There is no national minimum wage in Bangladesh. This reflects the weakness and unorganized state of the economy as well as the deprivation of the people on a large scale. Although there are minimum wages in different sectors, their impact is not very high. The readymade garment industry is the largest export-oriented sector in the country but the minimum wages in this sector are very low.
Every time, despite all kinds of agitations, there is no improvement in the minimum wage. There has been a movement going on for some time demanding increase in minimum wage in the textile sector. Wage Board has been constituted, but the outcome is still uncertain. The condition of other sectors is a beggar’s description.
The minimum wage of Tk 8,000 set in the garment sector in 2018 was only half of the demand of various labor organizations. The basic wage was increased by 1100 taka, and this increase led to a further increase in various benefits for factory owners. I remember well that RMG owners demanded an increase in their benefits at the same time as an increase in the minimum wage of workers. Therefore, he demanded tax cuts and cash incentives from the government. Despite agitating for months and taking to the streets after making their demands, they did not have to be disappointed like the workers. On the day the owners raised the demand, the National Board of Revenue (NBR) and Bangladesh Bank issued two separate circulars. These two circulars increased cash incentives and reduced tax at source and corporate tax for RMG exporters.
In the beginning of 2020, the Corona virus epidemic created trouble. Many employees were laid off and fell into debt. Then there was a steady rise in the prices of fuel, gas, electricity and other commodities, as well as an increase in the price of everything else, including transport fares and house rents. This worrying trend of price increase continues. Now dengue has also been added to it, which has badly affected the work and income of workers and the cost of treatment has also been added to the list.
Prices of essential commodities increased the most. According to TCB, the highest growth rates in prices of various such products from September 24, 2018 to September 24, 2023 are as follows (in percentage): Rice 15, Pulses 120, Flour 88, Potato 80, Crude soybean oil 95, Salt 68 , Egg 67, Milk 100, Sugar 180, Chicken 48 and Fish 100. Due to the continuous rise in prices, the net value of the minimum wage set in 2018 has now reduced to less than Tk 5,000. In other words, workers must earn more than Taka 11,000 to maintain a lifestyle of Taka 8,000 in 2018. Workers’ incomes did not increase, but the devaluation of the taka against the US dollar resulted in owners receiving additional amounts of taka. 900 billion in the last one year.
Yet when the question of salary increase or rationalization comes up, many illogical arguments are heard. One such false argument is that ‘Bangladeshi workers have low productivity and this is the reason for low wages.’ It is true that there is scope to increase the productivity of Bangladesh’s workers. But it should be borne in mind that productivity mainly depends on the role of owners, technology, work environment, management, training, salary, nutrition and leisure. This is all part of the owners’ responsibility. If the productivity of workers is low then it mainly depends on the owners to increase the productivity.