{"id":9285,"date":"2023-11-09T18:20:05","date_gmt":"2023-11-09T18:20:05","guid":{"rendered":"https:\/\/lendingsensibly.com\/business\/violent-wage-protests-in-bangladesh-could-hit-top-fashion-brands\/"},"modified":"2023-11-09T18:20:06","modified_gmt":"2023-11-09T18:20:06","slug":"violent-wage-protests-in-bangladesh-could-hit-top-fashion-brands","status":"publish","type":"post","link":"https:\/\/lendingsensibly.com\/?p=9285","title":{"rendered":"Violent wage protests in Bangladesh could hit top fashion brands"},"content":{"rendered":"
\n

\n Bangladesh has been gripped by violent protests for two weeks, as thousands of garment workers take to the streets to demand better wages for the country\u2019s four million garment workers.\n <\/p>\n

\n Protesters clashed with police \u2014 resulting in the deaths of three workers. Unions there say police have used tear gas, rubber bullets and the protests have turned hostile.\n <\/p>\n

\n \u201cIt\u2019s escalating where it\u2019s becoming more and more violent,\u201d said Christina Hajagos-Clausen, the Textile and Garment Industry Director at IndustriALL Global Union, to which the unions in Bangladesh are affiliated.\n <\/p>\n

\n On Tuesday, the country\u2019s wage board announced an increase of $113 a month for garment workers, set to take effect December 1. That has been rejected by workers and labor groups who say wages have not been keeping up with inflation for the past five years. Inflation rose to 9% between 2022 and 2023 \u2014 the highest average rate in 12 years, according to the Bangladesh Bureau of Statistics.\n <\/p>\n

\n Garment workers in Bangladesh currently make $95 a month producing clothes for big brands such as <\/strong>H&M, Zara and Levi\u2019s. Workers are demanding $208 a month in wages. For comparison, that would still be less than the weekly wage Americans receive making the federal minimum of $7.25 an hour before taxes. Many labor groups in the US call that a poverty wage.\n <\/p>\n

\n \u201cIt is not acceptable,\u201d said Narza Akter, President of the Sommilito Garments Sramik Federation, one of Bangladesh\u2019s largest unions. \u201cWe feel that the workers of the garment industry have been made a mockery of by the board\u2019s announcement\u2026 of the minimum wage. It is not logical at all. If the minimum wage is not set rationally, there is a risk of ongoing labor unrest, which is not desirable for either workers, employers, or the state.\u201d\n <\/p>\n

\n The protests have forced many factories in the country to close, paralyzing the world\u2019s\u00a0second\u00a0biggest garment manufacturing hub after China. Dozens of protesters have ended up in the hospital.\u00a0A protester set fire to a factory which caused the death of 32-year-old worker Imran Hossain, and intense clashes with police resulted in the death of 26-year-old Rasel Howlader, according to the US State Department.\n <\/p>\n

\n \u201cWe are also concerned about the ongoing repression of workers and trade unionists.\u00a0The United States urges the tripartite process to revisit the minimum wage decision to ensure that it addresses the growing economic pressures faced by workers and their families,\u201d Matthew Miller, a spokesperson for the State Department said Wednesday.\n <\/p>\n

\n The industry employs some of the poorest and most vulnerable people in the country. Working conditions in the garment industry in Southeast Asia have been called into question before.\u00a0But Bangladesh hasn\u2019t seen protests with this level of violence for some 10 years since the devastating\u00a0Rana Plaza collapse.\u00a0The nine-story building was crammed with garment factories, and 1,100 people, mostly women, died in the disaster.\n <\/p>\n

\n While\u00a0conditions have since improved and wages have crept up, they\u00a0have been vastly outpaced by the growth in value of the garment industry. Clothing exports from Bangladesh, which is aspiring to become a middle-income country by 2031, jumped from $14.6 billion in 2011 to $33.1 billion in 2019, according to the consultancy group McKinsey.\n <\/p>\n

\n The manufacture of ready-made garments dominates the country\u2019s industrial sector, which accounts for 35.1% of Bangladesh\u2019s annual gross domestic product, according to the US Commerce Department.\n <\/p>\n

\n What brands are saying
\n<\/h2>\n

\n Eighteen brands including H&M, Levi\u2019s, Gap, Puma, and Abercrombie & Fitch sent a letter to the Prime Minister of Bangladesh\u00a0earlier this month\u00a0urging peaceful negotiations and calling for <\/strong>the new minimum wage to cover basic workers\u2019 needs. The American Apparel and Footwear Association, or AAFP, which represents brands in the US suggests a timelier minimum wage review. Currently the minimum wage gets reviewed every five years in Bangladesh.\n <\/p>\n

