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9 August, 2010
After a sustained campaign by Bangladesh’s garment sector trade unions, the government last week announced an 80% rise to the minimum wage for workers in the sector. The minimum wage rise, from US$24 to US$43 per month falls far short of the US$72 (5,000 taka) figure that trade unions had pushed for.
According to a report released in June by the International Trade Union Confederation (ITUC), Bangladeshi garment workers are the "world's most poorly paid" workers. The vast majority, some 80% of the 3.5 million garment workers in Bangladesh are women, earning far less than a living wage, with many working 12-14 hour days, six days a week, under appalling and hazardous conditions. Common practice is for factory owners to not pay overtime, to pay workers late, and to pay less than the minimum wage.
The target figure of US$72 per month, which the Bangladeshi government refused to implement, is approximately half the minimum wage of China. Calculations suggest that a realistic living wage in Bangladesh is around US$150 per month.
The government’s decision was described as inadequate by labour leaders in the country, and was met with garment workers protesting in the streets of Dhaka, the nation’s capital. "We have tried our best to meet the demands of the workers," stated Labour Minister Khandaker Mosharraf Hossain. The country’s garment exports, mainly to the US and Europe, are worth over US$12 billion per year, nearly 80% of the total export income of Bangladesh.
Affiliates of the International Textile, Garment & Leather Workers’ Federation (ITGLWF) responded to the increase with a series of demands for social benefits to supplement the minimum wage. The Bangladesh National Council (BNC) of Textiles Garment and Leather Workers called for provisions on food, housing, healthcare, and childcare if workers’ basic needs are to be met. The BNC has also urged government to implement the wage increase with immediate effect, instead of waiting until November.
The ITGLWF is urging buyers to insist that their suppliers respect workers’ rights to freedom of association and to take account of the cost of paying a decent wage during price negotiations.
Major retailers such as Wal-Mart, Gap, H&M, Marks & Spencer, and Tesco source much of their production from Bangladesh. While the international buyers are forcing prices to remain low in the so-called race to the bottom, workers are paying for it by receiving poverty-level wages. Minister of Labour Khondker Mosharraf Hossain previously stated, "The problem Bangladesh faces is that giant multinational retailers will not pay for a wage increase. Every year the multinationals slash the prices they are willing to pay per unit, which drives down wages.”
Labour leaders have been forced into hiding, to escape retaliatory beatings and arrests by the Bangladeshi authorities.