In the past week, thousands of agitated readymade garment workers have been staging protests and engaging in acts of vandalism in various industrial areas seeking a hike in their wages.
The clothing manufacturers have put forth a monthly salary of Tk 10,400 to the minimum wages board, the workers are vehemently demanding Tk 23,000 per month.
The current monthly minimum wage in the RMG sector stands at Tk 8,000, which is notably lower than that of Bangladesh’s competitors. This labour strike coincides with a period of political turmoil in the country, resulting in a violent clash on a Saturday that left three individuals dead. The opposition alliance, led by BNP, is observing a countrywide strike, further exacerbating the situation.
In addition to political unrest, Bangladesh is grappling with a severe economic crisis marked by dwindling foreign currency reserves, rising unemployment, and high inflation.
This ongoing turmoil is causing considerable concern among businesses, as the instability and worker unrest could adversely impact their operations. There is a growing fear that buyers may reduce orders due to the prevailing uncertainty and security concerns, which are already below capacity.
However, they denied any connection to these protesters, asserting that they are outsiders and perceived enemies of Bangladesh’s RMG sector attempting to incite violence in a bid to tarnish the reputation of the country’s apparel industry.
“Our workers have not engaged in any acts of factory vandalism. Instead, they have been participating in peaceful demonstrations, a gesture that we wholeheartedly welcome,” stated Fazlee Shamim Ehsan, Vice President of the Bangladesh Knitwear Manufacturers and Exporters Association, told The Business Post.
Ehsan also emphasized the lack of any logical reason to resort to violence in light of the impending announcement of the new wage structure. He expressed concerns that external entities may be exacerbating the existing instability in the RMG sector, capitalizing on the ongoing political unrest.
The Ministry of Labour and Employment has taken steps to address this crisis by convening a meeting with RMG sector trade union leaders. In this meeting, State Minister Monnujan Sufian called on the workers not to engage in demonstrations until the new wage structure for the RMG sector is announced.
Trade union leaders, however, denied any involvement in the ongoing workers’ strike and attributed the unrest to the minimum wages board and RMG factory owners, asserting that their actions led to this ‘unexpected situation.’
Trade union leaders argued that if the wage board had promptly announced a fair wage structure and if the owners had proposed a more reasonable wage formula, the RMG sector might have averted this crisis. They also criticised the appointment of an allegedly unfit representative from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to the minimum wages board.
Trade union leaders firmly believe that only a fair and reasonable salary structure can quell the ongoing crisis.
Furthermore, concerns have been raised about the role of the industrial police unit and local law enforcement agencies in protecting the industrial areas. Trade union leaders assert that many instances of vandalism occurred in the presence of law enforcement officers.
In the words of Bangladesh Garment Sramik Samhati President Taslima Akhter, “Workers value their time. The underlying cause of the strike is workers’ hunger and their suffering due to the delayed wage structure announcement. The wage proposal by factory owners is deeply flawed, and this is the source of workers’ anger.”
In light of the prevailing political situation, Taslima emphasised the importance of announcing new wages at the scheduled meeting on November 1.
However, State Minister Monnujan assured that the minimum wages board is actively reviewing the salary proposal and pledged that the new wage structure will be announced before November 30, becoming effective from the first of December this year.
The Unrest
According to reports from industrial police, BGMEA, the labour ministry, and trade unions, workers have been demonstrating since early last year, demanding a monthly minimum wage of Tk 23,000 to Tk 25,000.
Six trade union alliances are at the forefront of these protests. Workers are also calling for a reduction in job grades from 7 to 5, an extension of maternity leave from 4 months to six months, a raise in the basic salary to 65 per cent, the introduction of rations for RMG workers, and the initiation of service benefits and gratuity for garment workers.
While most of the demonstrations have concluded peacefully, some have turned into clashes when law enforcement agencies and ruling party activists have intervened.
Amid this challenging backdrop, the government established a six-month tenure wages board to review salaries in the RMG sector on April 9. Unfortunately, the owners’ representative on the board, Siddiqur Rahman, failed to submit a proposal within the stipulated timeframe.
In response to the ongoing unrest, the government extended the board’s tenure, leading to the submission of a proposal by RMG owners on October 22, setting the monthly minimum salary at Tk 10,400. In contrast, workers’ representatives proposed Tk 20,393.
The board has scheduled its next meeting for November 1. However, workers expressed their dissatisfaction with the owners’ proposal, viewing it as illogical and inadequate, especially in the context of ongoing inflation, prompting them to take to the streets. To date, numerous workers have not returned to work and are actively participating in demonstrations, with some escalating into violence.
The workers targeted several establishments, including Hornbill Apparels, PN Composite, Meghna Net Composite, Fashion Point, PBL Knit Composites, Swadhin Garments, Fashion Summit, Greenland Garments, International Training Service, Tusuka Trouser, Life Textile, Rezaul Apparels, Kaniz Fashion, Dycin Chemical Industries, ABM Fashion, and Islam Knitwear.
An anonymous RMG worker involved in the demonstrations expressed frustration, saying, “Over the last five years, owners have profited significantly through various means, aided by government incentives and facilities. Despite this, our wages have remained stagnant, even as the prices of essential commodities have soared two to threefold.”
“We were taken aback to learn that the BGMEA proposed just a 30% increment in wages, especially when we experienced a 50.9% wage hike in 2018. We have rejected this proposal, and unless our demands are met, we won’t return to our workplaces.”
Industry insiders have pointed out that the “unnecessary and unwanted” violence in garment areas is causing buyers to feel insecure when visiting factories and placing orders. The ongoing political and worker unrest is adding to the country’s existing challenges.
BGMEA President Faruque Hassan said, “We are committed to raising workers’ wages. We have submitted a proposal to the wages board, and the government will establish the salary structure. It is unclear why violence is being instigated. I will engage with trade union leaders to resolve the issue.”
Are they workers or outsiders?
The question of whether the individuals involved in the vandalism are RMG workers or outsiders was raised during a labor ministry meeting. Most trade union leaders indicated that some workers were coerced into joining the protests, while others accused certain trade unions of inflaming the situation.
However, all trade union leaders denied their involvement in the ongoing workers’ strike. They unanimously agreed that the root cause of the situation is the need for a fair wage increase.
Senior labor leader Fazlul Haque Montu emphasized the urgency of the situation, saying, “Six months have already passed without a resolution. We have reached a point where demonstrations have spread. The solution lies in announcing the wage structure at the next meeting. Standard negotiation could lead to a rapid resolution. We are striving to conduct the movement in a systematic manner, and when workers take to the streets, it becomes illogical.”
Trade union leader Lima Ferdous blamed the owners for the situation, stating, “The owners’ irresponsibility is responsible for the situation. The proposed Tk 10,400 is not a logical offer, and workers are still subjected to physical abuse in factories.”
During the meeting, Sahjahan Khan, a Presidium Member of the ruling Awami League and a worker’s leader, stated, “I believe that trade union leaders are not involved in the violence. I have worked closely with them. In Ashulia, some unnecessary demonstrations occurred, and some outsiders are agitating the workers.”
He added, “None of us want to destroy the Garment Sector. We support various political parties, and we will push for the announcement of a logical and acceptable wage structure.”
