Bangladesh Garment Manufacturers and Exporters Association (BGMEA) urged its member factories to consider negotiating with their buyers for a fair price so that the industry can transition to a new wage scale for the workers.
They were also requested to follow rational price negotiations for orders of readymade garment (RMG) products to be produced from December 1 later this year.
Faruque Hassan, president of the BGMEA, in a letter urged the member factories of the apex organization of the country's RMG manufacturers.
He said that the Minimum Wage Board for apparel workers was working to review the current minimum wages, had already held several meetings, and was currently consulting with different stakeholders.
“They are visiting factories and discussing with workers and owners. I believe before the end of this year a new minimum wage will be declared and there will be quite a significant increase thanks to the trend of previous reviews and aggregate inflation in the past five years,” he added.
He also said that the world is not free from inflation. The Minimum Wage Board is an independent body with equal representation from workers, owners and independent groups to work independently.
“Considering the standard and cost of living of our workers, and the inflation, I would urge you to kindly consider a rational price upcharge in your current price negotiations for the orders for a smoother transition to a new wage scale,” he added.
He also said that both manufacturers and buyers are going through a tough time due to the unprecedented inflation which is affecting disposable income, spending and demand for products.
While managing the supply chain has become difficult at the retail end, the manufacturers are in a terrible situation managing their capacities, supply chain, planning and forecasting.
However, Bangladesh has been quite successfully able to retain growth in export so far thanks to significant progress in the safety area and continuing efforts.
Manufacturers are working continuously to improvise themselves and making all the efforts to make business easier and efficient including areas like logistics, transportation, policies, and establishing mega infrastructure projects.
“In our journey ahead, we have committed to put utmost importance on sustainability, aligning with the SDG vision. We now have 202 LEED certified RMG factories in Bangladesh of which 73 are platinum,” he said, adding that they are working with a clear sustainability vision to significantly decarbonize the industry and adopt circularity by 2030.
However, he also said that the reality is full of challenges as they are yet to recover from the loss caused by the pandemic, and they are investing so much to make the industry transparent and sustainable.
“Now, inflation and production cost hikes, including gas, electricity, fuel, transport and other costs, are squeezing our breathing space. In fact, the workers, who are the lifeline of this industry, are suffering the most from the inflation,” he added.
He also said that the price level has also gone a bit higher, but barely enough to cope up with the cost upsurge.
In this regard, ensuring a rational price upcharge from the buyer’s end is important for a smoother transition to a new wage scale, he added.