Bangladesh is in the headlines – discussions about the minimum wage have intensified and angry textile workers have been protesting on the country’s streets for two weeks. Two workers died. What is it about?
While garment workers and unions are demanding a minimum wage of 23,000 Bangladeshi taka (around 198 euros) – a figure that the unions have unanimously agreed on for the first time – the government’s wage committee, made up largely of factory owners, is proposing a minimum wage of 10,400 Taka (just under 90 euros). The current minimum wage is 8,000 taka (just under 69 euros) and was last adjusted in 2018. Since then, the annual inflation rate in Bangladesh has been around 5.5 percent, rising to 7.7 percent in 2022.
How was the proposed minimum wage calculated?
A recent press conference organized by the nonprofit organization Remake with garment workers and representatives from various labor organizations shed light on how unions arrived at this figure.
32-year-old garment worker Jahanara Begum exemplified her achievements during her 18-year career as an employee in the swing sector for Ashiq Jeans Apparels Ltd., a member of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). When she started, her salary was only 700 taka (around 6 euros) a month; Over the years it has gradually increased to 11,700 taka (just under 101 euros). She works 10 to 12 hours a day.
Her husband works 12 to 14 hours as a supervisor in another clothing factory and earns 18,000 taka (155 euros) per month, increasing the family income to 29,700 taka (just under 256 euros) per month. The family consists of Jahanara and her husband, children and parents. The following list shows how the proceeds will be used:
- Food: 19,000 Taka
- School Fees: 7,000 Taka
- Rent: 6,000 Taka
- Expenses for parents: 4,000 Taka
- Medicine: 1,000 Taka
- Total: 37,000 Taka
As the list shows, more than one full income is spent every month on groceries, school fees for children, rent, expenses for parents and medicines that need to be taken regularly. Every month the couple goes over their budget by 7,300 taka, not counting the costs of electricity, water and petrol. This money must be borrowed from relatives or colleagues and borrowed again to pay off these loans. It is a doom-loop.
“Even after dedicating 18 years of my life to the garment industry, I could not save even 18,000 taka for the future,” is Begum’s sad conclusion. But that’s not all – everyone’s health, and especially their own, is affected by poor nutrition.
Food prices have risen
“Especially due to increased food prices, it is not possible to ensure sufficient nutritious food for all family members. Due to the lack of income, I am currently forced to reduce the amount of food I buy. To meet the nutritional needs of the family, I eat less food every day,” she adds.
The price of a kilogram of potatoes has increased from 30 taka to 70 taka in just one year; the price of a kilogram of onions even more dramatically from 50-60 taka to 130 taka.
When it is no longer enough to borrow money and further cut the necessities, the next step is to increase income by bringing in those who are currently in school: “If the salary is not increased, I have to raise my child Instead, child labor is used to cover household costs,” fears Begum.
Minimum wages in comparison
Bangladesh is the second largest exporter of ready-made garments (RMG) after China and employs over 4.4 million workers, 70 percent of whom are women. The country’s RMG sector accounts for over 80 percent of its total export earnings and contributes more than 11 percent to the gross domestic product.
In comparison, minimum wages are higher in other garment-producing countries, with Cambodia leading the way at $200 per month, followed by Vietnam at $192, India at $165, China at $161 and Pakistan with 110 US dollars.
The Wage Board’s decision was due today, November 1, 2023. FashionUnited will continue to update this article as further news arrives.