Soaring prices flare up unrest in RMG sector

The country has been going through a crucial period because of the political agitation programmes, including violence and arson attacks. The ongoing demonstration programmes staged by the ready-made garment workers demanding Tk23,000 as minimum salary has added insult to the injury. Many speculated that the violent protest programmes of the RMG workers are politically motivated. However, workers' leaders said that this is happening only due to the soaring prices of the essentials that the under-paid community members are not being able to buy.
The minimum salary of garment workers has been fixed at Tk12,500 by the wage board. Minister of State for Labor and Employment Mannujan Sufian announced this on November 7. The state minister also said that the new wages will be effective from December 1. However, this decision of the wage board was immediately rejected by the labour unions agitating for a minimum salary of Tk 23,000 to Tk 25,000. They said it was impossible to meet the cost of living on this meager salary in a rising commodity market. However, BGMEA, the association of owners of ready-made garment manufacturing and exporting companies, has termed the demand of Tk 23,000 to 25,000 minimum wages as unreasonable.
Meanwhile, the garment workers have been holding various programmes including protests, processions and meetings for the past a few days to realize their demands. During the movement, the workers' dissatisfaction became more intense after the death of four workers in police firing. At this political juncture, some people may try to destabilize the government by using the workers. However, the labor leaders cited such comments as an excuse for not accepting the demands of the workers. They say rising prices are the main cause of labor unrest.
Ujjal Hossain, an agitating garment worker, has been working in various garment factories in Ashulia for last 18 years demanding increase in salary. He mentioned that no worker can survive in the market with rising commodity prices with just Tk12,500. Ujjal said: “The price of everything in the market has increased. From rice, pulses to oil, there is no commodity whose prices have not gone up. Also, gas, electricity and house rent have increased several times in the last five years. In this situation, even if the minimum salary is increased from Tk8,000 to Tk12,500, it will not bring any benefit to the workers. With this money, a labourer will not be able to procure two days' worth of pulses and rice for his family."
Samiul Islam, another garment worker of Narayanganj, said: "Our house rent is Tk3,000 to 4,000. If you exclude that money, you will have only Tk8,000. With this money, how can a worker meet the expenses of his family and how can he send his children to school! Can a government employee lead his life with the same amount of money? If they can, so can we. If they can't how can we!”
Meanwhile, at the beginning of July this year, the Export Promotion Bureau (EPB) said that exports fetched a record $55.56 billion in 2022-23 amid challenging conditions at home and abroad. Of that, the readymade garments sector, the highest export earner, earned $46.99 billion. The overall growth in product exports has been 6.67 percent. This growth was 34 percent in the previous financial year. According to EPB data, among the top six sectors, only the export of ready-made garments increased in the outgoing fiscal year.
Although the growth of this sector is much higher than that of other sectors, the fate of the workers related to the sector has not changed much, said Taslima Akhter, the head of Bangladesh Garment Workers Solidarity and the leader of the Garment Workers Movement for wage increase.
She said, “In our country, the garment industry has flourished. But, the quality of life of workers has not changed much. A worker needs 2200 calories per day. The workers are not able to meet their demands. Many research organizations have shown that a family of four living below the poverty line in Dhaka city needs about Tk22,000 per month just for food expenses. Apart from this, the amount of other expenses is Tk40,000. So how can a worker change his standard of living on such a low salary!”
Mentioning the rise in commodity prices as the main cause of labour dissatisfaction, the labour leader further said: "The price of every essential commodity in the market is out of reach of the people." The workers are not able to meet their basic needs with the salary they get. High inflation is the root cause of labour discontent. Also, in 2018, the minimum wage for garment workers was around 100 dollars. After five years, it increased to 112 dollars 94 cents (as per official exchange rate). As such, the salary has increased by about 13 dollars or about Tk1400! How logical it is is a question that cannot be avoided.”
Bangladeshi workers earn the lowest wages among the top exporting countries. China has the highest wages in the same place. The minimum wage for a worker in the country is 303 dollars 59 cents. The minimum wage in Indonesia is 242 dollars 94 cents. In Cambodia, its amount is 200 dollars. And in the neighbouring country India, the minimum salary of a workers in this sector is 171 dollars 18 cents. However, the minimum wage of a worker in Bangladesh is 72 dollars 42 cents, the Center for Policy Dialogue (CPD) disclosed this information in the dialogue titled "Resetting the Minimum Wage in the Garments Sector: Observations and Recommendations" in October this year.
Meanwhile, BGMEA Vice President Shahidul Azim urged the workers to accept the minimum wage of Tk 12,500 and withdraw from the demand of Tk 25,000. He said, “Minimum wages of workers have been increased by 56 percent. It's not less. This decision came after discussion. All the cost increases put the owners in a lot of trouble as well as the workers. Yet wages have been increased at a reasonable rate. Remember, we have low cost here but orders are high. Now if the cost increases too much then the buyers will decrease. This will destroy the industry. So we call upon everyone to understand the situation and withdraw from unreasonable demands.”
Shahidul Azim said, "Many conspiracies are going on with this industry. Many want to destroy this industry. They are making the workers angry. We have to remember that 4 million people are directly involved in this industry and about 50million people are highly dependent on this sector in various ways. Even the largest share of our export earnings comes from this industry. So be aware of any conspiracy.”
Taslima Akhter rulled out any possibility of connecting the agitation as a suppliment to the ongoing political movement. She said, “The workers are not agitating for either the state or the throne. They are fighting for their just rights. Those who say that the workers are agitating for a wage hike to embarrass the government, use this as an excuse. Because six months have passed since the formation of wage board. The deadline for announcing the wage hike also ended on October 9. But they fixed the wage offer on November 7. Naturally, the workers will be angry. But before the elections, we informed the government that anyone could influence the labour movement in different directions, and suggested that the matter should be addressed beforehand. As time is short before the elections, the authorities are forcing a hasty decision on the workers. They attacked the workers' movement with their cadres. But since the new wages have been announced but have not been fixed yet, we will agitate through democratic means to reconsider the wage hike."
Meanwhile, Prime Minister's Private Industry and Investment Adviser Salman F Rahman has warned that those who are destabilizing the industry will not be exempted.
He told reporters, "We will take action on the minimum wage by November.It will be effective on December 1. The owners have also agreed to increase the wages. The new scale wages will be received in January. However, strict action will be taken against those who destabilize the industry. Those who vandalized, set fire to the factory, will not be exempted.