Bangladesh is looking at revising minimum wages for the readymade garment industry. The last such wage review was done in 2013. The revision will be done by a tripartite wage board comprising the government, representatives of garment factory owners and workers. In reviewing the minimum wage, the board will take into consideration the cost of living of workers, their standard of living, cost of production of factories, productivity, price of products, business capability, economic and social condition of the country and of the localities concerned, as well as other relevant factors.

This time the minimum wage is going to be revised at a time when the country is about to graduate out of the least developed country (LDC) category. As a LDC, Bangladesh now enjoys duty-free access to the EU, where about 60 per cent of Bangladesh apparel is sent. After the graduation, Bangladesh would no longer be able to avail of duty-free access to the EU.

Robots are being programmed with artificial intelligence to improve productivity. If workers are not willing to accept wages based on productivity, garment factories may not remain competitive in the long-run. Owners would have to realise that a productive worker will earn more for them as every cent spent on workers is paid back in return as additional output.