Wages increase slightly for RMG, not in other sectors

Workers at a garment factoryFile photo

After the July uprising, the wages of workers only in the readymade garment (RMG) sector increased slightly above the fixed rate. Workers in other sectors did not receive any wage hike.

The government increased the wage increment of RMG workers from January. Before that, the RMG workers would get a 5 per cent increment every year, which was increased to 9 per cent after following the July uprising. However, the rate is still below the inflation rate of the country.

The Bangladesh Bureau of Statistics (BBS) figures show the inflation rate was 9.35 per cent in March. An increment lower than the inflation means a decline in actual wage.

A new pay scale for the workers in the tannery sector was declared last November. However, the workers said nobody has implemented the new pay scale. The labour ministry has not declared any additional wage for the workers of other industries either.

According to the Bangladesh Institute of Labour Studies (BILS), there are some 76.5 million workers in the country, including official and unofficial sectors. There are declarations of a minimum wage in 43 of the 142 sectors and sub-sectors. However, the workers do not have any legal protection in any of these sectors.

The interim government took over on 8 August 2024 following the mass uprising that deposed the Awami League government. A large part of the people who took part in the uprising were workers. Many of them were killed.

The workers leaders said the living standards of the workers declined due to the high inflation rate during the Awami League regime. Their buying capacity declined due to inflation. The workers expected the new government would do something additional for the workers. However, that was not the case.

The May Day is being observed today under such a scenario. This is a historic day that established the rights of the working people of the world. On this day in 1886, the workers of Hay Market in Chicago were protesting for fair wages and an eight-hour workday, when the police opened fire. Many workers were killed. Through their sacrifice, the demand for an eight-hour workday was established. Since then, the day has been celebrated as May Day.

The theme of this year’s May Day celebration is ‘Workers and owners united, Lets rebuild this country anew.’ The labour ministry and the workers organisation have organised different programmes to mark the day.

Addressing an event organised by the labour ministry on the occasion of International Labour Day and National Occupational Health and Safety Day at the Ministry of Shipping's conference room on Wednesday, labour adviser Brigadier General (retired) M Sakhawat Hossain said, “Once the slogan was ‘workers of the world, unite.’ Now it has changed to ‘workers and management of the world, unite.’ Good management now treats workers like their children.

Meanwhile, after taking over, the interim government had to handle different movements over pending arrears and discontent among the workers for various reasons. Besides, the government also had to tackle the financial crisis that originated during the rule of the Awami League. The economy and trade of the country is yet to be fully normalised.

Among these, layoffs have been announced at several industrial establishments under the BEXIMCO Industrial Park. Arrears of around 30,000 workers of these industrial establishments were cleared at the initiative of the labour ministry. The ministry also made arrangements to clear arrears of the workers of several business groups including the Birds Group and TNZ Group.

Overall the ministry was involved in the 3 major tasks in the last nine months. They are - the 18-point joint declaration of the workers and owners in the shape of the movement of the RMG workers, initiative to amend the labour law and clearing the pending salaries of the workers from the industries under the BEXIMCO Industrial Park and formation of an 11-member-advisory council to discuss the overall business situation of the company. The BEXIMCO-related task has somewhat ended with the payment of pending salaries of the workers. The goal of the joint statement of the owners and the workers is partially accomplished. The process of amending the labour law is underway.

Labour ministry officials say that it has still not been possible to take an initiative of reform for the workers employed in informal sectors and sectors without minimal wages. They are busy with managing the situation at hand. Notably, according to BILS data about 85 per cent of the total working population in the country is from informal sectors.

Labour and employment secretary AHM Shafiquzzaman told Prothom Alo, not just in the garments sector, the wages have increased in the tannery leather sector as well. The wages board in 43 different sectors will make new recommendations every five years. However, the workers of the informal sector will receive full attention after the labor law has been amended.

He added, “We are playing a role in reducing the distance between workers and employers. Plus, we are working with the ILO to declare a national minimum wage.”

The new pay scale for the leather sector was announced in November last year. That fixed a minimum wages of Tk 18,000 in the tannery industry. Tannery workers union president Abul Kalam Azad told Prothom Alo that it took 11 months to announce the pay scale after the formation of the board. And it has not been implemented yet while six months have passed already. Not even a single factory has implemented the new wages.

After the joint declaration

Most of the 18-point joint declaration from the workers and owners announced in the wake of garments workers protest has not been implemented.

Only the attendance bonus, tiffin, and night bill have been increased a bit. A list of one million (10 lakh) garments workers is being prepared so that TCB goods and OMS rice can easily be bought in areas densely populated with workers.

Meanwhile, a list of 73 people martyred and injured in the July uprising has been submitted in the health ministry. Besides, the maternity leave will be 120 days instead of 112 days. Many factories have already implemented 120 days of maternity leave.

The 18-point includes the issue of establishing a central monitoring system to take the interests of workers into account such as putting an end to local political influence or extortion in "jhut" (waste fabric) business. There has been no progress on this issue so far.

Four workers were killed in wage protests back in 2023. Their heirs were supposed to receive compensation. In two years, the ministry has only been able to collect the names of those four people. Meanwhile, there are 45 harassment cases against workers. But, the labor ministry said that 15 of those cases have been withdrawn.

Apart from that, not all the victim families from Rana Plaza and Tazreen Fashion tragedies have received compensation either. These are issues related to the 18-points. There are many issues related to the labour law amendment here.

‘Weakness’ in implementing promises

According ministry sources, the draft of the law is not making workers’ provident fund and gratuity obligatory. It doesn’t include the right to form independent trade unions either.  The proposed draft of the labour law also does not mention the obligation to follow International Labor Organization (ILO) provisions when it comes to forming trade unions.

General secretary of the Bangladesh council of IndustryALL, global alliance of workers organisations, Babul Akhter told Prothom Alo that the government-announced circular of nine per cent increment is for the garments sector only. That too has not been implemented in most factories. This is a matter of frustration.

Apart from this, the current government has a bit of weakness in implementing its promises in most cases, including the matter of withdrawing harassment cases filed against workers, Babul Akhter believes. He said that the aspirations of the working population are remaining largely ignored in the case of labour law amendment.