Bangladesh to form wage board after garment protests shut factories
DHAKA: Bangladesh will set up a wage board on Sunday to review garment workers’ pay after protests shut dozens of factories and triggered clashes with police, putting fresh strain on the country’s key export industry. Workers in the South Asian nation are demanding a minimum monthly wage of 30,000 taka ($245), more than double the current 12,500 taka, saying rising costs of food, housing,…
Bangladesh will establish a wage board on Sunday to examine garment workers' salaries following protests that have shut down numerous factories and led to confrontations with law enforcement, straining the country's crucial export sector. The South Asian nation's workers are seeking a minimum monthly wage of 30,000 taka ($245), more than twice the present 12,500 taka, citing the rapid decline in their purchasing power due to increased costs for food, housing, transportation, and healthcare.
The labor dispute has sparked worries about potential disruptions to an industry that employs around 4 million people, contributes more than 80% of Bangladesh's export revenue, and provides clothing to numerous prominent Western brands. Labour and Employment Minister Ariful Haque Chowdhury announced that the government would officially establish the wage board following talks with labor leaders and industry representatives aimed at alleviating the unrest.
On Saturday, protests resulted in about 30 garment factories in Ashulia, a vital manufacturing area on the outskirts of Dhaka, declaring holidays, according to Mohammad Mominul Islam Bhuiyan, superintendent of the Ashulia Industrial Police. The garment workers' demonstrations left one dead in Bangladesh, with hundreds blocking a major intersection in the capital and disrupting traffic and factory operations in other industrial zones.
Clashes between protesters and police in Ashulia left several individuals, including police officers, injured, with authorities using tear gas and sound grenades to disperse the demonstrators. Chowdhury appealed for workers to resume work, stating that the government's decision to review the wage structure addressed their primary demand.
He cautioned that prolonged factory closures and production interruptions could delay export shipments and payments from overseas buyers, exacerbating difficulties for manufacturers and workers. Bangladesh's ready-made garment industry, the world's largest after China, accounts for approximately 10% of the nation's gross domestic product and serves as the economic backbone.
Manufacturers, however, said the sector is encountering growing difficulties, including escalating production costs, occasional gas and electricity shortages, and uncertainty in energy markets due to Middle Eastern tensions.
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