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Review wage in line with increased living cost: TIB

FE REPORT | Wednesday, 26 April 2023



The TIB urged the government to reform the labour law, review the workers' minimum wage in line with the cost of living, push the agenda of a living wage, and remove the barriers against exercising workers' rights of trade union and collective bargaining.
"It is in the interest of all stakeholders - the brands and buying companies, producers and exporters, employees and workers as well as the government to ensure a safe, workers' rights-based, and sustainable RMG industry that adheres to business integrity and ethical practices. It is time for all stakeholders to work together to achieve this goal," the Transparency International Bangladesh (TIB) said in a statement on Tuesday.
On the occasion of 10th anniversary of the Rana Plaza tragedy, the TIB also called upon the international brands and buyers of Bangladeshi readymade garments (RMG) to conduct business with integrity and ethical sourcing, which is the key to sustainability of the sector.
"Exploitative practices of some brands and buyers - motivated by short-term profitability at the expense of business integrity - together with continued failure of the relevant authorities to ensure accountable and workers' rights-sensitive governance pose the most formidable challenges of sustainability of the industry."
The TIB recalled that on April 24, 2013, the collapse of Rana Plaza in Bangladesh resulted in one of the deadliest industrial disasters in history, claiming the lives of over 1,100 workers and leaving more than 2,500 others injured.
The tragedy exposed a range of governance deficiencies, including poor and non-compliant structural and working conditions, inadequate safety standards, denial of labour rights, deficits and violations of labour laws and regulations, and environmental sustainability standards in the country's RMG industry.
Following this devastating event, national and international stakeholders joined hands to contribute to improving governance and safety standards in Bangladesh's RMG sector.
The TIB statement noted that significant progress has indeed been made in the industry over the past ten years, particularly in regard to structural and fire safety.


Bangladesh now boasts hosting half of the world's top 100 LEED-certified green industrial units, with 187 LEED-certified green factories in operation - all but four of which are in the garment sector.
However, despite such progresses the profit-obsessed RMG industry continues to face the main challenge of transitioning to a workers' rights-sensitive business model, leaving at bay the key concerns of the RMG workers - who are the main factor of profitability and sustainability of the industry, it stated.
Practically nothing has happened in ten years to ensure accountability of those responsible for the tragedy and the facilitators and protectors of non-compliance, as per the TIB statement.
Referring to a recent study, done by NYU Center for Business and Human Rights, TIB Executive Director Iftekharuzzaman said, "Such exploitative tools used by the brands and buying houses are leading to unhealthy competition between producers, facilitating the lowest possible pricing through non-compliant sourcing.
"The ultimate burden of such practices is shifted to the workers in the form of low and irregular salaries and benefits."
Despite the longstanding demand for a living wage for the RMG workers, there has been no progress yet, according to him.
Moreover, the minimum wage in Bangladesh remains lower than other RMG exporting countries in the region, for which the exploitative practices of the brands and buying companies cannot escape responsibility.
He also called upon the international buyers to refrain from such practices.
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