Home Apparel BGMEA: New wages are on the way, negotiate fair price with buyers

BGMEA: New wages are on the way, negotiate fair price with buyers

Trade unions and worker leaders are demanding Tk23,000-Tk25,000 per month as minimum wages

As the government is going to hike readymade garment workers’ wages this year, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has asked its members to increase bargaining capacity with their buyers to ensure fair prices.

Faruque Hassan, president of the apex trade body for the apparel sector, wrote the letter on Thursday, where it mentioned that “considering the ongoing high inflation, the BGMEA also wanted to increase workers’ wages to ensure better life, though manufacturers already increased at least 5% or more annually, while their business was not going well.”

He also asked the apparel entrepreneurs to focus on research and development to get better prices from the buyers.

Previously, Hassan also sent several letters to brands, buyers, and international organizations to increase product price and ensure ethical buying practice to execute upcoming new wage structure, and give a better life to the 4 million RMG workers in the country.

As per the labour law, the Ministry of Labour and Employment formed a four-member permanent new wage board on April 9 this year, headed by Senior District Judge Liaquat Ali Molla, to review RMG workers’ wages.

Though the tenure of the minimum wage board formed by the government for the RMG sector will expire on October 9, it has yet to put forward any proposal for a new wage structure for the RMG workers.

Rather, they have now sought an extension for the tenure of the board for another three months to make an announcement about the new wage structure.

Meanwhile, trade unions and worker leaders are demanding Tk23,000-Tk25,000 per month as minimum wages, though the factory owners are blaming the demand as illogical and unrealistic.

However, both parties believe that a significant wage hike will be announced.

Considering the matter, the BGMEA president said in the letter: “There will certainly be price pressure as we operate in a global competition, but undercutting the price among ourselves will not secure business in the longer term. Rather we need to get our valued buyers engaged in long term partnership.”

“Switching factories and countries for lower prices is not an escape from reality, and accepting unsustainable prices is also not a prudent business strategy. This is also true that adding cost without value is not sustainable. The point I am trying to make here is that, first we need our buyers to understand and internalize the wage dynamics from our respective contexts and priorities, and support us through rational price adjustment.”

“Investments in guides, folders, attachments and workplace friendly tools, techniques and processes could significantly reduce unnecessary motion and man hours, reduce physical burden on workers ensuring workplace comfort, less fatigue and attrition, and higher productivity,” the letter added.

LEAVE A REPLY

Please enter your comment!
Please enter your name here