DHAKA - The Bangladeshi government has announced a 9% annual wage increase for workers in the ready-made garment (RMG) industry, following demonstrations demanding higher wages and improved benefits. The increase includes a 4% additional adjustment on top of the usual 5% annual increment. Labour and Employment Adviser Brigadier General (retd) M Sakhawat Hussain disclosed the decision during a press briefing.

This development stems from recommendations by a tripartite committee of government officials, factory owners, and workers tasked with addressing issues in the apparel sector. The wage adjustment will reflect in December’s salaries, Hussain confirmed.

During negotiations, worker representatives had proposed a 10% increase to address the surging cost of living, while manufacturers advocated for an 8% raise due to financial pressures.

Workers’ leaders described the decision as a step forward, though they noted it fell short of their expectations, especially given rising inflation. “While we are disappointed the increase does not match inflation, we recognize it as a notable achievement,” said Towhidur Rahman, president of the Bangladesh Apparel Workers Federation (BAWF).

Rahman called for stability in the industry and urged workers to refrain from protests, saying: “The wage increase is better than nothing, and maintaining peace is crucial for the sector’s progress. However, the government must act swiftly to control inflation to make this adjustment meaningful.”

He also highlighted that 70% of workers’ 18-point demands had been addressed and called for the Ministry of Labour and the Ministry of Home Affairs to resolve pending legal cases against workers.

Factory owners expressed concerns about the increased costs. Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), revealed that many manufacturers lack the financial capacity to implement the 9% raise but will comply with the government’s directive to maintain harmony.

Ehsan added that a committee would assess the feasibility of workers’ demand for a minimum wage of Tk25,000 over the next six months.

Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), cautioned against the negative economic impact of protests, arguing: “Frequent demonstrations harm the industry’s reputation and economy. The government must offer support, and global buyers should adjust prices to ensure the wage increase is sustainable.”

Despite the announcement, workers at seven factories went on strike, demanding a 15% annual wage increase and a minimum wage of Tk25,000.

With nearly 85% of Bangladesh’s workforce employed in the informal sector, industry leaders like Rubel stressed the importance of addressing wage disparities beyond the formal RMG sector.

“Protests are not the solution,” Rubel said. “We must prioritise law and order while working collaboratively to improve conditions in the sector."