Press reports on “Review of the Minimum Wage for the RMG Sector: Analysis and Proposals” organised by CPD at Cirdap Auditorium on Tuesday, 24 September 2013.
Published in The Daily Star
CPD for Tk 6,560 minimum wage
Tk 8,200 recommended after one-year experience
Staff Correspondent
Civil society think tank Centre for Policy Dialogue (CPD) has recommended Tk 6,560 as the minimum wage for an entry-level worker in the country’s apparel sector.
Its Additional Research Director Khondaker Golam Moazzem made the proposal at a dialogue “Revision of the minimum wage in the RMG sector in 2013″ in the capital’s Cirdap auditorium yesterday.
“There is a huge gap between the monthly salary required and the existing scale. A board-based acceptable revision of minimum wage is hence pivotal to rebuild the image of the garment sector,” he said.
The CPD came up with the recommendation after conducting a survey, because a Minimum Wage Board comprised of representatives from the government, workers and factory owners is working to set the entry-level wage.
The proposed minimum wage has been estimated based on the upper poverty line of Tk 6,444.
Moazzem said as per their recommendation entry-level workers would get a basic salary of Tk 4,300, house rent of Tk 1,720 and medical allowance of Tk 540 in the first year of their work at a factory.
The gross salary would reach Tk 8,200 following a 20 percent increase in the second year, he added.
The minimum wage was last raised to Tk 3,000 in 2010, from Tk 1,662.50. Moazzem said the wage board should consider the minimum wage as an income that met the basic needs of workers and their families and provided discretionary income as savings.
According to the economist, the upward adjustment of wages could be implemented better if retailers and buyers were ready to provide better cutting and making charges.
CPD also urged the board to fix tenure for the workers in each grade.
Labour leaders, parliamentarians from the ruling and the opposition parties and independent experts all backed the CPD recommendation, although some demanded more as the living cost has increased tremendously in the recent years.
Nazrul Islam Khan, secretary general of Bangladesh Institute of Labour Studies, said there was no scope for setting the minimum wage below Tk 8,000.
Israfil Alam, chairman of the parliamentary standing committee on labour and employment ministry, said the sector could not sustain by paying low salary to the workers.
Arshad Jamal Dipu, a director of Bangladesh Garment Manufacturers and Exporters Association, did not directly oppose the CPD proposal, but said the current salary structure was not sufficient.
He said none of the parties should be rigid about their demands.
For the last four days, the country’s apparel sector has been witnessing a labour unrest seeking revision of the workers’ minimum wage.
The sector became volatile after factory owners had proposed a 20 percent or Tk 600 hike in the salary.
Aggrieved by this workers took to the streets and the demonstration spread in Dhaka and its outskirts, as they demanded a minimum wage of Tk 8,114.
Published in The Daily Star Business
CPD Dialogue: Workers’ demand justified
Lawmakers, labour leaders and analysts back wage hike
Star Business Report
Lawmakers, labour leaders and analysts yesterday called for at least doubling of the minimum wage for the country’s garment workers to help them lead a decent life.
“The garment owners’ proposal for a Tk 600 wage hike is inhumane,” said Wajed-ul Islam Khan, general secretary of Bangladesh Trade Union Council, said.
“These workers are demanding a wage that will allow them to lead a decent life,” he said at a dialogue, Revision of the Minimum Wage in the RMG Sector, organised by the Centre for Policy Dialogue (CPD) at the Cirdap auditorium.
The issue of minimum wage came to the fore after the government, following extensive criticism, formed a new wage board in June.
The workers’ representative on the board demanded that the monthly minimum wage be hiked to Tk 8,114 from the existing Tk 3,000, but the owners are willing to increase by 20 percent.
“There is no scope to set a minimum wage below Tk 8,000,” said Nazrul Islam Khan, secretary general of Bangladesh Institute of Labour Studies (BILS).
Jos Huber, first secretary of the embassy of Netherlands for CSR garment sector, said: “A few days ago I went to a slum where I met a garment worker who toils for 12 hours everyday for Tk 3,000. I don’t think that it is a fair wage.”
