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.
