Tug-of-war over minimum wage: strikes in Savar

Tug-of-war over minimum wage: strikes in Savar

Bangladesh, tug-of-war between workers and tanners. The first are striking because they want a new minimum wage to be implemented. But since Nov. 21, company owners have been putting off the issue, arguing that the increase is unsustainable: it could cause most businesses to close.

The tug-of-war

Workers from several tanneries in the Savar industrial zone are on strike these days. They are demanding the immediate implementation of the minimum wage set by the government, and they claim that in other industries minimum wages have been properly and promptly enforced since their approval last Nov. 21. Tannery owners, on the other hand, are delaying its implementation. The workers plan to move to stronger actions if their demands are not met.

The new law

This minimum wage approved by the local government is 18,000 taka (just over 140 euros). While current salaries range from 8,000 to 10,000 taka (about 60 to 80 euros). “An insufficient amount to support a family”, workers complain to The Business Standard. However, tannery owners say the new wage is not applicable to current economic conditions. Mozibur Rahman, chairman of the Leather Industry Development Committee (LIDC), which represents some tanners, warns, “Implementing this minimum wage is impossible. If we try, all tanneries will have to close“. Labor organizations and business associations hope to reach an agreement.

Photo from The Business Standard

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