MM Akash, a professor of economics at Dhaka University, said the garment owners would have to sacrifice 25 percent of their profits to provide the workers a decent wage.
“If they raise the wage in line with the workers’ demand, the competitiveness of the industry will not erode,” he said, while citing the case when the minimum wage was last raised.
The minimum wage was most recently increased in November 2010 from Tk 1,662.5 to Tk 3,000.
CPD, however, recommended that the minimum wage be raised to Tk 6,560, this time.
ZM Kamrul Anam, coordinator of IndustriALL Bangladesh Council, said the CPD’s recommendation has validated the workers’ demand. “Now the owners need to provide proof to support their recommendation for a Tk 600 hike.”
Awami League Lawmaker Apu Ukil said: “Garment owners only talk about how the workers’ lives got a lift because of their hiring — they never mention how their own lives have enhanced because of the toils of these workers.”
Israfil Alam, chairman of parliamentary standing committee on the labour and employment ministry, said the sector could no longer get away by providing low salaries to the workers.
He urged the wage board to make their recommendations as early as possible, in order to appease the unruly workers.
Mustafizur Rahman, executive director of CPD, said the two parties would have to compromise. “The workers have to have their just rights. On the other hand, we also have to be careful so that the industry survives and our exports go up.”
“We need a wage structure that at least gives the workers a decent living condition,” he added.
Sultan Ahmed, assistant secretary general of BILS, said if the owners agree to the demand of the workers it would only give them more claws to bargain for higher prices with the international buyers.
However, Khondaker Golam Moazzem, additional research director of CPD, who presented the recommendations, said the upward adjustment of wages could be implemented if the retailers are prepared to provide better cutting and making charges.
CPD proposes Tk6,560 minimum wage for first year
The CPD formula for minimum wage was prepared based on international methodological practices
Kayes Sohel Bangladesh
The Centre for Policy Dialogue (CPD) has come up with a formula for fixing monthly minimum salary of garment workers with an effort to put an end to the ongoing unrest in the sector.
For an entry level worker it proposed Tk8200 as monthly minimum salary, a figure which is 1% higher than the workers’ and 128 % higher than the garment owners’ proposals.
The CPD formula for minimum wage was prepared based on international methodological practices. It interviewed workers located in Savar, Tongi and Rampura and collected data on household income and expenditure of different strata.
Taking into consideration the limitations of different categories of factories the minimum wage can be implemented in phase-wise, said the CPD, a civil society think tank.
In the first year of the phase-wise implementation the minimum wage could be 80% of the required level which is about Tk6560.
To achieve this target the basic salary of Tk4300 with 40% house rent equivalent to Tk1720 along with Tk540 as medical allowance would need to be provided.
The rest 20% could be provided in the second year after inflationary adjustment. But based on a model diet the minimum salary should be Tk17800, it suggested.
“Since the minimum wage should not be higher than the national average level we are not recommending the aspirational figure based on a model diet at this time,” said Khondaker Golam Moazzem, additional research director of the CPD, while presenting proposals for minimum wage.
He said workers are less aware about their entitlements related to minimum wage as well as the grade which they belong to in the factory. Professor Mustafizur Rahman, CPD executive director, said while moderating the event.
MM Akash, a professor of Economics at Dhaka University, said actually the minimum wage should be determined on an average condition of a factory for saving $20bn industry and protecting the workers’ interest.
“When in 2010 salary was increased for the workers factory owners said their factories would be closed down. But it did not happen,” he said.
He said if an owner profits $2 by investing $100 his or her annual profit stands at Tk32bn. “Of the profit, 25% is required to implement the workers’ demand for minimum monthly salary.”
Nazrul Islam Khan, secretary general of Bangladesh Institute of Labour Studies (BILS), said the salary should be logical considering the present situation. The owners can share their profits to implement the minimum wage and to save the lives of workers.
