2023: Garment industry crippled with wage movement

For garment entrepreneurs, the beginning of 2023 was marred by concerns over waning purchase orders and shortages in gas-electricity supply. Adding to the woes, the government hiked the gas and electricity prices, forcing businesses to count higher production costs.

However, by the year-end, the focus shifted to the workers' movement for a wage hike, which resulted in the deaths of four protesters. The export-oriented garment sector suffered the most from the movement in the year.

While talking to Prothom Alo, multiple entrepreneurs and workers' leaders said workers are going through a hard time due to high inflation. Some labour organisations demanded a minimum wage of Tk 23,000 for workers, while some sought Tk 25,000.  The minimum wage board proposed a wage of Tk 20,393 for them but met with a counteroffer from the factory owners for Tk 10,400.

The offer developed anger among the workers and prompted them to take to the streets.

Workers' leaders attributed the discontent to what they deemed 'short-sighted' wage proposals and accused owners of resorting to delaying tactics.

Formed by the labour and employment ministry in April, the wage board held three meetings in the following six months but received no proposals from workers and owners. In the face of criticism in this regard, the two sides placed their wage proposals in the fourth meeting on 22 October, but only to worsen the situation.

The owners proposed a minimum wage of Tk 10,400, which is less than half of the workers' demand.

Following this, the workers took to the streets the following day to press home their demand. The movement lasted for three weeks and registered the deaths of four garment workers – Rasel Hawladar, Imran, Jalal Uddin, and Anju Araa.

When the situation went beyond control, the owners on 7 November placed a fresh proposal to hike the minimum wage by another Tk 2,100 to Tk 12,500 in total. The negotiation was eventually settled at the proposed figure, and it took effect on 1 December.

Prior to the initial proposal, leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) held a meeting, where the general members expressed their ability to pay a minimum wage of Tk 12,000.

There would have been a different scenario had the apex body of apparel exporters proposed the same figure during the initial negotiation with workers.

However, the workers' movement continued even after the fixation of the minimum wage at Tk 12,500. Against such a backdrop, the owners as well as the government resorted to factory closures, lawsuits, and arrests to combat the protests.

At least 20,000 people, including named and unidentified workers, have been accused in 43 cases filed in Gazipur and Ashulia on allegations of vandalism, arson, and looting. A total of 114 people have also been arrested under the cases.

Amid mounting pressure, the workers' leaders had to call off their movement, but it left a lasting effect. Eight members of the US Congress expressed dissatisfaction with the set minimum wage and urged the American Apparel and Footwear Association (AAFA) to pressure the government and manufacturers here to accept a minimum wage of Tk 23,000.

They also described the denial of apparel manufacturers to pay the demanded wage as 'not only disheartening but also shameful.'

The US president announced a labour policy – Memorandum on Advancing Worker Empowerment, Rights, and High Labour Standards Globally – on 16 November, in an effort to protect and promote worker rights at home and around the world.

It garnered concerns here as the US policy noted that those who violate workers' rights, engage in threats, or intimidate workers may face sanctions if deemed necessary.

The workers' leaders expressed concerns, saying that there is no scope to take the new labour policy of the US lightly since a US visa policy is already imposed on Bangladesh. However, the owners remained silent, while the government backtracked from amending a labour law at the eleventh hour.

There have been structural changes in labour rights in Bangladesh over the past decade, but no changes in the implementation of labour laws. The rate of trade union registration has increased, but allegations of obstruction in the registration process and worker exploitation persist. Incidents of attacks, lawsuits, and arrests are also taking place in response to movements.

The top export-earning industry is set to step into a new year with some challenges. There was a 3.5 per cent growth in apparel exports in the first five months of the outgoing year, but it witnessed a decline in the last two months.

Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue (CPD), said the industry would have to deal with labour-related challenges in the first half of the new year.

“Crises over wages are yet to end. Complications persist over grading. There are also issues over the implementation of the new wage structure. Many workers' leaders are still in jail, and there are concerns from abroad. The situation would improve if the government manages to take positive steps regarding the labour issue in the first six months of the new year. It will improve the export situation in the latter half of the year,” he added.