Blog: The end in sight for Bangladesh pay talks
Leonie Barrie | 18 November 2013
It would finally seem that an end is in sight to the protracted negotiations to raise the minimum wage for millions of garment workers in Bangladesh.
After more than 200 of the country's apparel factories were shuttered last week amid on-going protests by workers calling for higher pay, factory owners finally agreed to the 77% hike tabled by the government-appointed wage board.
According to the latest details, pay is set to rise 77% to BDT5,300 (US$68.17) per month, with the new wage due to take effect from 1 December. The basic salary is also set to rise by 5% each year.
Problems encountered in sourcing from, and setting up, factories in Bangladesh are believed to be among reasons why Japanese brands and retailers are sourcing more garments from China. Indeed, a range of supply issues across Asia should also resonate with buyers in the US and EU too.
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The typhoon-hit Philippines is also hoping for accelerated beneficial trade access to the US and EU in the wake of the disaster.
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