The readymade garment (RMG) manufacturers have stated that they are not prepared to form a new wage board at this time, nor are they willing to implement the annual 10% wage increment demanded by labour leaders.
This was announced during an emergency meeting of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Monday evening.
Earlier that day, in a tripartite meeting with the Ministry of Labour and Employment, manufacturers and labour leaders, where the latter had presented 18 demands, including the formation of a new wage board and an annual 10% wage hike.
While 16 of the 18 demands were addressed during the meeting, the manufacturers remained firm on their stance regarding the wage board and annual increment.
The meeting was chaired by BGMEA President Khandoker Rafiqul Islam and moderated by Senior Vice-President Abdullah Hil Rakib, with several manufacturers speaking on behalf of the association.
Kafil Uddin, managing director of JHK Fashion, reiterated that the industry is not ready to establish a new wage board or offer a 10% annual raise at this point.
“The last wage board was formed in 2023, and wages were set that November, less than a year ago. According to the Bangladesh Labour Act, wages must be reviewed every five years. We respect the law, but under the current circumstances, we need more time,” he explained.
In November 2023, the government set the new minimum wage for RMG workers at Tk 12,500, with 63% being basic pay. This new wage took effect in January 2024. Additionally, both parties agreed to reduce the existing grade structure from 7 to 5, with basic wages increasing by 56.25% and maintaining a 5% increment policy.
Factory resuming operation
Regarding factory reopening, former president Redwan Ahmed said that if the government does not provide enough security, then they will close all the factories.
Garments manufacturers are set for another meeting with the Labour Ministry on September 24 where further decisions will be taken regarding factories continuing to be operational.
Tripartite meeting at Labour Ministry
The representatives from the RMG sector, workers unions, and the Ministry of Labour and Employment held a tripartite meeting regarding the current unrest of the RMG sector at the Sromo Bhaban on Monday.
At the meeting, both parties discussed 18 specific demands of the workers and of them, 16 demands were resolved at the meeting.
However, different deadlines were set for compliance with these 15 demands where some demands were accepted immediately and the meeting participants agreed to take time to accept some demands.
Meanwhile, two of the demands of the workers were an increment of 10% and to form a new wage board.
In this regard, BGMEA representative and Senior Vice-President of the organization Abdullah Hill Rakib said that it is not possible to accept the decision of BGMEA alone, they will discuss this matter with the members and take a decision soon.
At the meeting, it was decided that the manufacturers will pay all dues within October 30, and in case of failure to meet the deadline, the ministry will take legal action as per the law.
Moreover, manufacturers accepted the implementation of increased attendance bonus by Tk225, tiffin allowance by Tk10, maternity leave from 112 days to 120 days in all factories.
The Labour Ministry will independently investigate workers who were blacklisted by owners. BGMEA representatives accepted the decision.
Former FBCCI president AK Azad, former BGMEA presidents Kazi Moniruzzaman Monir and Mostofa Golam Kuddus, BGMEA vice-presidents and director, Square Pharmaceuticals MD Tapan Chowdhury, representatives from DIFE, DoLE, industrial police, and labour leaders including Taslima Akhter, Nazma Akter, Babul Akhter, Montu Ghosh, Jolly Talukdar were present at the tripartite meeting.
Major industrial hubs see fresh unrest
The Savar, Ashulia, and Gazipur industrial hubs saw an increased number of garment factories closed on Monday amid a fresh wave of unrest among workers over several demands including wage hikes.
According to the sources from the BGMEA, 49 RMG factories have been shuttered in the area. Of these, 39 factory units were closed at Savar and Ashulia area where 10 were closed at Gazipur area.
At Savar and Ashulia, 27 factories were closed indefinitely under Section 13(1) of the Bangladesh Labour Act, which enforces a “no work, no pay” rule. Additionally, 12 factories were closed after workers arrived but chose not to work.
In Gazipur, 10 more RMG factory units were also shut down, according to BGMEA sources.
Several well-known factories closed under Section 13(1), including several factories of NASSA Group, Ha-meem Group, Envoy Group, Newage Group, Starling Group, Ananta Group, Shin Shin Apparels Ltd and Bando Designs. Others, such as Al Muslim Apparels, Shangu Tex, and Rose Dresses opened but later closed when workers left.
The unrest started on August 31, and yet to be controlled, even after the government deployed an army with magistracy power.
The government, law enforcement agencies and manufacturers blamed a vested interest group for fuelling the protest to create anarchy.
