Minimum wage raised, garment factories reopen

DHAKA (AP):

More than 200 Bangladesh garment factories reopened yesterday after the country's prime minister stepped in to resolve clashes over minimum wages.

The end of the four-day shutdown came after factory owners met with Prime Minister Sheikh Hasina late Wednesday and agreed to a 77 per cent increase in the minimum wage for new unskilled garment workers to 5,300 takas ($66) a month.

A government-appointed panel last week voted to raise the basic wage to 5,300 takas, still the lowest minimum wage in the world, but owners refused to implement the increase and shut down manufacturing while workers clashed with police and attacked factories. Workers demanded 8,114 takas ($100).

Bangladesh is the second-largest garment manufacturer after China and earns more than $20 billion a year from exports, mainly to the United States and Europe. The industry employs about four million workers, mostly women.

The industry has come under scrutiny for its often harsh and unsafe working conditions after the collapse of a building housing garment factories killed more than 1,100 people in April, and a fire last November killed 112 workers. Global brands, factory owners and the government have pledged to work together to improve conditions.