Bangladesh Update nr. 6, 2023

News

• BGMEA members can keep factories shut in case of unrest, vandalism
• Bangladesh PM asks protesting workers to join work, accept new wage 
• Drie doden bij strijd voor hoger minimumloon in textielindustrie Bangladesh, 150 fabrieken gesloten 
• Global brands are willing to raise purchase prices. But will that help push Bangladesh apparel workers’ wage? 
• Bangladesh manufacturers urge fashion brands to pay more for orders 
• One Killed in Bangladesh As Garment Workers Clash With Police Over Pay
• No new recruitment till unrest stops: BGMEA 
• Global fashion brands commit to raise purchase prices for Bangladesh-made clothes - Govt forms new RMG wage board 
• More Protests in Bangladesh as Garment Workers Reject Pay Increase 
• ‘Not Tk 12,500, minimum wage should be Tk 25,000’ - RMG workers’ platforms rejected new wage structure  

News
BGMEA members can keep factories shut in case of unrest, vandalism
Owners of garment factories that face unrest or vandalism can keep those closed, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said today, writes Bangladesh news paper The Daily star. Read more

Bangladesh PM asks protesting workers to join work, accept new wage 
Following protests over the newly-announced minimum monthly wage for garment workers, Bangladesh Prime Minister Sheikh Hasina recently asked workers to join work, accepting the new minimum wage, reports Fibre2Fashion. Read more

Drie doden bij strijd voor hoger minimumloon in textielindustrie Bangladesh, 150 fabrieken gesloten 
Honderdvijftig kledingfabrieken in Bangladesh houden hun deuren sinds zaterdag gesloten vanwege de hevige demonstraties voor de verhoging van het minimumloon. Bij de protesten vielen drie doden onder de arbeiders.De vakbonden hebben een voorgestelde verhoging van bijna 60 procent afgewezen, omdat textielarbeiders in Bangladesh dan nog steeds minder verdienen dan hun collega's in andere Aziatische lagelonenlanden, meldt de Volkskrant. Lees meer

Global brands are willing to raise purchase prices. But will that help push Bangladesh apparel workers’ wage? 
The American Apparel and Footwear Association representing more than 1,000 brands has agreed to raise purchase prices of clothes from Bangladesh by 5 to 6 percent, taking the ongoing garment workers’ protests over wage hike into account.
Those in the industry say such assurances from buyers will help Bangladesh fulfil the workers’ demand for a minimum wage of Tk 25,000, while relieving pressure of growing production cost amid global economic headwinds from owners.
Following deadly protests and clashes between the police and workers, the government mandated an almost 60 percent raise to the minimum monthly wage to Tk 12,500, or $113, from December, the first increase in five years.

Global brands are willing to raise purchase prices. But will that help push Bangladesh apparel workers’ wage?
However, workers’ associations in Savar, Gazipur and other industrial zones did not relent in protesting and stuck to their demand of raising the monthly wage to Tk 23,000-Tk 25,000.Over three weeks of movement, four workers have died reportedly in clashes with law enforcers, while many factories were vandalised and set ablaze as well. Many factories have also remained shut due to the protests.Asked if they would raise purchase prices by the 5 to 6 percent that costs will rise, Stephen Lamar, chief executive of the AAFA, told Reuters: "Absolutely"."As we and our members have reiterated several times now, we are committed to responsible purchasing practices to support the wage increases," Lamar said in an email. Global brands are willing to raise purchase prices. But will that help push Bangladesh apparel workers’ wage? "We also renew our pleas for the adoption of an annual minimum wage review mechanism so that Bangladeshi workers are not disadvantaged by changing macroeconomic conditions”, writes BD news 24. Read more

Bangladesh manufacturers urge fashion brands to pay more for orders 
Garment manufacturers in Bangladesh encourage fashion brands and buyers to pay more for orders after the country announced a 56.25% minimum wage increase for garment and textile workers.The new minimum wage that manufacturers in Bangladesh will have to pay garment workers is BDT12,500 (USD113.38) and it was previously BDT8,000.  Protests continued on Thursday 9 November calling for further increases and three workers have died so far in the ongoing unrest, writes Just-style.com. Read below a summary of the article. Would you like to read the complete article, please click here (notice you may need a login to red the complete article)

Summary
Minimum Wage Increase in Bangladesh:
The minimum wage for garment workers in Bangladesh has increased by 56.25%, from BDT 8,000 to BDT 12,500.
Garment manufacturers are urging fashion brands and buyers to pay more for orders to accommodate the higher wages.

