Business Report:
Unionised readymade garment (RMG) factory workers in Bangladesh earn around 10 per cent higher wages than non-unionised workers, according to a recent study presented at the third session of the two-day Annual BIDS Conference on Development 2025, held Sunday in Dhaka.
The study, titled “Wage earnings of manufacturing workers in Bangladesh: Do trade unions matter?”, revealed that at the sectoral level, RMG workers enjoy a statistically significant 19 to 22 per cent higher wage compared to other manufacturing sectors. This reflects stronger compliance regimes, formalised structures, and higher skill intensity in the RMG industry, which has long been a key driver of Bangladesh’s export-oriented economy.
Mahmudul Hasan, Research Director at the Bangladesh Institute of Development Studies (BIDS), shared the findings, noting that the overall unionisation rate among workers is 11.35 per cent. He emphasized that while part of the wage differential is due to greater experience and tenure among union members, the wage premium remains positive and statistically significant even after controlling for these factors.
