Labor unrest has gripped Bangladesh’s garment sector. In September last year, the minimum monthly wage for readymade garment workers was raised by around 51 per cent. The new wage took effect in December. But when workers drew their pay in January, they found a huge disparity, triggering the agitation.
The protest began on January 6. The sector is the country's largest forex-earning sector. Revised wage structure is expected to be devised for apparel workers of grades 3, 4 and 5. The tripartite committee formed to resolve the labor unrest in the garment industry has found disparity in three grades of the workers' pay structure, and has started working to minimise the wage gap that sparked the protests.
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 apparel industry falls behind other centers not only in terms of wages but also 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.
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