Sixty-four per cent of the respondents to an opinion poll, conducted by one of the leading national English dailies of Bangladesh, have said the fixation of Tk 5,300 as minimum wage for the garment workers would not be able to end the ongoing workers' unrest in the apparel sector.
The negative response has come not without reasons. The events that have happened before and after the announcement of the minimum wage by the tripartite wage board have, apparently, led them to make such a response.
Lack of workplace safety which has claimed nearly 1,400 lives so far is responsible for enough of resentment among the apparel workers. But what has been a constant source of trouble is low wage. Despite a couple of hikes in recent years, the wage rates are still considered low if seen in the context of the unabated rise in the cost of living.
The issues concerning workplace safety, right to trade union and wages came under intense national and international focus following the deadly Tazreen Fashion fire and the collapse of the Rana Plaza. While international stakeholders in collaboration with the government and the apparel industry owners are trying to ensure safety and security of workers in apparel factories and workers' right to TU activities, the wage board has recommended a minimum wage synthesising the workers' demand and the offer made by the apparel industry owners.
The owners initially rejected the minimum wage recommended by the wage board. They even threatened to close down their factories since the recommended wages, according to them, would make the industry unsustainable. But they finally agreed to pay the same with a little bit of changes in the wage structure following intervention by the prime minister.
But the acceptance of the minimum wage by the owners has not been able to pacify the aggrieved workers. For the last few days, they have been resorting to violence and fighting street battles with the law enforcers, mainly in the apparel industrial hub at Ashulia. Most factories in Ashulia and Gazipur have been shut following the violence. Appeal from the apparel industry owners and the government could not deter the workers from resorting to violence. The new minimum wage that has been announced by the government represents a 77 per cent hike over that fixed in 2010. Moreover, this time the wage is a well structured one and contains a provision that makes a 5.0 per cent annual increment in the basic wage of the apparel workers mandatory.
What is more interesting is that the workers, who are now in the midst of agitation, are also not accepting the stance of the individual who has represented them in the wage board. At the press conference where Labour Minister Rajiuddin Ahmed announced the hike in apparel workers' wages, the labour representative in the wage board expressed the hope that the workers would accept their new wage rates and abstain from violent activities.
This again brings to the fore the issue of 'true' representation of apparel workers. The individuals who represent the workers in negotiations with the owners and the government are, in fact, chosen ones, not by workers but by others. Introduction of TU rights in all garment units might help create an apex TU body for representation at the national level. Had there been such a representative organisation at the national level the government or the apparel industry owners, possibly, would not have faced so much trouble in resolving disputes.
There is no denying that wage factor is very much relevant to the competitive edge Bangladesh has been enjoying in the global textile market. The fresh wage hike now puts the country almost at par with competitors like Pakistan, Sri Lanka, Indonesia and Cambodia as far as the minimum wages in these countries are concerned.
One can hardly ignore the reality. The minimum wage in Bangladesh is now US$68. Why would not an international buyer choose Sri Lanka or Indonesia where minimum wage is only three to five dollar more? At least the buyer while procuring apparels from Indonesia and Sri Lanka would not encounter the issues such as unsafe factory environment and frequent labour unrest.
However, the apparel industry owners would not be able to bypass the issue of low wage for the sake of their competitiveness. They will have to devise ways and means to beef up their earning by switching over to the production of high-end products and ensuring greater value addition.
The government should also investigate the reason behind the concentration of workers' unrest in Ashulia and Gazipur in particular. There are hundreds of garment factories in other areas of Dhaka and Chittagong. But troubles do not erupt easily in these areas the way the same take place in Ashulia and Gazipur.
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