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CPD proposes Tk 9,228 as RMG workers’ lowest wage

FE Report | August 06, 2018 00:00:00


The Centre for Policy Dialogue (CPD) proposed on Sunday Tk 9,228 (US$ 110) as the minimum monthly wage for the entry-level workers of the country's ready-made garment (RMG) sector.

Labour leaders, however, strongly rejected the think-tank's wage proposal and adhered to their demand of Tk 16,000 for the same.

CPD proposed Tk 8,200 as the minimum monthly wage in 2013.

The organisation also proposed abolishing the seventh grade in the wage structure, and upgrade the workers to the sixth grade, considering factors like rise in their skills and use of technology in the industry etc.

It also recommended progressive wage hike for the workers of other grades also.

The think-tank's proposals also included incorporating childcare facility as well as providing education and communication allowances in the wage structure.

"The proposed minimum wage for the newly-introduced grade-six is proposed to be TK 10,028. If a worker does not have any children, the grade-six wage would be Tk 9,228," CPD Research Director Khondaker Golam Moazzem said.

CPD made the recommendations by taking into consideration slowdown in profit margin of enterprises as well as their possible business risks in future including trade war and rise in petroleum and gas prices.

He said these while speaking at a dialogue - 'Minimum Wages and Livelihood Conditions of RMG Workers' - at BRAC Centre Inn Auditorium in the capital.

State Minister for Labour Mujibul Haque Chunnu was present as the chief guest at the programme, chaired by CPD Chairman Professor Rehman Sobhan.

CPD Distinguished Fellow Professor Mustafizur Rahman moderated the discussion.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Md Siddiqur Rahman and representatives from different trade unions also attended it.

Mr Moazzem in his study 'Addressing the livelihood challenges of RMG workers: exploring scopes within the structure of minimum wages and beyond' showed that the total food and non-food cost of a family having 4.4 members is Tk 22,435 per month.

With 2.1 earning members in the family and a 3.0 per cent savings on basic, the minimum wage for the newly-proposed grade-six workers should be Tk 11,004.

The rise in expenditure could not be accommodated with the adjustment of minimum wages alone, he said.

Mr Moazzem also suggested community development programme for major industrial clusters, including the workers' housing, children's education, medical and recreational facilities, and ensuring access to financial services.

His other suggestions included public exposure of the buyers' stance related to revision of minimum wage, and the government's support like special tax incentive for small-scale and subcontracting entrepreneurs.

Mr Rehman Sobhan urged the factory owners to consider the workers as the partners of their business.

He also requested the government to hold discussions with the global buyers and brands, so that they share their profit with the workers.

The workers are the central part of RMG industry, he said, adding the basic issue is not only providing liveable wage to the workers but to ensure justice for them.

He urged the government and other stakeholders to take initiatives for ensuring justice in national and global levels for the workers.

Explaining the government's various initiatives, the state minister for labour said amendment of the labour law is under process, and it will incorporate the provision of solving the cases filed with the labour courts within 180 days.

The BGMEA president said they have proposed Tk 6,360 as the minimum monthly wage, taking inflation and living cost into consideration.

He focused on fixing a wage structure considering needs of the workers and capacity of the RMG industry, saying any wrong decision can harm the lifeline of the country's economy.

Terming the CPD's wage proposal 'conflicting', Bangladesh Institute of Labour Studies (BILS) Executive Director Sultan Uddin Ahmed raised question over its suggestion of Tk 10,028 as the minimum monthly wage when its finding shows that the minimum living cost of a two-member family is Tk 19,938.

Why the workers would pay for inefficient port services, low skills of factory owners in negotiation of product prices, and improper monetary policy, he asked.

He opined that the minimum wage should be fixed on the basis of social justice, and requested (the stakeholders concerned) not to make any political decision.

Montu Ghosh, president of Garments Workers' Trade Union Centre, focused on ensuring good health of the workers to get better production and to be competitive.

He also emphasised introducing cluster-based evening health service facilities in different industrial zones, ration system, house rent and child education for availability of workers for the sector in future.

Mr Ghosh urged the BGMEA to reconsider its proposal, fixing Tk 16,000 as the minimum wage.

Terming CPD's proposal 'unacceptable and inconsistent', Joly Talukder, secretary of the same organisation, said the proposals are not justified in line with the workers' real living cost.

She also called on the think-tank to play its role accordingly, as its suggestions are well received with importance.

Kazi Ruhul Amin, a labour leader, alleged that the sector insiders never consider the workers' logical demands.

Reiterating the previous stance for fixing Tk 16,000 as minimum wage, Babul Akter, another labour leader, requested all not to reduce the basic amount of the wage, saying it would decrease the workers' gross salary.

Tahmina Rahman, a labour leader, requested the factory owners not to increase their production target, once the workers' wage is increased.

"The workers are also human beings," she said, calling on the factory owners to change their mentality in this regard.

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