Govt moves to form RMG wage board amid Tk30,000 minimum pay demand

The government has moved to form a new minimum wage board for the ready-made garment (RMG) sector, seeking nominations from factory owners and workers today (15 October) amid a second consecutive day of protests in Dhaka's Uttara demanding a monthly minimum wage of Tk30,000.

The Department of Labour, under the labour and employment ministry, sent letters to garment manufacturers' and workers' organisations seeking nominations for the proposed board, according to the department.

"We have already sent letters to the two garment owners' associations and the Bangladesh Nationalist Labour Party, which represents labour leaders, asking them to nominate their representatives to form the minimum wage board for the RMG sector," Absus Samad Al Azad, director general of the department, told TBS today.

"We have asked them to send representatives' names as early as possible so that they can form a board shortly," he said.

However, Anwar Hossain, president of Bangladesh Jatiotabadi Sramik Dal, said his organisation has not yet received a letter from the department. 

Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), also said his organisation has not received a letter. However, it has been informally informed of the move.

Wage board formation follows protests

The decision to seek nominations was taken at a meeting of senior labour and employment ministry officials on Wednesday, according to ministry sources.

Abdur Rahman Tarafder, secretary of the ministry, told TBS that the meeting was held in response to workers taking to the streets.

"Workers have taken to the streets. So, we held a meeting and decided to send letters seeking the names of representatives of garment factory owners and workers for the formation of the wage board," he said.

Asked whether the board could be formed by next week, Tarafder did not give a specific timeline, saying it will be formed quickly once the nominations are received.

On Wednesday and yesterday, workers from several garment factories in Uttara blocked roads to demand a monthly minimum wage of Tk30,000, bringing traffic to a standstill and causing long tailbacks and severe public suffering.

Labour leaders welcomed the government's move but said it should have come earlier.

"December is approaching, yet the wage board has not been formed. However, it is a welcome move that the government has taken the initiative to form the board," Towhidur Rahman, president of the Bangladesh Garment Labour Unity Council, told TBS.

Wage review due by December

The minimum wage board comprises six members, including four permanent members and two temporary members representing the sector concerned. The temporary members play a key role in wage negotiations.

Under Bangladesh's Labour Act, a wage board is supposed to be formed every five years. However, an amendment to the law last year provided for wages to be reviewed every three years.

Three years will have passed since the last garment-sector wage increase by December this year, making the formation of the board important to allow sufficient time for negotiations before the review is due.

The current minimum monthly wage for garment workers is Tk12,500.

The government announced a new pay scale for public employees last month, under which their total monthly pay would exceed Tk33,000 once the new structure is fully implemented. Against this backdrop, demands for higher wages have also been gaining momentum in other sectors.

Factory owners suspect sabotage

Meanwhile, garment factory owners and industry leaders have raised concerns about possible sabotage behind the protests, saying the demonstrations began without prior notice while discussions over the formation of the new wage board are underway.

Shehab Udduza Chowdhury, vice-president of the BGMEA, told TBS that he suspects a group is trying to exploit the situation.

"A group has suddenly taken to the streets as part of a sabotage attempt, with the intention of creating confusion and taking advantage of the situation," he said.

"Discussion is underway; the government and owners are positive there is no issue here – so how justified is it to block the roads like this at a time like this?" Shehab added.