RMG SECTOR

Living wages for sustainable

development, social stability
Quazi Tafsirul Islam | Published: 00:00, Nov 03,2023

Apparel workers go on demonstrations at Mirpur in Dhaka on November 1, demanding Tk 23,000 in minimum wage. — New

Age

THE garment sector, a cornerstone of Bangladesh’s economy, is currently at a crossroads. With escalating
worker unrest in Gazipur and Dhaka and a minimum wage that falls significantly short of a living wage, the
industry faces a volatile situation that demands immediate and sustainable solutions. This article explores why
increasing labour wages is not just a moral obligation but a strategic necessity for sustainable development and
social stability in Bangladesh.
According to research by the South Asian Network on Economic Modeling, the living wage in Bangladesh
ranges from Tk 19,200 to Tk 26,000, depending on the area. This creates a 51–60 per cent gap between the
workers’ actual income and their minimum needs. The current unrest among garment workers, demanding a
minimum monthly wage of Tk 23,000, highlights the urgency of addressing this gap. Failure to do so could
turn this wage gap into a ticking time bomb, leading to further social and economic instability.

The impact of low wages extends beyond economic metrics; it has a devastating effect on the quality of life for
workers and their families. Daily challenges include malnutrition, poor health, inadequate living conditions,
and a lack of education. This creates a cycle of poverty and has long-term implications for the country’s social
fabric and human capital development.
While factory owners like BGMEA president Faruque Hassan argue that higher wages would hurt
competitiveness, this does not represent the entire story. Low wages result in low purchasing power, affecting
domestic demand and hampering the growth of other economic sectors. On the contrary, a reasonable wage
increase would stimulate domestic consumption, leading to a more balanced and resilient economy. Moreover,
the current unrest has resulted in factory closures, production losses, and reputational damage, which are
detrimental in the long run.
The argument that higher wages would make Bangladesh less competitive globally is flawed. Labour is not the
only factor that determines competitiveness. Innovation, quality and operational efficiency are equally
important. Additionally, there is a growing global trend to prefer ethically produced products, which includes
fair labour wages. Therefore, increasing wages could enhance Bangladesh’s worldwide reputation and
marketability.
In an era where ethical consumerism is on the rise, especially among Western consumers, the issue of low
labour wages in Bangladesh’s garment sector could have international repercussions. Consumers in countries
like the United States and the United Kingdom increasingly scrutinise the ethical practices behind the products
they purchase. Brands that fail to ensure fair labour wages and decent working conditions are often subject to
boycotts, negative publicity, and a loss of customer trust. In this context, maintaining low wages not only
jeopardises the well-being of workers but also risks alienating a significant portion of the global market that
values ethical production. Therefore, increasing labour wages is a domestic imperative and a strategy to
maintain and enhance market access in countries where consumers are becoming more socially responsible.
The recent wave of protests, strikes and even violence indicates a breakdown in social stability. This is
detrimental to both workers and businesses and disrupts broader social harmony. Fair wages can foster a more
stable environment, which is beneficial for long-term planning, investment and sustainable development.
Paying a living wage is not just an economic issue; it’s a moral imperative rooted in social justice. It’s about
acknowledging workers’ invaluable contributions to the economy and compensating them fairly. Fair wages
are about dignity, respect, and creating a society that values each of its members. If we ignore all other factors,
we should do it because living in this country is costlier than it used to be because of inflation, and increasing
the wage is the right thing to do.
Addressing the wage issue requires a multi-pronged approach involving all stakeholders — government,
industry owners, and labour unions. Transparent and inclusive negotiations are crucial for arriving at a fair
wage structure. To be implemented by December, the new wage structure must adequately address the current
wage gap to prevent future unrest. Law enforcement agencies also have a role to play in de-escalating tensions
and maintaining social stability.
While wages are central to the current crisis, they are symptomatic of broader systemic issues, including
working conditions and workers’ rights. A comprehensive approach is necessary for long-term stability. This
could include regular wage reviews, better working conditions, and stronger labour laws. Policy interventions,
such as subsidised housing and health care, can also improve the overall well-being of workers.
The ongoing unrest in Bangladesh’s garment sector serves as a wake-up call for all stakeholders. It’s time for a
balanced and sustainable approach that recognises the dignity and worth of every worker while ensuring the
sector’s long-term viability. Failure to act could result in a lose-lose situation for everyone involved, with far-
reaching implications for Bangladesh’s economy and social fabric. Developing alone is no development at all;
true progress is inclusive and considers the well-being of every individual in the community.