Basic wage of RMG workers in declining trend

FT ONLINE

Basic pay of the readymade garment (RMG) workers is one of the lowest in the country's industrial sub-sectors, including tannery, pharmaceutical, private jute mills, shrimp and plastic industries.

The basic pay element of gross wages of RMG workers has also been declining over the years, according to a finding of Bangladesh Institute of Labour Studies (BILS).

The basic pay of RMG workers constituted 67.69 per cent of the gross minimum wage in 2006. The proposed one is equivalent to 51.25 per cent.

The basic pay of entry-level garment workers is also the lowest in industrial sub-sectors including tannery, pharmaceutical, private jute mills, shrimp and plastic industries though RMG remains to be the largest foreign currency earning sector.

The findings were disclosed at a roundtable discussion organised by BILS held on Tuesday in the city.

Speakers at the roundtable demanded review of the proposed Tk 8000 minimum monthly wage and increase the basic pay by at least 60 per cent. The low basic pay will also deprive the RMG workers of genuine level of overtime, festival allowance and other allowances.

Mostafiz Ahmed, assistant professor at Jagannath University pointed out that out of the proposed Tk 8000 minimum wage, Tk 4100 is basic pay which represents only 36.7 per cent hike.

On the other hand, house rent has been increased by 70.8 per cent, medical allowance 140 per cent, transport 75 per cent and food allowance 38.5 per cent, he said while presenting his keynote paper titled 'RMG Workers Wage Revision: Reality and Way Forward'.

The basic pay accounted for about 69.62 per cent of the total wage of the construction sub-sector, he mentioned.

The rate is 68.63 per cent in the case of plastic industries, 66.53 in shrimp sub-sector, 65.69 in saw mills, 61.64 per cent in private jute mills, 55.90 in pharmaceutical and 54.69 in tannery sector, he added.

In RMG sector the current basic is 56.60 per cent of total wage while a 51.25 per cent basic has been proposed in the new wage structure, he further said.

Amirul Haque Amin, president of National Garment Workers Federation alleged that the rate of basic pay hike had been gradually declining.

"As other benefits including overtime payment, festival and other allowances depend on basic payment, it must be increased to 70 per cent," he added.

Salauddin Shawpon, secretary general of Industrial Bangladesh Council said minimum wage would not bring any benefits to workers unless the basic pay is not increased adequately.

He suggested placing their demands to the authority concerned before gazette notification of the new wage structure.

Razequzzaman Ratan, another labour leader said RMG workers are being intimidated when they demand their lawful rights on wage-hike.

"Workers are afraid of attending street agitation in realisation of their demands due to severe repression unleashed in 2010," he noted.

Workers wage has gone up by only 8.0 per cent while garment exports increased by over 900 per cent since 80's, he added.

Some of the participants opined that no right organisation has filed any petition for reviewing the wage and there is still room for filing an appeal.

Labour leaders said wage hike for operators are very important as 60 to 70 per cent out of the total workers are operators and only 3-5 per cent are helpers.

Many of the labour leaders also alleged that workloads of workers has already been increased while helpers are being axed from their jobs before implementing the new wage structure.

Few of them demanded for fixing the minimum wage at Tk 16,000. Their other demands included announcement of wage hike in other grades accordingly with 10 per cent annual increment.

Terming Tk 8000 minimum wage 'not sufficient', Khondaker Golam Moazzem, additional research director at Centre for Policy Dialogue said there is scope to raise the proposed wage.

He recommended inclusion of education allowance in the wage structure.