Referring to BILS study he said minimum living cost of a worker is Tk12000 in Dhaka, Tk13244 in Gazipur, and Tk13480 in Narayanganj and Tk11411 in Chittagong.
Criticising the CPD’s proposal he said it should have been more logical and analytical. “We are just trying to save the interest of the factory owners not the workers’ and the industry as well.”
Sirajul Islam Rony, president of Bangladesh National Garment Workers Employees League, said garment workers draw the lowest salary in the world. “This is not an insignificant issue. This is important both for the development of the industry and economy as well.”
He was critical of the garment owners’ proposal for a 20% increase in worker’s basic salary raising the amount to Tk3, 600. “This proposal is unacceptable and not well-calculated.”
Chairman of Parliamentary Standing Committee on Labour and Employment Ministry Mohammad Israfil Alam said the sooner the minimum wage was settled the better it would be for the economy and the industry.
“If it takes a long time to solve the issue some might play games with the issue.”
Ashiqur Rahman, a director of Bangladesh Garments and Manufactures Association of Bangladesh, said: “We are passing through a hard time now. The issue of minimum wage should be solved immediately in an amicable manner to save the industry.”
About the owner’s proposal for a minimum wage he said this is not the final proposal. “It is a primary proposal. The door is open for discussion.”
Wajed-ul Islam Khan, general secretary of Bangladesh Trade Union Council, said workers’ minimum wage proposal is not unrealistic. “But owners’ proposal is inhuman.”
Babul Akter, a labour leader, said there is big loophole in the owners’ proposal. “To implement our demand, buyers and owners should sit together to increase our cutting and making charges.”
Nazma Akter, president of Sammilito Garment Sramik Federation, said the wage board should fix minimum wage at Tk8114 considering the increasing living cost.
Published in the Financial Express
CPD proposes Tk 8,200 as RMG workers’ minimum wage
Leaders welcome it, owners not happy
FE Report
Centre for Policy Dialogue (CPD) said Tuesday minimum monthly wages for the country’s largest industrial sector of clothing should be fixed at Tk 8,200 or US$ 105.
The local think tank disclosed this figure at a dialogue titled ‘Minimum Wage for the RMG Sector: Analysis and Proposal’ at CIRDAP auditorium in the city.
Most of the apparel industry labour leaders, who joined the event, had welcomed the amount of the minimum wages, placed by the CPD, while representatives of the RMG units’ owners noted that such a big leap in the wages would jeopardise the sector.
CPD additional research director Dr Khandker Golam Moazzem came up with the figure, while unveiling the findings of a study on minimum wages for the ready-made garment (RMG) sector workers.
“We would like to say that workers’ income needs to be increased sufficiently to ensure maintaining healthy living for their families and a minimum wage should be higher than the poverty line. We recommend that a minimum wage for the Grade 7 workers (those at the entry level) be set at Tk 8,200,” Mr Moazzem said.
Israfil Alam MP, chairman of the parliamentary standing committee on the ministry of labour and employment, joined the dialogue as chief guest, while general secretary at the Bangladesh Institute of Labour Studies (BILS) Nazrul Islam Khan participated in the meet as special guest.
BGMEA director Arshad Jamil Dipu, representing the owners at the government-formed Minimum Wage Board (MWB), representative of workers at the board Serajul Islam Rony, Professor of Economics MM Akash, spoke, among others, at the dialogue.
CPD executive director Dr Mustafizur Rahman was the moderator of the function.
However, the think tank said the industry might implement the minimum wages along with that for upper grades in two phases.
CPD additional research director Mr Moazzem said 80 per cent of the minimum wages might be implemented in the first year. “The remaining 20 per cent should be implemented in the next year by making adjustments to average rate of inflation.”
Many labour leaders have protested CPD’s proposal.
BNP leader and BILS general secretary Nazrul Islam Khan said CPD’s proposal relating to implementation of the wages in phases was not rational.
Mr Khan said: “We’ve heard many times that implementation of new wages will help destroy the industry.”
