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Bangladesh Apparel Industry Is Worried About Salary Increase.

2013/10/12 18:39:00 16

BangladeshClothing IndustryLabour Force

Bangladesh manufacturers are experiencing huge losses due to labour unrest, which, according to preliminary estimates, could reach $770 million. Starting in September 21st, some of Bangladesh clothing There was a riot in factories, some workers went on strike, and a destructive move against the current low salary. Protests broke out for 6 days or so. The production stoppage caused by strikes has caused some foreign buyers to worry again about the stability of the garment industry in Bangladesh.


   The People's Republic of Bangladesh An official of the garment manufacturers and Export Association (BGMEA) said there were varying degrees of riots in nearly 3000 garment manufacturing factories, of which 65 factories were severely damaged and 25 factories were arson. These factories are located in Kaliakoir, Chandra, Mouchak and Konabari. The main reason for the conflict is the fact that workers in the garment factories are dissatisfied with the current minimum wage. The minimum monthly salary was established in 2010. The representative of the garment workers in Bangladesh asked for the minimum monthly salary to be raised from $38.53 to $104.36. During the negotiations, the representatives of the garment enterprises indicated that they could only raise the current minimum wage by 20% to 46.30 dollars, which resulted in dissatisfaction among the workers.


After the coordination of government officials, the storm subsided at the end of September, but the concern of the industry did not disappear. "Due to recent strikes and wage increases, Bangladesh is now in the process of increasing wages. Garment industry The cost increased by 12%~13%. The coming election has increased the uncertainty of the political situation, and the rise of weak infrastructure and exchange rate has led to higher production costs. " BGMEA chairman Atiqul Islam said. Foreign buyers have begun to question the production capacity of Bangladesh garment factories, including whether they can complete Christmas orders on time. "As a result of strikes and political uncertainties, some foreign buyers have postponed or cancelled the purchase plan to Bangladesh. The industry is now at a critical moment, and even 1 hours of delayed delivery can lead to unexpected risks, such as deferred payment. He added.


Workers' riots caused by protests against low wages, demands for better welfare and working conditions often occur in Southeast Asian countries. Following the collapse of factories in Bangladesh in April this year, demand for improved treatment has been increasing among garment workers. At present, Bangladesh clothing manufacturers and labor party leaders promise to work together to calm workers' discontent. "We promise to pay the wages of workers clearly and safeguard other economic interests." Atiqul Islam said that BGMEA is still developing a sustainable salary structure for the garment industry, and the association's Wage Commission is expected to release the latest minimum wage level in November.

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