Violent demonstrations disrupt Bangladesh’s flagship export industry (VIDEO) — RT World News

Violent demonstrations disrupt Bangladesh’s flagship export industry (VIDEO) — RT World News

New clashes erupted Monday after more than 500 garment factories were closed following violent wage protests on Sunday

Fresh clashes broke out in Bangladesh on Monday between garment workers and police, after a wage strike on Sunday resulted in the closure of more than 500 factories, affected a million jobs, and raised concerns about a disruption in shipments to foreign buyers.

The readymade garments industry is the backbone of the South Asian nation’s export sector, generating $39 billion in earnings annually. The country is second only to China in global apparel exports and is the primary manufacturing floor for mass-market retail.

Garment industry workers are demanding a 30,000-taka ($241) monthly wage, more than double their current pay of roughly 13,000 taka, Kalpona Akter of the Bangladesh Center for Workers Solidarity was quoted as saying by a local news outlet. The protests turned violent as workers took to the streets and vandalized vehicles. Police fired tear gas to disperse them.

The government announced a wage board to consider the workers’ demands after an emergency cabinet meeting on Sunday. However, that failed to placate the workers who said the stir, which intensified on Saturday, is also about surging living costs and high inflation.

Bangladesh’s annual inflation rate rose to 8.34% in September, its highest level since June.

The sector accounts for 80% of Bangladesh’s merchandise exports, employs nearly 4 million workers, and contributes around 10% to gross domestic product.

The 27-nation European Union is Dhaka’s largest export market, accounting for nearly half of its shipments, followed by the US, the single largest individual buyer, that accounts for about a fifth.

The protests have erupted at a time when Bangladesh’s garment industry, which competes with those in India and Vietnam, is staring at a raft of challenges. The Middle East conflict and the resulting energy crisis have pushed the industry to the brink, with higher fuel and shipping costs also putting pressure on factory margins.
Bangladeshi experts have warned that a substantial wage increase would spike manufacturing costs, shrink export profits, and weaken price competitiveness.

India’s attempts to secure a competitive advantage in the US market over other exporters have also worried the Bangladeshi garment industry.

You can share this story on social media:

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *