Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 817 Wed. September 13, 2006  
   
Front Page


Phase-wise RMG wage increase proposed


The National Wage Board at its 24th meeting yesterday failed to reach a consensus on minimum wages for garment workers despite a hectic seven-hour long negotiation.

Failing to reach a consensus the board sent to the government, for its consideration, a three-tier proposal to be implemented in three years with Tk 1,604 as gross minimum salary in the first year.

The board proposed Tk 1,604 as gross minimum wage for entry-level garment workers for the first year up to June 30, 2007. Minimum gross salary would be Tk 1,890 in the second year during July 1, 2007 to June 30, 2008 and it would be Tk 2,117.50 in the third year starting from July 1, 2008.

Annisul Huq, representative of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on the board did not agree to the proposal, and Nazma Akhtar, representative of workers on the board did not sign the proposal, saying it did not match the expectation of the workers.

However, Board Chairman Anwarul Haque, independent member on the board Iqbal Ahmed, and permanent representative of the workers on the board Zafrul Hasan signed the proposal. Permanent member of the employers on the board Kazi Saifuddin Ahmed was absent in yesterday's marathon meeting held at the board office in Dhaka.

"We could not reach a consensus but a majority of the members decided to send a proposal to the government for its consideration," said Zafrul Hasan after ending the meeting at 9:30pm.

The proposal has to be kept in circulation for 15 days for opinions and objections, and the ministry concerned will take another month for its approval after which it will be put in a gazette.

The board yesterday discussed three pay proposals -- one of them was proposed by the independent member and another was proposed by Zafrul Hasan but both of them faced strong oppositions from representatives of garment factory owners as they were much higher than the proposal sent to the government.

According to sources, both the factory owners and workers were rigid on Tk 1,400 and Tk 1,800 respectively as a gross minimum wage.

There are seven grades in the three-tier proposal. The gross minimum wage for the first year includes Tk 1,080 basic salary, 30 percent house rent and Tk 200 medical allowance totalling Tk 1,604. Gross minimum wage of Tk 1,890 for the second year includes Tk 1,300 basic salary, 30 percent house rent and Tk 200 medical allowance. Gross minimum wage of Tk 2,117.50 for the third year includes Tk 1,475 basic salary, 30 percent house rent and Tk 200 medical allowance.

Annisul Huq said the proposal sent by the board to the government had been placed for discussion lately and it was not possible for him to go through it.

"We don't know what would be the impact of this proposal on the industry. We sought three to four days time to study it but the time was not given. So, we did not agree to it. We will send our comments after going through it," he said.

On the other hand, gross wages for Grade I workers in the first year would be Tk 5,400 including Tk 4,000 basic salary, 30 percent house rent and Tk 200 medical allowance. It would be Tk 5,725 including basic salary, house rent and medical allowance in the second year and Tk 6,050 in the third year and onward including 4,500 basic salary, 1,350 house rent and Tk 200 medical allowance.

"The proposal sent to the government did not match the expectation of the workers. So, I did not sign it," explained Nazma.

The board earlier held 23 meetings after it had been formed on May 31 but could not reach a consensus.

Following a severe labour unrest in the country's premier export-earning garment sector, the government formed the wage board and asked it to recommend a pay structure for the workers within three months. The minimum wage for workers in the RMG sector is now Tk 930 which was fixed about 12 years ago.

The government, garment owners and workers' leaders at a meeting on June 12 inked a 10-point memorandum of understanding (MoU) after a series of discussions on May 24, June 1 and June 4 among the stakeholders in the garment sector and decided to implement those in phases to address labour unrest, and to ensure labour rights and peaceful atmospheres in the factories.