Representatives of the country's readymade garment (RMG)-factory owners and workers on Tuesday failed to come to a consensus over annual wage increment, sources said.
At the fourth meeting on the subject held at the labour ministry, factory owners agreed on a 7-percent increment. They had previously proposed a 6 per cent hike from the existing 5 per cent.
On the other hand, labour leaders, who earlier proposed a 15 per cent hike, on Tuesday reviewed their proposal and cut the figure to 12 per cent.
Sources said a consensus might be reached in the next meeting scheduled for December 9 as factory owners sought time to discuss the issue with stakeholders.
When asked, Fazlee Shamim Ehsan, executive president of Bangladesh Knitwear Manufacturers and Exporters Association, said, "We
proposed an annual wage increment of 7 per cent
during the meeting."
The last hike was made a year back with the announcement of a 56 per cent raise and an annual increment of 5 per cent, he said.
He said the industry would not be able to afford an annual increment of more than 7 per cent as the cost of production had increased manifold while a price squeezing pressure was there.
The business leader also claimed that workers would not benefit unless the inflationary pressure was controlled, and the private sector could not take responsibility for it.
Small and medium-sized units comprising 60 per cent of the total factories were facing difficulties because of reduced work orders while biggies were seeing a good flow of that, said Shamim.
Shamim, also a member of the committee on minimum wage review and annual increment, said they had requested to introduce rationing for garment workers and measures to control house rents in industrial zones.
Talking to The Financial Express, Babul Akter, Bangladesh Garments and Industrial Workers Federation's general secretary, said they agreed on a reduced rate of 12 per cent annual increment from their previous proposal of 15 per cent until the wages
were re-fixed.
He said workers' wages historically had not been consistent with the necessities to lead a decent life, while the last reviewed wages were not enough to meet the basic needs amid the high inflationary pressure.
Babul said owners had always raised questions about the industry's capacity at the time of increment since 2006. The industry's capacity had increased over the years with the rise in export earnings, he added.
At present, the minimum wage of an entry-level apparel worker is Tk 12,500, effective since last December, which was
previously Tk 8,000.
Earlier, the labour ministry formed the minimum wage review committee to meet the two commitments of the 18-point demand that was agreed upon to address labour unrest.
The recent spell of labour unrest that broke out in Ashulia in late August and spilled over into Gazipur last month had enormous impacts on the billion-dollar garment industry. The impacts included a shift in work orders to other places inside and outside the
country.
Besides, entrepreneurs struggled to meet production deadlines and costs as many factories had to suspend operations for fear of
vandalism.
According to the Bangladesh Institute of Labour Studies, 96 incidents of labour unrest took place in the major garment industry belts, mostly in Ashulia and Gazipur, from January to September 2024 over a number of demands, including clearing wage dues, paying bonuses, and hikes in wages and various allowances.
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