Bangladesh PM Holds Firm on Wage Increase, Despite Deadly Garment Worker Protests | Business and Economy Updates

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The Prime Minister of Bangladsh, Sheikh Hasina, has responded sternly to the striking garment workers who have been clashing over pay. On Friday, she rejected the demands of the protesting workers for a higher pay rise, insisting that they accept the government’s offer or go back to their village. This response has raised concerns from union leaders that her words could provoke more violence from police and security forces, as large protests have resulted in at least three deaths over the past two weeks.

The government-appointed panel recently agreed to raise the minimum wage by 56.25 percent to 12,500 taka ($113), but unions swiftly rejected the offer, demanding instead 23,000 taka ($208). The unrest has continued, with at least three workers dead and more than 70 factories ransacked. The garment factories account for about 85 percent of the country’s annual exports, but conditions for the workers are dire, with the majority being women whose monthly pay starts at 8,300 taka ($75).

The Prime Minister urged the garment workers to accept the increased salary and continue their work, warning that they will lose their jobs and have to return to their villages if they continue protesting. This has created a “climate of fear” in the industry, according to a union leader, and has given security forces permission to crack down further on protests.

Despite the government’s claims that the raise for garment workers is substantial, union leaders argue that it does not match the soaring cost of living expenses. The Netherlands-based Clean Clothes Campaign called the new pay level a “poverty wage” and urged international brands to support the workers by committing to a fair wage. The United States has also condemned the violence against protesting workers and called for a wage that addresses the growing economic pressures faced by workers and their families.

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