Garment owners to agree

Garment factory owners are in the process of accepting a monthly minimum wage of Tk 5,300, albeit with conditions.

Tanim Ahmedbdnews24.com
Published : 10 Nov 2013, 10:34 AM
Updated : 11 Nov 2013, 04:27 AM

BGMEA representative Arshad Jamal, one of the negotiators on the wage board, told bdnews24.com that the official announcement would come later. “Probably on Nov 20.”

He said that the garment factory owners’ association was in the process of reaching an amicable solution.

He said earlier that the factory owners needed a few months to implement the new award.

But if the government wishes an immediate implementation, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) would not protest. “We would agree to that only very reluctantly.”

The negotiator told bdnews24.com during an exclusive interview on Sunday that the factory owners had already drafted a note of reservation and would ask for at least three months for implementation as it did earlier.

There will also be some development besides the increased wage structure, said Jamal. “There will be a provision of yearly increment.”

Moreover, the factory owners will settle for a more formalised structure of holidays for the workers.

“Sometimes there are debates within the owners whether the factories will remain closed on certain dates. That will end.”

Earlier, the owners had rejected the Tk 5,300 minimum wage recommended by the government-appointed wage board, citing their ‘inability’ to pay.

Workers’ representatives had earlier sought a minimum wage of Tk 8,100.

They later scaled down the sum to Tk 6,000 subsequently to Tk 5,500 before finally agreeing to Tk 5,300.

On the other hand, the garment owners’ primary offer of minimum wage was Tk 3,600, which they later raised to TK 4250.

In a meeting on Nov 4, the wage board members finalised Tk 5,300 as the recommended monthly wage.

But BGMEA and BKME representatives staged a walkout and refused to accept the recommendation.
At a press conference, the next day, followed by a meeting of leaders of the BGMEA and Bangladesh Knitwear Manufacturers and Exporters Association, factory owners had threatened shutdown if they were forced to pay anything over Tk 4,500 as monthly wage.
“We will appeal against the proposal [Wage Board’s] on Wednesday [Nov 6], and we will request for accepting the wage structure proposed by us,” BGMEA president Atikul Islam said then.
According to BGMEA and BKMEA leaders then, if the minimum wage proposal is implemented 70 percent of the factories which are small and medium factories, would be compelled to shut down.
The proposed minimum wage of Tk 5,300 includes a Tk 3,200 basic salary, Tk 1,280 as house rent, Tk 320 as medical allowance, Tk 200 for conveyance and Tk 300 as food subsidy.