Bangladesh to form garment wage board

Bangladesh will form a new wage board on Sunday, November 1, to review and set wages for garment workers after a wave of protests shut factories and led to clashes with police. The decision follows several rounds of meetings between the Labour and Employment Ministry, labour leaders and representatives of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). Officials said the announcement of the board’s formation will be published in the government gazette.

Labour and Employment Minister Ariful Haque Chowdhury said the decision to form the wage board was finalised after about five hours of discussions with workers’ leaders on Friday, with BGMEA and BKMEA representatives agreeing to the move. He described the wage board as a key demand of workers and urged employees to return to their workplaces, saying there was no reason for continued unrest now that the process to revise wages had begun.

Garment workers are demanding that the minimum monthly wage be set at 30,000 taka, compared with the current 12,500 taka, arguing that higher prices for food, housing, transport and healthcare have eroded their purchasing power. Protests intensified on Saturday, when hundreds of workers blocked a major intersection in Dhaka and demonstrations in other industrial zones disrupted traffic and factory operations.

Unrest has spread across several industrial areas, including parts of Savar such as Ashulia, multiple zones in Gazipur and areas of Mirpur in Dhaka. Around 30 factories in Ashulia, a key manufacturing hub on the outskirts of Dhaka, declared holidays amid the protests. Labour representatives and industry officials reported that more than 100 factories across areas from Chandra to Kaliakair in Gazipur, parts of Mirpur and Ashulia have been forced to declare holidays as workers took to the streets.

Clashes between workers and police in Ashulia left several people injured, including police officers. Police used tear gas and sound grenades to disperse protesters in efforts to clear blockades and restore access to industrial areas.

Bangladesh’s ready-made garment sector is the world’s second largest after China and is central to the country’s economy. The industry employs about 4 million workers, generates more than 80% of national export earnings and contributes about 10% of gross domestic product.

Manufacturers say the sector is already facing rising production costs, periodic shortages of gas and electricity, and uncertainty in energy markets linked to tensions in the Middle East. Industry leaders have warned that continued protests, factory closures and vandalism could further strain operations and lead to temporary shutdowns if production cannot resume.

Government officials have cautioned that if factories remain closed and production is disrupted, export shipments could be delayed and payments from international buyers could be held up. The labour minister said such delays would affect factory owners’ earnings and could in turn create problems in paying workers’ wages.

In meetings with the government, factory owners assured that they would work to clear outstanding salaries as soon as possible. The discussions also covered ensuring that workers receive their monthly wages by the seventh day of each month. Authorities have appealed to workers to resume work to protect the garment industry and the broader economy while the wage board begins its review process.