To ensure decent wages for all workers, setting a national minimum wage is required, according to the recommendations of a study, findings of which were presented at a roundtable organised by Bangladesh Institute of Labour Studies (BILS).
Mostafiz Ahmed, associate professor, Department of Social Work, Jagannath University, shared the findings and the recommendations at the roundtable titled 'Wage Determination of Minimum Wage Board: Scope, Challenges and Way Forward.
Democratic selection process of representatives in the minimum wage board, and regular and timely review of minimum wages are also among the recommendations presented at the event, which was held in Dhaka.
Out of 42 formal sectors across the country, some 20 or 47.6 per cent sectors have not seen any regular wage increase in the last six to forty years, according to the study.
Without clear calculations and economic justifications, the wage-setting process may lack transparency and fairness, which could lead to dissatisfaction from both workers and employers, the research report said.
Chairman of the Minimum Wage Board, Mamunur Rashid, was present as chief guest at the roundtable, which was also attended by BILS Secretary General Nazrul Islam Khan, its Executive Director Sultan Uddin Ahmed and Department of Labour Director SM Anamul Hoque, among others.
Though the wage announcement is supposed to come within six months of the formation of the wage board, it takes double or triple or even more time, the study showed.
It also raised question over the determining policies of board members and suggested ensuring transparency and accountability in the selection process of the board.
The research was conducted based on the wage determination process of four sectors--readymade garment, tea, tannery and shrimp to identify the structure of the minimum wage board, the wage determination process, strategies and potential challenges and their way outs to enhance the proper functioning of the wage board.
Neeran Ramjuthan, office representative at ILO Bangladesh, said wages are adjusted infrequently, typically in response to external pressures rather than regular assessments, limiting the board's proactive role.
"This can result in wage disparities with rising inflation and living costs," he noted.
"Wage decisions should be grounded in data on living costs, inflation, productivity, and sectoral economic conditions to ensure fair outcomes," he said suggesting engaging civil society, academia, and non- governmental organisations in consultative processes to bring diverse perspectives into wage-setting.
Sultan Uddin said wage is very important as about 80 per cent of the labour unrest is related to wage.
Nazma Akhter, president of Sammilito Garment Sramik Federation, called for decent employment and a just wage fixation.
"Basic payment of garment workers have declined over the last several years, which now stood at 51 per cent from the previous 62 per cent, depriving workers from getting fair wages as bonus and overtimes are paid based on basic pay," she also said.
Shahadat Hossain, a representative from shrimp sectors workers, alleged that no annual increment was implemented in the sector since 2022 when the last wage enhancement made to Tk 6,700.
Abdul Malek, on behalf of tannery workers, alleged that wages are not fully implemented in the sector and demanded timely announcement and proper implementation of the minimum wages.
Speakers also opined that while the issue of wages is economic, its fixation has become political and suggested change in the mentality of depriving workers and political influence free wage fixation process.
Citing abnormal price hike of daily essentials and house rent, they suggested reviewing of wages after each three years instead of five years.
They also suggested fixation of minimum wages by assessing the needs of the workers through researches.
Other recommendations at the event included developing a digital platform for data collection and wage analysis to enhance transparency, streamline consultations and improve the efficiency of the wage review process and capacity building of the board.
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