RMG workers want minimum Tk20,390 wage, employers for Tk10,400

Readymade garments (RMG) factory workers have demanded that their minimum wage be increased from the existing Tk8,000 to Tk20,390 while the owners have proposed to increase it to Tk10,400.

Both sides presented their proposed minimum wage yesterday at a meeting of the Minimum Wage Board held in the capital.

Following the meeting, one of the RMG workers' representatives, Sirajul Islam Rony, said, "Wages need to be increased due to inflation. We have also considered the ability of the factory owners as well."

Siddiqur Rahman, one of the RMG factory owners' representatives said, "We have made the proposal considering the current global economic condition. The proposed minimum wage takes into account inflation and the ability of the owners."

He added no such amount should be proposed as the minimum wage for the workers that the factory owners will be unable to pay.

The new wages will come into effect in December, and the workers will receive the increased salary in January, he added.

Wage Board Chairman Liaquat Ali Molla said that another meeting will be held on November 1.

Meanwhile, some labour unions protested in front of the Minimum Wage Board demanding a minimum wage of Tk23,000 as the meeting went on.

Besides, five workers' rights organisations and alliances have written a letter to the chairman of the Minimum Wage Board demanding a minimum wage of Tk23,000.

Tawhidur Rahman, former secretary general of the IndustriALL Bangladesh Council told The Business Standard, "Given the current inflation, such a proposal by the owners is nothing but a mockery with the workers."

The offer for the minimum wage made by the employer side is 30% higher than the existing wage. The workers' minimum wage was last set in 2018 when the dollar was worth around Tk84. At that time, the minimum wage was about $95 (it is now $73). Even after five years, the proposal shows that the wage stands at $94, he added.

Prof Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue (CPD), told TBS, "After calculating the average inflation rate, a product that was Tk100 five years ago is now Tk145. How can they speak about a 30% increase in the minimum wage?

"The value of the taka has depreciated by 30% against the dollar in five years. As a result, the wages of workers are not increasing in terms of dollars."

The employer side's proposal is not logical and the minimum wage should be reconsidered in light of the minimum standard of living, he added.

The workers' representatives on the wage board have submitted a proposal that includes a calculation of the minimum wage in the garment sector in 10 competitors and neighbouring countries. The calculation shows that Bangladeshi workers receive the lowest wages in terms of dollars.

Workers' 13 demands to the wage board

In addition to the minimum wage, the workers' representatives on the wage board have submitted 13 written demands.

These demands include—increasing the base wage to 61%, reducing the workers' grade from 7 to 5, increasing the annual increment on the base wage from the current 5% to 10%, reducing the apprenticeship period from six months to three months, providing a festival bonus equal to two months of base wage and making it available to workers after six months of employment, introducing a gratuity system, providing six months of paid maternity leave, introducing an education allowance for children, taking effective measures to prevent rent increases after wages are raised, and providing government-run rationing for workers.