As the sun sets on the tumultuous month of Bangladesh Garment Workers Strike in ready-made garment (RMG) sector, the nation grapples with a complex web of socio-economic and political challenges. The demands of the 4.4 million-strong workforce for a threefold increase in their minimum wages have shaken the foundations of an industry that has long been the cornerstone of Bangladesh’s economy. The repercussions extend far beyond the factory floors, intertwining with political dynamics, economic intricacies, and global sustainability concerns.
Bangladesh Garment Workers Strike
Workers’ Demands and Government’s Response:
Since the last week of October, the RMG sector workers have been united in their call for a threefold increase in their legally mandated minimum wages—from 8,000 Bangladeshi Taka (BDT) to 23,000 taka ($208). This demand reflects the economic struggles faced by the workforce amidst steep inflation, exacerbated by the COVID-19 pandemic and fluctuating oil prices due to the Russia-Ukraine war.
The Sheikh Hasina government’s proposed over 50% raise in the minimum wage was met with rejection by the garment worker unions, who insist on nothing short of BDT 23,000. Economists, including the Bangladesh Institute of Labour Studies, argue that a minimum monthly living wage should be even higher, at BDT 33,368 ($302), given the current economic conditions.
Economic Significance of Fast Fashion:
Bangladesh, the world’s second-largest exporter of fast fashion after China, relies heavily on the RMG sector, which accounts for 85% of the country’s export earnings, totaling $55 billion in 2022. With a global market share of almost 8%, the sector’s main markets include the U.S., the U.K., Europe, and Canada. Notably, H&M, Levi’s, and Zara are among the major importers.
The RMG sector, consisting mainly of small and medium enterprises (SMEs) employing rural women, has played a pivotal role in reducing poverty in Bangladesh from 44.2% in 1991 to 5% in 2022. However, the sector faces challenges such as rising remittances, a decline in foreign exchange reserves, and government-imposed austerity measures.
Role of Brand Importers:
Global brands, historically criticized for exploiting labor in pursuit of profit, are now facing increased pressure to address workers’ rights. The Action, Collaboration, Transformation (ACT) coalition, comprising 19 garment brands and IndustriALL Global Union, has pledged support for a living wage in the RMG sector in Bangladesh. However, the specifics of changes to “purchasing practices” remain unclear. A meaningful increase in procurement costs could alleviate the strain on RMG SMEs and contribute to higher wages for workers.
RMG Sector and Carbon Emissions:
The RMG sector, a major contributor to Bangladesh’s total emissions, faces challenges in decarbonizing its operations. Despite having the maximum number of U.S. Green Building Council certified RMG factories globally, more efforts are needed to achieve the country’s 15% reduction in greenhouse gas emissions by 2030. Global fashion brands acknowledge these gaps but fall short in responding to the current crisis and decarbonizing their supply chains.
Stakes for Sheikh Hasina:
As the longest-serving female head of state, Prime Minister Sheikh Hasina faces a critical test in the upcoming January 7 polls. The ongoing crisis, coupled with opposition leaders’ incarceration and widespread unrest, poses a significant challenge. How she navigates workers‘ grievances, demands from the RMG sector, and pressures from global brands will determine not only her political future but also the stability of Bangladesh’s economy.
In a career marked by longevity and political prowess, Sheikh Hasina’s ability to address the multifaceted challenges at hand will undoubtedly be one of the defining moments in her legacy. As the nation watches, the threads of Bangladesh’s future hang in the delicate balance of economic reforms, social justice, and environmental sustainability