He said: “We have never seen such kinds of destruction in the clothing industry after implementation of new wages. Rather the number of factories, workers and investment have surged manifold over the years.
“He said trade union should be allowed in the clothing industry. “It will help end unrest in the industry,” he added.
Mr Khan said the CPD calculation did not take into account the costs of clothing of the garment workers and their entertainment.
He said the RMG industry was not in its infancy any more. “It has matured enough,” he observed.
While speaking at the function, Israfil Alam MP said the owners of garment factories should pursue the government on getting subsidised foods like rice and onion.
Mr Alam said the owners could take a move for constructing dormitories, which will raise the real wages of the workers.
“After announcement of the wages in the industry, house rent and other costs will surge, and the real wages will not go up in that sense,” Mr Alam said.
He said trade unions should be allowed in the clothing industry. “Allow trade unions in the RMG factories at least on experimental basis,” Mr Alam added.
Arshad Jamil Dipu said they proposed 20 per cent hike in the wages initially, as it kept in view the inflation since 2010.
Terming the present method of fixing wages a ‘confrontational approach’, Arshad Jamil said this was never good for the industry.
“Sometime we have won with the approach and sometimes the workers,” he said.
Worker’s representative Serajul Islam Rony said they have proposed Tk 8,114 as minimum wages considering all costs associated with the expenditure of garment workers.
Professor of Economics MM Akash said the garment owners might pay Tk 8,000 as minimum wages, which in his view was equivalent to 25 per cent of net profits of the garment owners.
Opu Ukil MP, Syeda Ashrafi Papiya MP and a large number of workers’ representatives also spoke at the programme.
Published in the New Age
APPAREL SECTOR WAGE
CPD for Tk 6,560 this year, Tk 8,200 from next year
Staff Correspondent
Civil society think-tank Centre for Policy Dialogue on Tuesday proposed Tk 6,560 in monthly minimum wage for entry-level apparel workers.
The minimum wage needs to be increased to Tk 8,200, CPD officials said at a dialogue in the CIRDAP auditorium.
The CPD executive director, Mustafizur Rahman, presided over the progrmame on the minimum wage in the apparel sector.
Economists, labour leaders and senior BNP leaders supported the CPD’s proposal but the representative of apparel factory owners to the dialogue opposed the proposal.
The CPD proposal said that considering the actual expenditure, the workers (under Grade 7) should get Tk 8,200 in minimum wage but as all the factories are not capable of paying the amount, the minimum wage for the first year could be 80 per cent of the actual expenditure at Tk 6,560. The remaining 20 per cent could be provided in the second year, with inflation adjustment.
The organisation’s additional research director Khondaker Golam Moazzem presenting the proposal said that workers falling in Grade 4-6 should be given encouraging wages and the period of a single grade should be mentioned in the wage board recommendations.
MM Akash, a teacher of economics in Dhaka University, said that it was quite possible to pay workers Tk 8,000 a month if owners spent just 25 per cent of their total earning.
‘Owners always say that their factories will be closed if they pay the minimum wage but factories have not been closed because of this reason,’ Akash said.
Leaders of apparel workers who attended supported the CPD proposal. They hoped that the government would accept the proposal for implementation at the earliest.
They leaders also said that in keeping with the labour law, owners should allow trade unions in apparel factories as this would help in smooth running of the factories.
Workers leader Jahanara Begum said, ‘We support the CPD’s minimum wage proposal and there is no scope to decide an amount lower than this.’
She said that owners should accept the proposal in the interest of their business as labourers have the right to a minimum living standard. She added that the owners should treat workers as their capital.
Babul Shikdar, another leader of the workers, said, ‘We want an implementation of the CPD wage proposal.’
Nazma Akhter, another leader, said that when the government had set up the previous wage board for apparel workers, it had accepted the CPD proposal.
‘I think the CPD proposal is practical and the government should implement it at the earliest,’ she said.
BNP standing committee member Nazrul Islam Khan said, ‘The owners have always said that the factories will be closed after an increase in wages but none of the apparel factories has been closed.’
