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Source: ESPN
Fixing of minimum wages and govt’s responsibility to keep cost of living down
NEWS media reported that the government has raised the minimum monthly wage for 4.4 million garment workers by around 51 per cent to Tk 8,000 from the existing Tk 5,300 with effect from December. After the fifth and final meeting of the wage board formed in January, the state minister for labour and employment declared the new wage on Thursday. While some trade union leaders rejected the proposed hike marking the wage inadequate, business people find the sudden wage increase too high. Following the entry level, the wage of the workers in other grades would also be increased accordingly.
Of the Tk 8,000, Tk 4,100 is the basic wage, Tk 2,050 house rent, Tk 600 medical allowance, Tk 350 conveyance allowance and Tk 900 food expenditure. The junior minister said the owners’ representative proposed fixing the minimum monthly wage at Tk 7,000 and after that Prime Minister call to add Tk 1,000 with the proposed minimum wage. Finally, all the board members agreed to the Prime Minister’s proposal. However, labor organizations urged the government to slightly raise the basic wage from the announced Tk 4,100 as other benefits such as bonuses and compensations are determined based on the workers’ basic pay.
Experts said the government should also provide subsidies for the workers’ accommodation, food and education so that they can save some money from their wages. It is anticipated that the owners may increase the production target after the wage hike. Earlier in December 2016, hundreds of workers staged massive demonstrations in Ashulia and Savar for a wage hike, prompting nearly 100 factories to suspend operation. They demanded that the minimum monthly wage be fixed at Tk 16,000.
The minimum living standard cost in the cities is too high considering the minimum wage of Tk 8000 but higher wage mounts pressure on garments owners and hurls challenge for global competence. So, the government should come up to assist the RMG sectors to get new markets, while retailers should be aware of workplace safety, hygiene, and other compliances. Despite the limitations, the 51 per cent hike of wage is a great leap for the workers.
The workers in garment sector certainly deserve higher wages because of the cost of living but the industry has to be saved also. The government has a responsibility to ensure reasonable cost of living. But it takes no responsibility in this regard.
Of the Tk 8,000, Tk 4,100 is the basic wage, Tk 2,050 house rent, Tk 600 medical allowance, Tk 350 conveyance allowance and Tk 900 food expenditure. The junior minister said the owners’ representative proposed fixing the minimum monthly wage at Tk 7,000 and after that Prime Minister call to add Tk 1,000 with the proposed minimum wage. Finally, all the board members agreed to the Prime Minister’s proposal. However, labor organizations urged the government to slightly raise the basic wage from the announced Tk 4,100 as other benefits such as bonuses and compensations are determined based on the workers’ basic pay.
Experts said the government should also provide subsidies for the workers’ accommodation, food and education so that they can save some money from their wages. It is anticipated that the owners may increase the production target after the wage hike. Earlier in December 2016, hundreds of workers staged massive demonstrations in Ashulia and Savar for a wage hike, prompting nearly 100 factories to suspend operation. They demanded that the minimum monthly wage be fixed at Tk 16,000.
The minimum living standard cost in the cities is too high considering the minimum wage of Tk 8000 but higher wage mounts pressure on garments owners and hurls challenge for global competence. So, the government should come up to assist the RMG sectors to get new markets, while retailers should be aware of workplace safety, hygiene, and other compliances. Despite the limitations, the 51 per cent hike of wage is a great leap for the workers.
The workers in garment sector certainly deserve higher wages because of the cost of living but the industry has to be saved also. The government has a responsibility to ensure reasonable cost of living. But it takes no responsibility in this regard.
