It is really astonishing to see that Hafizuddin Ahmed, holding a cabinet post, made such a provocative statement at a time when normalcy was almost restored in the RMG sector, and the Minimum Wage Board (MWB), formed in late May, was trying hard to arrive at a consensus on minimum wage for RMG workers, when the RMG workers' representatives in the MWB appeared to be flexible in their original demand for Taka 3,000 as minimum basic monthly wage, when State Minister for Labour and Employment Aman Ullah Aman said (July 22) that the government would soon implement the tripartite memorandum of understanding (MOU), signed on June 12, between the owners of the RMG industry, Sramik Karmachari Oikkay Parishad (SKOP), and the government and called upon the owners and workers to co-operate with the government in this regard.

The tripartite MOU of June 12 agreed on 10 conditions which included, inter alia, withdrawal of the cases filed against the workers, no retrenchment of workers, giving appointment letter and identity card to all workers, allowing fair trade unionism, holidays as per existing labour law, and formation of MWB. The meeting, held under the chairmanship of the state minister for labour and employment, prior to signing of the tripartite agreement on June 12, decided to declare and implement the minimum wage structure within three months of the formation of the MWB and implement other terms of the agreement within one month's time.

As a sequel to the tripartite MOU of June 12, another MOU was signed on June 22 between 16 RMG workers' organisations and owners. The MOU, containing 16 points, is basically an elaboration of the 10 points contained in the June 12 MOU. The new MOU further agreed to the implementation of the minimum wage from June, no matter when it is announced by the MWB.

The media has reported that a survey recently conducted by the NGO Karmajibi Nari in 100 factories located in Dhaka and its neighbourhood, reveals that conditions relating to payment of salary and compensation for overtime duty, maternity and other leaves, working hours, sanitary situation, child-care centres are still unsatisfactory in most garment units, and sexual harassment and oppression of workers are still going on in many factories. It has demanded that necessary measures be taken to implement the tripartite agreement. Nari Uddog Kendra, another NGO, formed a human chain at Muktangon in Dhaka city on July 27 demanding immediate implementation of the tripartite agreement of June 12.

Terming the workers' demand for monthly minimum wage "astronomical" the owners' representatives in the MWB are reported to have said that the industry cannot afford to meet such demands. According to them, the RMG owners are also facing some other problems which include, inter alia, payment of an extra $100,000 on each ship at the Chittagong port, difficulties in getting imports clearance on time and incurring of huge hidden expenditure.

The RMG workers' representatives in the MWB, on the other hand, are reported to have demanded "just salaries" for the workers taking into consideration that cost of living has increased manifold between 1994, when the minimum wage was fixed at Taka 950 a month, and 2006.

It may be mentioned that the Brussels-based International Textile, Garment and Leather Workers' Federation has already termed the hourly 6 cent wage of a Bangladeshi RMG worker "truly scandalous" compared to 20 cents in India and Pakistan, 30 cents in Sri Lanka, 40 cents in China and 78 cents in Thailand.

An independent member in the MWB, in this case a university teacher who has no axe to grind, reportedly suggested Taka 1,800 as the minimum monthly basic wage in a recent meeting of the board against the owners' proposal for Taka 1,230 a month. The MWB is known to have noted the suggestion of the independent member.

Questions have been raised as to why the RMG owners are unwilling to pay reasonable wages to workers when apparels are drawing higher prices in the US and the EU. Quoting the industry source, a Dhaka daily reported that Bangladeshi manufacturers of RMG were getting increased unit prices for their products in recent months, which saw a surge in orders from European and American buyers.

Prices started increasing after imposition of interim quota on some Chinese categories in mid-2005, which forced many buyers to turn to Bangladesh, a traditionally low-cost source of apparels. Quoting market reports provided by the EU and US importers, one factory owner said that unit prices of "made in Bangladesh" garments increased up to 46 per cent during the past four months.

The president of the Bangladesh Knitwear Manufacturers and Exporters Association, who is also a member of the MWB, has reportedly admitted that high value products are luring more buyers into Bangladesh's apparel market and pushing up unit prices. The recent significant increase in the unit prices of apparels in the US and the EU could not convince our RMG owners to reasonably enhance the wages of workers to enable them to lead a decent life.

Recent media reports suggest that foreign buyers of RMG products also have called for further measures to address workers' grievances that led to the recent commotion in the RMG sector.

Studies conducted on the RMG sector have attributed the success of the sector to a number of factors which include, among others, government support, contributions from the cheap, disciplined and regimented workers, emergence of a dedicated entrepreneur class and encouraging response from the foreign buyers.

The RMG sector plays a vital role in our national economy by earning more than 70 percent of our foreign exchange and providing jobs to over 2 million workers. Considering the importance of the RMG sector, the MWB has to recommend a minimum basic wage structure that will protect the interests of both, workers and owners, and thereby help expand the industry further. There must not be any provocation from any quarters, to workers or owners, that may contribute to the recurrence of the situation of May last. The government has to ensure that the agreed decisions are implemented on time, and fully.

M Abdul Latif Mondal is a former Secretary to the Government.