Bangladesh Wage Board Forms as Garment Protests Hit 529 Factories

Bangladesh formed a six-member wage board on Sunday to review garment pay, as protests demanding a 30,000 taka ($245) monthly minimum have disrupted operations at 529 factories and affected nearly 1 million workers, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The current minimum stands at 12,500 taka ($100). The dispute sits squarely at the cut-and-make tier of the supply chain, where gas and power shortages plus U.S. tariff uncertainty have already forced partial or total production stoppages and cut the overtime pay workers once relied on.

Thousands of workers continued demonstrating in and around Dhaka after the announcement. Police fired tear gas and water cannons; in Mirpur, protesters set at least one police vehicle on fire. Authorities reported 58 police officers injured since Saturday and 57 arrests.

Labor Minister Ariful Haque Choudhury told reporters the board was formed after talks with worker representatives and industry leaders. It comprises two representatives each from workers and employers, plus a government representative and a neutral member. He urged workers to return to work, warning that prolonged disruptions could delay export shipments and payments from international buyers.

What are suppliers threatening?

BGMEA President Mahmud Hasan Khan told Reuters that if protests persist, "we will have no option but to invoke the 'no work, no pay' provision" due to illegal striking. The standoff echoes the 2023 minimum wage protests, which left four workers dead, led to hundreds of arrests and mass criminal charges against tens of thousands of workers — charges the interim government dropped only two years later.

Home Minister Salahuddin Ahmed said Monday the government would act firmly. "Those engaging in unlawful activities and conspiracies under the guise of labor movements will be tackled with an iron hand," he said after meeting industry leaders. He added that Prime Minister Tarique Rahman, after an emergency cabinet meeting late Sunday, instructed officials to "ensure workers' rights and improve their living standards" while keeping production and exports "unhindered."

Who do advocates say should pay?

Labor groups placed the cost question with buyers, not factories. "Garment workers in Bangladesh are in the streets because 48 cents an hour is not enough to feed their children," said Scott Nova, executive director of the Worker Rights Consortium. "Brands drive the problem by demanding unreasonable prices from suppliers, and brands can fix it by committing to absorb the cost of the wage increase workers are seeking."

M. Azizul Islam, director of the Centre for Sustainability, Accountability and Governance at the University of Aberdeen, said his research found brands frequently burden Bangladeshi suppliers with extra costs and squeeze margins. In some cases suppliers sold clothes for less than they cost to make, even to major brands such as H&M and Inditex. "This severely impacts suppliers' capacity to pay even minimum wages," he said.

Mayisha Begum, labor program officer at the Business and Human Rights Centre, told Sourcing Journal: "Workers have made clear that the current minimum wage is insufficient in supporting workers' needs, particularly in the current climate."

What is the buyer-side position?

The American Apparel and Footwear Association called the new wage board a "critical opportunity" to deliver a fair wage. "AAFA continues to call for a transparent, an annual inclusive minimum wage review process that meaningfully engages all stakeholders, particularly labor groups and trade unions, and takes into account Bangladesh's economic realities," President and CEO Steve Lamar wrote in an email. He urged the government to "safeguard union and collective bargaining rights" and protect participants from retaliation.

Nazma Akter, founder of the Dhaka-based Awaj Foundation, condemned vandalism and burning as "not the solution" but also pressed brands to offer fair prices.

Does a wage rise erode competitiveness?

Md. Rafiqul Islam Rana, assistant professor of retailing at the University of South Carolina, pointed to Cambodia and Vietnam, which he said raised garment wages without losing standing in global sourcing. Better pay can improve retention, absenteeism and quality. "Bangladesh also needs to recognize that its competitiveness depends on much more than cheap labor," he said, citing unreliable energy, infrastructure and financing constraints. As automation and AI spread in apparel manufacturing, he argued, competing on low labor costs alone becomes untenable.

For sourcing teams, the board's timeline is now the variable to watch. Buyers with Bangladesh programs face shipment-delay exposure and pressure to fund any wage settlement through pricing.