Garment wage Tk 3,000 minimum pay; highest raise 87pc
effective from Nov 1; mixed reaction among workers, owners, businesses
The government yesterday formally announced the new minimum salary structure for readymade garment sector hoping to put an end to the longstanding labour unrest over wages.Labour and Employment Minister Khandaker Mosharraf Hossain announced the new pay structure for around 3.5 million RMG workers in the country.
The minimum salary at the entry level has been fixed at Tk 3,000: Tk 2,000 in basic pay, Tk 800 in house rent and Tk 200 in medical allowance. The apprentice level wage is fixed at Tk 2,500, up from Tk 1,200 now.
The new wage structure will come to effect from November 1, 2010, said the minister.With the declaration of the new minimum wage, workers of different grades would have increases in their salaries at different rates.
Garment worker leaders, however, expressed disappointment over the new pay scale as they have been bargaining for Tk 5,000 for years.
Mushrefa Mishu, president of Garments Sramik Oikya Forum, said they would not accept the new pay structure, as it is too little to maintain a family these days."We will hold a meeting this evening [Thursday] to announce an agitation programme against the decision. We may call for a strike," she said, adding that it is inhuman that the implementation of the new pay structure would take effect after four months. "The government bowed down before the factory owners," added Mushrefa.
Mustafizur Rahman, executive director of Centre for Policy Dialogue (CPD), in his reaction echoed the workers' resentment saying that the new minimum wage failed to meet the expectation of the workers.He said the government also has some responsibilities, such as paying stimulus package and removing the bottlenecks of weak infrastructure. "A periodic review of the minimum wage is also a must."CPD was asked to submit a report on price hike of daily essentials since 2006, when the second wage structure was announced, said Mustafizur, adding that according to the report, the prices of basic commodities have increased by 70 percent since 2006.
Business chambers and the body of the garment factory owners, however, welcomed the decision saying that the newly fixed wage will bring positive results and put an end to the crisis in the readymade garment sector.Anis Ud Dowla, president of Metropolitan Chamber of Commerce and Industry (MCCI), said the government should review the wage structure every three years. If the unrest in the sector is contained the factory owners would be able to adjust the workers' salaries through the income backed up by increased production.
AK Azad, president of the apex trade body Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said, ""I will suggest the garment owners to follow the new pay scale."
Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the industry has been suffering from gas and power crisis and weak infrastructure. This is why, the owners could not increase the wages more. "If the situation improves, I hope the owners will move to increase salaries in three years."
For the last few years, the country has been witnessing violence in the readymade garment sector. Many factories were damaged while production has declined putting the fate of the industry in jeopardy. In the wake of such devastation the government stepped up to solve the problem by fixing a new minimum wage for the workers. Meanwhile, Ikteder Ahmed, chairman of the minimum wage board that was formed in January, submitted the draft recommendations to the labour and employment minister Tuesday.
The minimum salary at the entry level has been fixed at Tk 3,000: Tk 2,000 in basic pay, Tk 800 in house rent and Tk 200 in medical allowance. The apprentice level wage is fixed at Tk 2,500, up from Tk 1,200 now.
The new wage structure will come to effect from November 1, 2010, said the minister.With the declaration of the new minimum wage, workers of different grades would have increases in their salaries at different rates.
Garment worker leaders, however, expressed disappointment over the new pay scale as they have been bargaining for Tk 5,000 for years.
Mushrefa Mishu, president of Garments Sramik Oikya Forum, said they would not accept the new pay structure, as it is too little to maintain a family these days."We will hold a meeting this evening [Thursday] to announce an agitation programme against the decision. We may call for a strike," she said, adding that it is inhuman that the implementation of the new pay structure would take effect after four months. "The government bowed down before the factory owners," added Mushrefa.
Mustafizur Rahman, executive director of Centre for Policy Dialogue (CPD), in his reaction echoed the workers' resentment saying that the new minimum wage failed to meet the expectation of the workers.He said the government also has some responsibilities, such as paying stimulus package and removing the bottlenecks of weak infrastructure. "A periodic review of the minimum wage is also a must."CPD was asked to submit a report on price hike of daily essentials since 2006, when the second wage structure was announced, said Mustafizur, adding that according to the report, the prices of basic commodities have increased by 70 percent since 2006.
Business chambers and the body of the garment factory owners, however, welcomed the decision saying that the newly fixed wage will bring positive results and put an end to the crisis in the readymade garment sector.Anis Ud Dowla, president of Metropolitan Chamber of Commerce and Industry (MCCI), said the government should review the wage structure every three years. If the unrest in the sector is contained the factory owners would be able to adjust the workers' salaries through the income backed up by increased production.
AK Azad, president of the apex trade body Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said, ""I will suggest the garment owners to follow the new pay scale."
Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the industry has been suffering from gas and power crisis and weak infrastructure. This is why, the owners could not increase the wages more. "If the situation improves, I hope the owners will move to increase salaries in three years."
For the last few years, the country has been witnessing violence in the readymade garment sector. Many factories were damaged while production has declined putting the fate of the industry in jeopardy. In the wake of such devastation the government stepped up to solve the problem by fixing a new minimum wage for the workers. Meanwhile, Ikteder Ahmed, chairman of the minimum wage board that was formed in January, submitted the draft recommendations to the labour and employment minister Tuesday.
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