He said that it showed that the owners had always given false information and they had lost their credibility because of this.
Differing on the CPD proposal, Bangladesh Garments Manufacturers and Exporters’ Association director Arshad Jamal Dipu said that the sector had been facing several challenges for a few years. ‘Every proposal regarding the apparel sector should be on a logical basis.’
He said, ‘Increase in wages in the apparel sector should be done every five years. But in view of the present circumstances, the government set up the wage board for apparel workers two years and a half after the establishment of the previous wage board. The inflation is now 19.5 per cent. We have prepared our proposal considering the inflation.’
The exporters’ association in mid-September submitted its proposal to the wage board, saying that the wage could be increased to Tk 3,600 from the existing Tk 3,000.
‘The CPD should justify the capability of the sector. None of the buyers said that they would buy products for an increased price if we increased wages of our workers,’ the BGMEA director said.
‘Because of gas and power shortage, political instability and a double-digit borrowing cost, the sector is losing competitiveness on the international market which has blurred the prospect of the sector,’ he said.
Israfil Alam, chairman of the parliamentary standing committee on the labour and employment ministry, said that the sector was earning the country 75 per cent of its total export revenue. ‘We need to be careful in making decisions on issues regarding the sector.’
‘An entry-level employee gets about Tk 6,500, including the overtime bill with a basic of Tk 3,000. We also have examples that workers in the sector get Tk 16,000–Tk 17,000 a month,’ Israfil said.
He said that factory owners should negotiate with the government on food rationing for workers which might ease pressure on them.
Tripartite meeting fails to pacify workers
No let-up in RMG agitation: CPD moots Tk 8,216 as minimum wage
Staff Reporter
Dhaka, Sept 24: At least 50 RMG workers were injured in clashes with the police in Ashulia and Tangail on Tuesday. The workers demonstrated before their factories and blocked highways to press their demand for a minimum monthly wage of Tk. 8,000.
Several thousand RMG workers put up barricades on Kuril Biswa Road, Ashulia and Gazipur, resulting in suspension of vehicular movement.
On Monday, shipping minister Shajahan Khan urged workers to return to work after a tripartite meeting among representatives of the government, owners of readymade garment (RMG) factories and workers’ leaders. It was decided that all apparel factories would be opened from Tuesday.
Meanwhile, the Centre for Policy Dialogue (CPD), the private sector think-tank, on Tuesday recommended that an amount of Tk. 8,216 be fixed as the minimum wage for each entry-level worker of the country’s readymade garments (RMG) sector.
CPD additional director Dr Khondaker Golam Moazzem made the proposal while presenting his paper at a discussion meeting on ‘Revision of the Minimum Wage in the RMG Sector’ at CIRDAP auditorium on Tuesday.
Taking into consideration the limitations of different categories of factories, Dr Moazzem recommended phase-wise implementation of the minimum wage; 80 per cent of this, equivalent to Tk. 6,560, can be implemented in the first year, he said. The remaining 20 per cent would be paid in the second year after adjustment for inflation. To achieve the target, a basic salary of Tk. 4,300 with 40 per cent house rent (Tk. 1,720) and a lump-sum payment of Tk. 540 as medical allowance would have to be provided, said Dr Moazzem, adding that this would not be difficult for buyers and retailers. Dr Moazzem said this minimum wage has been suggested after taking into account food costs, non-food costs, household size, number of earners, and discretionary income or savings.
According to the theme paper, the revision of the minimum wage, as proposed, will necessitate more funds from the manufacturers, who will have to bear the burden of the additional labour costs.
The adjustment of the rise in wages could be implemented better if retailers and buyers are ready to provide better cutting and making (CM) charges, said Dr Moazzem.
The civil society think-tank made the recommendation at a time when the country’s apparel sector has been witnessing labour unrest for fixing the workers’ minimum monthly salary at Tk. 8,114. The RMG leaders submitted their proposal to the Wage Board recently. Since then, they have been holding rallies to realise their demands.
