The readymade garment (RMG) manufacturers have stated that they are not prepared to form a new wage board at this time, nor are they willing to implement the annual 10% wage increment demanded by labour leaders.
This was announced during an emergency meeting of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Monday evening.
Earlier that day, in a tripartite meeting with the Ministry of Labour and Employment, manufacturers and labour leaders, where the latter had presented 18 demands, including the formation of a new wage board and an annual 10% wage hike.
While 16 of the 18 demands were addressed during the meeting, the manufacturers remained firm on their stance regarding the wage board and annual increment.
The meeting was chaired by BGMEA President Khandoker Rafiqul Islam and moderated by Senior Vice-President Abdullah Hil Rakib, with several manufacturers speaking on behalf of the association.
Kafil Uddin, managing director of JFK Fashion, reiterated that the industry is not ready to establish a new wage board or offer a 10% annual raise at this point.
In November 2023, the government set the new minimum wage for RMG workers at Tk 12,500, with 63% being basic pay. This new wage took effect in January 2024. Additionally, both parties agreed to reduce the existing grade structure from 7 to 5, with basic wages increasing by 56.25% and maintaining a 5% increment policy.
Regarding factory reopening, former president Redwan Ahmed said that if the government does not provide enough security, then they will close all the factories.
Garments manufacturers are set for another meeting with the Labour Ministry on September 24 where further decisions will be taken regarding factories continuing to be operational.
