After China, Bangladesh is at the forefront of garment exports, then why is the salary of the workers not increasing?

People have once again taken to the streets in Bangladesh. Earlier, when people came on the streets in 2024, then Prime Minister Sheikh Hasina had to leave her chair and come to India. Now the laborers of the country are protesting. According to a BBC report, nearly one million workers in garment factories went on strike last Sunday, shutting down nearly 600 factories in the country.

Now Prime Minister Tahir’s problems are increasing. The ruling party has alleged that the Awami League is behind the siege of the workers as it has more influence over the workers. What is emerging amidst all these speculations is that Bangladesh is the second largest garment exporter after China. The role of this industry is considered to be the biggest in there economy, then why can’t the country whose economy is running despite having such a big business increase the salary of its workers?

How big is Bangladesh’s garment industry?

The readymade garment industry plays an important role in the economy of Bangladesh. There are about 4,000 registered textile factories in the country, employing more than 4 million people. The clothes produced here are sent to around 150 countries of the world. Many international fashion brands also manufacture their clothes in Bangladesh. In the year 2025-26, exports from this sector are estimated to be around $3,870 crore.

This industry accounts for more than 80 percent of the country’s total exports. Its annual turnover is around 10 lakh crore rupees. What is special is that a large population working in this industry is women. Despite such a large business and employing millions of people, the income of the laborers working here has not increased as expected.

Why is the salary of the workers not increasing?

1. Wages are very low compared to inflation- The minimum monthly wage for workers working in garment factories in Bangladesh is Rs 12,500. In Indian rupees it is around 8,800 to 9,500 rupees. Workers say that it is becoming difficult to meet house rent, ration, electricity and other essential needs with the current income. This is the reason why the workers are demanding to increase the minimum wage to 30,000 taka i.e. about 23 thousand rupees per month. Their argument is that everyday things have become more expensive in the past few years, but their incomes have not increased at that pace. In such a situation, it is becoming difficult to meet the expenses of the family with the current salary.
2. Manufacturers also face cost pressures- There is a conflict between workers’ demands for higher wages and the financial condition of manufacturers. Industry associations such as the Bangladesh Garment Manufacturers and Exporters Association say there is a lot of competition in the international market for garment prices. On the other hand, costs related to raw materials, electricity, gas and manufacturing are continuously increasing. In such a situation, it is not easy for companies to give a big lump sum hike in wages. Owners believe that if production costs increase, their competitiveness against international buyers may be weakened.
3. Costly supply of electricity and gas led to a decline in profits- Regular supply of electricity and gas is essential to run continuous production in the garment industry. But Bangladesh still faces challenges regarding energy availability and pricing. Fluctuations in international fuel prices and dependence on imports also affect the industry. Factories have become expensive to operate due to rising electricity and gas prices. Which directly affects the profit of the companies. In such a situation, factory owners are emphasizing on managing production costs and business first rather than increasing workers’ salaries.

Political instability exacerbated business difficulties

Political and economic uncertainty following the change of power in Bangladesh in 2024 has also affected business. Issues such as protests, factory shutdowns and supply disruptions are coming to light on various issues. Business in the garment industry largely depends on overseas buyers and timely delivery. In such a situation, it becomes difficult to fulfill orders due to factories being closed or production being affected. This increases financial pressure on companies and complicates the issue of raising wages.

Questions are also being raised on the process of determining the salary.

In Bangladesh, a wage board is constituted by the government to determine the minimum wages of textile workers. These boards have roles of workers, factory owners and government representatives. However, labor unions have alleged that salaries are not reviewed on time and are not increased as per their requirement. He says that wages should be fixed keeping in mind inflation and increasing work pressure. At the same time, the industry is wary of raising wages based on production costs and international competition. This tussle is creating a big gap between the demands of the workers and the consent of the factories.