Bangladesh Government Hikes Garment Workers' Wages by 56%, Factories Request Global Brands to Help Cover Costs Amid Protests

Protests Continue as Workers Denounce Pay Rise as Insufficient amid High Inflation; Factories Urge Global Brands like H&M and Zara to Absorb Increased Costs in Wake of Wage Hike

The Bangladesh government has raised the minimum wage for garment factory workers by 56% to $113 per month, initiated as a response to the severe protests that have recently hit the country's major industrial areas.
The garment workers have rejected this raise as insufficient, calling it 'extremely frustrating' amid an inflation rate of 9.5%. The protesters were initially demanding a monthly wage of $208.
The protests began after the Bangladesh Garment Manufacturers and Exporters Association proposed a 25% wage hike, far below the workers' demands. The unrest included acts of violence and property damage, with tens of thousands of workers participating in public demonstrations.
Several factory owners are appealing to global brands including H&M, Zara and others to absorb the increased costs caused by the wage hike. They argue that production costs have spiked due to higher energy prices and transportation costs, forcing them to manage slimmer margins.
While many fear the wage increase would disrupt an industry that contributes to 16% of the nation's GDP, critics insist the influential factory owners should do more for workers, considering that Bangladesh annually earns about $55 billion from garment product exports.

South China Morning Post