Five global bodies seek pay hike for RMG workers

Five non-profit global organisations supported local right groups' demand and advocated higher wages for the garment workers of Bangladesh amidst their wage negotiations.
Ethical Trading Initiative with amfori, Fair Labor Association (FLA), Fair Wear, and Mondiaal FNV wrote a joint letter to the chairman of Minimum Wage Board of Bangladesh supporting an increase in the minimum wage for the RMG sector in line with a living wage for workers and their families, according to a statement.
In the letter sent last week, they championed local unions' demand for hike in the minimum wage, which is currently well below the rising cost of living in Bangladesh.

The letter also underlined the importance of trade union consultation in setting this minimum wage, as well as overall respect for freedom of association and collective bargaining, the statement issued by FLA added.
It also recognised the importance of responsible purchasing practices by members' brands to ensure there is appropriate cost-burden sharing with suppliers.
The five organisations actively support creating an environment that is conducive to human rights, responsible business practices, and sustainable trade relations among more than 600 member companies sourcing from more than 2,900 Bangladeshi producers within the organisations' respective networks, added the statement.
Citing FLA's Fair Compensation Dashboard, the statement added that wage data from FLA member companies indicate that average monthly net wages for garment workers in Bangladesh increased less than one per cent from 2019 to 2022.
Inflation in Bangladesh rose to 9.02 per cent in 2022-23, the highest average inflation rate in 12 years, it said further citing Bangladesh Bureau of Statistics.
ETI in a separate statement said its organisation and its partners will continue to advocate a political, legal and social landscape where its members can advance equitable trade, human rights and better business.
ETI added, "We firmly believe that every worker should earn a living wage. We must strive towards its implementation in our members' global supply chains to enable all workers and their families to break out of poverty and live a decent life."
The ETI explained its tools enable companies across the globe to operate successful and responsible businesses, by helping them improve the Environmental, Social and Governance (ESG) performance of their value chains through robust due diligence.
On July 27, the American Apparel and Footwear Association (AAFA) called on Bangladesh government to address the issue of workers' welfare and raise minimum wages for garment workers.
Terming the minimum wage review 'crucial opportunity' to address existing disparities and to establish fair remuneration for garment workers, the AAFA in a letter to Bangladesh Prime Minister said they are closely monitoring the current minimum wage review in Bangladesh.
As the wage board committee prepares to make its recommendations, AAFA urged the committee to actively engage true worker representatives, labour unions, and all other relevant stakeholders to promote an atmosphere of open dialogue inclusivity.
It hoped that the final increased minimum wage reached will properly reflect 'the severe economic challenges that garment workers have faced over the pandemic, the subsequent supply chain crisis, and the current state of the Bangladesh economy.' said the AAFA president.
Local right groups demanded Tk20,000 to Tk 25,000 as monthly minimum wages for entry level garment workers in the country.
The third meeting of the wage board is scheduled to take place this month when both the representatives from factory owners and workers would propose the new wage.
Bangladesh earned US$46.99 billion from RMG exports in the last fiscal year of 2022-23, according to official data.
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