The two news items are from around the same time. One news item is about the decision to increase the salaries of govt employees. In some grades, the starting basic salary has increased by 142 per cent. It is stated that the purpose of this 'salary increase is to rationalize income in line with inflation and the cost of living'. Surely, that is necessary. Another piece of news is that the price of bread has increased in the country.
The impact of inflation and the rising cost of living affects every household in the republic. For many years, inflation in the country has been over 8-9 per cent. This high inflation does not differentiate between rich and poor. However, the situation is certainly more difficult for low-income workers. The rise in bread prices is like a slow-burning fire for the underprivileged.
State policymakers surely know that the deadline for changing the old wage structure in 17 industry sectors has passed. In January, the time will come to announce new wage structures in three more sectors. This means that, at present, a new wage structure is needed for workers in 20 sectors according to existing laws. This is not a new demand.
In light of the stipulated timeframe in labour law, workers in these 20 sectors are currently being paid under the old wage rates. Since there is a 5 per cent annual increment and inflation is over 8-9 per cent, the 'real wage' of these workers has already significantly decreased. How well do we know the stories of the lives of these people whose wages are decreasing every month?
Despite the end of the validity of the old wage structure, turmoil prevails in many sectors due to delays from the government side in reviewing those. Workers in tea gardens are protesting. Extreme dissatisfaction is also prevailing in other sectors—though not everywhere do workers have the opportunity to speak out collectively.
In sectors where the obligation to establish a new wage structure has emerged based on existing labour law, these are entirely lower-level workplaces. This list includes rice mills, sawmills, bidi workers, construction workers, security service personnel, etc. The validity of the wage structure for garment workers is also ending in December. In the 20 sectors mentioned above, there are workplaces where the wage was determined six to seven years ago. For example, the last wage in the aluminum sector was set in 2018. In the rice mills, wages were set in 2020. Considering the difference in inflation and increments over the intervening years, the 'real wage' in these sectors is probably around half.
Earlier, the wages of workers used to increase after five years. The new labour law stipulates (section 139-c) that the wage structure will change after three years. Owners say it is not yet possible to implement the new law because current wage structures were announced under the old law. Labour organisers reject this explanation. They argue that when a law is amended, it becomes effective immediately unless the new law specifies otherwise.
According to labour economists, the old wage structures in the labour sector need to be revised not only for legal reasons but also in the interest of economic justice. In many sectors, the average wage of workers is many times lower than the current salary of government employees in the lowest grade. Yet, everyone has to survive in the same market.
In the new pay scale for state employees, the basic starting wage in the lowest grade is Tk 20,000. In contrast, a monthly wage of a tea worker is less than Tk 6,000. Even these garden workers are demanding future wages that are significantly less than the salary of the 20th grade of state employees.
Even if workers demand less, or are forced to demand less due to social realities, such a structural disparity in a country is dangerous. This kind of gap creates deep-seated muted resentment, which can take on a violent form, as seen in Bangladesh 26 months ago.
In the wage structure of garment workers, the minimum monthly wage is Tk 12,500. If the pay scale designers for the state assumed Tk 20,000 as the minimum standard for a decent living at the lowest level of government offices, then a minimum wage of Tk 12,500 for garment workers indicates a structural deprivation. Is the contribution of these two groups of people to the country any less?
It's not just the formal labour sector; the lives of workers in informal and non-institutional sectors now demand the urgent attention of the government. There are only a few hundred thousand state employees in Bangladesh. According to the information provided by the State Minister for Public Administration in parliament, this is 1,465,000. Yet, there are several crores of workers in the informal sector. Their collective share is greater in national GDP, growth, and prosperity. We fail to recognise their contributions because they do not have lavish offices or towel-covered chairs. Are the workers who maintain the rhythm of civic life or the peasants whose labour sustains the agricultural economy, is the government thinking about their wage standards?
In national development, workers and professionals are not in competition with each other. The country will progress through the combined labour of everyone. And it is also a harsh reality that the economic system Bangladesh has chosen involves occupational deprivation, wage inequities, and disparities in rank and profession. But excessive structural disparities are dangerous for social peace.
The question may arise, what can the government do about the wages of workers in the informal sector? The just step in this regard is to set a reasonable national minimum wage. In many countries globally, even in South Asia, such standards exist. In the absence of such standards, no homeowner can pay a 'fair wage' to a domestic worker even if they want to. Or there is no national concept regarding what the wage of a private car driver should be. A good solution for such informal workers and their employers is to establish a national minimum wage and update it periodically.
The Constitution of Bangladesh says that ensuring equality of opportunity for all people, eliminating social and economic inequalities, and ensuring equitable opportunities and facilities for all levels of the republic is the 'duty of the state'. Implementing this directive of the Constitution is time-consuming. But some minimum steps are needed towards that goal.
Just as government policymakers have become active regarding pay scales, positive initiatives are needed to revise the wage structure for workers and address the issue of a national minimum wage.
In the current economic system, even if the government cannot set the wage structure for the private sector, it can determine a national minimum standard below which no one can be paid. Outside of this, an incredible disparity in wages is emerging in the private sector from the top to the bottom. Many consider such wage disparities normal. But while it is creating a small super-elite society, it is also expanding a vast indebted lower-income stratum. National household surveys reveal that 40 per cent of families are indebted in some way or another.
As the number of indebted families increases, so does the amount of debt. Unrealistically low wages are a major cause of indebtedness. While the information on debt appears in surveys, we don't know about the requests for help from the very bottom rung. Many in the informal sector, in desperation to run their families, have to seek help from various quarters.
The increase in the price of bread is essentially news from that world. It is a small piece of news, but it carries a big message for everyone. The problem is not with the bakery owners. The solution will not be achieved by pressuring the bakery owners. The wage structure needs to change. Wage deprivation needs to be reduced.
#Altaf Parvez is a writer and researcher.
*The opinions expressed here are the author's own
#This article, originally published in Prothom Alo print and online editions, has been rewritten in English by Rabiul Islam