Factory closures threaten exports as Bangladesh forms wage board amid garment workers’ protest

Board reviews minimum wages

The new wage board will review the minimum wage for garment workers. The government has taken this step while seeking to calm protests affecting major industrial areas. Labour and Employment adviser M Sakhawat Hossain Chowdhury said the process of establishing the board was settled. He told reporters he expected no further problems over its formation.

Protests disrupt industrial hubs

Workers have demonstrated in industrial cities, seeking better pay as the cost of living increases. The protest movement has disrupted important manufacturing centres. Clashes between workers and police in Ashulia left several people injured, police said. Those hurt included police officers.

Exports and factory pressures

Labour and Employment Minister Ariful Haque Chowdhury cautioned that extended factory shutdowns and interruptions to production could delay export deliveries. He said payments from international buyers could also be held up, adding pressure for workers and manufacturers.

Garment production is central to Bangladesh’s export economy. The sector employs millions of people and accounts for most of the country’s foreign earnings.

Manufacturers cite rising costs

Manufacturers said they face higher production expenses, periodic shortages of gas and electricity, and uncertainty in energy markets. They linked the market uncertainty to Middle East tensions during the United States-Israel war on Iran.

These pressures add to the challenges confronting factories as protests continue. The wage board’s review is focused on the minimum pay issue at the centre of workers’ demands.