Wednesday, January 15, 2025
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HomeNews & ViewsIndustry FocusRMG Wage Dispute: Owners Propose 7% Increment, Workers Hold Firm at 12%

RMG Wage Dispute: Owners Propose 7% Increment, Workers Hold Firm at 12%

Previously, the owners of the garment factories in Bangladesh suggested that there should be an additional annual increment of 1 per cent in the wage of the workers which has been directed towards a total annual increment of 7 per cent. This is composed of a central 5 percent increase encapsulated in the policy and shall be followed by the extra 2 percent as a concession until the primary evaluation of the minimum wage. This avail has not appeased the workers as they are demanding a 12 percent annual wage increase. This dispute has narrated the continuous conflict of both sides towards the defense of wage structures and how that concerned a country’s very important ready-made garment (RMG) industry.

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However, the talks remain stuck because of failure to agree on the wage increases that will lead to a review of the minimum wage. The fourth meeting in the committee initiated by the Ministry of Labour on this has ended without a decision. This meeting was chaired by Additional Secretary Sabur Hossain at the conference room of the Ministry of Labour on Tuesday. Six representatives each from the owners and from the workers were present in the meeting to argue the case brought by their sides.

The two-and-a-half-hour-long meeting could hear arguments from both parties justifying their stand on the demands.The owners expressed their willingness to increase the annual wage increment to 7%, considering current economic conditions and the sustainability of the industry. They emphasized that the global economic climate, inflationary pressures, and the need to maintain competitiveness in international markets limit their ability to meet the workers’ demands fully. On the other hand, workers reduced their initial demand from a 15% increment (including an additional 10% on top of the regular 5%) to 12%. They argued that rising living costs, inflation, and the increasing expenses of basic necessities necessitate a higher wage adjustment to ensure a decent standard of living.

There were no other comments as this third meeting of the committee had ended with the owners proposing a total 6% annual increment; 1% above the standard 5% actualized increment. This was a little advancement according to the expectations of workers but insufficient for them. At the recent meeting, the owners made the new attempt to find a common ground with their 7% proposal, but the workers were still firm on their 12% demand.

The deadlock led the committee members to decide to hold yet another meeting next week under the chairmanship of the Labour Secretary and with the aim of bridging the gap between both the parties.

These included some of the most glaring representatives from the meeting: Fazle Shamim Ehsan, Executive President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA); ANM Saifuddin, member, BGMEA supporting committee; Farooq Ahmed, Secretary General, Bangladesh Employers’ Federation; Mohammad Khorshed Alam, Youth Affairs Secretary, BNP Labour Wing; Babul Akhter, General Secretary, Bangladesh Garment and Industrial Workers Federation, and Kabir Ahmed, Central Vice-President, Bangladesh Workers Welfare Federation.

The stalemate presents very great evidence for the need for dialogue and compromise so that the interests of the workers and those of this cornerstone sector of Bangladesh economy-RMG-may share the stage at the end. Innovative negotiations and good faith among all working parties will be required to balance fair wages against the industrial hard economic realities.

Reference: https://www.ittefaq.com.bd/709449/

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