The News
About 690 garment factories in Bangladesh suspended production on Nov 2 as workers demanded a monthly minimum wage of Tk 30,000 ($243), up from Tk 12,500 ($101).
The shutdown affected more than 1.7 million workers, out of about 4 million employed in the industry.
Bangladesh’s labor minister warned that long closures could delay shipments and payments from international buyers. The industry supplies global brands including H&M, Zara and Gap.
Bangladesh Garment Manufacturers and Exporters Association president Mahmud Hasan Khan said that if protests force factories to close, “we will have no option but to invoke the ‘no work, no pay’ provision.”
The details
The halts come during the peak season for spring and summer export orders.
Bangladesh is the world’s second-largest apparel exporter after China. Garments account for more than 80% of its export earnings.
The Nov 2 closures affected 382 factories in Gazipur and Mymensingh, 223 in Ashulia and Zirabo, 65 in Mirpur and about 20 knitwear factories in Narayanganj.
Officials also warn that prolonged disruption could hurt Bangladesh’s competitiveness against suppliers such as Vietnam and India.
The government has formed a six-member wage board. The board comprises representatives from the government, workers and factory owners, but protests have continued into a fourth day. Home Minister Salahuddin Ahmed warned that unlawful activity under the guise of labor protests “will be tackled with an iron hand.”
Factory owners and worker leaders disagree over who should absorb the cost of higher wages. Owners cite rising operating costs, energy uncertainty linked to the Middle East conflict and weaker demand in key export markets.
Babul Akhter, a worker representative on the wage board, said garment workers are among the world’s lowest-paid and urged owners to negotiate better prices with international buyers.
University of Dhaka economics professor Selim Raihan said a phased wage increase, better productivity and fairer prices from international buyers are needed.
The Tk 30,000 demand would mean a 140% increase, larger than any previous wage-board increase since 1994.
Worth noting
The previous wage board took seven months to reach a decision. It was formed in April 2023 and announced the new minimum in November. The Tk 12,500 rate took effect in December.
What’s next
The new wage board must review workers’ demands, but the government has not announced a deadline for its recommendation. Factory owners are assessing whether operations can continue amid the unrest.
(Photo: Tareq Salahuddin / Wikimedia Commons, CC BY 2.0)