\n \u201cIdeally this wage level, which in Bangladesh informs the calculation of all wage levels, would be reviewed annually, not every 5 years. Ensuring timely reviews and, as needed, increases in these levels, is a critical part of the suite of better buying practices that responsible brands are deploying,\u201d said Nate Herman, Senior Vice President of Policy, at AAFP in a statement to CNN.\n <\/p>\n

\n Brands like H&M do not own any factories in Bangladesh, rather they contract with factory owners there who pay all the upfront costs: supplies, the facility and labor.\n <\/p>\n

\n The <\/strong>Swedish giant told CNN that it recognizes\u00a0\u201cthe important role we play to facilitate the payment of living wages through responsible purchasing practices,\u201d in Bangladesh. H&M added that it does not \u201csee any major impact on our overall production or supply chain,\u201d because of the protests right now, even though some of the <\/strong>factories it works with have been shut.\n <\/p>\n

\n CNN asked H&M for clarification on the role the company plays to facilitate paying living wages, but it did not respond.\n <\/p>\n

\n Patagonia said it supports a minimum wage of $208 a month \u2014 exactly what workers are asking for.\n <\/p>\n

\n \u201cWe source from one longtime factory partner in Bangladesh who makes some of our most technical products.\u00a0Our supplier has made meaningful progress toward living wages, yet we know there is more we can do together,\u201d the company said earlier this month.\n <\/p>\n

\n Levi Strauss & Co, meanwhile, said in a statement that it has \u201cencouraged the Government of\u00a0Bangladesh\u00a0to establish fair, credible and transparent process for regular minimum wage setting.\u201d\n <\/p>\n

\n Brands do not have the power to set wages in Bangladesh, but they do have the power over pricing pressure.\u00a0CNN reached out to the Bangladesh Garment Manufacturers and Exporters Association\u00a0which represents factory owners for comment but did not hear back.\n <\/p>\n

\n \u201cA lot of the pressure on factories, it does start with brands and retailers, and I think that it\u2019s just a conversation that the fashion industry keeps trying to resist. But if we want to fix wages, we really have to fix the pricing problem,\u201d said Elizabeth Cline a lecturer of Fashion Policy at Columbia University.\n <\/p>\n

\n Nearly all the consumers of apparel made in Bangladesh are outside of the country. In 2019, garment exports accounted for 84% of Bangladesh\u2019s total export earnings, according to the World Bank.\n <\/p>\n

\n Consumers want things fast, cheap, and now \u2014 especially as consumer spending habits are leaning towards more affordable goods amid inflation. And while the younger generation of consumers are thinking about where their clothing comes from and how it gets made, the industry can\u2019t count on consumers to raise wages says\u00a0Jason Judd, Director of the Global Labor Institute at Cornell University.\n <\/p>\n

\n \u201cIt takes a huge push by customers to move a brand to make a change,\u201d said Judd.\n <\/p>\n

\n During the pandemic brands cancelled $40 billion in orders at factories around the world, leaving factory owners and suppliers footing the bill and workers without wages. But through a grass roots labor movement on social media, the \u201cPay Up\u201d campaign got brands to pay back $22 billion of the $40 billion owed, according to the Workers Rights Consortium.\n <\/p>\n

\n But true change, Judd says, comes from policy and from within the country itself. Several labor activists CNN spoke to say what is happening on the streets of Bangladesh is reminiscent to what happened in Cambodia in 2014, when garment workers there were demanding higher wages after their government imposed a new minimum wage.\n <\/p>\n

\n The government responded to the protests by sending in the security forces \u2014 killing at least three people after firing on workers. But reform followed. Cambodia now raises its minimum wage for garment workers once a year.\n <\/p>\n

\n \u201cBangladesh needs a more rational, less violent, and more inclusive process. This has been done before. This is not reinventing the wheel,\u201d said Judd.\n <\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bangladesh has been gripped by violent protests for two weeks, as thousands of garment workers take to the streets to demand better wages for the country\u2019s four million garment workers. Protesters clashed with police \u2014 resulting in the deaths of three workers. Unions there say police have used tear gas, rubber bullets and the protests have turned hostile. \u201cIt\u2019s escalating where it\u2019s becoming more and more violent,\u201d said Christina Hajagos-Clausen, the Textile and Garment Industry Director at IndustriALL Global Union, to which the unions in Bangladesh are affiliated. On Tuesday, the country\u2019s wage board announced an increase of $113 a<\/p>\n","protected":false},"author":1,"featured_media":9286,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[],"class_list":["post-9285","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nViolent wage protests in Bangladesh could hit top fashion brands | LendingSensibly<\/title>\n<meta name=\"description\" content=\"Bangladesh has been gripped by violent protests for two weeks, as thousands of garment workers take to the streets to demand better wages for the\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lendingsensibly.com\/?p=9285\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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