The minimum wage RMG workers deserve
Tuesday, 24 October 2023
A revision of the minimum wages for readymade garment (RMG) workers is overdue, particularly in the context of the soaring inflation. All parties involved with the industry ---apart from workers and garment owners, the two main stakeholders, labour leaders, rights groups and even platforms of foreign retailers and brands---are unanimous that wages of RMG workers need to be raised. However, it is on the limit of revision of the minimum monthly wage and other associated benefits that they cannot reach a consensus. The gap between the demand made by workers' representatives and the offer from the owners' representatives is wide---almost as wide as the total amount of minimum wage on offer. Against the workers' demand for Tk 20,393, the owners' offer is Tk 10,400. But then the labour rights groups have rejected both these proposals and stuck to their demand for an amount in between Tk23,000 and Tk25,000.
Indeed, the wage board has a tough time ahead to convince the two sides of the main stakeholders to arrive at a meeting point. If the genuine grievance of the RMG workers has been duly recognised, now is the time to find a solution acceptable to both. Although RMG export from Bangladesh still enjoys its fair share in global apparel business, it is also facing extra challenges and suffering from economic slowdown in the importing countries of Europe and America. Although new markets have been found to make some amends for decelerated demand in the proven destinations, those cannot quite make up for the lost revenue earning. So a balance between the garment owners' capability and the demand from workers has to be struck. It has to be the most rational profit sharing basis for the factories---not all of which are equally strong and capable of withstanding adverse weather ---to stay in business. The survival of the industry guarantees protection of the interests of both owners and employees.
When so much is at stake, the role of the foreign buyers and brands also proves crucial in the whole affair of fixing the wage structure. Of the 5,000 RMG factories in Bangladesh, about 200 have now turned LEED (leadership in energy and environmental design)-certified green ones---the highest in the world. But the irony is that the retail platforms and brands abroad are unwilling to raise prices of apparel commensurate with the extra cost on environmental upgrading. Their concern for higher wages for RMG in Bangladesh should be complemented by appropriate price enhancement of the apparel they receive from Bangladesh.
Evidently, all three parties in the apparel production-the management, marketing and retail sale--have to look at the issue dispassionately and must be ready to go the extra mile to help each other in their own interests. The owners need to come out of the confine of free-market economy's theory of as much profit as possible and at the same time workers should also allow some manoeuvrability in order to help resolve the disagreement over the minimum monthly wage. So far as medical, conveyance and food allowances are concerned, the owners have offered higher amounts than those demanded by workers. The contentious issues are basic pay and house rent. If the higher amounts under those heads are rationally adjusted, a middle ground can be found out for an amicable settlement.