Business Desk :
The statements of TIB made at a press conference on 23 April 20149, just on the eve of the 6th anniversary of Rana Plaza tragedy, has drawn our attention. BGMEA wishes to clarify its position on a few issues.
Firstly, the statement of not adjusting 5% annual automatic increment with the basics of the new wage structure is not found true. Whereas the accumulated impact of 5% automatic annual increments yields an aggregated 27.63% increment to the basics in all grades over 5 years, the actual increase by the minimum wage Board was made at rates ranging from 28.7% to 36.7%. We would appreciate if TIB clarifies the methodology of their calculation.
Secondly, reference to the time-bound production target, production efficiency is a continuous process; it is not fixed on month-wise basis. We have to bear in mind that we are operating in a global market place where economic competitiveness matters most. Whereas China, Vietnam and Turkey’s efficiency are 65%, 55% and 70% respectively, we are at 40%-45% only. To the best of our knowledge there was no correlation with the increase in minimum wage and efficiency as considered by the Minimum Wage Board. However, for future reference to sustain competitiveness of this industry wages should always be linked to skills. BGMEA will strongly recommend wage – skill matrix so that the workers get paid according to their skills.
Thirdly, reference to the time that workers take to use toilets during working hours, this is not appreciated and also random references to workers working overtime without additional payment is also not properly substantiated by TIB.
The statements of TIB made at a press conference on 23 April 20149, just on the eve of the 6th anniversary of Rana Plaza tragedy, has drawn our attention. BGMEA wishes to clarify its position on a few issues.
Firstly, the statement of not adjusting 5% annual automatic increment with the basics of the new wage structure is not found true. Whereas the accumulated impact of 5% automatic annual increments yields an aggregated 27.63% increment to the basics in all grades over 5 years, the actual increase by the minimum wage Board was made at rates ranging from 28.7% to 36.7%. We would appreciate if TIB clarifies the methodology of their calculation.
Secondly, reference to the time-bound production target, production efficiency is a continuous process; it is not fixed on month-wise basis. We have to bear in mind that we are operating in a global market place where economic competitiveness matters most. Whereas China, Vietnam and Turkey’s efficiency are 65%, 55% and 70% respectively, we are at 40%-45% only. To the best of our knowledge there was no correlation with the increase in minimum wage and efficiency as considered by the Minimum Wage Board. However, for future reference to sustain competitiveness of this industry wages should always be linked to skills. BGMEA will strongly recommend wage – skill matrix so that the workers get paid according to their skills.
Thirdly, reference to the time that workers take to use toilets during working hours, this is not appreciated and also random references to workers working overtime without additional payment is also not properly substantiated by TIB.
