Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the US clothing retailers and brands to pay higher prices from December 1 as the owners are set to pay higher wages as fixed by the government to workers.
BGMEA President Faruque Hassan made the request in a recent letter to Stephen Lamar, president and chief executive officer of the American Apparel & Footwear Association (AAFA).
In the letter, Faruque said, “Ensuring decent living of the workers is also a top priority for us as well as for global brands and retailers,”
Faruque went on saying, “Since we’ve accepted the new minimum wage, we will ensure its implementation. We need your support in terms of responsible purchasing practice.”
The Minimum Wage Board has increased the minimum wage for garment workers to Taka 12,500 from Taka 8,000 now. It will come into effect from December 1 and workers will receive salaries under the new structure in January.
The BGMEA president said the declaration was made based on the proposal submitted by the Minimum Wage Board, which was widely consulted and agreed by the stakeholders including worker’s and employer’s representatives.
He said the new minimum wages came at a time when the global economy is passing through an unprecedented situation, so does the country’s economy. The RMG industry in Bangladesh is feeling the heat of this crisis, especially with soaring inflation. All our input costs have increased significantly including fuel, gas, electricity, transportation, etc.
Faruque said from the first of July this year, the Bangladesh Bank has increased interest rates which made trade and investment finance more costly.
“To ensure uninterrupted and smoother operation in the industry, it is important that prices of all goods, which will be shipped from December 1, are duly adjusted or up-charged covering the increment in the wage component,” Faruque added.
He said, “Furthermore, from now onward, all business negotiations and deals will have to adhere to the new minimum wage policy.”
The BGMEA chief requested the AAFA to convince its members to collaborate with their Bangladeshi suppliers with due empathy and consideration.
“With every effort and action we take, we mean to complement our long-term goal, which is to grow mutually and sustainably,” he added.
Faruque said the BGMEA is working with the government to ensure a more favourable business environment.
