RMG Crisis Demands Reform beyond Wage Revision

We earlier wrote in an editorial that Bangladesh’s garment industry needs structural reform, not temporary relief, to address workers’ growing frustration over wages and working conditions. The formation of a six-member minimum wage board was a welcome step, but we cautioned that its success would depend on whether it considered the actual cost of living rather than the financial convenience of factory owners. Recent unrest has reinforced that warning, exposing the weaknesses of an industrial model that relies heavily on low labour costs while offering inadequate protection for workers’ livelihoods and rights.

According to media reports, demonstrations in Savar, Ashulia, Gazipur, Mirpur and other industrial areas have escalated into clashes with police, road blockades and the closure of more than 300 factories. Several journalists have also come under attack, while a young worker, Toufiq Mia, reportedly died after being beaten during the unrest. These incidents demand impartial investigation and accountability. However, the immediate violence should not overshadow the grievances driving the protests. Workers demanding a Tk 30,000 minimum monthly wage are struggling to meet rising food, housing and transport costs. Allegations of arbitrary dismissal, blacklisting and unpaid wages have further eroded their trust in factory management.

The crisis also raises serious questions about the long-term competitiveness of the country’s garment industry. Although the sector generates substantial export earnings and employment, its dependence on low production costs has made it vulnerable to labour unrest. Factory closures disrupt supply chains, threaten export orders and weaken buyers’ confidence. More fundamentally, an industry cannot achieve sustainable productivity by keeping its workforce economically insecure. International brands also contribute to this imbalance when they demand lower prices and faster deliveries without offering suppliers sufficient margins to maintain decent working conditions.

Against this backdrop, the wage board must deliver a credible proposal by its announced December deadline, taking inflation and actual household expenses into account. Yet a revised wage structure will mean little unless factory owners also address arbitrary dismissals, blacklisting and unpaid wages. The government must strengthen labour protections, ensure impartial investigations into violence and prevent excessive use of force against demonstrators. Meanwhile, international buyers should adopt responsible purchasing practices, while factory owners must invest in technology, skills development and better management to reduce their dependence on cheap labour.

We have repeatedly argued that Bangladesh cannot secure the future of its garment industry through low wages alone. The present unrest makes it clear that competitiveness must rest on productivity, fair employment conditions and responsible business practices. We expect the government, factory owners and international buyers to recognise their respective responsibilities and pursue meaningful reform. The ultimate test will be whether the industry can protect workers’ livelihoods while sustaining its position in the global market, rather than merely restoring factory operations whenever unrest subsides.