Economy
US Apparel Brands Urge PM Sheikh Hasina for Fair Minimum Wage Review
Several prominent apparel brands from the United States have called upon Bangladesh’s Prime Minister, Sheikh Hasina, to play a pivotal role in ensuring a transparent minimum wage review process that includes input from all relevant parties.
On October 13, 15 major American brands jointly issued a letter to the prime minister, urging a successful resolution of ongoing negotiations within the minimum wage review framework. They emphasized the importance of incorporating the perspectives of all stakeholders and reflecting the genuine economic circumstances in Bangladesh.
The 15 brands that penned this letter include Adidas, Gap Inc, Under Armour, Patagonia, Burton, Hugo Boss, Abercrombie & Fitch, Amer Sports, AEO Inc, Levi Strauss & Co, lululemon, SanMar, KMD Brands, PVH Corp, and Puma. The American Apparel & Footwear Association (AAFA) also published this letter on its website.
The letter acknowledges the critical role Bangladesh plays as the world’s third-largest supplier of garments and an increasingly important source of footwear and travel goods. The brands praised Bangladesh’s commendable sustainability efforts in these sectors, which have garnered well-deserved recognition, emphasizing the value of this crucial partnership.
The brands’ letter underscores three key points for consideration during minimum wage consultations:
– Inclusivity: It calls for consultations to involve all relevant stakeholders, including constructive dialogue with labor groups and trade unions.
– Living Wage: The consultations should aim to establish a minimum wage that aligns with the basic needs of workers, offering some discretionary income while considering inflationary pressures.
– Annual Review Mechanism: The letter highlights that the average monthly net wages for garment workers in Bangladesh have remained unchanged since 2019, despite significant inflation during that period. Therefore, it encourages the adoption of an annual minimum wage review mechanism to account for changing macroeconomic factors.
The brands’ message emphasizes the government’s role in fostering an environment that respects workers’ collective bargaining rights and safeguards their participation in the nation’s development. It underscores the importance of preventing retaliation against participants in minimum wage reviews, promoting an atmosphere of open dialogue and inclusivity.
The letter recognizes the responsibility of apparel brands and retailers sourcing from Bangladesh in facilitating these recommendations through responsible purchasing practices.
The brands express optimism that the final increased minimum wage will significantly improve worker welfare by accurately reflecting the economic challenges faced by garment workers during the pandemic, the ensuing supply chain disruptions, and the current inflation rate.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
