Business Report :
The American Apparel and Footwear Association (AAFA), the US national trade association representing apparel, footwear and other sewn products companies, and the Fair Labor association (FLA), a US non-profit organisation, have urged the interim government of Bangladesh to immediately release those arrested during the fall 2023 protests over minimum wage.
They also called for the removal of all criminal charges against those arrested over minimum wage protests at the time.
In a joint letter sent on Wednesday to Chief Adviser Dr Mohammad Yunus, they further urged the interim government to move swiftly this year to a transparent and regular annual minimum wage review mechanism for the garment, footwear, and travel goods industries, with all stakeholders at the table.
The two US associations argued that a transparent, annual minimum wage review that fully includes all stakeholders, versus the current five-year review, enables the government to better respond to current economic circumstances without imposing sudden, huge burdens on the industry or workers.
“To promote harmonious industrial relations and prevent future unrest, we urge the interim government to quickly restart tripartite discussions on the Bangladesh Labour Act and bring the law into line with international labour standards,” reads the letter.
Calling for reforms that simplify the creation and registration of independent trade unions, including a significant reduction of the registration threshold, they also urged the government to increase penalties for unfair labour practices and extend full labour rights to workers in the Export Processing Zones (EPZ).
In November 2023, over a hundred garment workers were arrested and around 15,000 were sued in dozens of cases filed in connection with labour protests over the fixation of their minimum wage, union leaders have claimed.
In December 2023, the minimum wage for the RMG sector was increased to Tk12,500 in the face of protests by workers across the country. They had demanded a minimum wage range between Tk23,000 and Tk25,000.