RMG workers may call for Tk20,000 minimum wage or above

The representatives of readymade garment (RMG) workers are likely to demand a minimum monthly wage of Tk20,000, taking into account inflation, the current expenditure of the workers' families and the capacity of the apparel industry.

Sirajul Islam Rony, labour representative at the Wage Board, told The Business Standard, "Inflation has gone up a lot in the last five years. Considering other factors, the minimum wage should be Tk21,000 in our calculation. But we do not want to propose a figure below Tk18,000."

Noting that it has not been finalised yet, he said, "The meeting with owners is scheduled to be held next week. We will finalise the wage proposal before the meeting."

However, labour organisations in the country have demanded that the minimum wage of the workers in the garment sector should be Tk23,000 considering the current market situation.

Some organisations are even pressing for Tk24,000. In a press conference on 11 July, the IndustriALL Bangladesh Council (IBC), an alliance of 16 garment workers' federations, demanded to raise the wage to Tk23,000.

Sirajul Islam Rony said, "I want to propose from the point of view of reality."

But IBC President Amirul Haque Amin told TBS, "According to the current market rate of goods, it should be more than Tk23,000. Because earlier when we made the proposal of Tk23,000 wage, prices of products were much cheaper than now. Hence, a proposal of less than Tk23,000 wage from the workers' side will be very disappointing."

The RMG wage board was formed in 2018 and that year the minimum wage was fixed at Tk8,000, which was Tk5,300 earlier. 

However, due to the increase in commodity prices, RMG workers could not wait for another five years for a new wage structure and took to the streets demanding a raise on several occasions.

Finally, the new wage board was formed in early April this year, including Sirajul Islam Rony as the representative of the workers and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) former president Siddiqur Rahman as the factory owners' representative.

After the formation of the board, the first meeting was held on 24 May. Senior District Judge Liaquat Ali Molla is the chairman of this minimum wage board.

The date for the next board meeting is not fixed yet, but expected to be held in a week or so, said sources.

People, including nearly 40 lakh workers in the garment industry, have been struggling with high inflation for the past year. 

According to the Bangladesh Bureau of Statistics (BBS), inflation stood at 9.94% last May, which was the highest in the last 11 years. Overall, average inflation was above 9% in the fiscal year 2022-23, compared to the average inflation of 6% in the fiscal year 2021-22.

According to Section 141 of the existing Labor Act of Bangladesh, while formulating any recommendation (of wages), the wage board shall take into account the cost of living, standard of living, cost of production, productivity, cost of goods produced, inflation, type of work, risks and standards, business potential, country and area concerned. Socio-economic status and other relevant factors should also be considered.

Sirajul Islam Rony, who is also the president of Bangladesh National Garments Employees League, told TBS that these matters have been taken into consideration while preparing the latest wage proposal.