“We want 190 euros a month”

In Bangladesh, the world's second largest clothing exporter after China, industry workers have been demonstrating for two weeks for the increase in the monthly minimum wage, currently at 8,000 taka (69 euros).

Oliver Thansan
Oliver Thansan
08 November 2023 Wednesday 21:26
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“We want 190 euros a month”

In Bangladesh, the world's second largest clothing exporter after China, industry workers have been demonstrating for two weeks for the increase in the monthly minimum wage, currently at 8,000 taka (69 euros). After this Tuesday the Bangladeshi government announced that the minimum wage in the textile sector would rise to 12,500 takas (106 euros) per month starting December 1, a "ridiculous" amount according to the unions, workers continue to demonstrate and refuse to stop the protests until they obtain almost double the amount offered.

This Thursday, some 25,000 workers demonstrated under the slogan "we want 23,000 takas" (190 euros) in the industrial cities of Gazipur and Ashulia, north of the capital, Dakka, according to AFP figures. As had already happened in previous days, the protests have unleashed violent clashes with the police. "The workers blocked roads and destroyed several vehicles. We had to use tear gas, rubber bullets and stun grenades to disperse the workers, who were throwing pieces of brick at us," explained local police officer Ashraf Uddin. Hundreds of clothing factories have closed, and many others have been vandalized, suffering fires and looting.

At least three people have died in the demonstrations, the last of them, a 23-year-old girl, a sewing machine operator and mother of two, who, according to her husband, died of “a gunshot to the head” when her husband told AFP. Police opened fire on protesters in Gazipur on Tuesday. Given the violence that is being experienced in Bangladesh, the US government is "concerned by the continued repression of workers and union members," and called on Dhaka to "protect the right of workers to peacefully demonstrate."

Union leaders in the clothing sector are denouncing arrests and threats by the police seeking to end the mobilization, according to a leader. Among those detained is Mohammad Jewel Miya, one of the main organizers of the unions, whose release has been demanded in a statement by the United States Department of Labor.

The textile sector is one of the pillars of the Bangladesh economy, representing 16% of GDP and 85% of annual exports. The increase in wages for the almost 4 million people working in this sector throughout the country will increase the costs of clothing production and reduce the profit margins of Bangladeshi producers. But large multinational brands that source from the Asian country will also be affected. At Inditex, for example, around 30% of its suppliers' workers were Bangladeshis in 2021.

Some of those multinationals that source from Bangladesh have shown themselves willing to pay more for Bangladeshi products. A month ago, some members of the American Apparel and Footwear Association (AAFA), which brings together more than 1,000 global clothing brands, expressed to Bangladeshi Prime Minister Sheikh Hasina their desire for workers' salaries to increase. and they recently proposed that the minimum wage be reviewed annually.

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The question that arises now is whether customers of all these brands are willing to pay more. According to Abdus Salam Murshedy, CEO of Envoy Group, which sells to Walmart, Zara and American Eagle Outfitter, among others, buyers were not willing to pay the "right price, the right price" with major economies slowing and wars in Ukraine and the Middle East raising geopolitical concerns.

The workers' movement also comes at a critical moment for the government of Sheikh Hasina, in power since 2009, which for several weeks was also facing demonstrations in favor of her resignation.