For the first time since 2013 Bangladesh’s minimum wage has been raised.
Though there has been more than a 50 per cent hike union leaders and garment factory workers are not impressed. Of concern, aside from the still-dismal minimum wage, is the fallout that will likely come with the increase. After the last pay hike in 2013, many factories increased production target for workers and the work pressure built up tremendously. So relentless was the pressure that workers did not have even a minute to drink water or use the restroom during their shift.

Bangladesh has emerged as a key hub for garment manufacturing, as prices in China have increased dramatically in recent years. As of now, Bangladesh is the world’s second largest exporter of garments, following China, but it also holds the title of one of the lowest cost centers for manufacturing.

Employing an estimated four million people, 80 per cent of whom are women, Bangladesh’s apparel industry fall behind other centers not only in terms of wages but also of worker well-being.

A wage hike disturbs factory owners too. In the past few years, a number of garment manufacturers had to shut their factories as they could not cover their costs.