Researchers from Cornell University’s Global Labor Institute (GLI) have urged Bangladesh’s government to implement annual wage reviews for garment workers, similar to Cambodia.
Key Issues Highlighted:
- Bangladesh currently reviews wages every five years, with the minimum wage set at Tk 12,500 ($105) in 2024.
- High inflation (10%) and stagnant wages negatively impact workers’ real income, favoring employers.
- The purchasing power of Bangladeshi garment workers is significantly lower than workers in competing apparel-producing countries.
- Cambodia, after facing similar protests a decade ago, introduced annual wage reviews, and its apparel exports continued to grow.
Experts Support Change:
- Labor experts and global retail brands recommend annual wage reviews as a more scientific approach.
- Bangladesh’s Labor Reform Commission also supports reviewing wages annually to align with inflation.
Opposition from Factory Owners:
- RMG industry leaders argue that Bangladesh’s economic conditions are different from Cambodia.
- Shams Mahmud (former BGMEA director) stated that workers already receive a 5% annual wage increase and additional factory support.
- RMG exporters complain that while production costs have risen, buyers have not increased clothing prices accordingly.
Despite opposition from factory owners, researchers argue that Bangladesh’s garment workers remain among the lowest paid globally, making wage policy reform urgent.
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