RMG owners accept all 18 demands of workers, factories to operate normally from today 

Infographics: TBS

To resolve the ongoing labour unrest in the garment sector, manufacturers have agreed to all 18 negotiated demands of the workers, including an increase in the attendance bonus by Tk225 and 100% implementation of the minimum wage by October.

A consensus was reached between the owners and workers, and as a result, the government expects all factories to operate normally starting Wednesday (25 September). 

Other demands include a raise in both the tiffin bill and night bill by Tk10 each, the supply of products at affordable prices through the Trading Corporation of Bangladesh (TCB), and a fixed timeline for the payment of arrears.

A joint announcement was made in the presence of representatives from the government, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and labour unions at the Bangladesh Secretariat on Tuesday (23 September).

Labour and Employment Secretary AHM Shafiquzzaman presented the 18 demands while briefing journalists at the Secretariat.

On Tuesday, at least 55 factories in the Ashulia industrial area remained closed amid worker protests. Of these, 46 were closed under Section 13(1) of the Bangladesh Labour Act 2006 (no work, no pay), while 13 announced general holidays.

Several of the demands are to be implemented immediately, while others have been scheduled for implementation within a short time. However, the government has announced that if there is any deviation in meeting these demands, action will be taken against the owners. Similarly, if there is any attempt to create unrest even after these demands are met, labour leaders have to take the responsibility.

Shafiquzzaman said the unrest in the factories could not be resolved until last Monday. Meanwhile, a series of meetings were held involving the government, the owners, and the workers, with 35 representatives from both sides present.

"The number of demands we have received from the workers is about 50, and we have agreed to meet 18 of them. We hope all factories will operate normally from tomorrow," he expressed.

Among the negotiated demands, an additional Tk225 will be added to the attendance bonus (which varies by factory), and an extra Tk10 will be added to both the tiffin and night bill amounts.

Additionally, a complete list of workers killed or injured during the recent mass uprising will be submitted to the "July Shaheed Smriti Foundation" to facilitate compensation.

It was noted that 1-2% of factories still do not pay the minimum wage set by the government. All factories must implement the Tk12,500 minimum wage by 10 October.

A committee comprising three representatives each from the labour and employer sides, led by the Additional Secretary (Labour) of the Ministry of Labour, has been formed to reassess the minimum wage. This committee will submit a report within six months to establish a new wage structure.

In response to workers' demands for rationing, the government has agreed to temporarily provide essential commodities at affordable prices through the TCB in labour-intensive areas. Additionally, the sale of rice and flour through the food department will be expanded.

Meanwhile, many workers are owed salary arrears, with some factories delaying payments for up to 3-4 months. These arrears must be cleared by 10 October.

Additional decisions include extending maternity leave for female workers to 120 days and ending the practice of biometric blacklisting by the BGMEA by October. A central monitoring system will be adopted to prevent extortion over scrap (jhut) clothes. The Ministry of Law will review and dispose of all cases related to the 2023 wage protests, as well as past instances of harassment and political cases.

It was also decided that the families of the four workers who died during the wage protests will be compensated, and appropriate remedial measures will be taken.

Moreover, the committee formed to address non-discriminatory recruitment practices based on work type and qualifications for both men and women is expected to submit its report by October. Assistance for victims of the Rana Plaza and Tazreen Fashion tragedies must also be provided within the same timeframe.

Finally, all factories are required to implement daycare facilities in accordance with labour laws, and the unjust dismissal of workers will be halted.

It has also been agreed that this year will see progress on the payment of service benefits, provident funds, and annual increments for workers. To facilitate this, the labour law will be amended by December.

A final decision regarding service benefits will be made following the amendment. Additionally, the minimum wage revision committee will make its recommendations in November, considering inflation and industry capacity.

At the announcement, Home Adviser Lt Gen (retd) Jahangir Alam Chowdhury said there are efforts to undermine this sector not just from within the country but also from external forces.

"We have arrived at this decision with the consensus of all parties, and any attempt to create disorder will hold accountable the workers and owners who have signed this agreement first," he warned.

Labour and Employment Adviser Asif Mahmud Shojib Bhuyain said, "We have resolved 18 demands to address all legitimate concerns. Short-term demands will be implemented starting today. Now, for the sake of saving the industry, all factories should remain open from tomorrow."

He emphasised that if the industry fails, the consequences will affect the government, the country, the workers, and the owners alike. Thus, if any side neglects to meet the agreed demands, action will be taken.

BGMEA President Khandaker Rafiqul Islam said major factories have remained closed for an extended period. "We have come to a collective decision. I hope everyone will return to work tomorrow and resume operations. If any further issues arise, workers should address them with the owners within the factory – through discussion, not road blockades or vandalism."

Labour leader Kutub Uddin said, "All the demands have been accepted by both the owners and workers. We now urge our fellow workers to return to work starting tomorrow."

Present during the announcement were Industries Adviser Adilur Rahman Khan, Fisheries and Livestock Adviser Farida Akhtar, and Ha-Meem Group Managing Director AK Azad, along with garment sector owners and leaders from various labour organisations.

The garment entrepreneurs welcomed the decision to accept the 18 demands.

Shams Mahmud, managing director of Shasha Denims, said, "This is a welcome development. I hope this will put an end to all the vandalism and unrest. Factories need to run smoothly now and clear the backlog. The damage done to the industry is evident, as we have seen orders being diverted and placed in other competing countries."

"Today we have seen in the news that we can expect elections to take place after 18 months. So, with the history of violence-centred elections, we can assume that we will not see increasing orders coming in. This unfortunate series of events will have a negative impact in the near future." 

He also said investments that were in the pipeline are on hold or cancelled. So double-stage transformation requirements and carbon reduction strategies will now take a backseat.

Most of the garments have, because of the chain of events, become financially affected. So, in the coming days there will be some tough challenges, and in the near future the industry will go through consolidation with many factory closures, especially with the current monetary policy.

"Sincerely hope we will see all factories operating from tomorrow so we can create a new chapter and move forward," he added.