The nation’s export association said that at least 10,000 workers went on strike for demanding a salary increase so Bangladesh clothing manufacturers suspended production in about 200 garment factories.
Murshedy said, who is heading into a meeting with government officials to look into ways to control the unrest, the protesters are demanding an increase in their monthly salary of 3,000 taka to 8,114 taka ($104) up from now. Last time in 2010, salary packages were increased. Relatively low production costs in Bangladesh have spawned a $19 billion manufacturing industry that supplies global retailers with cheap clothes.
Abdus Salam Murshedy, president of the Exporters Association of Bangladesh, said in a phone interview today that the workers have covered the factories with bricks and blocked a highway.
Factory owners’ representative Arshad Jamal Dipu suggested increasing the monthly basic salary by 600 taka to 3,600 taka in a meeting with labor leaders and government officials on Sept. 17. The garment industry’s expansion has been blemished by factories operated in buildings with pathetic electrical wiring system, an inadequate number of exits and less number of fire-fighting equipments.
In a pact which was announced in July, a group of North American retailers, including Wal-Mart Stores, Inc. (NYSE:WMT) and Target Corporation (NYSE:TGT) said it will set safety precautions by October and will not buy from the factories that are working in pathetic conditions and constant source of risk. This all was done as International retailers have been forced to improve conditions across the South Asian nation’s apparel industry.
In April, the eight-story Rana Plaza factory complex was fall down and killed more than 1,000 people in the worst industrial accident in Asian country’s history.
A pact was signed by H & M Hennes & Mauritz AB (STO:HM-B) and Inditex SA (MCE:ITX), Europe’s two largest clothing retailers, pledged at least $60 million over five years to supervise safety measures in Bangladesh plants. The objective is to force the companies to ensure their factories have the enough capital to make necessary repairs by the Europe plan. Wal-Mart Stores, Inc. (NYSE:WMT) shares moved up 0.32% to $ 76.06 in current session and Target Corporation (NYSE:TGT) shares -0.25% to $64.39 in current session.
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