The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) called an emergency general meeting in Dhaka on Monday in reaction to the ongoing agitation at many factories. Manufacturers refused to comply with labour leaders’ two main demands during the meeting: a review of the new wage board and a 10 per cent yearly salary increase.
16 of the 18 demands made by workers were resolved during a tripartite conference earlier in the day at the Labour Ministry , which was chaired by Secretary AHM Shafiquzzaman and included representatives from the BGMEA, labour leaders, and government representatives.
Following worker rallies calling for their demands to be granted, at least 50 ready-made garment companies in the Ashulia zone on the outskirts of Dhaka have been forced to close as a result of the industrial unrest. Of these, 27 factories were forced to close permanently under the Bangladesh Labour Act’s Section 13(1), which upholds the “no work, no pay” policy. In addition, twelve factories—including well-known ones like Shangu Tex and Al Muslim Apparels—were shut down as a result of employees’ decision to forego work upon arrival.
NASSA Group, Ha-meem Group, Envoy Group, Newage Group, Starling Group, Ananta Group, Shin Shin Apparels Ltd., and Bando Designs are among the factories that shut down in accordance with Section 13(1).
The interim administration has given the army magistracy powers, but the disturbance, which started on 31st August, is still ongoing. Government officials and factory owners claim that the protests are being instigated by a vested group that is purportedly tied to the interests of neighbouring India and the ousted Prime Minister Sheikh Hasina, with the intention of causing turmoil.
During the Labour Ministry meeting, a schedule for following through on the resolved requests was established. This included commitments to pay off all outstanding bills by 30th October. Additional agreements included a Taka 10 increase in tiffin allowances, a Taka 225 increase in attendance bonuses, and a 120-day increase in maternity leave for all factories.
Furthermore, the owners increased the attendance incentive by Taka 225, the tiffin allowance by Taka 10, and the lengthened maternity vacation from 112 to 120 days for all factories.
The Labour Ministry will look into the owners’ creation of the blacklist of employees on its own. Representatives of the BGMEA agreed with the ruling.
Given the nation’s serious inflation concerns, labour leaders recommended that, in the event that owners are unable to establish a new wage board, they should take into consideration establishing a dearness allowance in response to the planned wage raise and an annual increment of 10 per cent instead of the current 5 per cent.
But according to BGMEA President Khandoker Rafiqul Islam, they cannot accept any demands for salary increases unless the trade body’s members have approved them in a general meeting.
The BGMEA then called an emergency meeting where RMG manufacturers refused to comply with both requests.
Furthermore, a compromise was struck by both sides to lower the existing grade structure from 7 to 5. The minimum wage will rise by a substantial 56.25 percent, while a 5 per cent increment will continue to apply.