Reeling under pressure from international firms Bangladesh apparel manufacturers had put forth a minimum wage for garment workers. But almost 40 per cent of factories have still not revised their wages.
Bangladesh’s 20 billion dollar garment industry is the world’s second largest. And garments form four-fifths of the country’s exports. Garment shipments grew an impressive 20 per cent in the six months to December compared to the same period last year.
However, factories haven’t implemented the wage structure due to drop in export orders. Western retailers have cancelled or diverted orders. An appreciating local currency is also adding to the problems being faced by exporters. As a result costs of Made in Bangladesh products have gone up overseas, while the country's garment-making rivals like India have benefited from falling currencies. It is well known that for years, extremely low wages had helped Bangladesh’s apparel makers bag export orders.
Even with the wage hike, Bangladesh garment workers are among the lowest paid in the world. Protests over poor wages, benefits and working conditions are very frequent in the country. It gained intensity after the collapse of the Rana Plaza factory complex in April last year, which killed 1,135 people.
The minimum wage agreement came into force in December 2013. The new wage structure includes allowances for food, rent, transport and medical care. Workers’ basic salaries were increased by 5 per cent a year.
