Labor unrest disrupts Garment production in Bangladesh

Approximately 500 factories have been temporarily closed since the demonstrations began on Saturday. Police have responded to the protests with tear gas and sound grenades.

In response to the unrest, the Bangladeshi government established a new wage board on Sunday to assess a potential increase in the minimum wage. Prime Minister Tarique Rahman convened an emergency meeting with government officials to address the situation.

Workers are demanding a minimum monthly wage of 30,000 taka (approximately $242), a substantial increase from the current rate of 12,500 taka ($101).

The garment industry is a vital sector for Bangladesh, generating roughly $38 billion in export revenue and providing employment for a large portion of the population. However, workers argue that current wages are insufficient to cope with the rising cost of living.

Babul Akhter, general secretary of the Bangladesh Garment and Industrial Workers Federation and a member of the wage board, stated, “If factory owners cannot pay workers properly, they should negotiate better prices with international buyers. They cannot build a business on the backs of underpaid workers.”

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, acknowledged the government’s action in forming the wage board and urged workers to allow the review process to continue. He warned that if the protests persist, the “no work, no pay” policy may be implemented.

The industry, which faces competition from Vietnam, Cambodia, and India, is also grappling with rising costs and uncertainty in energy markets.