The Center for Policy Dialogue (CPD) has proposed a minimum wage of Tk22,776 for the tannery industry considering their living cost amid persistent inflation in the country.
The nonprofit research organisation also proposed an appropriate grading system for the workers which would ensure regular promotion for the laborers.
These recommendations came on Saturday from a media briefing titled, “Determination of New Minimum Wage of Tannery Industry: Challenges of Implementation” organized by the CPD at its office in the capital.
Tamim Ahmed, senior research associate at the CPD, presented the keynote paper at the event, based on research conducted under the leadership of Dr Khondaker Golam Moazzem, research director of the organisation.
Liaqat Ali Mollah, chairman of Minimum Wage Board and Shaheen Ahmed, president of Tanners Association, spoke among others at the event.
Presenting the keynote, Tamim Ahmed said at the event that the proposal of minimum wage was made based on monthly costs of Tk33,445 for a family – Tk20,564 for food and Tk12,881 for nonfood expenses.
He said that the number of family members and their tentative income were also taken into consideration to make the proposal.
The CPD also recommended upgrading the grading system for the labours in the sector.
The keynote revealed that the laborers in different grades are engaged with different types of responsibilities, that is why there is no provision of promotion for them.
The CPD asked for introducing several ranks like A, B and C in each grade to ensure promotion of workers.
Khondaker Golam Moazzem said in his introductory remark, leather and leather products are the most important sector in the country following the RMG sector.
He said there are about 200 tannery factories in the country while about 127 factories are operating their business in Savar tannery estate.
“Leather product exports from Bangladesh in 2023 were worth $1.2 billion, of which $123 million came from the tannery industry. Leather is going to be an important sector as Bangladesh is looking for billion dollar exports,” said Khondaker Golam Moazzem.
The CPD researchers further said that the minimum wage of Tk8,750 for the tannery industry was first announced in 2011 which was increased to Tk13,500 for urban areas and Tk12,850 for rural areas in 2018.
Even in 2024, 60% of factories are not paying the wage fixed by the government. Although the laborer is supposed to be given a 5% wage increment every year, the implementation rate has been found to be very low.
According to the study, each tannery employs about 21 workers on an average. Among which the number of women workers is very less.
Many workers do not know about their minimum wage while 65% of wages are not paid on time.
On the other hand, the labor hours are very high. The main reason for not paying wages on time or underpaying them is the decrease in exports and sales in the domestic market.
The government set up a wage board last August for the tannery industry to revise the existing minimum wage.
The board consists of representatives from both employers and workers who will discuss and negotiate various proposals concerning the minimum wage.