The textile industry in Bangladesh has been facing continuous social unrest and protests regarding minimum wage issues.
These recent protests have garnered significant attention within the sector.
One of the main reasons behind this conflict is the inflationary pressures experienced by the country, renowned for its low production costs.
The absence of sectoral bargaining further exacerbates this issue, as the majority of the 1.4 million textile workers in Bangladesh have seen the pay raises agreed upon five years ago diminish due to inflation.
Consequently, they continue to receive poverty wages.
The Prime Minister’s response to the strikers has been remarkably stern, urging them to accept the proposed increase or return to their villages.
This firm stance may be an attempt to swiftly resolve the protests.
However, it is likely that the workers will persist in taking to the streets, considering their limited earnings despite producing goods for some of the world’s most profitable companies.
As the textile sector accounts for 80% of the country’s exports, the government has an obligation to raise wages in order to sustain the dominance of this sector within the local economy.
Negotiation with the government still appears to be a possibility.
In previous negotiations five years ago, a similar situation arose when a reduced increase for one category of workers led to widespread protests, forcing the government to return to the negotiating table.
The recent contact between the Bangladeshi textile and clothing federation (BGMEA) and the American clothing federation (AAFA) indicates the industry’s efforts to engage brands in considering wage increases during negotiations.
However, the absorption of additional costs by brands remains a complex and global issue.
Industriall, through the Association for Contract Textiles (ACT), is actively working towards addressing this challenge by bringing together brands, manufacturers, and trade unions..
