Labour adviser warns RMG owners of legal action
Tuesday, 7 August 2007
FE Report
Labour and employment adviser Anwarul Iqbal has warned readymade garment (RMG) factory owners of legal action against failure to implement the government-declared minimum wages for their workers by August 31.
The government on October 21 last year announced the minimum monthly wages of Tk 1662.5 for the workers in the apparel industry in Bangladesh.
The adviser said the government has extended the deadline, which expired in June last, to August 31 for the RMG factory owners to implement the minimum wages for workers.
"If they fail, we will go for legal action," Iqbal told reporters after a dialogue on "the state of women workers in the RMG sector: Findings from a recent CPD study".
The labour adviser said: "The government monitoring cell has detected 51 non-compliant factories, of which 38 have not provided minimum wages to their workers and the rest failed to follow other compliances."
"The government cell will strictly monitor compliances in the factories every month. If there is any non-compliant factory, it will face legal action," he added.
The discussion was presided over by the CPD's Chairman and noted economist, Rehman Sobhan. Labour Secretary, Ashfaq Hamid, President of International Chamber of Commerce-Bangladesh (ICCB) and eminent businessmen Mahbubur Rahman, CPD's Executive Director, Debapriya Bhattacharya, garment owners, labour leaders and researchers also spoke on the occasion.
The CPD in a survey report said there is a reduction of the salary of female labour force in the RMG industries compared to that of their male counterparts over the years.
"In 2005, a female worker earned 75.9 per cent of that of her male counterpart. But, the earnings of female labour was 95.4 per cent of that of male workers during 1991-1995 period," the survey report said.
Describing the reasons for the falling trend of earnings of the women workers, the CPD's survey said: "The major reasons for declined share of income is the increase of male labour-based sweater factories with higher wages and for gender insensitivity in case of overtime due to less compliance measures in late 90s."
The report also said although the income of RMG male workers has increased by 14.1 per cent during 2004-05, its rise for female workers was only 11.1 per cent.
It said about 26 per cent female workers earned less than Tk 3000 per month (including overtime earnings) while no male worker was found earning less than that in 2005.
Pointing to the gender inequality in terms of job-category, the research findings showed that a female operator gets 71.3 per cent of a male operator's earnings and a female helper earns only 52.7 per cent of a male helper's earnings in the factories.
Calling for implementing minimum wages in all factories, ICCB President Mahbubur Rahman said the healthcare facilities for the RMG workers, especially for the women, should be ensured properly and appointment letters to the workers during their joining time should be issued by the factory owners.
He urged the CPD for conducting research in a wider-range to find out problems of the women workers in the RMG sector.
Rehman Sobhan suggested the factory owners as well as the government to find out ways, if possible, to offer a minimal share of the RMG business to the workers to encourage them to contribute more to the country's highest export earning sector.
Leaders of different labour organisations asked the factory owners as well as the government to ensure minimum wages in all factories, better healthcare facilities and four-month maternity leave for the women workers and remove gender disparity in the work places in terms of wage-structure and other facilities.
About the wage-structure, some factory owners said they provide the same salaries to the male and female workers for similar jobs.
Labour and employment adviser Anwarul Iqbal has warned readymade garment (RMG) factory owners of legal action against failure to implement the government-declared minimum wages for their workers by August 31.
The government on October 21 last year announced the minimum monthly wages of Tk 1662.5 for the workers in the apparel industry in Bangladesh.
The adviser said the government has extended the deadline, which expired in June last, to August 31 for the RMG factory owners to implement the minimum wages for workers.
"If they fail, we will go for legal action," Iqbal told reporters after a dialogue on "the state of women workers in the RMG sector: Findings from a recent CPD study".
The labour adviser said: "The government monitoring cell has detected 51 non-compliant factories, of which 38 have not provided minimum wages to their workers and the rest failed to follow other compliances."
"The government cell will strictly monitor compliances in the factories every month. If there is any non-compliant factory, it will face legal action," he added.
The discussion was presided over by the CPD's Chairman and noted economist, Rehman Sobhan. Labour Secretary, Ashfaq Hamid, President of International Chamber of Commerce-Bangladesh (ICCB) and eminent businessmen Mahbubur Rahman, CPD's Executive Director, Debapriya Bhattacharya, garment owners, labour leaders and researchers also spoke on the occasion.
The CPD in a survey report said there is a reduction of the salary of female labour force in the RMG industries compared to that of their male counterparts over the years.
"In 2005, a female worker earned 75.9 per cent of that of her male counterpart. But, the earnings of female labour was 95.4 per cent of that of male workers during 1991-1995 period," the survey report said.
Describing the reasons for the falling trend of earnings of the women workers, the CPD's survey said: "The major reasons for declined share of income is the increase of male labour-based sweater factories with higher wages and for gender insensitivity in case of overtime due to less compliance measures in late 90s."
The report also said although the income of RMG male workers has increased by 14.1 per cent during 2004-05, its rise for female workers was only 11.1 per cent.
It said about 26 per cent female workers earned less than Tk 3000 per month (including overtime earnings) while no male worker was found earning less than that in 2005.
Pointing to the gender inequality in terms of job-category, the research findings showed that a female operator gets 71.3 per cent of a male operator's earnings and a female helper earns only 52.7 per cent of a male helper's earnings in the factories.
Calling for implementing minimum wages in all factories, ICCB President Mahbubur Rahman said the healthcare facilities for the RMG workers, especially for the women, should be ensured properly and appointment letters to the workers during their joining time should be issued by the factory owners.
He urged the CPD for conducting research in a wider-range to find out problems of the women workers in the RMG sector.
Rehman Sobhan suggested the factory owners as well as the government to find out ways, if possible, to offer a minimal share of the RMG business to the workers to encourage them to contribute more to the country's highest export earning sector.
Leaders of different labour organisations asked the factory owners as well as the government to ensure minimum wages in all factories, better healthcare facilities and four-month maternity leave for the women workers and remove gender disparity in the work places in terms of wage-structure and other facilities.
About the wage-structure, some factory owners said they provide the same salaries to the male and female workers for similar jobs.