Garment workers' wage

Garment workers’ wage
The New Nation, Bangladesh
Wed, 20 Sep 2014, 10:19:00

THE export-oriented readymade garment (RMG) sector which is the principal source of foreign exchange earnings of the county, is now under a threat from simmering discontent of its workforce. A tripartite commission was set up by the Government with the aim of fixing the minimum wage for the workers and reviewing and revising upwards their other wages and benefits.
It appears that the commission’s declaration of minimum wage has not satisfied the workers. Not only they have rejected the proposed wage, they are planning to resume their agitation to press their demand for higher minimum wages than what has been declared by the commission. The outlook for the sector is thus worrying. All stakeholders, specially the government, needs to be proactive to head off trouble in this pivotal economic sector.

Some analysts of the recent violence in the RMG industries have searched and found that the reasons for the same to be accumulated feeling of injustice suffered by the workers. The laws relating to protection of the rights and interests of workers appear to be better observed in the country’s older industries compared to the relatively new ones. But it needs to be realised also that strict regulations might curtail workers’ benefits with low wages and long hours of work, translated otherwise into comparative advantage for industries for those to have competitive edge over foreign competitors. But the prospect of shutting down garment industries from clamour for higher wages could mean no employment and no income at all.

This does not mean that progressively the garment producing units should not increase wages and extend other benefits to their workers. It makes pre-eminent sense for the workers of the RMG industries to encourage activities that would create more employment opportunities for them and not to press so hard for very neat fulfilment of their benefits and rights. RMG workers are not expected to give them up. But there should be safety valves also for owners and operators of the RMG industries not to be overwhelmed by demands so that hikes in these areas are not at the cost of viability of the industries. Owners of garment industries also should not siphon away profit to other sectors by depriving the poor workers of its share.

This principle should also apply in the fixation of minimum wages and benefits for RMG workers. Wages, monetary benefits and welfare facilities should be linked to productivity and the real ability of enterprises to pay them. Thus, while discussing and accepting workers’ demands as far as reasonable and practicable, the negotiators at all levels and forums also need to understand their real long term interests. They must realise that such a harsh course of action could only push the RMG sector of the country out of competitiveness in the international market.

Post Author: Indonesia Grament