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RMG minimum wage to be declared on November 21

Update : 11 Nov 2013, 06:50 PM

The minimum wage for the readymade garment (RMG) workers is scheduled to be announced on November 21.

“The government and the wage board will finally announce the minimum wage for the entry level RMG workers on November 21, where the government will mention what would be there for both the workers and owners,” Labour and Employment Minister Rajiuddin Ahmed Raju said in Dhaka on Monday.

He disclosed the schedule after a meeting with the leaders of BGMEA and BKMEA at Bangladesh Secretariat. “I think the decision would be good for both the workers and owners.”

The minister called upon the workers to join works, saying that RMG factories, which are closed due to labour unrest will reopen today.

“We are losing market due to hartal and labour unrest. That’s why we have to be cautious,” said Raju. “We should think what would happen if the sector employing 4.2m workers is destroyed.”

About the proposed minimum wage of Tk5,300 per month, the minister said big factories would be able to implement it, but the small ones may not afford to do that.

The leaders of the workers have agreed the proposal of the wage board while the owners did not agree it. Wait and see the decision would be good for both the parties, Raju said.

As per the wage board, owners could appeal against the wage board decision within 14 days and today, the owners made their appeal with some opportunities, he added.

“We have placed a set of recommendation to the government to increase the industry capacity,” said Abdus Salam Murshedy, former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

“It would not be possible to implement the new wage structure without the support of government and that’s why we sought government cooperation,” said Arshad Jamal Dipu, a BMGEA director.

At the meeting, the RMG sector leaders sought lowering bank interest rate, tax at source, separate exchange rate against US dollar for the garment sector and cash incentives for the new destination of RMG products, said a meeting source.

On November 4, the minimum wage board set Tk5,300 for entry-level workers, a 76.6% rise over the existing consolidated wage of Tk3,000. This was decided through voting after both the owners and labour leaders had failed to reach a consensus.

The board proposed Tk3,200 as basic salary, with an extra of Tk1,280 for house rent, Tk320 for medical allowance, Tk200 for transport and Tk300 as food allowance.

BGMEA President Md atiqul Islam, Second Vice President SA Mannan Kochi, Vice President Shahidullah Azim, Reaz Bin Mahmood, former President Absus Salam Murshedy, Annisul Haq, Tipu Munshi, BKMEA President Selim Osman and labour secretary Mikail Shipar were present, among the others.  

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