ACT Members support higher minimum wages in Bangladesh’s RMG sector in letter to the Minimum Wage Board

Read the full  ACT Letter to the RMG Minimum Wage Board

ACT members express support for higher minimum wages for RMG workers in Bangladesh in a joint letter sent to the National Minimum Wage Board today, 12th of September 2023. With the Board due to set a new minimum wage for RMG workers in Bangladesh, ACT members recognise with urgency the need for a minimum wage which covers the basic needs of workers and their families, including some discretionary income, and earned during legal working hours. 

ACT members believe that joint approaches to higher wages and to strengthening the respect of Freedom of Association and Collective Bargaining rights are fundamental to the development of the RMG sector. The ACT MoU recognises minimum wages along with collective bargaining agreements at industry level, as a sustainable mechanism that has the capacity to deliver living wages to scale. Minimum wages play a vital role in underpinning living wages and must be set in accordance with this level and regularly reviewed in line with cost of living increases.

In the joint letter ACT Members emphasised the need for higher wages and strengthening Freedom of Association. They will further recognise the crucial contribution brands need to make through their purchasing practices and engagement with manufacturers and suppliers in Bangladesh, supporting higher wages. ACT brands have made commitments to facilitate the payment of living wages through responsible purchasing practices.

ACT members believe that a long-term sustainable RMG industry requires progress towards living wages. ACT member brands recognise their role in supporting wage developments. ACT aims to establish a structural approach which allows all stakeholders to hold joint responsibility for the future of the industry.