BGMEA says no to immediate pay-hike
Jasim Uddin Haroon | Monday, 18 August 2008
Majority of the country's 2.5 million garment workers will not get a pay increase ahead of the month of Ramadan as the leading manufacturers have said they would not follow the example set by the knitwear exporters.
The Bangladesh Knit Manufacturers and Exporters Association (BKMEA), a group of over 1400 factories, last week announced a 20 per cent salary hike for its 800,000 workers to help them cope with rising food prices ahead of the Muslim holy month of Ramadan.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the main apparel industrial group with over 4000 manufacturers, on Sunday rejected a blanket pay-hike, saying it sees no reason to increase the wages at the moment.
"Most of our members are opposed to salary hikes. We cannot take a decision hastily, as is done by the BKMEA," BGMEA president Anwar-Ul Alam Chowdhury Parvez told the FE.
"We have plans to raise the wages. But we will only do that after the government depreciate the currency by at least three to four per cent and ensure security at all the factories," he said.
The BGMEA leaders argued that growth of garment exports could be at stake, if the authorities could not provide adequate security at the factories, while an appreciating Taka against dollar would make their items costlier than India and Pakistan.
The country's garment exports grew over 16 per cent to US$ 10.7 billion in the year concluded in June. The earnings accounted for some 76 per cent of last year's $14.11 billion exports.
BGMEA director Shamsuddin Ahmed said the group was approached by the knitwear manufacturers to follow their path, but "We have straightforwardly told them no."
"It is not possible for us at the moment," said Ahmed, who is the chairman of the Hannan Group, a leading manufacturer.
Their rejection came just days after the caretaker government said it would relax union activities in the factories, which --- as some manufacturers warned--- might lead to organised demand for pay-hikes by the workers.
Sporadically, unrest over pay hikes has already hit the garments sector as thousands of workers in the key industrial areas of Fatullah, Savar and Gazipur have vandalised factories and clashed with police.
The unions have said the garments workers have been worst affected by the sky-rocketing food, in particular rice, and commodity prices. Last week, they demanded a 50 per cent pay-hike to cope with the rising prices.
"We want immediate increase of wages. Otherwise the workers will have no choice but to agitate on the streets and factories," Shamima Nasrin, president Shadhinbangla Garment Sramik Kormachari Federation.
At least nine garment factories have been vandilised over the past week mainly in protest of low wages. The incidents took place in Savar and Gazipur where more than 100 workers and police were injured.
The members of the BGMEA last increased wages in October 2006 following a tripartite agreement among the manufacturers, the unions and the government.
Under the deal, basic minimum wage of an apprentice worker has been fixed at Tk 1662.50. But the workers said any benefit from the pay-hikes was minimum, as food prices have more than doubled in the last two years.
BKMEA president Fazlul Hoque, who earned BGMEA's wraths for unilaterally announcing the pay-hike last Monday, said all the manufacturers should raise workers salary to ensure a peaceful atmosphere in the apparel sector.
"We are on the discussion with the BGMEA leaders. We hope they would also hike salaries," Hoque added.
The Bangladesh Knit Manufacturers and Exporters Association (BKMEA), a group of over 1400 factories, last week announced a 20 per cent salary hike for its 800,000 workers to help them cope with rising food prices ahead of the Muslim holy month of Ramadan.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the main apparel industrial group with over 4000 manufacturers, on Sunday rejected a blanket pay-hike, saying it sees no reason to increase the wages at the moment.
"Most of our members are opposed to salary hikes. We cannot take a decision hastily, as is done by the BKMEA," BGMEA president Anwar-Ul Alam Chowdhury Parvez told the FE.
"We have plans to raise the wages. But we will only do that after the government depreciate the currency by at least three to four per cent and ensure security at all the factories," he said.
The BGMEA leaders argued that growth of garment exports could be at stake, if the authorities could not provide adequate security at the factories, while an appreciating Taka against dollar would make their items costlier than India and Pakistan.
The country's garment exports grew over 16 per cent to US$ 10.7 billion in the year concluded in June. The earnings accounted for some 76 per cent of last year's $14.11 billion exports.
BGMEA director Shamsuddin Ahmed said the group was approached by the knitwear manufacturers to follow their path, but "We have straightforwardly told them no."
"It is not possible for us at the moment," said Ahmed, who is the chairman of the Hannan Group, a leading manufacturer.
Their rejection came just days after the caretaker government said it would relax union activities in the factories, which --- as some manufacturers warned--- might lead to organised demand for pay-hikes by the workers.
Sporadically, unrest over pay hikes has already hit the garments sector as thousands of workers in the key industrial areas of Fatullah, Savar and Gazipur have vandalised factories and clashed with police.
The unions have said the garments workers have been worst affected by the sky-rocketing food, in particular rice, and commodity prices. Last week, they demanded a 50 per cent pay-hike to cope with the rising prices.
"We want immediate increase of wages. Otherwise the workers will have no choice but to agitate on the streets and factories," Shamima Nasrin, president Shadhinbangla Garment Sramik Kormachari Federation.
At least nine garment factories have been vandilised over the past week mainly in protest of low wages. The incidents took place in Savar and Gazipur where more than 100 workers and police were injured.
The members of the BGMEA last increased wages in October 2006 following a tripartite agreement among the manufacturers, the unions and the government.
Under the deal, basic minimum wage of an apprentice worker has been fixed at Tk 1662.50. But the workers said any benefit from the pay-hikes was minimum, as food prices have more than doubled in the last two years.
BKMEA president Fazlul Hoque, who earned BGMEA's wraths for unilaterally announcing the pay-hike last Monday, said all the manufacturers should raise workers salary to ensure a peaceful atmosphere in the apparel sector.
"We are on the discussion with the BGMEA leaders. We hope they would also hike salaries," Hoque added.