Pushed to extreme poverty and hunger after years of low wages and little to no savings, children were forced to drop out of school and take on work tosupplement the family income. Their parents were forced to borrow money to afford basic essentials. Credit: [Asia Floor Wage Alliance]

Bangladesh’s garment industry has been a cornerstone of the country’s economy for years, accounting for over 80% of its total export earnings and contributing more than 11% to its GDP, according to AFWA.

However, the wages earned by garment workers have remained stagnant for the past five years, with a minimum wage of BDT 8,000 (US$95) fixed during the last negotiation in 2018. This wage is considered poverty level, and with the cost-of-living skyrocketing and the Covid-19 pandemic exacerbating the situation, the situation has become dire for many workers and their families, the Alliance says.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The Asia Floor Wage Alliance (AFWA) has lent support to trade unions’ demand for an increase in the minimum wage from BDT8,000 to within the range of BDT22,000– BDT24,000 (US$207– US$226).

The AFWA said in its statement it “strongly supports the trade unions’ demand for this minimum wage increase as it is an important step towards ensuring that garment workers and their families have the basic resources to survive and endure crises, including the impending economic recession.”

Despite the garment sector’s impressive growth and profitability over the years, the profits have not trickled down to the workers who have helped to make Bangladesh the second-largest exporter of ready-made garments in the world, AFWA adds. The pandemic has further exposed the reality that workers have been living on the edge of bare survival, with many forced to take on debt just to pay for basic consumption.

See Also:

A recent survey conducted by AFWA found that the total expenditure of a family is higher than their income, even when there are two earners in the family working in the garment industry. The survey also revealed that the per capita food consumption of many workers was significantly below the poverty line food consumption standard set by the Bangladesh Government.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

An increase in the minimum wage is a crucial step towards improving the health and safety of garment workers, who engage in hard and long physical labour. The AFWA supports garment workers and their unions in their demand for an increase in the minimum wage and an annual negotiation process to update the minimum wage in line with rising inflation rates.

The AFWA supports garment workers and their unions in their demand for:

  1. An increase in the minimum wages to BDT22,000 – BDT24,000; and
  2. An annual negotiation process to update the minimum wage in line with rising inflation rates.

As the 10th anniversary of the Bangladesh Accord on Fire and Building Safety approaches, the fight for higher minimum wages has never been more pertinent.