"‘A heightened atmosphere of fear’: Bangladeshi garment workers' fight for fair pay isn't over", 11 January 2024

After months of protests, the heavily politicised minimum wage negotiations in Bangladesh have come to a close, but experts say the aftershocks will be felt across the garment industry for years to come.

The Bangladeshi government has set the new monthly minimum wage at 12,500 taka (about $113) — just over half of the 23,000 taka (about $208) proposed by workers and unions when talks started in April. The trade unions that came together for the negotiations have called off the protests in order to redirect their efforts in the short term to incremental changes within individual factories, but they maintain that the minimum wage is still far below what’s needed to support a family in Bangladesh and a longer-term solution must be found.

The impact of the violent crackdown from the Bangladeshi police and military is still being felt. Throughout the protests,...there have been reports of violence against protestors. This only became worse when, with wage protests taking place simultaneously alongside pre-election rallies, political opposition attempted to co-opt the cause for their own gains..

Already at least four garment workers have been killed, hundreds more hospitalised or injured, and advocacy group Worker Rights Consortium (WRC) estimates that between 115 to 200 remain in prison (many in dire conditions with no option of bail). Several news outlets have reported 3-4,000 workers being fired for having participated in the protests; WRC says it has yet to verify these claims...

“Many of the workers in jail are sick, the cells are crowded and cold, and they have no access to the outside world,” says Thulsi Narayanasamy, director of international advocacy at the WRC. “The hope is that they will be released now the election is over, but there are no guarantees. The workers are really frightened.” There is also the threat of up to 60,000 further arrests, thanks to a series of First Information Reports (FIRs) filed against workers. (FIRs essentially accuse large groups of unnamed workers of violence, opening the door for future arrests without substantive evidence.) The Bangladeshi government did not respond to a request for comment.

Meanwhile, the muted response to the crackdown by the many global fashion brands that source from Bangladesh rang alarm bells about what the industry is willing to turn a blind eye to, says Narayanasamy. This still needs to be addressed. “We have seen violence, arrests and terminations, all with the tacit approval of brands because it has been incredibly well documented in the media,” she says...

Bangladesh is the second-largest exporter of ready-made garments, according to the Asia Floor Wage Alliance (AFWA), and — not coincidentally, experts say — its wages are among the lowest in the industry. The sector employs 4.4 million people (mostly women) and contributes over 11 per cent of the country’s GDP. Despite inflation and the Bangladeshi taka weakening against the US dollar, the national minimum wage for garment workers has not increased since the last negotiations took place in 2018, when it was set at 8,300 taka (about $95 at the time, or $75 today) per month...

The onus is on suppliers to cover the costs of any wage increase, unless brands are willing to adjust purchasing practices and pay more for their orders.

In September, Action, Collaboration, Transformation (ACT) — an agreement between 19 global brands and Industriall Global Union “in pursuit of living wages” for garment workers — issued a letter in support of increasing the minimum wage. Signatories including PVH, Asos and Inditex recognised “the crucial contribution brands need to make through their purchasing practices and engagement with manufacturers and suppliers in Bangladesh”. Then, in October, members of the Fair Labour Association (FLA) — including Patagonia, Adidas and Hugo Boss — followed suit, with another letter urging the government to support a “successful conclusion” to the minimum wage negotiations, which “incorporates the views of all stakeholders and reflects the economic realities in Bangladesh”.

Both letters asked the government to refrain from punishing protestors, and underscored the importance of collective bargaining and freedom of association in peaceful negotiations. They also referenced commitments to more responsible purchasing practices that enable the payment of living wages.

However, advocates say neither letter explicitly supported the 23,000 taka figure proposed by workers, nor directly committed its brand signatories to absorbing the cost of this increase, which trade unions argued was necessary. This shows where human rights and sustainability actually sit on brands’ priority lists, says Nazma Akter, founder of labour rights NGO Awaj Foundation and president of Bangladeshi union Sommilito Garments Sramik Federation. “A statement is not the solution. There needs to be action, collaboration and direct support.”

According to...Remake, H&M was the only brand that publicly committed to absorbing the cost of increasing the minimum wage to 12,500 taka, and Patagonia was the only one that committed to the higher 23,000 taka figure proposed by workers...

“A lot of brands just hid behind industry associations and gave watered-down statements about wanting the process to be equitable, but never actually committed or supported the minimum wage workers wanted,” says Remake founder and CEO Ayesha Barenblat.

Remake says it circulated a letter to brands that source from Bangladesh at the height of the protests, calling for them to support workers and let the government know they would absorb the cost of increased minimum wages. Not one signed...

Recent reports suggest that brand-supplier relationships globally are slowly improving. But the wage negotiations in Bangladesh were an opportunity for brands to listen to and support their suppliers...and that opportunity was wasted...

All roads lead back to commercial practices. “We walked into last year with brands and retailers centring cost-cutting measures. What that looks like on the factory floor is pushback on FOB (free on board) price, delayed payments and retroactive discounts,” continues Barenblat. “The way the industry is structured and how products are sourced from this region results in these rock-bottom-poverty wages and unsafe conditions. Until we tackle commercial practices, we will get nowhere.”