Towards Fair and Reasonable Wages for RMG Workers in Bangladesh: An Analysis of Minimum Wage Regulations and Implementation

Abstract

The apparel manufacturing industry, also known as the Ready-Made Garment Industry (RMG), is a complex global supply chain with a significant presence in many South Asian and Eastern European countries. The RMG industry is characterised as being one of the most labour-intensive industries with a heavy reliance on low wages. This has led to the industry relocating to least-developed countries (LDCs) like Bangladesh, where labour costs are cheaper. Despite being the second largest exporter of garments, workers at the bottom of the supply chain in Bangladesh earn a minimum wage that is insufficient to cover their basic living expenses. This is a significant violation of labour and human rights, as workers have the right to earn a living wage that provides a certain standard of living for themselves and their families. This article will explore the wage scenarios of RMG workers in the last two declarations and discrimination between non-EPZ and EPZ workers. Further evaluating the minimum wage regulations in Bangladesh, specifically analysing the differences and gaps in the minimum wage fixing mechanism in the Bangladesh Labour Act 2006 and the Bangladesh Export Processing Zone Act 2019. It will also highlight the discrepancies between national legislation and international standards for protecting the labour and human rights of RMG workers to earn decent wages.

Keywords: RMG workers, Bangladesh, Minimum wage, Living wage

DOI: 10.7176/JLPG/138-08

Publication date: December 31^st 2023