Act Now
This announcement equals an 80 percent increase on the previous minimum of 1662 tk month, which was agreed in 2006. However it falls well below the 5000 takas being demanded by workers and is over half the living wage amount of just over 10,000 taka calculated by the Asia Floor Wage campaign.
The announcement of the new minimum wage structure was a bitter disappointment to workers who had demanded the 5,000 takas ($72) monthly wage. Worker leaders have been clear that 3000 Taka is not enough to cover the basic needs of the garment workers and their families, and doesn't cover the huge increase in living costs of the recent years.
In addition, there is great concern that the new minimum wage will not be implemented as soon as possible. If only effective on November 1, the current proposed date for implementation, workers will receive a lower annual bonus at the Eid festival* early September, as this is based upon the minimum wage.
A number of brands questions by the “Just Style” newsletter gave a cautious welcome to the increases none have so far publicly stated that they are willing to include absorb wage increases in prices paid to suppliers.
An opinion piece that appeared on the Bangladesh news website Bangladesh 24 stated “You actually do not need to be a Harvard economist to realise that in this market even Tk 5,000 is not enough to meet the basic needs of a small family. Arshad Mahmud, the Washington correspondant for the paper went on to suggest that “Force can subdue the smouldering movement for now, but it would erupt again with the slightest provocation. After all hunger has its own force and it will rear its head once the stomach is empty.”
It is clear that much more needs to be done, and quickly if any kind of stability is to be regained in the industry and if the garment industry is to be transformed into one that offers a solution to the poverty of millions of women garment workers in the country. For this to happen the government, the industry, the brands and retailer and even the consumers themselves will have to play their part.
*Muslim holiday (End of Ramadan)
