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Factories in Bangladesh warned on wage hike
Agence France Presse - November 1, 2010
Dhaka – A controversial 80-percent minimum wage increase for Bangladesh's three million garment workers came into force on Monday with the government vowing to prosecute factories that fail to comply.
All of the country's 4,500 garment factories, which produce clothes for top Western brands, must pay workers at least 3,000 taka ($43) a month, up from the $25 minimum wage set in 2006.
Unions had asked for an even bigger increase and tens of thousands of workers staged violent strikes and protests in late July and August, which shut factories manufacturing for groups such as Wal-Mart, H&M and Tesco.
The turmoil was brought under control when the government launched a crackdown, arresting five union leaders, at least one of whom remains in jail, and filing charges against hundreds of workers involved in the protests.
"Legal action will be taken if any employer fails to implement the new pay scale," Labor and Manpower Minister Khandaker Mosharraf Hossain said.
The new minimum wage was set by a government-appointed wage board on July 27 following consultation with factory owners and union leaders.
Some pro-government unions have welcomed the new pay scale, but independent labor groups have said it will not ensure decent living standards for workers and does not keep up with inflation.
Garments accounted for 80 percent of Bangladesh's $16.2 billion of exports last year.
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