Workers' real wages are decreasing by the year

Prothom Alo: Which sector in Bangladesh do you think experiences the most worker discrimination?

Syed Sultan Uddin Ahmed: In our experience, discrimination exists across all sectors. For instance, every ministry in the secretariat employs outsourced workers. There’s a significant disparity between permanent and outsourced employees. A female computer operator from one ministry told us during a consultation that when she became pregnant, she had to decide whether to keep the baby or not, because as an outsourced employee, she wasn’t eligible for paid maternity leave. She would have to take 2–3 months off without pay. Meanwhile, permanent employees receive six months of paid maternity leave. In the informal sector, a large portion of the workforce has no legal protection. Even after working for 20 years as a private-sector driver, if his employer tells him not to come from the next day, he has no avenue for recourse or remedy. Essentially, all working people suffer from income inequality. To put it simply, discrimination, uncertainty, and lack of protection exist across all sectors of labour.

Prothom Alo: The Commission has recommended wage revision every three years and compensation if wages are not paid on time, among other things. These would increase costs for employers. Did the employer representatives on the Commission agree with these recommendations?

Syed Sultan Uddin Ahmed: One of the Commission's strengths is that despite representing different sides, we made unanimous recommendations. There were no disagreements, even on financial matters. Of course, these issues were sensitive for employers. But employers' representatives agreed that the current system cannot continue. News of workers blocking roads over unpaid wages is common. They agreed that wage payments must be brought under discipline. As part of this discipline, we recommended penalties for late wage payments. From the start, the Commission believed that the country must move away from certain practices—one of which is reliance on cheap labour. By doing so, we will build capacity and eventually be able to increase wages.

Prothom Alo: Why are wages in Bangladesh so low?

Syed Sultan Uddin Ahmed: Our national mindset is partly to blame—we consider low wages to be our competitive advantage. Second, we lack clear standards for wage determination. The Minimum Wage Board sets wages in 42 sectors, but it has no formal criteria. The Board collects wage proposals from both employers and workers and then a political compromise is often made to fix the wage. The Labour Reform Commission has proposed a permanent Wage Commission that conducts its own research and gathers data from various government bodies to establish proper standards. The lack of such standards is a major reason for low wages.

Prothom Alo: The Commission also recommended that living wage standards be considered in setting wages.

Syed Sultan Uddin Ahmed: Yes, a living wage is a benchmark for determining wages that support a decent life. The International Labour Organization (ILO) defines certain criteria that must be considered. A living wage should include not just basic needs but also savings, children's education, and the ability to live with dignity. Many countries follow this model. Just last week, India's Labour Ministry proposed a minimum wage of ₹27,000 rupees, equivalent to about Tk 35,000. They say this will increase further. If a neighbouring country sets such wages, we must ask ourselves what an appropriate wage should be in Bangladesh. We believe the country must move beyond cheap labour, cheap products, and cheap pricing.

Prothom Alo: Every five years during wage revision for the garment sector, factory owners cite various obstacles to increasing wages. Now that the Commission recommends revisions every three years, what steps are needed for implementation?

Syed Sultan Uddin Ahmed: Most objections to wage increases come from sectors where wages are regularly reviewed, such as the garment industry. The key issue is whether employers can expect quality work from workers whose real wages are declining. Wages must enable the reproduction of labour. We’ve seen workers’ real wages fall year after year. The ration system has been discontinued. Although rationing exists in many South Asian countries, it does not in ours. If wages are not adjusted for inflation, then it cannot be said that they’ve been truly revised. Garment factory owners argue that foreign buyers don’t pay fair prices. But buyers say they do want to pay fairly—it's the factory owners who don’t pass it on to workers. That’s why we’ve proposed a national social dialogue to openly discuss these issues. The Minimum Wage Board must play a larger role in wage revision. The idea of accepting wage proposals from both employers and workers is flawed. The law doesn’t mandate this. It says wages must be determined based on a family’s cost of living, economic conditions, social needs, and development. The Board must set wages with those considerations in mind. For example, if the Bangladesh Bureau of Statistics (BBS) says a family's monthly expenses are Tk 19,000, then wage discussions must begin from there.

Prothom Alo: So, is determining a national minimum wage the first step?

Syed Sultan Uddin Ahmed: Absolutely. Without it, fair and disciplined wage setting in any sector is not possible.

Prothom Alo: Where should implementation of the Commission’s recommendations begin?

Syed Sultan Uddin Ahmed: Some things can be implemented quickly. For instance, the social dialogue forum we proposed doesn’t require legal changes. Establishing it would create a platform for discussion and help identify which issues can be prioritised for early implementation. The government can issue a gazette on a national minimum wage—it doesn’t require extensive deliberation, just data. A digital database to recognize workers can also be started promptly.

Prothom Alo: The current compensation for workplace injuries is very low. You’ve recommended increasing it. How should compensation be determined?

Syed Sultan Uddin Ahmed: Compensation amounts must be increased. There should be a minimum standard. In cases of negligence or legal violations, compensation should be calculated based on income as per ILO Convention 121. A formula should be developed that adjusts compensation according to income levels across the country. After the Rana Plaza collapse, a formula was developed under a High Court directive. That experience can also be used.

Prothom Alo: Incidents like the Rana Plaza collapse or the Tazreen Fashions fire have never been properly prosecuted. What are the consequences of this lack of justice?

Syed Sultan Uddin Ahmed: Since the Rana Plaza disaster, we’ve had fatal incidents at Hashem Foods, Tampaco Foils, and a container depot in Chattogram. Fifty children died in the Hashem Foods fire alone. These tragedies should never have happened. The root cause is impunity. In areas without international oversight, rules are simply not followed. People don't believe they’ll be punished for breaking labour laws. There’s a prevailing attitude that violating labour laws may cause an uproar, and if many die, perhaps slightly higher compensation will be paid—but there will be no trial. This culture of impunity leads to greater disregard for the law.

Prothom Alo: The Commission has emphasized replacing the percentage-based requirement for trade union registration with a fixed minimum number of workers. Will this lead to qualitative improvements?

Syed Sultan Uddin Ahmed: We believe it will. Currently, trade unions are limited to just one or two sectors. Everyone is concentrated there. A major improvement will be the expansion of unions to the informal sector—construction workers, day labourers, saloon workers, etc. For example, when a garment factory applies for trade union registration, the labour office first checks how many workers there are and whether their signatures are valid. This opens the door to corruption, as the labour office then seeks bribes from both sides. Replacing the percentage requirement with a fixed minimum number of workers will improve the quality of trade union registration.

*Prothom Alo: Thank you for your time.

*Syed Sultan Uddin Ahmed: Thank you as well