More than a dozen leading US brands have urged the government of Bangladesh to review the minimum wage of apparel industry workers by involving all stakeholders without any retaliation.
A total of 15 US brands and retailers, including Puma, PVH and Hogo Boss, made the call in a letter to Prime Minister Sheikh Hasina on October 13, a copy of which was posted at the official website of American Apparel and Footwear Association (AAFA).
They requested for a successful conclusion of the ongoing negotiations under the minimum wage review mechanism that incorporates the views of all stakeholders and reflects the economic realities in Bangladesh.
The brands are Adidas, Gap Inc, Under Armour, Patagonia, Burton, Hugo Boss, Abercrombie & Fitch, Amer Sports, AEO Inc, Levi Strauss & Co, lululemon, SanMar, KMD Brands, PVH Corp and Puma.
Recognising the value that Bangladesh holds as the third largest supplier of garments as well as a fast-growing supplier of footwear and travel goods, the letter reads: "Bangladesh's commendable sustainability efforts in the garment, footwear, and travel goods sectors have garnered well-deserved recognition. We value this critical partnership."
It urged the government of Bangladesh to consider three points during the minimum wage consultations.
"The consultations should be inclusive and include all relevant stakeholders, including a constructive dialogue with labour groups and trade unions."
The consultations should seek to raise the minimum wage to a level that corresponds with a wage level and bene?ts that are su?cient to cover workers' basic needs and some discretionary income and takes in?ationary pressures into account.
They noted that the average monthly net wages for garment workers in Bangladesh has not been adjusted since 2019, while in?ation increased signi?cantly over that time.
They recommended adopting an annual minimum wage review mechanism to keep up with the changing macroeconomic factors.
The government can play an important role in facilitating new union registration, condemning violence, threats, or intimidation against union members, and overall fostering an environment that respects workers' collective bargaining rights and empowers them as essential stakeholders in the nation's progress.
"We strongly urge the government to ensure that there is no retaliation against participants both during and after the minimum wage review to foster and promote an atmosphere of open dialogue and inclusivity through the minimum wage negotiations, and beyond," the letter reads.
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