Nearly half of the sectors monitored by the Bangladesh Minimum Wage Board are not increasing wages regularly, a study has found. Of the 42 sectors examined, 20 – or around 48% – did not increase the wages of their workers.

The Bangladesh Institute of Social Studies (BILS) presented the study today at a panel discussion titled ‘Board Minimum Wage Determination: Scope, Challenges and Way Forward’, organized at Daily Star Center in Dhaka .

According to the Bangladesh Labor Act, the minimum wage must be reviewed and updated every five years. However, the study shows that these 20 sectors have failed to raise wages within the required time frame.

“Irregular revision of the minimum wage, non-compliance with the stipulated five-year interval, political bias in the selection of employer and worker representatives, as well as inadequate basic work are common problems,” says the report.

Sectors affected include aluminum and glass enamel, automobile workshops, bakeries, biscuits and confectionery, tanneries, shipbreaking, tea packaging, pharmaceuticals, soap and cosmetics, hotels and restaurants, land ports, jute pressing and baling, match industries, cold storage, salt. crushing, oil mills and vegetable products, among others.

According to the Minimum Wage Council, some sectors have not increased wages in the past 20 years or more. For example, the gas pump industry last set its wages in 1987.

The study also found that the wages board failed to come up with a new salary within the required six-month time frame after its creation.

While presenting the study report, Mustafizur Rahman, associate professor at Jagannath University, said, “The wages board took 7 months to come up with a new salary for RMG workers. On the other hand, it took 13 months for the tannery sector, 18 months for the shrimp sector. , and about 4 years for tea.”

The study also found that the process of selecting worker representatives to the wage board was controversial. There was no clear evidence of how the salaries were calculated, the calculations were never made public and the independent member did not carry out separate salary calculations.

The report states that “policy decisions regarding salaries were taken before the amounts were finalized, and the declared salaries did not satisfy workers.” He also called for the establishment of a national minimum wage and regular reviews of the minimum wage.

Md Towhidur Rahman, president of the Bangladesh Garment Workers’ Federation, said: “The demand of the hour is a national minimum wage. »

Other labor leaders and experts echoed the call, saying a national minimum wage would set a standard for minimum wages across all sectors in the country.

Masum Billah, legal advisor to the Factories and Establishments Inspection Department, said: “We have already finalized a draft national wage policy.” Additionally, union leaders are calling for a reduction in political influence over the wage board and its members.

Nazma Akter, executive director of the Awaj Foundation, a labor rights organization, questioned the role of the wages board, saying: “If the prime minister increases or intervenes in wages, then what is the need for salary advice?

After presenting her salary proposal for RMG workers, she said she received an indirect threat. She said: “When I posted a salary proposal on Facebook, I was told: ‘This information has reached the Prime Minister.’ »

Union leaders are also calling for a shorter deadline for reviewing the minimum wage, proposing to reduce it by five years to deal with the impact of high inflation.

Razequezzaman Ratan, representative of the Sramik Karmachari Oikkya Parishad, said, “Those on the wage board, especially workers’ representatives, must get their bank accounts verified. Indeed, many people’s accounts swell after the announcement of salaries. »

“Wages are adjusted in response to external pressures”

Neeran Ramjuthan, project manager of the International Labor Organization (ILO), referred to information from the Asia Floor Wage Alliance and said: “Wages are rarely adjusted, usually in response to external pressures rather than to regular evaluations, which limits the proactive role of the board of directors. »

He added: “This can lead to pay disparities with rising inflation and the cost of living.”

He noted that the salary board relies on paper processes, which slows down salary setting and reduces transparency. He suggested that “transitioning to a digital salary review and tracking system could improve efficiency and accountability.”

The ILO expert recommended establishing a regular schedule for salary adjustments, improving digital systems and strengthening consultations with social partners. These changes could help the Wages Commission better respond to labor market conditions and meet the needs of workers.

Mamunur Rashid, Chairman of the Minimum Wage Council, said: “The condition of workers in Bangladesh is distressing. »

Syed Sultan Uddin Ahmed, Executive Director, BILS, said: “Around 80% of labor disputes in the country are mainly centered around wages. So we need to focus on this issue. »

Nazrul Islam Khan, General Secretary of BILS, and Abul Kalam Azad, Secretary of BILS, also participated in the discussion, among others.