Appeal for Responsible Purchasing:
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has written to brands, retailers, and buyers, seeking support through responsible purchasing practices.
Manufacturers and sourcing agents in Dhaka are emphasizing the need for increased order prices to meet the newly raised minimum wages.

Protests and Challenges:
Ongoing protests on November 9 have called for further wage increases, with three workers reported dead in the unrest.
Manufacturers express concerns about potential competition from outsourcing hubs if order prices rise, fearing a loss of global market share for Bangladesh.
Buyers' Response and Competition:

Manufacturers, such as Syed Nazrul Islam and Mansoor Ahmed, are requesting buyers to align order prices with the increased worker salaries.
Some buyers are receptive, while others are indifferent, leading to challenges in maintaining fair wages amidst market competition.

Global Market Dynamics:
Osman Goni, managing director of BDTEX, highlights the global market dynamics, expressing fears that Bangladesh might lose market share if prices increase.
Despite the wage hike in Bangladesh, buyers may still prefer cheaper alternatives in countries like Vietnam, posing a challenge for local manufacturers.

One Killed in Bangladesh As Garment Workers Clash With Police Over Pay 
One woman was killed as police in Bangladesh used teargas and rubber bullets to disperse stone-throwing protesters as a demonstration by garment workers for more pay turned violent on Wednesday, writes Reuters/Business of Fashion. Read below a summary of the article. Would you like to read the complete article, please click here (notice you may need a login to red the complete article)

Summary
Fatal Clash in Bangladesh Protest:
One woman killed in violent clashes between police and garment workers.
Protesters demanding higher pay in Gazipur, outskirts of Dhaka.Third death in a week related to ongoing workers' protests.

Wage Increase Announcement:
Government announced a 56.25% increase in minimum wage to 12,500 taka ($114) from Dec. 1.
First wage hike in five years, but workers seek almost double the offered amount.

Police Response:
Hundreds of workers blocked roads, vandalized vehicles in Gazipur.
Police used tear gas, rubber bullets, and sound grenades to disperse protesters.
Worker fatally injured in the clash on the way to the hospital.

International Response:
U.S. State Department condemns the violence, urges protection of workers' right to peaceful protest.

Industry Impact:
Low wages crucial for Bangladesh's garment industry, employing 4 million workers in 4,000 factories.
Ready-made garments account for almost 16% of the country's GDP.

Stakeholder Statements:
Owners' representative urges workers to return to work to avoid threatening livelihoods.
Protesters remain steadfast, vowing to continue until their demands are met.

Political Context:
Protests coincide with anti-government demonstrations, demanding the Prime Minister's resignation and fair elections.

No new recruitment till unrest stops: BGMEA 
Also directs member factories that have been vandalised to file cases against workers responsible. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) decided last night to stop any new recruitment until unrest by workers in factories by existing workers comes to a stop, writes Bangladesh newspaper the Daily Star. Read more

Global fashion brands commit to raise purchase prices for Bangladesh-made clothes - Govt forms new RMG wage board 
Global fashion retailers including H&M HMb.ST and Gap GPS.N are committed to raising purchase prices for Bangladesh-made clothing to help factories there offset higher workers' wages, a US-based association representing more than 1,000 brands said. Bangladesh is the world's biggest garments exporter after China, reports Bangladesh newspaper the Daily Star. Read more

More Protests in Bangladesh as Garment Workers Reject Pay Increase 
A Bangladeshi garment worker wearing an all red outfit with a black face mask. They sit at a sewing machine using blue materials. Hundreds of garment workers in Bangladesh clashed with police for a second day on Thursday. Hundreds of garment workers in Bangladesh clashed with police for a second day on last Thursday as they protested against a government-mandated pay rise, forcing the closure of nearly 40 factories in the world’s second-largest clothing exporter, writes Reuters/Business of Fashion. Read more (notice you may need a login tpo read the complete article).

‘Not Tk 12,500, minimum wage should be Tk 25,000’ - RMG workers’ platforms rejected new wage structure  
The leaders of some garment workers' platform today rejected the government's announced minimum wage of Tk 12,500, as they think the amount is not sufficient and their expectation is not met. They made the call hours after the minimum wage board announced a new wage structure for apparel workers. The leaders of the Mojuri Briddhite Garment Sramik Andolon, a workers' platform for raising garment wage, demanded the minimum wage structure should be revised and set at Tk 25,000, writes The Daily Star. Read more