Wage board to review minimum pay for pvt-sector workers

The move follows objections from rights groups demanding an inflation-adjusted living wage The Minimum Wage Board for workers in private industrial establishments will hold further discussions with stakeholders to reconsider its proposed minimum wages following strong objections from rights groups and major trade unions, who have demanded an inflation-adjusted living wage. The board took the decision at a meeting on Sunday, meeting sources said. On August 3, the board recommended through a gazette notification a minimum monthly wage of Tk 7,002 for adult unskilled workers and Tk 6,505 for adolescent workers in private industrial establishments, mostly in the informal sector. Agricultural and domestic workers are excluded from the proposed rates. The board had invited recommendations and objections from the public and industry stakeholders within 14 days of the gazette's publication. Several rights and labour organisations, including the Jatiya Sramik Federation, Sammilito Sramik Federation and Samajtantrik Sramik Front, submitted objections, demanding withdrawal of the proposal and formal hearings based on field-level expenditure data to reassess the wages. Terming the proposed rates 'unacceptable', Samajtantrik Sramik Front president Razekuzzaman Ratan said in an objection letter that the board should consider daily wage rates of Tk 700 to Tk 850 fixed in 2025 for divisional cities. Citing high inflation and rising living costs, he rejected the proposed daily wage equivalent of Tk 235 and called for the rates to be reassessed in consultation with labour representatives. Rights groups also argued that setting separate wage tiers for adult unskilled and adolescent workers contradicts Section 141 of the Bangladesh Labour Act, 2006. They called for a 'living wage' model based on actual living costs, market prices, inflation, national income, worker productivity and family needs rather than employers' ability to pay. They also said wages for young workers should be determined based on output and working hours, ensuring that age is not used to justify lower pay. The groups demanded a minimum wage that would keep workers from falling below the national poverty line. Syed Sultan Uddin Ahmed, executive director of the Bangladesh Institute of Labour Studies, said that they proposed at Sunday's meeting that the board formulate a fresh wage recommendation based on key indicators, including relevant laws, inflation, the cost of living and the newly announced pay scale for public officials. Sultan, a former chairman of the labour reform commission, said the large number of sectors made it difficult to ensure representation of owners and workers from each sector on the board. He called for neutral representatives of employers and workers to be included to help resolve the issue. The meeting decided to hold further discussions with relevant stakeholders before reassessing the proposed wages, he said.