News & Press Releases - Living Wage now! © CCC 09 November 2023 New minimum wage in Bangladesh equals starvation wage Joint press release by FEMNET and the Clean Clothes Campaign Bonn/Berlin. The government of Bangladesh on Tuesday set the new minimum wage for the country's 4.4 million garment workers at 12,500 taka per month (106 euros). The amount is far below the 23,000 taka demanded by trade unions. According to studies, this amount is necessary for a decent life in Bangladesh. Although many fashion brands say they are committed to living wages, few support the unions' demand. For workers in the garment sector, the new minimum wage means that they will continue to struggle to survive and will be forced to work excessive overtime, take out loans, skip meals or even send their children to work instead of school. Deaths in weeks-long wage struggles The extremely non-transparent and partisan wage determination process was concluded after weeks of unrest in Bangladesh. Workers in and around Dhaka began protesting after the garment manufacturers' association BGMEA proposed last month to raise the minimum wage to a meagre 10,400 taka (€88). Two workers were killed during the protests, many were injured or sued for their protest. Meanwhile, the announcement of the new minimum wage of 12,500 taka triggers further unrest in the Bangladeshi capital, as reported by the Clean Clothes Campaign Germany, citing its partners in the international Clean Clothes Campaign (CCC). Responsibility also lies with fashion brands Factory owners in Bangladesh claim they have no financial leeway for a minimum wage above 12,500 taka. But it is their clients who dictate prices in the industry. "With their purchase prices, international fashion brands must provide factory owners with margins that can be used to pay seamstresses living wages. Instead, however, they are pushing down purchase prices," explains Aika Fischbeck of the CCC member organization FEMNET. The Clean Clothes Campaign has repeatedly called on the local fashion industry, which is largely manufactured in Bangladesh, to publicly support the union's demand for a minimum wage of 23,000 taka, but almost all brands have so far refused. Many brands, including C&A, H&M, Primark, Esprit, Tchibo, Zalando and Aldi, are supposedly striving for living wages – are these just empty promises? It's up to these companies to put their money where their mouth is. It would be in their power to ensure that workers in their supply chain receive at least 23,000 taka, although this amount is still far below the living wage benchmark calculated by the Asia Floor Wage Alliance. Criticism of the process The trade unions in Bangladesh are sharply critical of the wage-setting process - just as they were five years ago. They call for an annual review of the minimum wage and point out that the representation of workers in the wage committee would have to be selected from the largest union. In this and earlier wage negotiations, this provision was disregarded. The government appointed an "employee representative" who is more likely to represent the interests of employers and the government. The unions point out that their demand of 23,000 taka was calculated on the basis of the Bangladeshi Labour Code and the international core labour standards (ILO Convention 131 on the Setting of Minimum Wages), while the employers' proposal lacked this legitimate basis. Further information can be found on the website of the CCC member organisation FEMNET and the Campaign for Clean Clothing Germany. Contact: Anne Munzert – FEMNET e.V.This email address is being protected from spambots. You need JavaScript enabled to view it. Tel: 0175-8465 560https://femnet.de Isabell Ullrich – Kampagne für Saubere Kleidung Deutschland e.V. This email address is being protected from spambots. You need JavaScript enabled to view it. Tel: 01511-6473942https://saubere-kleidung.de Download the press release from 09.11.2023(PDF)
