The Workplace – based Dialogue Network (WBDN) convened a meeting on 23 March 2025, to discuss the initial findings of research titled “The implementation status of the new minimum wage structure and its impact on RMG workers in Bangladesh.’’ Under the STITCH Consortium (a coalition of the Ethical Trading Initiative, Mondiaal FNV, and Fair Wear Foundation) and the Centre for Entrepreneurship Development (CED) at BRAC University jointly conducted this research.
The primary objective of this study was to assess the implementation of the new wage structure across the industry, evaluate the challenges faced by factories, and explore the broader impact this change is having on the sector.
This session was led by Dr. Shahidur Rahman, Professor in the Department of Economics & Social Sciences at BRAC University.
The event, hosted by ETI Bangladesh in collaboration with RISE, brought together 30 participants. Among WBDN members, representatives from, ILO, Ilo-BWB, GIZ, BRAC, Amfori BSI, The Asia Foundation, Mondiaal FNV, FairWear, Solidaridad Network Asia, TDH Italia, Laudes Foundation, Shimmy Technologies attended the meeting.
The open discussion session, moderated by Munir Uddin Shamim, Senior Manager, ETI Bangladesh, saw active participation from attendees who raised issues and recommendations. One of the key concerns was the exclusion of the Small and Medium Enterprise (SME)segment from the study, with participants urging for more attention to be given to smaller factories that face unique challenges in implementing the new wage structure. The discussion also touched on the need to optimise operational costs without resorting to workforce reduction, as well as the potential inflationary impact of yearly wage increases.
The need for greater transparency and depoliticisation of the wage-setting process was emphasised, with suggestions to announce wage adjustments well in advance to allow factories and workers to plan accordingly.
The discussion further explored the socio-economic impact of the wage increase on workers. While it was acknowledged that workers are benefiting from the revised wages, the benefits are not meeting expectations. Participants recommended additional measures for worker betterment, such as ration systems, subsidised housing, and other non-wage benefits. The importance of considering inflation rates when calculating realwage increases was also highlighted, as was the need to address the gendered impact of automation, which disproportionately affects women workers in Basic-skilled jobs
The meeting concluded with remarks from Smita Nimilita, Global Foundations Head and Bangladesh Country Lead, RISE, who recommended including mid-level management (supervisors and line chiefs) in future studies to address concerns about limited career progression opportunities for workers.
The event underscored the need for a more inclusive and transparent approach to wage governance in the RMG sector, with a focus on addressing the challenges faced by SMEs, mitigating the impact of automation, and ensuring that wage increases are sustainable and beneficial for all workers.
