Bangladesh Establishes Six-Member Board to Set Garment Wage Floor

The government of Bangladesh formed a new wage board on Sunday to review the minimum salary for garment workers. The move aims to resolve a labor dispute that has disrupted industrial activity around the capital, Dhaka.

Thousands of workers continued to protest despite the announcement. Police used tear gas and sound grenades to clear crowds, and several individuals, including officers, were injured during clashes in the Ashulia district. The protests began on Saturday and led approximately 30 factories on the outskirts of the city to close operations.

Protesters are demanding a minimum monthly wage of 30,000 taka, which is equivalent to $242. This figure is more than double the current rate of 12,500 taka, or $101. Workers argue that rising costs for food, housing, transport, and healthcare have reduced their purchasing power.

The six-member board will include representatives from the government, workers, and factory owners. M Sakhawat Hossain Chowdhury, an adviser to the Ministry of Labour and Employment, told reporters that the formation of the board resolves the issue. He stated that workers should return to their posts to ensure smooth operations.

Labour and Employment Minister Ariful Haque Chowdhury warned that extended factory closures could delay export shipments. He noted that payment delays from international buyers would create difficulties for both manufacturers and employees. The garment sector supports millions of jobs and generates the majority of the country's foreign earnings.

The industry ranks as the world's second largest after China and contributes about 10 percent of gross domestic product. Manufacturers reported rising production costs, periodic energy shortages, and market uncertainty linked to tensions in the Middle East during the United States-Israel war on Iran.