Bangladesh Garment Wage Talks Begin as Worker Unrest Threatens a Key Export Industry

Bangladesh’s textile sector faces its biggest test in years as a freshly created wage board sits down on Wednesday for its first round of talks. Its six seats are shared between worker and factory owner representatives. Outside the meeting room, workers have been on the streets for five days, asking for a monthly floor of 30,000 taka, about $243, more than double the current 12,500. Many say food and housing bills have outrun their paychecks.

Protests Disrupt Factories Near Dhaka

Crowds blocked highways in Savar and Gazipur, and police fired tear gas and sound grenades. Hundreds of plants have halted production. The country ranks as the world’s second biggest clothing exporter behind China, with 4 million workers and more than 80% of export income tied to the industry. H&M said a few suppliers shut for a short time but reported no serious delays, though buyers are watching closely ahead of spring and summer orders.

Owners and Economists Weigh the Cost

Factory owners point to higher expenses, regional rivals, uncertain energy prices and softer overseas demand. Dhaka University economist Selim Raihan believes a large raise is manageable if productivity improves, and warns that lasting unrest could damage buyer trust more than higher wages would.