CPD recommends Tk 22,776 as min wage for tannery workers

The Center for Policy Dialogue (CPD) has suggested setting the minimum wage for tannery industry workers at Tk 22,776, a figure calculated based on the current food prices and inflation rates.

This recommendation was part of a media briefing titled "Challenges of Determining and Implementing Minimum Wages in the Tannery Industry," held at the CPD’s office in Dhanmondi, Dhaka on Saturday, 4 May.

During the briefing, the think tank also advocated for a revision of the wage grading system to ensure fair compensation across the sector.

The research leading to these recommendations was spearheaded by Dr Khondaker Golam Moazzem, research director at CPD, with senior researcher Tamim Ahmed presenting the keynote paper.

Key industry stakeholders, including Liaquat Ali Mollah, chairman of the Minimum Wages Board, and Md Shaheen Ahmed, president of the Tanners' Association, were present and contributed to the discussions.

The CPD's proposed wage structure takes into account a total monthly expenditure of Tk 33,445, which includes Tk 20,564 for food and Tk 12,881 for non-food expenses.

The proposed wage calculation also considers the income of other family members, reflecting a comprehensive approach to wage determination in the current economic context.

Furthermore, Dr Moazzem highlighted the need for a simplified and unified grading system within the tannery industry, noting the limited opportunities for advancement due to the sector’s diverse job roles.

As there is no scope for promotion within the current system, it is proposed to introduce subgrades within some grades (A, B, and C within Grade 5), which would create opportunities for promotion and enhance worker motivation, stated CPD.

The CPD emphasized the significance of the tannery industry as a key economic sector in Bangladesh, following the garment industry in importance.

According to the Tanners' Association, the industry comprises approximately 200 active tanneries spread across 127 plots in the Savar area, contributing a substantial US $1.2 billion in leather product exports in 2023.