The institution works to set the minimum wage through consultations with employers and workers. However, under the existing laws, officials of the agency do not have the authority to conduct on-site inspections of privately owned industrial establishments or factories. Therefore, in addition to this opportunity, the Minimum Wage Board has requested the power to conduct mobile courts or roaming courts in case of violations. This matter was raised in a letter submitted to the Ministry of Labor last Wednesday.
In a letter titled "Proposal or Opinion of the Minimum Wage Board Regarding the Amendment or Addition of the Bangladesh Labor Act and Rules," signed by the Chairman of the Minimum Wage Board, Mamunur Rashid, several issues are raised. The letter states that, in light of the above, it is necessary to amend or add provisions to the Bangladesh Labor Law and Labor Rules to strengthen the Minimum Wage Board and ensure the effective implementation of workers' wages.
According to the Ministry of Labor and Employment, based on the Labor Law of 2006, the government can announce the minimum wage for various sectors every five years. So far, the ministry has determined and revised the minimum wage rates for 43 industrial sectors. Among these, 29 wage structures have been announced in the last decade. Experts say these wage structures have become somewhat outdated, considering the country's inflation. With the current wages, workers in various sectors struggle throughout their professional lives and face uncertainty regarding their families and future.
Syed Sultan Uddin Ahmed, Executive Director of the Bangladesh Institute of Labor Studies (BILS), told Bonik Barta, "Simply adding or amending a few provisions of the labor law or inserting new sections will not achieve the desired results. For this, a comprehensive restructuring of the tripartite system involving the government, employers, and workers is necessary. Additionally, balance must be brought to the power dynamics between these three parties. Society is still lagging in establishing workers' citizenship status, and an environment free of discrimination in labor has not been ensured. Informal sector workers are outside the protection of labor laws, leaving them vulnerable to risks."
After discussions with representatives of garment workers and employers, the government announced a new wage structure in November 2023. The minimum wage was set at BDT 12,500, up from the previous BDT 8,000. According to the latest wage structure, the basic salary accounts for 54.60 percent of the total wage. If the total wage is BDT 12,500, the basic salary will be BDT 6,700. Half of this will go towards housing rent. In addition, a food allowance of BDT 1,250, a medical allowance of BDT 750, and a transportation allowance of BDT 450 were set. The wage will increase by 5 percent of the basic salary every year. The new wage structure also reduced the number of grades from seven to five. However, workers have long been demanding a minimum wage of BDT 25,000.
Even though the government has set the wage structure, many institutions in the country are not adhering to it, according to workers' complaints. This has been acknowledged by Raisha Afroze, Secretary of the Minimum Wage Board. Speaking to Bonik Barta, she said, "The Gazette we issued needs to be implemented. It cannot be that some factories will implement it while others will not. Many workers may not be aware of this issue, and they are being deprived. Even though employers have the capacity, they are not paying the salaries. We determine the wages after discussions with the employers. So why would they cheat the workers after that?"
For this reason, in the letter sent to the Ministry of Labor, the Minimum Wage Board has provided several proposals and opinions regarding the amendment of the Bangladesh Labor Act, according to Raisha Afroze. The agency has recommended the addition of Section 149(4) to the Labor Act, which would allow the Minimum Wage Board to conduct mobile courts. This recommendation combines two separate subsections under the law. In the proposed new subsection 149(4) (a), it is stated that to adjudicate crimes described in Sections 289, 294, 295, and 296 of the Labor Act or to verify and ensure whether wages, benefits, or bonuses are being provided as per the published Gazette, the Chairman of the Minimum Wage Board will have the authority to conduct a mobile court.
In subsection 149(4)(b) of the same section, it is stated that, based on complaints received or during the operation of a mobile court, the Chairman of the Minimum Wage Board may immediately take action on any crime related to wages, benefits, or bonuses that occurs or is discovered in front of them. Based on the confession of the accused and after reviewing the surrounding circumstances, the mobile court can find the individual guilty and impose penalties as specified under this law.
When asked about this, Raisha Afroze, the Secretary of the Minimum Wage Board, told Bonik Barta, "The issue of conducting mobile courts is not included in the law. We are requesting it as a new provision. From the Board, we only send the wage recommendations to the Ministry. After the wage announcement, the Department of Factory and Establishment Inspection oversees its implementation. However, they do not fully monitor the matter. That’s why unrest is happening. Most of these issues are arising because wages are not being implemented properly. Section 148 of the law states that employers are obligated to pay wages and cannot pay less than the set amount. This is why we request the power to conduct mobile courts if any complaints arise; we can immediately check whether the wages are being implemented. If not, we will take action to ensure implementation. In other words, we are seeking the same authority to conduct mobile courts that other agencies have, for the Wage Board as well."
The Minimum Wage Board has proposed adding a new Section 149(3) to the Labor Act. According to the details of this section, the Minimum Wage Board will be responsible for conducting on-site inspections of privately owned industrial establishments or factories across the country and monitoring their compliance to ensure the implementation of wage rates.
Additionally, a new provision has been proposed under Section 138(5), which states that the Chairman of the Minimum Wage Board will be appointed from among senior district and session judges of the Bangladesh Judicial Service or retired senior district and session judges.
A proposal for the new addition to Section 138(6) has also been made. This provision states that when appointing board members, it must be ensured that the individuals represent the true owners and workers of the relevant industry.
Raisha Afroze, Secretary of the Minimum Wage Board, said, "We are trying to take initiatives to solve the manpower crisis. A company cannot run like this. We will also soon send the proposal for increasing the manpower to the ministry. Now, 46 sectors are running on the board. We need more manpower for research to make the board's activities stronger and more transparent.”