RMG workers struggling to stay afloat, need wage hike: Survey

The country's apparel workers are far from earning a living wage, while their family expenditure is increasing with each passing day, said stakeholders on Wednesday.

Workers are not getting minimum wage, but prices of all essential commodities are skyrocketing, they said at an event titled "Debate on recent export growth and decent employment in RMG industry: A UNGP's perspective".

Considering soaring prices of daily commodities and rising living costs, readymade garment workers have demanded the formation of a new wage board commission as soon as possible.

The Christian Aid and Centre for Policy Dialogue (CPD) jointly organised the event at Brac Centre in Dhaka.

Commerce Minister Tipu Munshi attended the discussion as chief guest.

During the keynote presentation, CPD Research Director Dr Khondokar Golam Moazzam said, "The apparel export saw high growth last year but during this period, living wage became a component that needed more than just ensuring payment of minimum wage."

The CPD conducted a survey and found that on average a worker was paid Tk11,993, excluding overtime in March 2022, which was 12.5% higher than the payment in the same month a year ago.

Golam Moazzam also said the growth in a worker's family income is much lower than their rising expenses.

He further explained that the monthly income of an RMG worker increased by 1.7% in March 2022, while their family expenditure increased by 9.5%.

The CPD conducted the survey on 51 factories, while they found 22% workers do not belong to any grade, the CPD research director said.

During the discussion, Bangladesh Centre for Workers' Solidarity Executive Director Kalpona Akhter said, "If we talk about the living wage for workers, it should be at least Tk32,000-Tk40,000.

"But we are not getting the minimum wage yet."

Echoing the same, Garment Workers' Trade Union Centre President Montu Gosh said, "Workers are failing to meet their daily needs as essential commodities' prices are not within their capabilities."

The trade union president urged the government to form a new minimum wage commission to address the issue.

Shahidullah Azim, vice-president at Bangladesh Garment Manufacturers & Exporters Association (BGMEA), said, "We should work together to ensure a living wage for RMG workers."

"Labour leaders should negotiate with buyers to pay more in order to provide a living wage to workers, otherwise factory owners will not be able to pay it alone," he added.

"There are still many issues in this sector, but also room for working together. We have to work together under the global standards," he added, saying that efficiency and upscaling must be ensured for both women and male workers.

In response to CPD survey findings, Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said it is true that there are now a number of contractual workers in the RMG sector.

"A number of contractual workers earn more than permanent ones, so they are reluctant to go under official employment," he added.

"We always welcome the actual trade unions, which serve the interests of workers and factories," he added, saying day-care centres exist in maximum factories.

He also said they are also against the establishment of non-compliance factories.

"The sector experiences robust growth but profit margins are declining as prices of cotton and other raw materials, and transportation costs saw an abnormal hike," he added. 

Being connected to the discussion virtually, CPD Chairman Professor Rehman Sobhan said the government should focus on workers' skill development. 

He also suggested taking proper initiatives to take advantage of the US-China conflict as due to the crisis, many US buyers are shifting from China. Bangladesh should be fully prepared in terms of production and export capacity. 

An initiative should be taken to get GSP+ facility in the European Union market after LDC graduation, he noted. 

In his speech as the chief guest, Commerce Minister Tipu Munshi said the RMG sector has excellent growth, but it is yet to be confirmed if the growth will sustain or not. Already, the growth tendency has declined.

"Trade union leaders have to understand that their responsibility is to protect workers' rights and make factories operational without any interruption," he added.

All have to work together to make the RMG sector compliant and workers-friendly, he also said, adding that the industry is like a bicycle where owners and workers are two wheels.