Several brand representatives, who requested anonymity, said the wage structure may fix the minimum salary of entry-level workers at Tk14,000-16,000, which would be affordable for factory owners.
The Minimum Wage Board is expected to finalise its proposal of a new wage structure for ready-made garment workers at a meeting of stakeholders today.
Both factory owners and workers’ representatives on the board have declined to disclose any details about the minimum entry-level wage under the new structure.
However, several labour leaders and factory owners have hinted that the new wage structure will be finalised by Prime Minister Sheikh Hasina when she returns from Saudi Arabia.
Several brand representatives, who requested anonymity, said the wage structure may fix the minimum salary of entry-level workers at Tk14,000-16,000, which would be affordable for factory owners.
However, factory owners said most subcontracting factories would be out of business if the minimum wage was set at that amount. Even if it is set at around Tk12,000, some factories may still fail to pay such an amount.
The head of business development at one of the largest multinational buying houses echoed the same sentiment, saying, “We are always fighting with buyers to increase the FOB price by a cent, but they always say it’s an open market and that they may move to another factory if we don’t agree.”
A European brand representative, requesting anonymity, said the wage should be fixed considering workers’ lives and that if they benefit from the new wage structure, it will be reflected in their productivity.
He also mentioned that a general rule of thumb in apparel CMP (cutting, making, and profit) calculation is to allocate one-third to workers’ wages and the rest to other costs and profits.
The brand representative added that if entrepreneurs allocate 2% of a product’s price to workers’ wages, it will be enough to pay them.
Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said, “We have promised to pay a higher amount than our previous proposal, which will be determined by the board.”
“We are committed to increasing the maximum amount,” he told TBS, adding that if workers accept it, they will negotiate with buyers to secure additional benefits for the new wage structure.
In the last two days, the BGMEA has held several meetings with the owners of different types of factories and leaders at various worker levels to convey this message, added Faruque Hassan.
Speaking to TBS, Shirajul Islam Rony said, “As a worker representative on the wage board, I am trying to negotiate for the well-being of workers. I have proposed measures that may be helpful for them to cope with the ongoing high inflation.”
According to data released by the Bangladesh Bureau of Statistics on Monday, the country’s food inflation rate reached a 10-year high at 12.56% in October, up from 12.37% in September.
He also mentioned that if the owners’ representative and other board members do not agree with his proposal, the prime minister may have to consider the workers’ struggles.
Previously, the factory owners’ representative had proposed a monthly salary of Tk10,400. During a meeting, State Minister for Labour and Employment Monnujan Sufian expressed that the owners’ proposed wage was illogical.
On the other hand, the workers’ proposal was Tk20,393, but it was rejected by the owners’ representatives.
Following the rejection, RMG workers took to the streets. On 30 October, at least two people were killed and about 40 were injured in clashes between the police and garment workers in several industrial areas in Ashulia, Savar, and Gazipur.
Meanwhile, three garment factories have filed lawsuits against more than 1,500 unnamed individuals, mostly workers, for vandalising their factories and causing financial losses during the protests.
