Abstract
Strike and labor unrest is very much common for the Readymade Garments (RMG) sector of Bangladesh. Most of them are basically for payment related issue like irregular wage payment practice of the garment factories owners and significant lag time of wage payment to the workers. With a view to maintaining stability in RMG sector, Ministry of Labor and Employment published new wage structure specially for the RMG sector in November 2018. Though new payout structure has been approved the effective implementation has become a great challenge for the governmental or regulatory authority as more than 50 percent increment in the lower graded workforce gross payout generates expectation gap of the owners of the RMG factories regarding the passion and value generating activities of the lower graded or minimum payout holder working force. High turnover in lower graded labor force and lack of working dedication generates reluctance of the owners to implement new payout structure of RMG sectors. However early stage patience and passion for working in RMG sector may gift a better career growth for the new workforce. Results have also justified the affiliation of a number of factors that may get influenced for the implementation of new minimum wage payout in the RMG sector.
Highlights
Countries which are basically cheap labor oriented hold the readymade garments sector as the major contributor of the total export for those particular countries
Almost every year, the workers of Readymade Garments (RMG) in different industries have been creating violence in the form of procession, vandalizing and blockading the roads to hike their minimum wage, attendance bonus and to ensure other facilities [26]. Such situation hampers the productivity and spoil the image of this industry to the global buyers that adversely affects the overall export of those countries though payout and other incentive hold better scenario for the RMG factories established in the export processing zones (EPZ) of the country [16]
This paper considers the minimum payouts of garments industries in Bangladesh at different period of times from 1984-85 to 2019-20 along with its related effects on the performance and profitability of the overall garments industries. 6th payout structure has been published by the Ministry of Labor and Employment in November, 2018
Summary
Countries which are basically cheap labor oriented hold the readymade garments sector as the major contributor of the total export for those particular countries. For the allurement of such competitive advantage the owners of the garments industries in those countries are very much negligent towards the working condition along with the living standard of their workers They are exploiting our cheap labor like foreign countries. Almost every year, the workers of RMG in different industries have been creating violence in the form of procession, vandalizing and blockading the roads to hike their minimum wage, attendance bonus and to ensure other facilities [26] Such situation hampers the productivity and spoil the image of this industry to the global buyers that adversely affects the overall export of those countries though payout and other incentive hold better scenario for the RMG factories established in the export processing zones (EPZ) of the country [16]. The last session is going to critically analyze the implementation scenario of the current payout structure, owners’ perspective of the RMG industries by analyzing the interview data and career prospect analysis of lower graded new workforce or root level fresher workers through a couple of case studies
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