monthly wage increases by 60.93% from Tk. 8,420 to Tk. 13,550.
BGMEA emphasized its commitment to worker well-being, noting that the adjustments align with official demands by workers and employers’ representatives. The association highlighted its efforts to educate member factories on the new wage system through workshops involving 1900 participants from 1300 factories.
The letter acknowledged the significant impact the new wages will have on industry costs but underlined the global community’s and brands’ emphasis on ensuring decent living wages for workers. BGMEA revealed it had received letters from influential organizations, including AMFORI, AAFA, and ACT, urging for fair wages during negotiations.
The letter also addressed the broader economic challenges faced by the industry, citing increases in production costs, electricity, gas, diesel prices, and other factors. BGMEA urged brands to consider these factors, including investments in sustainability, when calculating price adjustments.
Lastly, BGMEA expressed gratitude for the prompt response from many brands in adjusting their price calculations and urged continued collaboration to ensure a smooth and sustainable supply chain within the parameters of Environmental, Social, and Governance (ESG) standards.
As Bangladesh moves towards implementing the new minimum wages, the collaborative efforts of brands and manufacturers will play a crucial role in fostering a fair and sustainable garment industry.
