Leading US apparel brands have reached out to Bangladesh Prime Minister Sheikh Hasina, requesting her involvement in ensuring a transparent and comprehensive review of the minimum wage that involves input from all relevant stakeholders.
As per media reports, recently a group of 15 major US brands, including Adidas, Gap Inc, Under Armour, Patagonia, Burton, Hugo Boss, Abercrombie & Fitch, Amer Sports, AEO Inc, Levi Strauss & Co, Lululemon, SanMar, KMD Brands, PVH Corp, and Puma, penned a letter to the prime minister, urging the successful conclusion of ongoing negotiations within the minimum wage review mechanism. They stressed the importance of taking into account the perspectives of all stakeholders and aligning the minimum wage with the economic realities of Bangladesh.
The American Apparel & Footwear Association (AAFA) also posted this letter on its website, emphasising the significance of the partnership between Bangladesh and these prominent US brands. The letter outlines key points for consideration during minimum wage consultations, including the necessity for inclusivity and constructive dialogue with labour groups and trade unions. It recommends raising the minimum wage to a level that meets workers’ basic needs, allows for discretionary income, and considers inflationary pressures.
The brands noted that the average monthly net wages for garment workers in Bangladesh have remained unchanged since 2019, despite significant increases in inflation during that time. They proposed the adoption of an annual minimum wage review mechanism to account for changing macroeconomic factors. Additionally, the letter called on the Government to support new union registration, condemn violence or intimidation against union members, and create an environment that respects workers’ collective bargaining rights.
The brands also emphasised the need to prevent retaliation against participants during and after the minimum wage review process to foster an atmosphere of open dialogue and inclusivity. They committed to implementing responsible purchasing practices to fulfill their role in this regard.
The letter expresses optimism that the revised minimum wage will make significant progress in addressing the economic challenges faced by garment workers during the pandemic, subsequent supply chain disruptions, and the current inflation rate while promoting worker welfare.
