Bangladesh's garment industry wage board agreed Wednesday to implement a revised pay structure from December, following five days of protests that disrupted production in the world's second-largest apparel exporter.
The six-member board, formed Sunday amid unrest, did not specify the size of any increase but set a timeline for changes. Workers will receive salaries under the new scale starting in January, according to Babul Akter, the workers' representative on the board.
Protests began last Saturday with demands for a minimum monthly wage of 30,000 taka, up from the current 12,500 taka. Workers cited rising costs for food, housing, and transport amid about 8 percent inflation. Clashes occurred in hubs like Savar, Gazipur, Ashulia, and Mirpur, with reports of road blockades, tear gas use by police, and some incidents of vandalism including torched vehicles.
The ready-made garment sector employs about 4 million workers and accounts for more than 80 percent of Bangladesh's export earnings. It supplies major brands including H&M, Zara, and Gap. Factory owners have noted pressures from higher operating costs and softer demand in export markets.
The last minimum wage adjustment took effect in December 2023 with a more than 56 percent increase. The new board will hold further meetings to determine details while aiming to preserve the industry's competitiveness.
Production halted at hundreds of factories during the unrest, raising concerns about delivery risks during the peak season for spring and summer orders. The agreement marks a step toward resolving the dispute, though full details on the wage level remain pending.
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