Not fair wage alone, work ethics, skill, dedication equally matter in factory growth: EIB

Skills, wage and productivity are inter-related and industry owners need to invest in training to help workers become more productive and earn more, suggests the latest study by The Economic Intelligence Bangladesh (EIB), a research publication by The Business Standard in partnership with think-tank DataSense.

Infrastructure, governance, work ethics and workers' dedication are also no less prominent than fair pay and benefits in industrial relations, says the study that comes with EIB's latest edition.

The 12th issue titled "Bangladesh's Labour Market: Pay, Protection, and Prejudice" explores Bangladesh's labour market woes— from rising unemployment among educated youth to enduring structural challenges.

It features the comprehensive study that examines the persistent low wage–low productivity cycle in Bangladesh.

Factory owners maintain the wages and total compensation they offer to apparel workers are regionally competitive given the workers' efficiency. They attribute productivity gaps to discipline and skill shortages rather than pay.

"Compared to India and Vietnam, we have a wage advantage when considering the loaded cost," said Shovon Islam, managing director of Sparrow Group.

Economists point to deeper systemic problems such as weak work ethics and poor infrastructure.

Dr Muinul Islam, a professor of economics, stated, "I think firstly we need to recognize that the issue of low wages is connected to workers' training levels and their work ethics."

He further added, "Loyalty and dedication to work have not yet fully developed across the workforce, and this needs significant improvement."

In contrast, labour rights defenders argue that current wages do not meet workers' basic needs and emphasize that fair pay and investment in training are vital for sustainable productivity and Bangladesh's success in the global apparel sector.

Assistant Attorney General A.M. Jamiul Hoque Faisal said "Those who employ workers also bear responsibility for helping transform them into skilled professionals."

He added, "Workers cannot be expected to acquire all skills independently. There should be structured plans in place to allocate a portion of business profits towards training and capacity building."

In this issue, AKM Nasim, former president of the Bangladesh Labour Court Bar Association, discusses Bangladesh's outdated labour laws, limited rights for associations in EPZs, and emphasizes the need for reforms to enable the formation of trade unions.

He refers to the Labour Reform Commission's report that finds the current process for forming trade unions grants the Department of Labour broad discretionary power in deciding whether to approve or reject union registration applications. "It has been recommended that these discretionary powers be clearly defined so that such decisions are based on specific criteria rather than arbitrary judgment. If those recommendations are implemented, it could lead to substantial improvement in the union registration process," says Nasim, who was a member of the reform commission.

The section "Bangladesh's Commitment to ILO Standards and Status" reviews the country's progress in adopting International Labour Organization (ILO) conventions. Bangladesh has ratified 36 instruments, including most fundamental ones, but gaps remain in occupational safety, social protection, and migrant worker rights.

Informal, female, and domestic workers often lack legal protection, while enforcement is weak in sectors like garments and construction. The item urges ratification of key conventions, introduction of a national minimum wage policy, enhanced inspections, and digital grievance mechanisms to meet Sustainable Development Goals (SDGs).

Finally, the issue highlights the challenges faced by gig workers in Bangladesh's platform economy, who lack fair pay, contracts, safety, and social security—risks especially acute for women.

It calls on Employer and Business Member Organisations (EBMOs) to raise awareness, provide training, and advocate for fair work standards. A national gig work strategy, improved legal support, and stronger public-private partnerships are recommended to ensure inclusive and decent digital employment.

For our detailed findings, visit: https://intel.tbsnews.net/12th-issue/