Bangladesh apparel workers see minimal wage growth: Study

Despite significant inflation, the study found minimal wage growth since 2019, with the monthly average net wages of RMG workers increasing by only 0.95 per cent over the past four years.

The FLA urged the global buyers to ensure living wages for workers within their supply chains in Bangladesh.

This call comes amid the government’s decision to fix the minimum monthly wage for garment workers at Taka 12,500 (∼$113.56), effective December 1, 2023.

However, the FLA report highlighted that this minimum wage still falls significantly short, remaining 51.78 per cent below the living wage benchmark estimated at Taka 23,254 (∼$211.26) by the Global Living Wage Coalition for 2022.

Utilising data from the Fair Compensation Dashboard collected by FLA member companies, the study analysed workers’ average monthly net wages from 2015 to 2022 in Bangladesh even as the FLA emphasised the need for global apparel buyers to collaborate with Bangladeshi suppliers to ensure that new minimum wage costs are covered in purchase orders.

In parallel, the International Labour Organization (ILO) reached a consensus during a meeting of wage policy experts in February, emphasising the centrality of decent wages to economic and social development.

The ILO’s governing body endorsed this agreement on March 13, opening avenues for further work on estimating and operationalising living wages, with a focus on evidence-based methodologies and consultation with workers’ and employers’ organisations.

Meanwhile, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president, Faruque Hassan, affirmed that all BGMEA member factories have implemented the new minimum wages, commending FLA’s efforts to promote living wages and urging buyers to take responsibility for ensuring fair compensation for workers.

Fibre2Fashion News Desk (DR)