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The Financial Express

Pay workers in accordance with new wage structure

BGMEA asks member factories


| Updated: January 08, 2019 10:12:22


FE file photo FE file photo

The apex body of apparel makers has instructed its member factories to strictly follow the new wage structure for garment workers, sources said.

It called for full and timely implementation of the new wage board award for the sewing machinists.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders suggested that no benefits beyond the new pay scale be given to workers.

The BGMEA made the call at a meeting with its members at a city hotel on January 03.

The meeting was convened against the backdrop of the recent labour unrest at garment factories over the execution of the new wage structure.

The meeting was told that a good number of factories are unable to pay enhanced salary and such payments would lead to their closures and shutdowns, a meeting source said.

When asked, BGMEA president Md Siddiqur Rahman said, "We've requested our members to implement timely the new wage structure in line with a government gazette."

The BGMEA would raise the issues like owners' demand for incentive, devaluation of taka against dollar, single-digit interest rate and 'exit policy' for the factories that might not be able to run mainly because of the wage hike.

Earlier on November 25 last year, the government issued a gazette notification announcing Tk 8,000 as minimum monthly wage for an entry-level worker from Tk 5,300.

It also made wage hike for other grades proportionately making it mandatory for factory owners to implement the new wage structure from December last.

A per rules, workers would receive the new wages within the first seven working days of January.

The ready-made garment workers in Ashulia, Narayanganj and Gazipur staged demonstrations and observed abstention rejecting the new wage structure.

Basic pay has been decreased and basic wages were also not increased equivalently, they alleged.

Labour leaders said basic pay of the workers constituted 67.69 per cent of the gross minimum wage in 2006.

But it is equivalent to 51.25 per cent in the new one (2018), they argued.

Payment of allowances, overtime, festival bonus and other service-related benefits depend on basic pay, the leaders observed.

About this declining trend in basic pay, BGMEA vice-president Faruque Hassan said house rent and other allowances have been increased in the new structure.

Last month, labour ministry, Department of Inspection for Factories and Establishments, BGMEA and others urged the workers not to go for agitation and continue production peacefully before the national election.

The government and the BGMEA also assured that they would look into their wage issues after the election.

The ministry assured that the government would resolve any in consistency in the new wage structure after discussing it with all stakeholders.

After the polls, factory owners have been instructed not to pay beyond the new structure mainly to avoid any untoward labour incidents centring the benefits.

Meanwhile, the owners demanded 10 per cent incentive for all garment exporters and increasing 15 per cent financial support from existing 3.0 per cent for new market exploration.

They also recommended that strict measures be taken against the vested quarters who allegedly instigated workers for agitation.

Other recommendations included implementation of the prime minister's instruction to ensure single-digit bank interest rate and devaluate local currency against dollar to help exporters become competitive in the global market.

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