Decision on new wage for RMG workers by April

The decision on whether to formulate another minimum wage for garment workers after making adjustments in line with inflation will be made by April next year.

A committee, headed by an additional secretary from the Ministry of Labour and Employment, has already been formed to re-evaluate the minimum wage, it was informed yesterday during a meeting, which was to discuss the progress on the 18-point demands raised by workers in September this year.

The demands were agreed upon by both workers and factory owners following negotiations mediated by the interim government.

The meeting, chaired by Asif Mahmud Shojib Bhuiyan, adviser to the Ministry of Labour and Employment, was held at the Secretariat.

The committee will submit recommendations on the feasibility and imperatives to review the minimum wage to the Ministry of Labour and Employment by April 2025.

The committee, which consists of three representatives each from labour and factory owners, has already held two meetings. The next one will be held on November 20.

Furthermore, over 99 percent of factories under the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have implemented the previous minimum wage, as promised by the factory owners, according to a report from the Ministry of Labour and Employment.

In late November last year, the minimum wage board finalised Tk 12,500 as the minimum monthly salary for garment workers.

According to the report, at least 2,121 factories out of 2,140 had implemented the minimum wage by October this year, with the remaining 19 yet to comply.

The report further noted that out of the 2,140 factories, 2,123 have cleared workers' arrears for September, while 17 factories have not yet done so.

After the meeting, Asif Mahmud said implementing arrears is a complex issue as some factory owners have gone bankrupt. He added that those factory owners could not take money from banks as they were defaulters.

Furthermore, after the political changeover, the garment sector was rocked by labour unrest in September and October this year, which caused production losses of nearly $400 million.

"Only three months have passed since the interim government took office. The overall labour situation is improving. It was dire when we assumed office," he added.

Labour and Employment Secretary AHM Shafiquzzaman said that the labour law will be amended by March next year to align with international standards.

"The labour law amendment will be carried out through an ordinance by March," he added.

The country pledged to amend the labour law at the 352nd session of the International Labour Organization (ILO) Governing Body, held from October 28 to November 7 in Geneva.

A tripartite committee is currently working on possible amendments to the law, including easing trade union rules and documentation requirements.

Regarding service benefits, the progress report stated that benefits are being provided as per labour law.

The report also mentioned that Section 27 of the Labour Law and related sections will be amended.

Additionally, the responsibility for preparing a proposal to provide contributory provident funds to workers has been given to the Department of Inspection for Factories and Establishments, the report stated.

The report also mentioned that the Ministry of Labour and Employment has formed a committee to address the yearly increment.

It further stated that the Minimum Wage Evaluation Committee will submit a proposal regarding the capacity and imperatives of the yearly increment, considering current inflation and balancing it with labour law.

The committee is expected to submit its report by November 30.

The rationing system for workers through the Trading Corporation of Bangladesh is currently in process, the report noted.

Regarding the blacklisting of some workers, the Ministry of Labour and Employment has formed a technical team that will submit a report reviewing the overall situation, which is now under process.

The committee has instructed labour leaders to collect forms and submit them to the Ministry of Labour and Employment after completing them in relation to the withdrawal of cases filed against workers during the minimum wage movement in 2023.

Once submitted, the ministry will forward them to the district magistrates, the report said.

The report further said that over 80.55 percent of factories have set up daycares and the BGMEA is monitoring the remaining factories to ensure they set up daycares as well.

The Minimum Wage Board, a government regulatory agency responsible for recommending changes to the minimum wage, has also submitted a proposal to the Ministry of Labour and Employment to amend the labour law and update its provisions.

The board has suggested that the ministry amend the labour law to ensure stricter enforcement of wage structures in factories, according to the proposal.

Amending the labour law has been a long overdue issue in Bangladesh.

Last December, the president returned the "Bangladesh Labour (Amendment) Bill-2023" unsigned, citing the need for further amendments to certain key clauses.

In response to the Rana Plaza building collapse and subsequent international pressure, the government amended the 2006 labour law in August 2013 to ensure workplace safety and labour rights issues meet international standards.

In September 2015, the government formulated labour rules to guide the proper application of labour law at factories.

The law was further amended in 2018, again under international pressure, to lower the worker threshold for union formation from 30 percent to 20 percent.