Bangladesh wage review leads four-market labor roundup

Bangladesh’s government will form a garment wage board, with a gazette notification (official notice) possible by the end of October, countering a manufacturer push to defer the mandatory review until 2028.

What changes for Bangladesh’s wage floor?

Labor and Employment Secretary Md. Abdur Rahman Tarafder said nominations for worker and employer representatives are underway. The board will negotiate after notification and consider Bangladesh’s economic position, neighboring-country wage rates and factory conditions when setting the new minimum.

The current 12,500-taka ($101) monthly minimum was set in November 2023 after mass, frequently violent protests. Workers and labor groups then called for 23,000 taka ($186) amid inflation. Four consecutive days of protests in Uttara, Dhaka, earlier this month sought 30,000 taka ($243).

Industrial disruption has spread across Bangladesh’s industrial zones since August through sudden factory shutdowns, widespread layoffs and failures to pay wages and other dues. Last week, police used tear gas, water cannons and batons while dispersing garment workers in Uttara who demanded unpaid wages and higher pay. At least 50 people, including 19 police personnel, were injured.

Why are Turkish factories contracting?

TYH Tekstil, a major apparel manufacturer headquartered in Istanbul, announced this week that it closed seven of 13 factories in Turkey and laid off 5,000 workers. Chairman Selçuk Mehmet Kaya cited escalating production costs, high inflation and exchange-rate pressure affecting Turkey’s ready-to-wear and textile sectors, saying: “Unfortunately, we are among those most severely affected.”

TYH has entered court-supervised debt restructuring to stave off bankruptcy and will focus its remaining sites on technical textiles and high-value fabrics. Its shutdowns follow a September suspension of operations and Orta Anadolu’s October closure after 73 years in business.

Orta Anadolu’s closure reflected systemic strain in Turkey’s textile industry. The denim producer described weakening global demand, rising operating and financing costs, supply-chain fluctuations and shifting trade dynamics as severe headwinds for the global textile sector.

In a website statement last month, Orta Anadolu said cost reductions, operational-efficiency measures and restructuring evaluations had not made its operating model sustainable under current economic conditions.

Who bears the risk from Cambodia’s closures?

An unexpected glove-factory closure in Kandal province left 200 workers facing financial distress and initial uncertainty over legally required compensation, local media reported. Cambodianess, operated by Cambodian Media Broadcasting Corporation, said Sahakreas Create Bridge Company agreed to pay outstanding wages, severance, seniority indemnity and statutory benefits only after Ministry of Labour and Vocational Training intervention.

Eight workers rejected the initial offer and continued negotiating for travel allowances, public-holiday pay and compensation for insufficient notice. The ministry said their demands exceeded legal requirements.

Center for Alliance of Labor and Human Rights, known as CENTRAL, executive director Moeun Tola told Cambodianess that further closures could deepen job losses and make re-employment harder in already difficult conditions.

He said workers losing jobs without warning bear the brunt. Employers, he argued, are less likely to comply with labor law during shutdowns when workers do not publicly challenge their decisions, including on social media.

Earlier cases show the scale: Thai-owned Hi-Tech Apparel suspended operations and laid off more than 2,500 workers at the Poipet O’Neang Special Economic Zone in July, citing declining brand orders and Cambodia-Thailand border disruption. Chinese-owned ML Intimate Apparel closed in April, leaving nearly 700 workers without employment or final wages.

What does John Lewis’s union pact change?

The John Lewis Partnership, which runs high-end department stores and supermarkets in the United Kingdom, signed a collective agreement with the Union of Shop, Distributive and Allied Workers, its first union recognition deal in nearly 100 years, effective at the end of the month. It covers workers across John Lewis & Partners, Waitrose and John Lewis Money.

The agreement recognizes USDAW for statutory consultation on health and safety, equality and training, while pay and other employment terms remain between the employee-owned partnership and its staff. Chairman Jason Tarry said the agreement complements the partnership’s democratic structures, with partnership councils and forums letting partners hold leadership accountable and shape decisions.

The move precedes Employment Rights Act 2025 changes requiring UK employers to facilitate trade-union workplace access. USDAW general secretary Joanne Thomas said unions provide staff with support, advice, representation and a collective voice. She urged: “We urge other retailers to follow the lead of John Lewis Partnership by engaging with us.”

Sourcing teams should map those four exposures separately when they set country contingency plans and supplier compliance checks.