BANGLADESH earns the largest portion of its export income from readymade garments and knitwear. At first, Bangladesh exported the readymade cloths and knitwear of one million US dollar to the USA through Riaz Garments in 1978.After that, Garments industry takes the position of a leading industry of our export income by whipping the traditional jute industry, which is illustrated by the following chart:
Chart -1: Percentage of total export income (1972-2009)
| Year | Jute and Jute goods | Readymade garments |
| 1972-75 | 86.73 | 0 |
| 1975-80 | 72.75 | .03 |
| 1985-86 | 50.9 | 16.05 |
| 1990-91 | 22 | 50 |
| 1994-95 | 11.2 | 64 |
| 1998-99 | 7.1 | 76 |
| 2004-05 | 4.65 | 74.16 |
| 2008-09 | 2.68 | 79.33 |
But, it is frightening news for our country that this leading industry is now passing through crucial moments. Recent volatile situation in different garments facilities is threatening it existence. Since one year, the workers of RMG in different industries have been creating violence in the form of procession, vandalizing and blockading the roads to hike their minimum wage, attendance bonus and to ensure other facilities. These are common scenarios in most of the garments factories of Savar, Mirpur, Rupganj, Joydebpur, Gazipur, Kaspur, Ashulia, Nishchintapur, Norashinghpur, Zamgara and in other garment factories. About 140 garments factories were closed last year due to unrest accompanied by the crisis of power and gas, price hike of yarn, poor infrastructure, and low price offers from international buyers amid increased production cost. These are the main reasons for shutdown of production of a factory.
Whatever the situation, the authority will have to find out the path of solution to recover the huge economic losses. Low wage is the key reason of workers agitation. The present minimum wages paid by the garment factory to its workers is Tk 1662.50 per month while the workers are demanding Tk 5000 per month. The current minimum wage is really a tiny and insufficient amount against the current inflation -- both in food (7.85%) and non-food (5.49%) goods while general and average inflation are 6.89 % and 7.69% respectively (2009-10, July-March, BBS).
Fixation of minimum wage in Bangladesh
| Year | Amount (in Taka) |
| 1985 | 621 |
| 1994 | 930 |
| 2006 | 1662.50 |
| 2010 | 1662.50 |
The minimum wage of Tk.1662.50 was fixed on June 2006 when the cost of living was certainly lower than now. The Bangladesh Bank and the Bangladesh Institute of Development Studies, reported that since 2006 the cost of living of an RMG worker increased by at least 35 percent. But the Centre for Policy Dialogue, a private think-tank, reported that the average cost of living increased by around 70 percent because of increasing house rent, gas and power price.
Important news is that, the minimum wage of Bangladeshi garment workers (less than $25) is the lowest wages among the garment producing nations. At the entry point, a worker gets $90, $101 in Vietnam, $135 in India and $217 in China.
Moreover, while garments workers are extreme poor, because they earn less than one dollar per day international poverty line income is $1.25. Along wage, they are also deprived from other benefits and facilities including bonus, insurance coverage, financial support for illness and good environment to work. At this situation, to resolve wage problem, BGMEA proposed Tk 2000 per month as minimum wage for entry level worker against the proposal of Tk 6200 from the representative of garments workers to the Minimum Wage Board (MWB). The MWB is set to announce the minimum wage by July 27, 2010.
The authority should fix a minimum wage including other benefits to save this foreign exchange earning industry as well as three million workers who are involved here.
Important news is that, the minimum wage of Bangladeshi garment workers (less than $25) is the lowest wages among the garment producing nations. At the entry point, a worker gets $90, $101 in Vietnam, $135 in India and $217 in China.
Moreover, while garments workers are extreme poor, because they earn less than one dollar per day international poverty line income is $1.25. Along wage, they are also deprived from other benefits and facilities including bonus, insurance coverage, financial support for illness and good environment to work. At this situation, to resolve wage problem, BGMEA proposed Tk 2000 per month as minimum wage for entry level worker against the proposal of Tk 6200 from the representative of garments workers to the Minimum Wage Board (MWB). The MWB is set to announce the minimum wage by July 27, 2010.
The authority should fix a minimum wage including other benefits to save this foreign exchange earning industry as well as three million workers who are involved here.
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