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What is the "Wage War" in Bangladesh about?

Every 5 years, the wages board for Bangladeshi apparel workers meet to determine a new wage structure. The process for minimum wage review is not an inclusive one and little is shared on how numbers are determined.

With costs having gone significant up due to inflation (inflation rose to 9% between 2022 and 2023 in Bangladesh — the highest average rate in 12 years, according to the Bangladesh Bureau of Statistics), garment workers in Bangladesh hoped to see a significant increase in 2023 from the previous rate set in 2018 to cover their current cost of living.

Negotiations over a new minimum wage for garment workers in Bangladesh sparked mass demonstrations on streets across the capital (Dhaka) at the end of October after the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) offered to increase the monthly minimum wage by 25% to reach the equivalent of $90 instead of $208 demanded by the workers. The protests resulted in the tragic death of three workers and dozens of protesters ended up in hospital. Over a hundred factories were also forced to temporarily close, some permanently.

Protests escalated further when the government, in response, announced a “revised” minimum wage proposal on the 7th of November to be implemented on December 1st raising the wages to 12,500 taka ($114), a small improvement, but still far below the 23,000 taka ($208) the workers say they need to “keep their families from starvation.”

Feedback from Bangladesh’s prime minister, Sheikh Hasina, has been stern and she insisted that the garment workers accept the offer on the table or “go back to their village.” 

You may find a link here with some insight on how some brands are supporting the situation in Bangladesh - note that after the below article was published H&M became the first brand to publicly announce to offset higher workers' wages in Bangladesh by raising the prices it pays suppliers for clothing made in the country: https://www.cnn.com/2023/11/09/business/bangladesh-wage-hike-protests-fashion/index.html#:~:text=What%20brands%20are%20saying

Negotiations over a new minimum wage for garment workers in Bangladesh have sparked mass demonstrations on streets across the capital. The protests have escalated since the government announced a minimum wage increase for the workers, from 1 December, to 12,500 taka (£90), far below the 23,000 taka a month workers say they need to keep their families from starvation.

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intertek, assurance in action, bangladesh, minimum wage, living wage, rmg