We may earn commissions if you use the recommended services on this site.  

Bangladesh Increases Monthly Minimum Wage for Garment Workers to $113 after Protests

Latest Business News

Bangladesh Announces New Salary Structure for Garment Factory Workers

Authorities in Bangladesh have announced a new salary structure for protesting garment factory workers, increasing the monthly minimum wage by 56% to $113. However, this decision has been rejected by some workers' groups as insufficient. The new pay structure, announced by State Minister for Labor and Employment Monnujan Sufian, will take effect on December 1.

Protests and Criticisms

The decision comes after weeks of violent protests by workers demanding a monthly minimum wage of $208. Workers have taken to the streets, attacked factories, clashed with police, and set vehicles on fire. Critics argue that influential factory owners should do more to support the workers.

Challenges and Frustrations

Workers claim that the current wages are inadequate, forcing them to work overtime to make ends meet. Kalpona Akter, president of the Bangladesh Garment and Industrial Workers Federation, expressed extreme frustration over what she deemed a meager increase. Rising prices of daily commodities have added to the workers' financial struggles.

Industry Pressures and Economic Factors

Bangladesh is the second-largest garment-producing country globally, with nearly 3,500 factories employing around 4 million workers, primarily women. Factory owners face pressure from global brands offering lower prices, while production costs have risen due to increased energy and transportation expenses. In conclusion, the new salary structure for garment factory workers in Bangladesh aims to address the demands of protesting workers. However, criticisms and frustrations persist as some workers' groups consider the increase insufficient. The garment industry in Bangladesh faces complex challenges, including meeting workers' needs while balancing economic pressures and rising costs.

Implications of Bangladesh's New Salary Structure for New Businesses

The recent announcement of a new salary structure for garment factory workers in Bangladesh, which includes a 56% increase in the monthly minimum wage, presents a complex scenario for new businesses in the region. While the wage increase aims to appease protesting workers, it has been met with criticism from some workers' groups who deem it insufficient.

Understanding the Protests and Criticisms

New businesses must take into account the ongoing protests and criticisms from workers who are demanding a higher monthly minimum wage. This unrest could potentially disrupt operations, and businesses must be prepared to navigate these challenges.

Addressing Worker Frustrations

The frustrations expressed by workers, such as the need to work overtime to make ends meet, highlight the importance of fair compensation. New businesses must ensure they offer competitive wages to attract and retain talent, while also considering the financial realities of operating in the region.

Navigating Industry Pressures and Economic Factors

As the second-largest garment-producing country globally, Bangladesh presents significant opportunities for new businesses. However, they must also contend with industry pressures, such as competition from global brands offering lower prices and rising production costs. In conclusion, while the new salary structure in Bangladesh presents challenges, it also offers important lessons for new businesses. By understanding and addressing worker needs and industry pressures, they can position themselves for success in this dynamic market.
Story First Published at: https://financialpost.com/pmn/business-pmn/bangladesh-raises-monthly-minimum-wage-for-garment-workers-to-113-following-weeks-of-protests
Brought to you by BusinessFormation.io
Know Your State's Registered Agent Requirements: What is a Registered Agent
Learn How To Create An LLC: What Is An LLC and How To Start an LLC Online
Business Formation Services: View Top 3 Online LLC Filing Companies

LLC Filing & Registered Agent Services

Compare Online LLC Filing Services Today

We work with the market leaders in business formation and registered agent services.

Getting started is simple and inexpensive. Form your business today & secure your brand name before someone beats you to it! Click below to view the Top 3 Best LLC and registered agent service providers.
View Top 3 Providers Now

Filing An LLC Can Be Complicated

Streamline Your LLC Filing Online for $39

Northwest Registered Agent is the best-rated service for first time filers.

Get professional LLC formation & registered agent services for only $39 + state filing fee. This offers includes your full LLC setup, plus a private business address, lifetime support, and more.

Trusted by Millions. Save 82% Today.