Business1 min read

Wage unrest grips Bangladesh garment sector; dozens of factories shut

By · Via Times of India · Published by Everything Blog

In short

Labour and Employment Minister Ariful Haque Chowdhury announced that a specialized board will review garment salaries following tripartite talks with union and industry representatives. Protesters are demanding an increase in minimum monthly pay from 12,500 taka to 30,000 taka to handle rising costs. The unrest turned violent in Ashulia, where police deployed tear gas and sound grenades during clashes that left several people, including officers, injured. Factory owners simultaneously face compounding challenges, including domestic energy shortages and market uncertainties driven by Middle East tensions.

Key points

  • The ready-made garment industry is vital to Bangladesh, generating over 80 percent of its…: The ready-made garment industry is vital to Bangladesh, generating over 80 percent of its export earnings and employing four million people.
  • Prolonged factory shutdowns risk jeopardizing timely international buyer payments and bro…: Prolonged factory shutdowns risk jeopardizing timely international buyer payments and broader economic stability.
  • Factory operators are balancing worker wage demands against intense headwinds from high p…: Factory operators are balancing worker wage demands against intense headwinds from high production costs and persistent gas and electricity shortages.

Sources checked by our analysis pipeline: 1

Bangladesh will constitute a wage board on Sunday to review salaries in its garment industry after protests over pay shortages disrupted factory operations, shut dozens of manufacturing units and led to clashes between workers and police.

Garment workers are demanding a minimum monthly wage of 30,000 taka ($245), more than double the existing minimum of 12,500 taka. They say rising expenses on food, housing, transport and healthcare have significantly reduced their purchasing power.

Labour and employment minister Ariful Haque Chowdhury said the government would formally set up the wage board following discussions with labour leaders and industry representatives in an effort to resolve the unrest, Reuters reported.

The protests intensified on Saturday, with around 30 garment factories in Ashulia, a major manufacturing hub on the outskirts of Dhaka, declaring holidays, according to Mohammad Mominul Islam Bhuiyan, superintendent of the Ashulia Industrial Police.

Hundreds of workers also blocked a major intersection in Dhaka, while demonstrations in other industrial areas disrupted traffic and factory operations. Clashes between protesters and police in Ashulia left several people injured, including police personnel.

Police used tear…

Business