Bangladesh’s readymade garment (RMG) workers will get a 9% increase in their wages, Labour and Employment Adviser M Sakhawat Hussain announced on Tuesday.
The annual increment raise will be effective December 1, 2024, and will be reflected in January 2025 wages.
The existing increment for the labourers of the country’s highest export-earning sector is 5%, and the government decided to add a 4% hike to it.
The adviser said the increment will remain effective until the government or the Minimum Wage Board announces a new minimum wage, adding that the previously set 5% annual pay increment, fixed by the Minimum Wage Board, will remain in place.
He clarified that any worker who is supposed to get a yearly increment in December will enjoy the additional increase. Those not supposed to get an increment in December will still get a 4% rise in their wages.
He also said that a vested interest group has been trying to divert buyers away from Bangladesh by publishing negative news in local and foreign newspapers.
Many workers are protesting without understanding and are being trapped by multidimensional provocation. He urged everyone to address the conspiracy looming against the country’s RMG sector.
Earlier, at their 5th meeting, the Capacity and Implementation Committee on Minimum Wage Revision and Annual Increment recommended an annual 9% increment for the RMG sector.
At the meeting, the labour representatives proposed for a 10% annual increment hike, emphasizing the rising cost of living. In response, the employer representatives proposed an 8% yearly increment due to financial constraints and an aggressively competitive global market.
Mohammad Khorshed Alam of Shromik Dol, Babul Akhtar of Bangladesh Garment and Industrial Workers Federation, and Kabir Ahmed of Bangladesh Shromik Kalyan Federation signed as labour representatives.
ANM Saifuddin, member of the BGMEA’s assistance committee, and Fazlee Shamim Ehsan, executive president of the BKMEA, signed as employers’ representatives.
SM Enamul Haque, director of DoL, Md Hasibuzzaman, joint IG of DIFE, Raisa Afroz, secretary of Minimum Wage Board, and Mohammad Masukur Shikdar, joint secretary of MoLE, signed as government representatives.
Paying increments to be challenging
Talking to Dhaka Tribune regarding the increment hike, Former BGMEA Director Mohiuddin Rubel said it would be difficult for them to pay the increment because the industry’s capacity is not that high. Production costs have increased, but income has not increased in the same way.
“The price of RMG items has also decreased in the global market. However, since this is a tripartite decision, there is no other way but to accept it,” he added, urging the government to provide the necessary policy support to overcome the pressure the manufacturers will face in implementing this decision.
He also said that it is more viable to make these decisions while keeping in mind the capacity of the manufacturers so that they can implement them.
“It has now become a trend to take to the street with another demand if one demand is met. If they take to the street with another demand tomorrow, it will become impossible to run the business. The government will have to provide support, security, and assurance so that a fair working environment can be ensured,” he added.
He also said that the buyers are responsible and should ensure fair prices. Prices are falling in the global market, and they must adjust their prices.
“If they don’t raise prices but demand ethical production, it will become contradictory. If they pay a fair price, ethical production and sustainability will accelerate,” he added.
Meanwhile, a leading apparel exporter, speaking on condition of anonymity, expressed concerns about the industry’s challenges.
“We feel trapped after investing heavily in this sector, especially as the previous government increased utility costs significantly,” he added, fearing that many factories might struggle to implement further wage increases, especially after the recent major wage adjustments.
He suggested that the government conduct a comprehensive survey to assess the industry’s capacity and the workers’ needs.
He also said the industry’s ongoing struggles with the unreliable supply of quality energy.
“On top of that, the reduction in cash incentives has put exporters in an even tighter corner,” he added.
Talking to Dhaka Tribune, Nazma Akter, president of the Sommilito Garments Sramik Federation, said that the proposed increment is insufficient to meet workers’ basic needs.
She also criticized the process, questioning how labour representatives could demand a 15% annual increment without consulting labour organizations. “Additionally, no government officials communicated with us regarding this matter,” she alleged.
“We urge the government to implement an increment that accounts for inflation, enabling workers to meet their basic needs and maintain proper nutrition. This will not only improve their well-being but also boost productivity,” she added.
On December 4, the factory owners agreed on a 7% increment, and they had previously proposed a 6% where the labour leaders, who earlier proposed a 15% hike, reviewed their proposal and cut the figure to 12%, in the fourth meeting of the committee.
