Low wages a barrier to sustainable development

In terms of their production capacity, workers in Bangladesh get lower wages than any other country in the world, according to the International Labour Organisation (ILO). Global Wage Report 2020-21 published on Wednesday shows Bangladesh ranks last among the countries paying minimum wages in the Asia-Pacific region. Bangladesh is the only country in the region to have a minimum wages below the internationally recognised poverty line. Given the purchasing capacity, the minimal monthly wage of a worker in 2019 was 48 dollars. However, the reports says, garment workers are getting double.

There is no fixed minimal wage in Bangladesh. There are some specific wage structures in a few sectors. ILO has based the report on the wages in the unskilled and informal sector. Pakistan’s workers are in better position that Bangladeshi workers in terms of wages. The minimum monthly wage in Pakistan is 491 dollars in terms of purchase capacity which is the highest in South Asia.

Bangladeshi workers among Asia-Pacific regions have better productivity. The highest productivity growth of workers in the region is 5.9 per cent in Myanmar. After that, Bangladesh has achieved 5.8 per cent, Pakistan 2.2, Nepal 4.3, Sri Lanka 4 and Afghanistan 1.6 per cent respectively.

Bangladeshi workers produce more even though they get lower wages. If wages increase, their productivity will undoubtedly increase further. Therefore, the government and the owners should reconsider the issue of wages. If higher wages are paid, workers will work harder, which will benefit the industry and the owners. Owners need to shed the tendency to make more profit with lower wages.

Expecting higher wages like in developed countries may be wrong for Bangladeshi workers. Then again, why don’t they get equal or wages close to that of workers in Pakistan, Nepal and Sri Lanka?

According to the ILO, Australia pays the highest wages in the Asia-Pacific region. In 2019, the minimum wage in the country was 2,166 dollars in 2019 considering the purchasing capacity. The average monthly wage in this region is 381 dollars.

Japan, South Korea, New Zealand and Australia are the developed countries in the Asia pacific region and the minimum wages in those countries are pretty high. Expecting higher wages like in developed countries may be wrong for Bangladeshi workers. Then again, why don’t they get equal or wages close to that of workers in Pakistan, Nepal and Sri Lanka?

The ILO report states that wages in the garment industry are fairly satisfactory. But the Oxfam report shows that wages in the garment industry in Bangladesh are the lowest compared to other countries. It is said that a decent wage for living in Bangladesh is equivalent to 252 US dollars. In contrast, a Bangladeshi worker gets only 50 dollars. The minimum wage for workers in India and Sri Lanka is 50 dollars. But in India one needs 200 dollars for a decent living and in Sri Lanka it is more than 250 dollars.

This ILO data was made in 2019. But in the pandemic period in 2020, the condition of the workers in Bangladesh has become more critical. A significant number of workers lost their jobs and some had wage cuts. Informal workers are more vulnerable than in the formal sector. People related to this sector need to understand that the productivity will not increase if wages are low. Sustainable development of industries and the country cannot be expected in these circumstances.