RMG workers to get 4% additional increment from December

• RMG workers will receive a 5% regular wage increment as prescribed by the Minimum Wage Board.
• Additionally, the owners and workers have agreed to an extra 4% increase
• Workers who are not eligible for the yearly increment will still receive the additional 4% raise
• The increase will remain in effect until the next wage board is announced
• Labour leaders say the 4% additional increment is not sufficient considering rising costs and inflation
• However, they welcomed the government's move, stating it would bring some relief to workers

Amid protests for higher pay, the government on Monday (9 December) decided to add a 4% increase to the regular annual increment of 5% for readymade garment (RMG) workers.

"RMG workers will receive a 9% salary increase starting this month," Labour and Employment Adviser M Sakhawat Hussain said during a press briefing at the Bangladesh Secretariat on Monday.

The announcement comes as the RMG industry faces frequent worker unrest, with demands for the payment of arrears and higher wages.

RMG owners have expressed worries over implementation of the increased increment as the industry has already been struggling to overcome the current challenges.

Labour leaders welcomed the decision but said the 4% additional increment is still not sufficient considering rising costs and inflation.

Adviser Sakhawat said the decision has been made considering the overall situation in the country.

"Of the total increment, RMG workers will receive a 5% regular salary increase as prescribed by the Minimum Wage Board. Additionally, the owners and workers have agreed to an extra 4% increase," he added.

He also mentioned that workers who are not eligible for the yearly increment will still receive the additional 4% raise.

The increase will remain in effect until the next wage board is announced, Sakhawat confirmed.

Labour leaders want more

Rafiqul Islam Sujan, president of the Bangladesh Garments and Industrial Workers Federation, told The Business Standard, "While the increase provides some relief to workers, it is insufficient given the rising commodity prices and inflation."

He emphasised that a 15% increase would have been more appropriate, given the current economic climate.

Aurobindo Bepari Bindu, president of the Biplobi Garments Workers Federation, commended the government and owners for their decision, which he deemed a timely recognition of the workers' plight.

He expressed optimism that the government and owners would remain responsive to workers' needs in the future, particularly in the face of potential economic challenges.

Meanwhile, Sammilito Garments Sramik Federation President Nazma Akter said the proposed increment is insufficient to meet workers' basic needs.

"We urge the government to implement an increment that accounts for inflation, enabling workers to meet their basic needs and maintain proper nutrition. This will not only improve their well-being but also boost productivity," she added.

Owners wary of increment implementation

A leading apparel exporter, speaking on condition of anonymity, expressed concerns about the industry's challenges.

"We feel trapped after investing heavily in this sector, especially as the previous government increased utility costs significantly," he said.

He feared that many factories might struggle to implement further increases in the wage increment rate, especially after the recent major wage adjustments.

"The government should conduct a comprehensive survey to assess the industry's capacity and the workers' needs," he suggested.

Highlighting the industry's ongoing struggles with the unreliable supply of quality energy, he said, "On top of that, the reduction in cash incentives has put exporters in an even tighter corner."

Speaking about the ongoing workers' unrest in the industry, Adviser Sakhawat said, "Conspiracies are being hatched both at home and abroad. Newspapers of different countries are reporting that now is the time to divert [apparel] buyers from Bangladesh. Many workers are protesting without understanding. Provocation is also coming from many places."

At the event, Labour Secretary AHM Shafiquzzaman said, "The issue of an increase in the yearly increment was included in the 18-point demands jointly prepared by the owners and workers to improve the labour standards in the apparel sector."

A committee was later formed to that end. The committee has now submitted its recommendation. "They recommended providing a 4% additional increment in addition to the regular 5% annual increment. Both the workers and owners have agreed to this."

General Secretary of Bangladesh Garments and Industrial Workers Federation Babul Akhter said the decision was made after five meetings.

He urged the workers to return to work and maintain production and not to step into any local or foreign conspiracy.

Bangladesh has been experiencing waves of worker unrest in recent months, particularly in the RMG factories in Savar, Gazipur and Narayanganj industrial areas. Protesters have set fire to factories, attacked owners and clashed with locals in Gazipur during the unrest. Many have been sued and detained.

Earlier on Monday, at least three RMG factories in Ashulia announced general holidays as workers stopped working over various demands, including a 15% annual increment and a minimum wage of Tk25,000.

"Workers at the New Age, Al Muslim, and Nasar factories stopped working in the morning and left the factories around 11am over several demands," an officer from the Ashulia Industrial Police, unwilling to be named, told The Business Standard.

"The authorities of these three factories later declared a holiday. A similar holiday was also declared in another factory yesterday [8 December] due to a work stoppage due to the same demands," he added.