The situation turned volatile when the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) submitted its proposal for a 20 per cent wage hike. According to the proposal, an apprentice-level worker of the garment factories will get a monthly wage of Tk. 3,600 as against the existing salary of Tk. 3,000.
Irate workers took to the streets at Ashulia, Savar and Gazipur on Tuesday. The demonstrations spread in Dhaka and its outskirts. Earlier, in the face of the demonstrations, several hundred factories had to stop production for one or two days.
Garments workers, who attended the dialogue, rejected the owners’ proposal, terming it “impractical” and “unjustified”. They demanded that their proposal be implemented immediately. They welcomed the CPD’s proposal which, they said, justified their demands.
“Instead of depriving workers, bargain with buyers,” said ruling party lawmaker Apu Ukil, adding that it was not possible to develop the industry while keeping workers out of its ambit. Some of the speakers defended shipping minister Shajahan Khan, while some others blamed him for creating unrest in the industry by instigating workers at last week’s grand rally. Apu Ukil accused Islamic fundamentalists of creating anarchy in the RMG sector. “Some 5,000 Islamic militants have infiltrated the industry and are creating anarchy,” she said, urging all to be vigilant.
Urging owners to pay workers their due share, labour leader Nazrul Islam Khan said that there was no alternative to paying rational wages, which he said was the bare necessity for living. Both Nazrul Islam and economist MM Akash stressed the need for sharing the profits with workers which, they pointed out, help to ensure the minimum wages. “An industry that does not take care of its workers will never flourish,” said the labour leader.
Israfil Alam, chairman of the Parliamentary standing committee on the labour and employment ministry, who attended the programme as the chief guest, also urged all to come forward to help overcome the crisis gripping the country’s RMG sector. At the same time, he underscored the urgency for establishing trade unions in the RMG sector, which, according to him, might help overcome many of the problems.
He favoured increasing the salaries of garment workers to the desired level, considering the sector’s massive contributions to the country’s economy. In the just concluded fiscal, the RMG sector, which employs some four million people, fetched USD 21.515 billion.
Presided over by CPD executive director Prof. Dr Mustafizur Rahman, the meeting was addressed by lawmakers Syeda Asifa Ashrafe Papia, Wazed Ul Islam, Nazma Akhtar and others. Representatives of buyers, apparel makers, trade union leaders and financial analysts also shared their views.
The authorities tightened security in and around Ashulia to bring the situation under control. Law enforcers were patrolling the streets to avert any untoward incident.
According to witnesses, workers of Maskat refused to join work and took to the street in the morning. They gathered near Bishmail-Zirabo Road and called upon workers of adjacent factories to join their demonstration. Several factories were forced to announce a holiday on Tuesday, including Irish Fashion, Southern and Designtex, when their workers joined the demonstration.
On receiving information, law enforcers rushed to the scene and used batons to disperse the protesters. In retaliation, the protesters threw brickbats at the police. This resulted in a clash. Vehicular movement was disrupted on one side of the Kuril Flyover, but the demonstrators moved away to Pragati Sarani after being chased by the police.
Witnesses said several thousand workers from five factories came out on the street in the Khilkhet-Kuril area at around 8:30. The road blockade created severe traffic congestion on both sides of Airport-Mohakhali and Airport-Progoti Sarani roads for hours.
Police sources said RMG workers from several garment units, including Euro Zone Garments, had put up barricades near the level crossing at Kuril Biswa Road at about 8:15 am to press their demands. Later, they blocked Kuril Biswa Road crossing. Additional policemen went to the spot and tried to disperse the unruly garment workers. Police inspector (Patrol) Md Shahjahan said the apparel workers withdrew their blockade following assurance from the authorities to realise their demands.
Several RMG factories in Gazipur were closed for the day after workers began protesting. Traffic on the Dhaka-Tangail Highway came to a standstill for nearly an hour as the workers blocked the road at Kaliakoir.
