Fresh labor disruptions across manufacturing clusters in Gazipur and Dhaka have prompted Bangladesh’s Ministry of Labour and Employment to constitute a new minimum wage board under Senior District Judge Sheikh Ashfaqul Rahman. With workers demanding a minimum monthly payout of 30,000 taka ($243), up from the current 12,500 taka, factory owners face severe operational strain. International buyers are closely monitoring production backlogs in the world’s second-largest apparel export nation.
Protecting trade volumes with a balanced wage structure
Textile manufacturers express deep concern over cost structures, warning, an abrupt wage spike without corresponding buyer price commitments will erode margins. Export earnings in the ready-made garment sector reached $38.70 billion in FY25–26, yet inflation and logistics bottlenecks continue to squeeze working capital.
Factory owners cannot absorb steep wage adjustments unilaterally while global order values remain flat, notes Mohammad Hatem, President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). We require a balanced wage structure aligned with real factory capacity to protect international trade volume, he adds.
Emphasizing compliance and global D2C partnerships
The RMG sector manufactures woven garments, knitwear, and denim products, accounting for over 80 per cent of Bangladesh’s national export earnings. Primarily serving retail markets across Western Europe and North America, the industry targets long-term modernization. Current growth plans emphasize compliance, renewable power, and direct global direct-to-consumer partnerships.
