Bangladesh garment factory protests disrupt industrial hubs for third day over wages

Workers in Bangladesh's garment sector continued protests for a third day on Monday, disrupting hundreds of factories across several industrial hubs as they demanded higher pay amid rising inflation. The unrest has spread through Mirpur in Dhaka, as well as Savar, Ashulia and Gazipur, with a heavy police presence reported in the capital's industrial areas. About 500 factories were temporarily shuttered after the demonstrations began on Saturday.

Police used tear gas and sound grenades as thousands of workers took to the streets, according to the supplied report. The protests are centred on demands for a minimum monthly wage of 30,000 taka, or about $242, which workers say is needed to keep pace with the cost of living. The current minimum wage is 12,500 taka, or about $101, and workers say it is no longer sufficient.

In response, the government formed a new wage board on Sunday to review the minimum wage for garment workers, and the prime minister held an emergency meeting with ministers and advisers. The disruption is significant because Bangladesh's garment industry is the country's largest export sector and a major source of employment. The industry is worth about $38bn, and the protests have affected a sector that competes with manufacturers in Vietnam, Cambodia and India.

Factory owners say the industry is facing higher costs, energy market uncertainty and slowing demand in some export markets, adding pressure to an already strained labour dispute. The wage dispute also highlights the long-running tension between export competitiveness and worker pay in Bangladesh's garment sector. A representative for workers on the wage board said the country still has among the lowest garment wages in the world, while the manufacturers' association said the government had already taken a step by creating the board.

The competing positions show how the issue has become both an industrial relations problem and an economic policy challenge for a sector central to Bangladesh's export earnings. The protests come at a sensitive time for an industry that has repeatedly faced scrutiny over wages and working conditions. Workers are seeking a larger share of the export earnings generated by the sector, while factory owners are urging them to allow the review process to proceed.

The immediate impact has been visible in factory closures and police deployments, but the wider effect will depend on whether the wage board can produce a settlement that reduces tensions. What remains unclear is how long the protests will continue and whether the wage board will satisfy workers' demands. It is also not yet clear how many factories remain affected beyond the reported temporary closures.

The next developments to watch are any further government statements, the response from factory owners and whether the demonstrations spread or ease in the coming days.

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