Md Mosharraf Hossain, assistant superintendent of police (Gazipur Indistrial Zone), said the protests started at around 9 am at Mouchak Palli Biddut. The workers used tree trunks and burning tyres to block the road. The police charged batons and lobbed teargas canisters to disperse the protesters. Vehicular movement on the road resumed around 10 am.
Large contingents of policemen and RAB members were patrolling the area In Narayangaj, RMG workers blocked a road for two hours. Witnesses said workers of Liberty, Micro Fibre, Pallmall Group and Osman Knit of the Fotulla Industrial Area held demonstrations inside the factories from 10 am. They took to the streets after a while. They urged workers from other factories to join them to realise their demand. The agitated workers threw stones at the factory buildings, smashing glass panes, when the owners refused to let their workers join the protest, said Fotulla model police station officer-in-charge Akhter Hossain.
The workers, armed with sticks, then blocked the road near the Fotulla Shibu Market and damaged 10-12 vehicles. Vehicular movement on the Dhaka-Narayanganj link road was suspended for two hours.
In Tangail, at least 20 persons, including journalists, were injured during a clash between RMG workers and the police in the Gorai Industrial Area in Mirzapur. Law enforcers fired at least 50 rounds of rubber bullets and teargas canisters to bring the situation under control. Workers of Khan Textiles and Composite and Composite Garments, among others, blocked the Dhaka-Tangail highway, resulting in traffic snarls.
Golam Mostafa, officer-in-charge of Mirzapur police station, said they brought the situation under control. Additional police forces were deployed to avert further trouble, he added.
Published in The Daily Sun
Easing Unrest in Readymade Garments SectorCPD suggests Tk 6,560 as minimum wage
Staff Correspondent
Independent think-tank the Centre for Policy Dialogue (CPD) on Tuesday suggested a minimum wage of Tk 6,560 for RMG workers amid renewed unrest in the sector over wage hike.
This wage would be applicable for entry-level workers involved with the highest export earning readymade garment sector, according to CPD.
Currently, the second biggest RMG industry is going through a wildcat movement waged by the workers as they are demanding Tk 8,000 per month as minimum wage, which is now Tk 3,000.
In his keynote paper on ‘Revision of the Minimum Wage in the RMG Sector,’ CPD’s additional research director Dr Khondaker Golam Moazzem said an entry-level worker should get a basic salary of Tk 4,300, house rent of Tk 1,720 and Tk 540 as medical allowance.
CPD organised a dialogue on the burning issue entitled: ‘Minimum Wage for the RMG Sector: Analysis and Proposals’ at city’s CIRDAP auditorium in a bid to give a solution to the ongoing impasse that is hampering the industrial output and at the same time is denting national image.
Dr Moazzem said the minimum wage has been suggested considering food costs, non-food costs, household size, number of earners and discretionary income or savings.
He said the minimum wage for the first year could be 80 percent of the required level which will be about Tk 6,560 and the rest 20 per cent could be provided in the second year after inflationary adjustment. And then, he said, gross salary would stand up at Tk 8,200.
The researcher said the revision of the minimum wage as proposed will require more fund for the manufacturers to bear the burden of the additional labour costs.
The adjustment of rise in wages could be implemented better if retailers and buyers are ready to provide better cutting and making (CM) charges, said Dr Moazzem.
Chaired by CPD executive director Professor Dr Mustafizur Rahman, Chairman of the Parliamentary Standing Committee on Ministry of Labour and Employment Israfil Alam also spoke on the occasion as the chief guest.
Israfil Alam said side by side with the government, all stakeholders including workers, buyers and apparel makers will have to come forward to overcome the crisis in the garment industry.
He favoured increasing the salaries of garment workers up to the desired level considering the sector’s lion’s contribution to the country’s economy.
Labour leaders Nazrul Islam Khan, Wazed Ul Islam, Nazma Akhtar, lawmakers Syeda Asifa Ashrafe Papia and Opu Ukil also addressed the dialogue while representatives from buyers, apparel makers and trade union leaders and financial analysts shared their views.