Concerns about equitable wage-setting, notably in the ready-made garment (RMG) sector, are raised by the Minimum Wage Board’s restricted data availability and transparency problems. The Board is the regulatory authority in charge of setting wage rates across Bangladesh’s many industries. These worries were expressed by labour rights activists and specialists at a recent gathering hosted in Dhaka by the Bangladesh Institute of Labour Studies (BILS).
Mostafiz Ahmed, an associate professor of social work at Jagannath University, pointed out that the board’s lack of data makes it difficult to make precise judgements about the ability of companies to pay and the general level of productivity across industries. “The wage-setting process frequently lacks fairness and transparency, which can lead to discontent among employers and employees,” he said.
Under the Bangladesh Labour Act of 2006, the Minimum salary Board is in charge of 42 sectors’ salary modifications. However, the board has come under fire for its tardiness in updating pay, especially in the RMG industry where equitable wage determination is crucial for both worker welfare and economic stability. Twenty of the forty-two sectors have stagnated for six to forty years, according to experts, and some have not seen wage rises for decades.
“To keep up with inflation and economic changes, regular wage reviews should take place every five years in the RMG sector and across industries,” Ahmed underlined. Additionally, he noted that the lack of a national minimum wage regulation exacerbates income inequality and undermines workers’ rights.
Veteran garment industry union leader Nazma Akter emphasised the need of fair salaries, saying that workers’ rights cannot be violated in the sake of protecting business interests. She encouraged the government to set a living wage that takes into account the contributions made to the country’s economic growth by both companies and workers.
The chairman of the Minimum Wages Board, Mamunur Rashid, advised firms to adopt a more worker-friendly stance while acknowledging the board’s shortcomings. He made the point that owners are disproportionately favoured in the wage-setting process, which puts workers at a disadvantage when they want to exercise their rights.
The event also emphasised the necessity of more human resources for the board and more uniformity in workplace inspections. Reforms were suggested, such as increased sectoral representation, regular disclosure of proceedings, and more accountability in the selection of board members.
