When the country is in dire economic crisis, at that time a newspaper report said that Bangladesh Bank has fixed minimum wage at Tk 39,000 for private bank employees on recruitment during probation period while they should pay Tk 28,000 during training period. Moreover the minimum wage for office assistants such as security guards, cleaners and messengers should be Tk 24,000. Wages of those who work as the third party of the banks should be set taking the wages of office assistants into consideration. The order further pointed out that no one can be fired on alleged ground of incompetence or failure to achieve set business targets. As per the new orders these conditions will not be effective for agent banking which private banks are now spreading all over the country. The new order will be effective from March 1. Public sector banks are not however covered by such requirements.
In our view the central bank’s minimum wage fixation seems to have aimed at protecting the interest of the entry grade employees who have essentially no bargaining power. But we are not sure whether it has solicited opinion of the private bankers. After all, individual banks would pay the minimum wages and though we understand that one of the targets of the minimum wage fixation is to keep the wage and salary gap of lower grade employees with senior executives at low, we anticipate the impact of such fixation may be too far and too big.
Two bankers associations-representing the owners and bankers — have already termed the fixation as arbitrary and inconsistent with the reality in the ground and usual practice in free market economy. They have rightly expressed reservation saying when the government is looking to spread banking at the grassroots allowing new branches at local business centers to finance rural economy and create new entrepreneurs, such arbitrary measures will be counter-effective to stir discontent. We share their views that it will increase their cost of operation at initial stage of opening new branches and may even force them to stop new branches.
Another valid point is that if such wage structure proves inconsistence with the salary and allowances of other salaried people at local and upazila level, then it and may create discontent. They may not be wrong to demand review of their wages to create bigger problem. We would ask Bangladesh Bank to sort out the problem with private sector banks.
