CPD research director Khondokar Golam Moazzem said a mere $0.07 increase in the manufacturing cost of a garment product by buyers would be adequate to offset the heightened labour expenses.
Any irrational wage hike could risk the sector's competitiveness, industry leaders said at a discussion on ‘Readjusting Minimum Wages in Garments Sector: Observations and Recommendations’, organised by CPD and Christian Aid in Dhaka.
A CPD survey found that 42 per cent of garment workers are getting salaries below Tk 8,000, 31.1 per cent of workers are not even aware of what grade they work in and 32 per cent are unaware of how much time is required to get the next grade promotion.
The survey collected data from 228 workers in 76 factories located in Dhaka, Narayanganj, Gazipur and Chattogram.
However, Siddiqur Rahman, who represents garment sector owners on the Minimum Wage Board, questioned the survey's methodology, according to domestic media reports. He cautioned against wage increases that could lead to factory closures.
Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), criticised international brands and buyers for imposing additional costs on the country’s apparel manufacturers under the guise of ethical practices, when many entrepreneurs in the sector are burdened with bank loans, individual debts, lawsuits and warrants.
ALCHEMPro News Desk (DS)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!