DHAKA — Bangladesh will set up a wage board on Sunday to review garment workers' pay after protests shut dozens of factories and triggered clashes with police, putting fresh strain on the country's key export industry, Reuters reported on Sunday.
Source: Reuters, via SRN News, Nov 1
Workers are demanding a minimum monthly wage of 30,000 taka ($245) — yaani about two-and-a-half times the current minimum of 12,500 taka a month — saying rising costs of food, housing, transport and healthcare have sharply eroded their purchasing power, Reuters said.
Labour and Employment Minister Ariful Haque Chowdhury said the government would formally constitute the wage board after discussions with labour leaders and industry representatives aimed at defusing the unrest. Chowdhury urged workers to return to work, saying the government's decision to review the wage structure addressed their key demand.
About 30 factories declare holidays after Saturday clashes
Saturday's protests prompted about 30 garment factories in Ashulia, a key manufacturing hub on the outskirts of Dhaka, to declare holidays, said Mohammad Mominul Islam Bhuiyan, superintendent of the Ashulia Industrial Police. Hundreds of workers blocked a major intersection in the capital, while demonstrations in other industrial zones disrupted traffic and factory operations.
Clashes between workers and police in Ashulia injured several people, including police officers, police said. Officers used tear gas and sound grenades to disperse protesters, according to the Reuters report.
Chowdhury warned that prolonged factory closures and production disruptions could delay export shipments and payments from international buyers, creating further difficulties for manufacturers and workers.
Bangladesh's ready-made garment industry is the world's largest after China's, contributes about 10% of gross domestic product and generates more than 80% of the country's export earnings, supplying clothing to many leading Western brands. Manufacturers say the sector already faces rising production costs, periodic gas and electricity shortages, and uncertainty in energy markets linked to tensions in the Middle East.
The wage board is to be formally constituted on Sunday after talks with labour leaders and industry representatives. Its review will decide whether — and by how much — the 12,500-taka minimum rises toward the 30,000 taka workers are demanding. No new wage figure has been announced yet.