Wages for 13 sectors will need to be raised next year

From now on, the minimum wages of workers in various sectors will be revised every three years instead of every five years. As a result, the wage-restructuring process for 13 sectors—including readymade garments, tea gardens, and privately owned jute mills—must be completed by next year. These sectors have already completed three years since their latest wage structures took effect, or they will complete three years within the coming year.

Labour leaders say that workers have long demanded wage increases every three years to improve their standard of living. This demand has now been included in the ordinance amending the labour law. They believe that in this period of high inflation, workers in various sectors will get at least some relief. On the other hand, leaders of employers’ associations say that wage revisions—particularly in the garment sector—often lead to labour unrest. A clearly defined process would help prevent such unwanted incidents.

The government issued the amended labour law ordinance last Monday. Before that, the Labour Reform Commission recommended evaluating and revising wages every three years. The commission’s report stated that wage structures should be determined with the understanding that the worker is the sole earner of the family, and wages should be set in a way that allows them to meet their family’s needs. However, the ordinance did not mention this issue.

Salahuddin Swapan, former general secretary of the IndustriALL Bangladesh Council, told Prothom Alo that revising wages every three years is a positive step. But what the wage structure will look like and who will represent workers on the wage board is extremely important. In recent boards, worker representatives have often been selected based on the employers’ preferences. This must stop, and the labour rules need clear provisions. Without that, workers will not fully benefit from the law, he added.

The Minimum Wage Board under the Ministry of Labour has so far set minimum wages for 42 sectors. Currently, wages for 17 sectors—including three new ones—are under review. The timeframe for wage reassessment has already passed in six sectors. However, the wage-revision process must begin this year or early next year for 13 sectors. Had the previous rule of reviewing wages every five years remained in place, wage assessment for these 13 sectors would have been delayed further.

The 13 sectors are: security services, sawmills, printing presses, shrimp, fish-catching trawlers, rubber industries, privately owned jute mills, homeopathic factories, bidi, tea gardens, cinema halls, hosiery, and the readymade garment industry. Among them, the garment sector alone employs 4 million workers.

When asked, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Mohammad Hatem told Prothom Alo, “If wages increase every three years, workers’ living standards will improve. But buyers must be pressured to pay fair prices for garments; otherwise many factories may not survive.”

“Every time wages are revised, instability arises. We remain in fear and uncertainty. Having a proper procedure would help,” he added.

In Bangladesh’s top export-earning sector—the readymade garment industry—the latest wage structure took effect on 1 December 2023. After the wage board was formed that year, workers launched protests, during which four workers were killed and many were charged in cases. Eventually, the minimum wage was raised from Tk 8,000 to Tk 12,500. However, this wage is still lower than that of many other garment-exporting countries.

Asked about the overall issue, Syed Sultan Uddin Ahmed, former head of the Labour Reform Commission, said, “We welcome wage evaluations every three years but setting a standard was more important. The law already states that wages should be set considering the cost of living and other factors. Yet after tug-of-war between the parties, wages are eventually finalised based on political considerations. Instead, wages should be determined by analysing data from Bangladesh Bank, BBS, and other institutions, taking into account the cost of living.”

“We must move beyond the current mindset in determining workers’ wages. Standards and government policy need to be clearly defined. The dignity of citizens and the fair share of those engaged in production must be ensured. Only then will workers receive wages that allow a dignified life, contributing to social justice,” he added.