Apparel factory owners on Tuesday issued an ultimatum to the government to review in 15 days the minimum monthly wage of Tk 5,300 for apparel workers recommended by the Wage Board, or they would shut down the factories.
Bangladesh Garment Manufacturers and Exporters Association and Bangladesh Knitwear Manufacturers and
Exporters Association issued the ultimatum at a press conference at its headquarters demanding that Tk 4,500 be fixed as the minimum monthly wage.
‘We are condemning and rejecting the recommendation made by the Wage Board ignoring the opinion of the apparel factory owners,’ said BGMEA association president Atiqul Islam.
BKMEA president Salim Osman, former BGMEA presidents Abdus Salam Murshedy and Shafiul Islam (Mohiuddin), among others, were present.
The minimum wages board for the apparel workers on Monday recommended Tk 5,300 as the minimum monthly wage for entry-level workers, up by Tk 2,300 from the existing wage structure amid opposition from owners’ representatives.
The apparel sector currently employs more than four million workers. The current minimum wage for a Bangladeshi apparel worker is the lowest in the world.
The BGMEA president said that they would appeal to the wage board on today for a revision of the proposed minimum wage claiming that the factory owners were not in a position to afford the spike in wage under a competitive global scenario for apparel export.
‘All of the woven and knit factories falling under the purview ofthe two associations will go for indefinite shutdown if the wage board does not shift from its decision of fixing Tk 5300 and accept Tk 4,200 as minimum wage,’ Atiqul said.
If the government implements the proposed minimum wage, small and medium factories would not be able to survive as the sector has already lost 37 per cent of its competitiveness due to increasing operational costs, he added.
‘The unilateral decision of the wage board would be suicidal for the sector and at least 70 per cent of the running factories will be forced to close down their operation as a consequence of the abnormal wage hike,’ Atiqul said. He said most of the entrepreneurs in the apparel sector were now seeking exit plans from their business as they were completely unable to pay Tk 5,300 as minimum wage.
‘We do not want any shut down of factories and any unemployment in the apparel industry. So we request the prime minister, Sheikh Hasina, to look into the matter for the sake of the country and its economy,’ the apparel sector leader said.
Expressing his wonder, the BGMEA president said that although the workers representatives on the wage board agreed the proposed minimum wage, another quarter in the workers front were still trying to create instability in the sector demanding Tk 8,000 as minimum wage.
‘It is a conspiracy to destroy the sector,’ Atiqul said.
The apparel makers demanded special exchange rate for the sector, low bank interest rate and ensuring uninterrupted supply of gas and electricity.
Prior to the briefing, the apparel factory owners held an emergency meeting at the BGMEA Bhaban.
Atiqul at the meeting criticised the role of wage board members and termed their decision unilateral and ‘audacious’. (source)