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Minimum Wage Council lacks data, transparency (experts)
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Minimum Wage Council lacks data, transparency (experts)

The speakers are attending a discussion titled “Wage Determination of Minimum Wage Board: Scope, Challenges and Way Forward”, organized by the Bangladesh Institute of Social Studies at the Daily Star Center in Dhaka yesterday. Photo: collected

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The speakers are attending a discussion titled “Wage Determination of Minimum Wage Board: Scope, Challenges and Way Forward”, organized by the Bangladesh Institute of Social Studies at the Daily Star Center in Dhaka yesterday. Photo: collected

The Minimum Wage Council, a government regulatory body tasked with recommending changes to the minimum wage in different sectors, is operating with limited data, which could lead to a lack of transparency and fairness in the wage-setting process, according to activists and labor rights experts. .

“Limited board data complicates assessments of employers’ ability to pay and broader questions of productivity,” said Mostafiz Ahmed, associate professor of social work at Jagannath University.

“The regulatory agency should create a dedicated research arm to address this issue,” Ahmed said at an event titled “Minimum Wage Determination: Scope, Challenges and Way Forward,” organized by the Institute of Bangladesh Social Studies (BILS). at the Daily Star Center in Dhaka yesterday.

In his opening speech, Ahmed said the wage-setting process may not be transparent and fair without clear calculations and economic justifications.

Experts pointed out that 20 of the 42 sectors have not seen a steady increase in wages for periods ranging from 6 to 40 years.

According to him, this could cause discontent among workers and employers.

The Minimum Wage Board, the statutory body responsible for setting private sector wages under the Bangladesh Labor Act 2006, receives and considers comments on recommended wage rates for 42 sectors, adjusting them if necessary.

According to different labor rights organizations, there are around 6.50 million workers in these sectors.

However, the sector that employs the most in the country, agriculture, does not have a set minimum wage. Wages in local agriculture are determined by labor demand and supply, while other sectors have large minimum wage gaps.

Ahmed highlighted that 20 of the 42 sectors have not seen a steady increase in wages for periods ranging from 6 to 40 years.

“Two sectors have not seen any revision in the last 35 years, while salary revisions in eight sectors were overdue for 10-15 years and in 10 sectors for 6-9 years.”

He called for a review of sectoral salaries every five years.

Ahmed also pointed out that the Minimum Wage Board’s workplace inspections do not have a standardized format.

Without consistent guidelines, inspections may be less effective and the data collected may not provide a reliable basis for decision-making, he added.

He also recommended expanding the council’s human resources to enable more efficient operations.

He proposed several reforms, including establishing a national minimum wage, democratizing the selection of representatives of the Minimum Wage Council, setting criteria for independent members, and improving sectoral representation and accountability .

Ahmed also recommended regular salary reviews, fixed meeting schedules and publishing proceedings on the board’s website to keep workers and stakeholders informed.

He said that although the announcement of salaries is supposed to come within six months of the creation of the salary board, in this case it takes two or three times longer or even more.

In this case, the question remains what type of politics determines the selection of board members, he added.

Anwar Hossain, vice president of BILS, said the attitude of depriving workers should be overcome and their quality of life, economic empowerment, market conditions, price increases and other factors should be overcome. be taken into consideration.

Nazma Akter, a union leader in the garment sector for over 35 years and now president of the Sammilito Garment Sramik Federation, said workers cannot be deprived of fair wages in the name of protecting livelihoods. of the industry.

She said the government will have to offer a decent wage, taking into account the participation of employers and workers in the economic development of the country.

Mamunur Rashid, chairman of the Minimum Wage Council, said the council had to work within its limits.

He said workers cannot assert their rights as strongly as owners and therefore owners should be more worker-friendly.