BGMEA seeks higher apparel prices against labour wages hiking
Staff Reporter :
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Thursday urged the brands and buyers to increase apparel prices as the new wage board is expected to be implemented by December this year.
The new wage board is going to be implemented for rising living expenses of the workers due to the high inflation across the world, the BGMEA said.
In a letter, BGMEA President Faruque Hassan requested buyers to take this into account when placing upcoming orders, particularly for products scheduled to be produced from December onwards.
“Now, inflation and production cost hikes, including gas, electricity, fuel, transport, and other costs, is squeezing our breathing space.
In fact, the workers, who are the lifeline of this industry, are suffering the most from the inflation,” the letter said.
Acknowledging that the price levels have increased somewhat, the BGMEA noted that these adjustments are barely sufficient to offset the rising costs.
“However, you may know that the minimum wage board for garment workers will review the current minimum wages,” the BGMEA president said.
Mentioning that the board has conducted several meetings and is presently engaging with various stakeholders, he said, “They [the board members] are visiting factories and engaging in discussions with both workers and owners.”
Faruque further said, “I believe before the end of this year a new minimum wage will be declared and there will be quite a significant increase, if we look at the trend of previous reviews, as well as the aggregate inflation in the past five years.”
While requesting buyers to contemplate a reasonable price adjustment for forthcoming orders, the leader of the apex trade body emphasised that it is also important for a smoother transition to the new wage scale.
He also sought suggestions, advice, information or comments from different brands and buyers to make this industry more competitive, efficient and sustainable.
“As we commit ourselves to continuously delivering the better, we are leaving no stone unturned to optimise the value of our spending, with an uncompromising stance on ethical and responsible business,” he added.
The first minimum wage board in the RMG sector in Bangladesh was formed in 1984 at Tk560.
So far, the wages of workers in this sector have been revised a total of six times.
The latest minimum wage is Tk8,000, which was effective in December 2018.
According to the labour law, new wages have to be fixed every five years.
According to statistics for December 2021, Bangladesh has the lowest wage among the seven South Asian countries – Pakistan, Sri Lanka, India, Myanmar, Cambodia, and Indonesia.
For this purpose, the government formed a new wage board on April 9, 2023.
New wages for garment workers are likely to be decided by November and implemented in the following month.
Meanwhile, labour rights groups demanded offering workers a minimum monthly payment of Tk23,000.
