Workers demand more than double the existing minimum wage as factory closures and production disruptions raise concerns over export orders and manufacturing operations.
Bangladesh’s garment industry is facing significant disruption following widespread worker protests over wages, leading to the temporary closure of dozens of factories and clashes between demonstrators and police. In response, the government is set to establish a wage board to review salary structures and address growing concerns among garment workers.
Workers are demanding a minimum monthly wage of 30,000 taka (approximately US$245), more than twice the current minimum wage of 12,500 taka. They say rising costs of essential goods, housing, transportation and healthcare have placed increasing pressure on their household finances.
Labour and Employment Minister Ariful Haque Chowdhury announced that the government would formally constitute a wage board following discussions with labour representatives and industry stakeholders. The initiative aims to address workers’ demands and restore stability across the manufacturing sector.
The protests intensified in Ashulia, a major garment manufacturing hub near Dhaka, where approximately 30 factories declared holidays amid the unrest. Hundreds of workers also blocked a major intersection in Dhaka, while demonstrations in other industrial areas disrupted traffic and factory operations. Clashes between workers and police in Ashulia resulted in several injuries, prompting police to use tear gas and sound grenades to disperse protesters.
The government has urged workers to return to their workplaces, warning that prolonged factory closures could disrupt production schedules, delay export shipments and affect payments from international buyers.
Wage Dispute Adds Pressure to Bangladesh’s Export Industry
The developments have raised concerns about Bangladesh’s ready-made garment (RMG) industry, which employs approximately four million people and contributes more than 80% of the country’s export earnings. As the world’s second-largest garment exporter after China, the sector accounts for around 10% of Bangladesh’s GDP and plays a central role in its economy.
Manufacturers are already dealing with several operational challenges, including rising production expenses, recurring gas and electricity shortages, and uncertainty in energy markets amid geopolitical tensions in the Middle East.
The latest wage dispute adds another layer of pressure on an industry facing increasing cost and supply-side challenges. Continued industrial disruptions could affect manufacturing schedules, export commitments and the timely delivery of orders to international fashion brands and retailers.
As discussions over wage revisions move forward, maintaining production stability while addressing workers’ demands remains a major challenge for Bangladesh’s garment manufacturing sector.