Double pay amid protests? Why are Bangladeshi garment workers demanding this? How unrest threatens $47 billion export sector

Bangladesh has set up a wage board to review wages in the garment industry as violent protests over low wages forced more than 500 factories to suspend operations, disrupting one of the country’s most important export sectors.

The government announced the formation of a six-member panel on Sunday and urged workers to return to their jobs.

But the move failed to immediately ease tensions as thousands of garment workers continued to protest in the capital Dhaka and the industrial hub of Gazipur on its outskirts.

Police used tear gas and water cannons to disperse protesters after some protesters allegedly threw bricks at officers.

A police vehicle and a police box were also set on fire in separate incidents, Reuters reported. Meanwhile, authorities have deployed Bangladeshi border guards to help maintain order.

According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the riots forced the closure of 529 factories and left nearly 987,190 workers out of work in the country’s main industrial centers.

Why are Bangladeshi garment workers protesting?

The workers are demanding a minimum monthly wage of 30,000 taka (about US$245), more than double the current minimum wage of 12,500 taka. They say the rising costs of food, housing, transport and healthcare have eroded their incomes, leaving many struggling with basic household costs.

“The cost of living has risen far beyond our income,” said laborer Mahin Hossain. According to him, after paying the rent, the workers have little money left for food, children’s education and other necessities.

The latest protests follow a failed attempt by garment manufacturers to raise the minimum monthly wage by 25% to around $90. The proposed increase has not satisfied workers, who say it falls short of what they need to cope with the rising cost of living.

Read also | Who was KM Tahsif Souri? Released by B’desh Air Force, mysteriously found dead

The dispute has been escalating since the last week of October. Protests in Ashulia, a major garment manufacturing center on the outskirts of Dhaka, led dozens of factories to suspend operations on Saturday and workers took to the streets to demand higher wages.

What is a wage board and what will it do?

Labor and Employment Minister Ariful Haque Choudhury said the wage board was formed after discussions with representatives of employees and employers. He appealed to employees to resume work and warned that continued disruption could impact both manufacturers and workers.

The six-member panel includes two representatives from employees and employers, one government representative and an independent member. It was tasked with reviewing wages in the garment sector and recommending revised wage rates.

Choudhury warned that prolonged factory closures could delay export shipments and payments from international buyers, increasing financial pressure on manufacturers and workers.

Why the riots affect the economy of Bangladesh

The protests threaten to disrupt the industry, which is central to Bangladesh’s economy and its position in global supply chains. The garment industry employs approximately 4 million people, accounts for more than 80% of the country’s export earnings and contributes roughly 10% to its gross domestic product.

Bangladesh is the second largest apparel exporter in the world after China. Its approximately 3,500 textile and clothing factories supply international brands and retailers, including Levi’s, Zara, Walmart and H&M.

Garment exports generated around $55 billion last year, with the sector accounting for around 85% of the country’s export earnings, according to a Reuters report.

Any extended shutdown could therefore have ramifications beyond factory workers, affecting manufacturers, overseas buyers and the country’s wider export economy.

The country’s producers are grappling with rising production costs, periodic gas and electricity shortages and uncertainty in energy markets amid tensions in the Middle East.