Business1 min read

Bangladesh forms wage board as garment protests turn violent

By · Published by Everything Blog

In short

Garment workers are demanding their minimum monthly salary rise from 12,500 taka to 30,000 taka (US$245) to cover soaring food, transport, housing, and healthcare expenses. The ongoing unrest has forced the closure of dozens of facilities across manufacturing hubs, including 25 to 30 factories in Gazipur and several in Ashulia. In response to brick-throwing crowds, police used tear gas and water cannons in Dhaka, while border guards were deployed to restore order in industrial zones. Meanwhile, factory owners argue that rising production expenses and gas shortages leave little flexibility for sudden wage surges.

Key points

  • Unrest in key industrial hubs threatens vital foreign shipments and could prompt delays i…: Unrest in key industrial hubs threatens vital foreign shipments and could prompt delays in buyer payments.
  • Factory owners face mounting financial pressure from rising production costs, power cuts,…: Factory owners face mounting financial pressure from rising production costs, power cuts, and global energy market volatility.
  • The government established a six-member wage board following talks between industry leade…: The government established a six-member wage board following talks between industry leaders and labor representatives.

Sources checked by our analysis pipeline: 1

The wage board was formed after discussions with workers' representatives and industry leaders.

DHAKA: Bangladesh announced a six-member wage board on Sunday (Nov 1) to review garment workers' pay and urged employees to return to work, but protests demanding higher wages continued across major industrial areas, disrupting transport and factory operations.

Workers in the South Asian nation are demanding a minimum monthly wage of 30,000 taka (U$245), more than double the current 12,500 taka, saying rising costs of food, housing, transport and healthcare have sharply eroded their purchasing power.

The dispute has raised concerns about disruption to an industry that employs about 4 million workers, generates more than 80 per cent of Bangladesh's export earnings and supplies clothing to many leading Western brands.

Labour and Employment Minister Ariful Haque Chowdhury said the wage board was formed after discussions with workers' representatives and industry leaders and urged workers to resume work.

Despite the announcement, thousands of garment workers staged fresh demonstrations on Sunday.

Police used tear gas and water cannon to disperse workers who had blocked a busy intersection in Dhaka,…

Business