Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 1134 Tue. August 07, 2007  
   
Business


Male-female wage disparity rising in RMG sector
CPD study finds


Wage disparity between male and female workers in the readymade garments (RMG) sector has increased during the recent years as salary growth of male labourers is comparatively high, according to a survey conducted by the Centre for Policy Dialogue (CPD).

The study revealed a 14.1 percent rise in RMG male workers' income against 11.1 percent rise in that of their female colleagues during 2004-05.

During 1991-95, the average salary for a female worker was Tk 1298 compared with Tk 1360 for a male worker, which shows female worker earned 95.4 percent of a male worker's income, according to the study, which was presented by Fahmida Khatun, senior research fellow of CPD, at a dialogue on 'The State of Women Workers in the RMG Sector: Findings from a Recent CPD Study' in Dhaka yesterday.

The study said the share of female income in male income has steadily decreased during 1996-2005. In 2005, a female worker earned 75.9 percent of a male worker's income, revealed the survey conducted during April-May of 2006.

The major reason for such declined share of income is the increase of male labour-based sweater factories with higher wages in the late 90s. It might resulted also from gender insensitivity in case of overtime due to less compliance measures in the 90s, the survey said.

The survey found that about 26 percent of female workers earn less than Tk 3000, while no male worker was found to earn less than this amount in 2005. Only 3.7 percent of female workers, compared with 25 percent of male workers, earn more than Tk 5000 per month.

The earning gap is larger in small factories, compared with large and medium sized factories, the CPD study said.

Female's lower educational attainment may partially account for wage disparity. However, increased education has not proven to narrow the male-female wage gap, the study report said.

Speaking at the function, Labour Adviser Anwarul Iqbal said if the minimum wages is implemented, not only the female workers, but also the entire labour community will be benefited. The government in consultation with both garment workers and owners is formulating rules to ensure minimum wages for the workers, he said.

Warning the factories non-compliant with minimum wages, he said the government will take legal actions against the factories which are yet to implement the agreed minimum wages.

He said the government has sued 51 garment factories, 38 of which did not implement minimum wages and the rest violated other compliances.

"However, considering the request from the owners, we have extended the time for implementing minimum wages by August 31. If they fail, cases will be filed against them," the adviser said.

He also emphasised creating more skilled labourers to meet the demand both at home and abroad as well as increase the productivity.

Moderating the dialogue, CPD Executive Director Dr Debapriya Bhattacharya said there was an apprehension that after phasing out of quota, the RMG sector will face catastrophe, but it has been seen that the RMG sector has been expanded and production, productivity and wages have been increased, though profit has been reduced.

"But, the female workers are not being completely benefited from the positive changes in the RMG sector. Though wages of female workers have increased, wage difference between men and women has also increased," he said.

Lack of education, training and experience are the main reasons behind such income discrimination, he said.

Chairing the discussion, CPD Chairman Professor Rehman Sobhan said if the wages is converted into dollars, it is found that the wages of the garment workers have been reduced to $22 in 2004-05 from $31 in 1991.

Like the Chinese government, the Bangladesh government should also invest for the development of garment workers, he suggested.

Labour Secretary Ashfaque Hamid, International Chamber of Commerce-Bangladesh President Mahbubur Rahman and human rights activist Dr Hamida Hossain also spoke at the function.

Worker leaders, labour representatives and development workers deliberated on the current state and future of the potential apparel industry.

Almost all the speakers called for training and fair wages, especially for women workers in the RMG sector, to reduce wage disparity between male and female workers.

They also stressed immediate implementation of the minimum wage rules for the garment workers to improve their economic condition, which, in turn, will help enhance productivity.

The CPD study also revealed recruitment in the factory is done mainly informally, in most cases without providing any appointment letter. Only 26.4 percent workers, of which 27.3 percent male and 25 percent female, received appointment letters.

About 51 percent of workers do not enjoy weekly holiday due to additional work and overtime. Male workers took fewer weekly holidays compared to their female colleagues, the survey found.

Though 87.3 percent of the female workers received maternity leave contractually, only 43 percent were granted paid maternity leave, the study said.