On October 5th 2006, the Bangladesh Minimum Wage Board announced the first raise to the minimum wage for garment workers since 1994. The gross minimum monthly wage has been announced as Tk 1,662.50 (€20.12) including basic salary plus house rent and other allowances for entry-level workers. Previously this was Tk 930.

The announcement means the basic wage without benefits is around Tk 1,100, far below the Tk 3,000 basic wage called for by Bangladeshi trade unions and supported by the Clean Clothes Campaign. Please see: How low can you go? for arguments as to why the basic minimum wage must be at least Tk 3,000. This new proposal is not yet law, and will have to go through various processes before it becomes law.

Garment workers in different parts of Bangladesh have been demonstrating against this new proposal and a series of strikes have been planned. As we previously reported, whilst garment workers and their supporters have been demanding wage increases for several years it wasn't until May 2006, following the outbreak of massive labour unrest by workers unable to tolerate the extreme exploitative conditions any longer, that any kind of action was taken by the Bangladesh government and the minimum wage board was formed.

Regardless of the decision of the Minimum Wage Board and whether the law becomes law, brands sourcing from Bangladesh should collectively take the necessary measures to ensure that workers producing their products are paid 3000 Taka as a first step on the ‘ladder’ towards a wage that covers basic needs. Such measures should include also adapting their purchasing practices where necessary to allow suppliers to meet the rise in costs involved.