The Paradoxical Impacts of the Minimum Wage Implementation on Ready-made Garment (RMG) Workers: A Qualitative Study

Humayun Kabir (), Myfanwy Maple (), Md. Shahidul Islam () and Kim Usher ()
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Humayun Kabir: University of New England
Myfanwy Maple: University of New England
Md. Shahidul Islam: University of New England
Kim Usher: University of New England

The Indian Journal of Labour Economics, 2022, vol. 65, issue 2, No 15, 545-569

Abstract: Abstract There is no regular mandated increase in minimum wages for workers employed in the Bangladesh ready-made garment (RMG) industry. Workers in the past have relied on optional bonuses added to their monthly incomes to supplement their wages. However, a new minimum wage implemented in January 2019 in the Bangladesh RMG sector increased wages for many workers who are known to work under poor and exploitative working conditions. Qualitative in-depth interviews were conducted with fifteen currently employed RMG workers (female: 13, male: 2), which led to data saturation. The participants were purposively recruited from both export processing zone (EPZ) and non-EPZ factories located in Dhaka and Chattogram, the two largest cities of Bangladesh where the majority of RMG factories are situated. Transcribed interviews were analysed thematically. The findings revealed that working hours, production targets, work pressure, and workplace abuse have an impact on workers’ health and well-being. In line with the Marxist notion of the “accumulation of capital”, we argue that due to the profit maximization mindset of RMG owners and international brands, workers have not received the potential benefit of the newly implemented minimum wage as their conditions have been changed in other ways to offset the increase in salary. The article contributes to understanding how factory owners’ profit maximization mindset dispossessed workers from receiving the real benefits of the newly implemented minimum wage and forced them to continue working within exploitative working environments. The study shows that the impact of minimum wages on poverty reduction is unlikely and outline the need for RMG labour market reform.

Keywords: Minimum wages; Ready-made garment workers; Profit maximization; Health and well-being; Bangladesh; Qualitative study (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s41027-022-00375-9

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