The readymade garment (RMG) manufacturers in Bangladesh have urged brands, retailers, and buyers to raise or at least readjust prices of apparel to help them implement the newly-declared wages for industry workers.
In a letter to the representatives, Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), to ensure uninterrupted and smoother operation in the industry. Dhaka Tribune obtained a copy of the letter.
In the letter, he said that it is important that prices of all goods which will be shipped from December 1, 2023 should be adjusted or up-charged to cover the increment in wage component.
The government on Tuesday declared the new minimum wages for the garment workers, for which the Minimum Wage Board widely consulted and agreed with the proposals made by the stakeholders, including worker and employer representatives.
As per the new minimum wage, the gross wages of the entry level worker was set to Tk12,500, a 56.25% increase of the existing gross wage.
The raise in the minimum wage leads to higher benefits for the workers in terms of overtime benefit, earned leave encashment, festival bonus and other allowances, the BGMEA president also said.
Ensuring decent living of the workers also is a top priority for the manufacturers as well as for global brands and retailers.
However, the implementation of the new wage structure would exert a huge financial impact on the factories, he also said.
This will be challenging for many of our factories to implement the new wage in the current economic and financial circumstances, Hassan further stated.
Since they have accepted the new minimum wage, he went on saying that they will ensure implementation of it.
“We need your support in terms of responsible purchasing practice,” the BGMEA president said.
Furthermore, from now onward, all the business negotiations and deals will have to be made adhering to the new minimum wage policy, he added.
With every effort and action they mean to complement the long term goal, which is to grow mutually and sustainably, he continued.
“We are working with our government relentlessly to ensure a more favorable environment for business,” he added.
It is visible the improvements made and in progress by the government to create better infrastructure and policies supporting envisioned growth and efficiency, he added.
The new minimum wages came at a time when the global economy is passing through an unprecedented time and the economy and the RMG industry in Bangladesh is also feeling the heat.
Hassan also mentioned the investment of the manufacturers to ensure workplace safety, make industry safe, eco-friendly and reduce low GHG.
Through this, Bangladesh has emerged as a reliable, sustainable and one of the most preferred sourcing destinations, he added.