"New RMG Wage: Some global retailers agree to pay more", 27 December 2023

Some international clothing retailers and brands have already agreed to pay more to their respective suppliers to absorb an increase in wages, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said yesterday.

"It's quite encouraging that we have received formal letters from a few brands confirming their position to pay a price that absorbs the increase in wages," BGMEA President Faruque Hassan said in a statement to journalists and factory owners through WhatsApp.

He said they had received assurances from all of those retailers and brands that they would support the factories in implementing the new wage rate.

As per the gazette notification, the new wage has come into effect from December 1, 2023 and the workers will start drawing the new wages at the beginning of the new year, meaning from January 2024, said Hassan.

"And we have constantly urged the buyers to up-charge the price for all the orders being negotiated from 1 December 2023," said Hassan.

"Therefore, I would encourage you to communicate with your buyers so that the price covers the additional amount caused by the wage increase, and you may use my letters to the buyers as reference," he said.

"I would also humbly urge you to kindly make sure that no orders are accepted below the break-even cost, please, for the greater interest of our industry and its sustenance," he said...

During the first 10 months of 2023, the import of clothing by the US and EU fell significantly, said Hassan.

During the January-October period of 2023, the global import of clothing by the US declined by 22.71 percent in value and 23.80 percent in quantity and by the EU declined by 13.14 percent in value and 16.74 percent in quantity, he said...