Bangladesh will constitute a wage board on Sunday to review salaries in its garment industry after protests over pay shortages disrupted factory operations, shut dozens of manufacturing units and led to clashes between workers and police.Garment workers are demanding a minimum monthly wage of 30,000 taka ($245), more than double the existing minimum of 12,500 taka. They say rising expenses on food, housing, transport and healthcare have significantly reduced their purchasing power.Labour and employment minister Ariful Haque Chowdhury said the government would formally set up the wage board following discussions with labour leaders and industry representatives in an effort to resolve the unrest, Reuters reported.The protests intensified on Saturday, with around 30 garment factories in Ashulia, a major manufacturing hub on the outskirts of Dhaka, declaring holidays, according to Mohammad Mominul Islam Bhuiyan, superintendent of the Ashulia Industrial Police.Hundreds of workers also blocked a major intersection in Dhaka, while demonstrations in other industrial areas disrupted traffic and factory operations. Clashes between protesters and police in Ashulia left several people injured, including police personnel. Police used tear gas and sound grenades to disperse the demonstrators.Chowdhury appealed to workers to return to their jobs, saying the decision to review the wage structure addressed their primary demand. He warned that continued factory closures and production disruptions could delay export consignments and payments from international buyers, adding to the financial pressure on manufacturers and workers.
Wage dispute puts key export industry under pressure
The unrest has raised concerns over Bangladesh’s ready-made garment (RMG) sector, which employs around four million people and accounts for more than 80% of the country’s export earnings.The industry, the world’s second-largest garment exporter after China, contributes around 10% to Bangladesh’s gross domestic product and remains a major pillar of its economy. It also supplies clothing to several leading international and Western brands.Manufacturers, however, have flagged mounting operational challenges, including higher production costs, recurring shortages of gas and electricity, and uncertainty in energy markets amid tensions in the Middle East.The wage dispute comes at a difficult time for the sector, with prolonged industrial disruptions threatening production schedules and the timely fulfilment of overseas orders.