Transparency International Bangladesh (TIB) has termed the new minimum wage for the garment workers a 'juggling with figures' and urged the wage board to review the same.
In a statement on Tuesday, it also claimed that it announced a 52-56 per cent hike in gross wages, the real rate ranged between 25 per cent and 28.88 per cent considering a 5.0 annual increment, inflation and high dollar exchange rate.
According to a letter sent to the wage board chairman, if a 5.0 per cent annual increment, high inflation and US dollar exchange rate have been taken into consideration, the wages did not increase by 30 per cent in real terms.
It requested the board to review the wages taking workers' living standard, high prices of essentials and the ILO standards into consideration.
"It is truly shameful that being the second largest garment exporter in the world, Bangladesh is not paying fair wages to its workers to meet their minimum basic needs," TIB Executive Director Dr Iftekharuzzaman said in the statement.
The basic payment of a garment worker at grade seven or newly proposed grade five is scheduled to be at least Tk 5,232.75 in 2023 if a 5.0 per cent annual increment is considered based on the 2018 wage structure.
But Tk 6700 has been proposed for the previous grade seven or newly proposed grade five, said the TIB in the statement.
Though it has been said that a 63 per cent hike in basic pay has been made, the real hike would be 28.04 per cent.
The hike will be 26.52 per cent for grade four followed by 24.16 per cent, 23.97 per cent and 24.71 per cent for grade three, two and one respectively, it said.
The gross minimum wage of a garment worker at grade five (newly announced) is scheduled to be TK 9,699.13 in 2023 with a 5.0 per cent annual increment while the new wage has been proposed at Tk 12,500.
"So the real gross wage has been increased by 28.88 per cent instead of 56 per cent," the TIB said, adding that only 27.59 per cent, 25.58 per cent, 25.35 per cent and 25.93 per cent hike in gross wages for grade four, three, two and one have been proposed respectively.
Only a 20.24 per cent hike in basic pay for grade five has been proposed against the said 63 per cent rise if inflation has been adjusted.
Similarly, 18.81 per cent, 16.59 per cent, 16.41 per cent and 17.11 per cent real hike in basic pay for grade four, three, two and one have been proposed respectively.
If inflation is considered, a grade five worker's gross wage in 2023 would stand at TK 9,913.50.
Though it has been said that a 56 per cent rise has been made to fix the amount to Tk 12,500, it said, in reality only 26.09 per cent rise has been announced taking inflation into consideration.
The rise in other grades is 24.80 per cent, 22.80 per cent, 22.55 per cent and 23.10 per cent respectively.
The basic wage payment ranged between 53-56 per cent according to the proposed structure against international standard of 60 per cent, resulting in a comparative lower rise in wages in future despite a 5.0 per cent annual increment.
"This is the big weakness of the new wage structure," the TIB said.
Terming the newly announced wage for the RMG workers 'jugglery of figures', the TIB executive director said that considering all other related factors the new minimum wage for garment workers is much lower than the living cost.
The International Labor Organization standards suggested keeping the needs of the worker and his family, the general wage structure of the country, cost of living, social security benefits, standard of living of other concerned workers, economic development and productivity in consideration in determining the minimum wage, he said.
He, however, expressed doubt whether the issues were considered in determining the new wages for the RMG workers or not.
Expressing his sadness over the loss of lives of four garment workers in the protest demanding wage hike, Mr Iftekharuzzaman said it is equally embarrassing that Bangladesh is paying the lowest wages compared to its other competing countries in the export market of ready-made garments.
At the time of the unprecedented appreciation of dollar against taka, the apparel makers have continued to argue to ignore the legitimate demands of workers, he noted.
Munni_fe@yahoo.com