Fifth Day of Unrest Tests Bangladesh’s Garment Heartland as Wage Board Begins Work
Workers seek a rise from Tk 12,500 amid inflation, while manufacturers warn that higher labour costs could weaken the sector's global competitiveness.
On Wednesday, the industrial corridors surrounding Dhaka remained tense as garment workers continued their campaign for higher wages for a fifth consecutive day. Road blockades, intermittent clashes with police, and factory stoppages marked the latest phase of a dispute that has already forced hundreds of units to suspend production and raised fresh concerns about the stability of Bangladesh's most important export sector.
Workers are pressing for the monthly minimum wage to be raised from the current Tk 12,500 to Tk 30,000. They argue that the 2023 revision, while substantial on paper, has been overtaken by several years of high inflation. Food prices, house rents in factory areas, transport costs and medical expenses have all climbed, leaving many families with little or no disposable income even after overtime. Labour organisers say the demand is not arbitrary; it reflects the amount they believe is needed for a modest living standard for a family of four in the present market.
The government responded on 1 November by reconstituting a six-member minimum wage board under the Bangladesh Labour Act. The board includes representatives of employers (from the Bangladesh Employers' Federation and the Bangladesh Garment Manufacturers and Exporters Association), workers' organisations, an independent academic member, and is chaired by a senior district judge. On Wednesday the board held its first formal meeting in Dhaka. Afterwards, both sides indicated that they had agreed in principle that any new pay scale should take effect in December, so that workers would receive the revised salary from January. The precise figure, however, remains subject to further negotiation and calculation of living costs, productivity, export performance and the competitive position of the industry.
Despite the formation of the board and the agreement on a December timeline, demonstrations have not subsided. In Gazipur, Savar, Ashulia and Narayanganj, groups of workers blocked major highways, including stretches of the Dhaka-Tangail and Dhaka-Aricha roads. Police used tear gas and sound grenades in several locations to clear the roads. A number of factories declared temporary holidays, citing safety concerns for staff and property. Industry bodies report that cumulative disruption over the past several days has already affected production schedules for spring and summer orders destined for Western markets.
The ready-made garment sector employs approximately four million people and accounts for more than 80 percent of Bangladesh's merchandise export earnings. It supplies major international brands and has long been the country's principal source of foreign exchange and formal employment for women. Factory owners contend that a jump to Tk 30,000 would significantly raise unit labour costs at a time when global buyers are pushing for lower prices and competing suppliers in other countries are offering alternatives. They also point to thin margins after the post-pandemic recovery and recent rises in utility and logistics costs.
On the political side, government officials and some industry leaders have alleged that elements associated with the banned Awami League are seeking to exploit the genuine wage grievances to create wider instability. Labour leaders, for their part, maintain that the protests are driven by economic hardship and long-standing demands for timely payment of wages, an end to arbitrary blacklisting, and clearer representation on the wage board. Police have arrested dozens of people in connection with the disturbances, describing some actions as creating an unstable environment inside factory zones.
As the wage board continues its work, the immediate outlook depends on whether further talks can produce a figure that workers regard as credible and that manufacturers can absorb without large-scale order cancellations. The coming weeks will also test the ability of authorities to keep major highways open and factories running while the formal process of wage determination unfolds. For a sector that has powered Bangladesh's export growth for more than two decades, the present standoff illustrates the recurring tension between the need to protect living standards and the need to preserve international competitiveness.