Major US brands urge PM Hasina to review minimum RMG wage

Top US apparel brands have sought Bangladesh Prime Minister Sheikh Hasina's intervention in ensuring a transparent minimum wage review involving all stakeholders.

On 13 October, 15 major US brands sent a letter to the prime minister urging a successful conclusion to ongoing negotiations under the minimum wage review mechanism that incorporates the views of all stakeholders and reflects the economic realities of Bangladesh.

The 15 brands are Adidas, Gap Inc, Under Armour, Patagonia, Burton, Hugo Boss, Abercrombie & Fitch, Amer Sports, AEO Inc, Levi Strauss & Co, lululemon, SanMar, KMD Brands, PVH Corp and Puma.

The American Apparel & Footwear Association (AAFA) also published this letter on its website.

"We recognise the value that Bangladesh holds as the third largest supplier of garments as well as a fast- growing supplier of footwear and travel goods to the world. Bangladesh's commendable sustainability efforts in the garment, footwear, and travel goods sectors have garnered well-deserved recognition. We value this critical partnership."

The letter asks the government to consider the following points during minimum wage consultations:

"The consultations should be inclusive and include all relevant stakeholders, including a constructive dialogue with labor groups and trade unions.

"The consultations should seek to raise the minimum wage to a level that corresponds with a wage level and benefits that are sufficient to cover workers' basic needs and some discretionary income and takes into account inflationary pressures."

The letter reads, "We note that the average monthly net wages for garment workers in Bangladesh has not been adjusted since 2019, while inflation has increased significantly over that time. We continue to recommend that the government of Bangladesh adopt an annual minimum wage review mechanism to keep up with changing macroeconomic factors.

"The government can play an important role in facilitating new union registration, condemning violence, threats, or intimidation against union members, and overall fostering an environment that respects workers' collective bargaining rights and empowers them as essential stakeholders in the nation's progress" 

The brands urged the government to ensure that there is no retaliation against participants both during and after the minimum wage review to foster and promote an atmosphere of open dialogue and inclusivity through the minimum wage negotiations, and beyond.

"We acknowledge that apparel brands and retailers sourcing in Bangladesh have a role to play in enabling the above recommendations. We are committed to implementing responsible purchasing practices to fulfill that role," adds the letter.

The letter mentioned that they are optimistic that the final increased minimum wage will make significant strides towards ensuring worker welfare by properly reflecting the severe economic challenges that garment workers have faced through the pandemic, the subsequent supply chain crisis, and the current rate of inflation.