Following a series of protests and negotiations, the government of Bangladesh approved a new minimum wage for garment workers in November. This decision, effective from December 1, raised the minimum wage to 12,500 taka per month (about $208) from the previous 8,000 taka, including a provision for a 5% annual increment, as reported by Reuters.
However, this increase has been deemed insufficient by some, including U.S. lawmakers, who have expressed their support for the garment workers’ demand for fairer wages in a letter addressed to Stephen Lamar, president of the American Apparel & Footwear Association (AAFA). The letter emphasizes that the current wage does not align with the rising cost of living in Bangladesh.
The AAFA, representing more than 1,000 members in the fashion industry, including notable brands like Adidas, Abercrombie & Fitch, Calvin Klein, and Designer Brands, has been actively involved in addressing wage concerns. Some AAFA members, including Lululemon, Adidas, and Gap, had previously signed a letter in October discussing the wage issue. In July, the AAFA had communicated with Bangladesh’s prime minister, urging immediate action for the welfare of garment workers, particularly concerning the minimum wage.
U.S. lawmakers acknowledged the support of several American brands for an increased wage in Bangladesh, but they emphasized that mere verbal support is insufficient. They urged for transformative and systemic reforms to address the escalating repression faced by Bangladeshi workers.
Nate Herman, AAFA’s Senior Vice President of Policy, in an email response, welcomed the congress members’ involvement in promoting better working conditions in Bangladesh. Herman reiterated AAFA’s commitment to securing significant wage increases and annual reviews to ensure that workers’ compensation aligns with macroeconomic changes. He also called for the Government of Bangladesh to continue collaborating with stakeholders to foster an environment that upholds workers’ rights and welfare.
The letter from U.S. lawmakers also highlighted the need for the Bangladeshi government to respect and protect workers’ rights to organize, protest peacefully, and engage in collective bargaining without fear of retaliation or violence. This call aligns with the Biden administration’s stance on workers’ rights.
AAFA condemned the violence that occurred during the protests surrounding the wage board’s decision. The wage board, formed in April of this year, held its initial meeting in May.
Bangladesh, as the second-largest exporter of readymade garments, contributes over 11% to the country’s GDP. Herman emphasized the importance of a responsible and competitive Bangladeshi apparel industry, which requires peaceful participation from all parties and promotes economic opportunity, as a vital component of the global fashion industry.
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