Tempers fray as thousands of Bangladeshi garment workers protest for pay hike

Bangladeshi garment workers are protesting wages that they say no longer cover rising living costs. They also want action on other unresolved workplace issues. Their demand matters because the garment sector employs about 4 million people and provides more than 80 per cent of Bangladesh’s export earnings.

Workers are demanding a monthly minimum wage of 30,000 taka, or about US$240. That is more than twice their current monthly pay of roughly 13,000 taka, according to Kalpona Akter of the Bangladesh Centre for Workers Solidarity. Thousands blocked highways and clashed with police during the protests.

The government has announced a wage board to review pay. However, labour leaders say forming the board does not immediately solve workers’ financial problems. The protests show pressure for a faster increase. Factory owners warn that higher wages could raise costs, while economists support a phased adjustment and fairer prices from international buyers.

A wage board is a formal body that examines pay levels and considers what minimum wage workers should receive. It brings together relevant representatives to review wages and recommend changes. In Bangladesh, the government announced a board for the garment industry after protests intensified.

The board could compare current pay with workers’ living costs and industry conditions. It could then recommend raising the minimum wage from about 13,000 taka toward the workers’ demand of 30,000 taka. A recommendation would provide a basis for government action, but the article does not say that the board has already approved a new rate.

The board’s creation has not calmed workers because their wages remain unchanged. Labour leaders say inflation and household expenses require action beyond simply forming the board. The eventual outcome may involve a phased increase, as suggested by economist Selim Raihan, alongside productivity improvements and better prices from international buyers.

Bangladesh’s garment industry is enormous and central to the national economy. It is the world’s second-biggest garment exporter behind China. The sector employs about 4 million people and contributes around 10 per cent to gross domestic product, or GDP.

Its export role is especially large. Garments account for more than 80 per cent of Bangladesh’s export earnings. During the unrest, industry representatives said workers from at least 529 factories in Dhaka and nearby industrial areas left their workplaces. Those areas included Savar, Ashulia, Jirani and Gazipur.

This scale makes wage negotiations nationally important. Higher pay could improve the lives of millions of workers, but factory owners say they face higher costs and uncertain demand. Economist Selim Raihan warned that a large increase could squeeze exporters’ profits and weaken Bangladesh’s price competitiveness. The proposed balance is phased wage growth, better productivity and fairer buyer prices.

Workers’ demands have intensified because their wages have not kept pace with inflation and rising household expenses. Labour leaders say workers’ grievances extend beyond the government’s plan to review the minimum wage. Their immediate problem is that current pay remains about 13,000 taka a month.

The government announced a wage board on Sunday, but workers continued protesting on Monday. Large groups took to the streets in Mirpur, while hundreds blocked the Dhaka-Tangail highway in Gazipur. Industry representatives said workers from at least 529 factories had left their workplaces across surrounding industrial areas.

The unrest also reflects frustration over unresolved issues and the slow path from review to actual wage changes. Some labour leaders reportedly went into hiding. The government wants workers’ rights and living standards improved, but also wants production and exports to continue. Police were urged to act against violence and disorder.

More than doubling the minimum wage could bring workers closer to meeting household expenses and reduce pressure caused by inflation. It could also ease the grievances driving strikes, road blockades and clashes. For factory owners, however, the immediate effect would be higher labour costs in an industry already facing higher expenses.

Economist Selim Raihan warned that a substantial increase could squeeze exporters’ profit margins and weaken Bangladesh’s price competitiveness. If factories passed part of their higher costs to international buyers, clothing prices could rise. If buyers resisted higher prices, factories might absorb the costs or face tighter margins. The article does not quantify price changes.

The sector’s future would depend on how the increase is introduced. Raihan called for a phased wage adjustment, improved productivity and fairer pricing from international buyers. That approach could support workers while helping factories protect production, exports and their position in global clothing markets.

International clothing brands and overseas buyers are connected to wages because they purchase garments made in Bangladesh. Bangladesh is the world’s second-biggest garment exporter, and its factories manufacture clothing for some of the largest international brands. The prices buyers pay affect how much money factories have available for wages and other costs.

Babul Akhter, a workers’ representative on the wage board, said factory owners should negotiate better prices with international buyers if they cannot pay workers properly. His argument is that factories should not build their business on underpaid labour. Fairer purchasing prices could give factories more room to raise wages.

Factory owners say they face higher costs, uncertainty in energy markets linked to conflict in the Middle East and slowing demand in key export markets. That creates tension between low prices for global buyers and higher pay for workers. The article identifies fairer buyer pricing as part of a possible solution, alongside phased wage increases and improved productivity.

Exports are goods sold to customers in other countries. GDP, or gross domestic product, measures the value of goods and services produced within an economy. Price competitiveness means offering products at prices buyers find attractive compared with alternatives. These ideas matter because Bangladesh’s garment industry is deeply tied to all three.

The sector earns more than 80 per cent of Bangladesh’s export earnings and contributes around 10 per cent to GDP. It also employs about 4 million people. If wages rise, workers may gain better living standards, but factories could face higher production costs. They might then have less profit or need higher prices.

Bangladesh must therefore balance worker welfare with its ability to win global orders. Economist Selim Raihan warned that a large wage increase could weaken price competitiveness. He proposed phased wage growth, better productivity and fairer international-buyer pricing. That combination could support workers without sharply damaging exports or industrial sustainability.