DHAKA – The Bangladesh arm of the Asia Floor Wage Alliance (AFWA) has backed demands by trade unions to increase minimum wages for garment workers from BDT 8,000 (US$95) to BDT 22,000–BDT 24,000 (US$207-$226) per month. They claim the demand is justified to ensure garment workers and their families have the basic resources to survive and endure crises, including economic recession.
Bangladesh conducted its last minimum wage negotiations in 2018. At the time, BDT US$95 was fixed as the minimum wage for garment workers. This was following protracted negotiations in which rights groups were demanding significantly higher minimum wages for garment workers.
AFWA-Bangladesh conducted a comprehensive consumption survey in the last quarter of 2021, talking to over 300 garment workers from 63 factories. The workers reported a per capita food consumption of 1,950 Kcal at BDT 120 per day, significantly below the poverty line food consumption standard of 2,122 Kcal.
The survey also found that total family expenditure was higher than its income, even when there were two earners in the family working in the garment industry.
Bangladesh garment workers are among the lowest paid in the world, with wages significantly lower than in competitor countries such as China and Vietnam.
There are broader economic and structural reasons for this. Productivity rates in Bangladesh’s garment industry remain low by international standards and there is a historic link between productivity levels and wages.
Also, Bangladesh produces large quantities of low value, staple clothing with a heavy focus on fast fashion. Margins are small for manufacturers in what is essentially a buyers’ market. This impacts revenues and profitability and ensures wages remain depressed across the industry.