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Implementation of new wage structure to shut down many RMG units

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) believes the implementation of new wage structure for apparel workers may lead to the closure of a number ofreadymade garment (RMG) units. On September 13, the Bangladesh government set Tk8,000 as the minimum monthly wage, with Tk4,100 as basic salary, for the country’s apparel workers. The new wage structure is set to become effective from December.

Without an increase in prices to go with the higher wages, this new wage structure could lead to the closure of a number of RMG businesses. From 2014-2018, about 1,200 RMG factories had to shut down their operations. The prices of Bangladeshi apparel goods had seen an 11.72 per cent fall in the US market, which is the single largest export destination for Bangladeshi goods. The BGMEA president also urged the trade unions and other stake holders not cause conflict regarding the new wage structure by spreading incomplete information.

 

 
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