Skip to main content

US fashion industry’s ‘empty promise’: Living wages for Bangladesh garment workers

By Sonali Kolhatkar* 

’Tis the season for holiday shopping, and as American consumers ready their spending dollars, few of us are likely to link our gift buying to the high cost of low prices on the other side of the planet. This is especially true for what has come to be known as “fast fashion,” the clothing equivalent of a Big Mac: attractive, affordable, and throwaway.
But the Bangladeshi women who toil as underpaid garment workers so we can wear disposable outfits, are making their voices heard loudly enough to reverberate across oceans and continents. Mass protests for higher wages have roiled the nation, at least three workers have been killed, and there is no end in sight.
Bangladesh is the world’s second-largest exporter of apparel in the world, after China. It is the South Asian nation’s largest industry, employing more than four million workers, a majority of them women. The largest share of Bangladesh-made garments is bought and sold by United States retailers, which include recognizable name brands such as H&M, Zara, Calvin Klein, American Eagle, and Tommy Hilfiger.
Garment workers had been taking home a meager pay of about $75 a month, and have demanded a nearly threefold increase to about $205 a month. When the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) initially set new wages at $90 a month, the mass protests began. When the BGMEA then responded by raising wages to $112 a month, the protests actually intensified. According to Al Jazeera, “more than 10,000 workers staged protests in factories and along highways to reject the panel’s offer.”
Headlines touted the offer as a 56 percent increase in wages, while Bangladesh’s Prime Minister Sheikh Hasina, long hailed as a liberal leader, patronizingly told workers to put up or shut up. She said, “They have to work with whatever their salary is increased, they should continue their work.” She roundly condemned workers’ attacks on factories, saying she was worried that, “if these factories are closed, if production is disrupted, where will their jobs be? They have to understand that.”
Hasina’s government has unleashed security forces that have intimidated and attacked union organizers. Police recently fatally shot a 23-year-old mother and sewing machine operator named Anjuara Khatun after firing at protesters.
To understand why protests intensified after wages were dramatically increased, it’s worth examining the context of garment workers’ livelihoods. By one estimate, the cost of living for a single person in Bangladesh is about $360 a month, not including rent. Garment workers’ wages have not risen since 2019 and since that time inflation has hit Bangladesh just as it has hit most of the world.
Even the demand for $205 a month will not allow most to make ends meet. The factories’ offer of about half that number was insultingly low. Abiramy Sivalogananthan, the South Asia coordinator for the Asia Floor Wage Alliance, told Vogue, “[The] increase that unions are asking for is not even enough, technically speaking, [given] inflation and the crisis the country’s going through.”
On the surface, U.S. brands, who purchase their inventories from Bangladesh’s factories, appear to be on the right side of the fight. The American Apparel and Footwear Association (AAFA), an industry trade group, wrote a joint letter to Hasina’s administration urging her to “raise the minimum wage to a level that corresponds with a wage level and benefits that are sufficient to cover workers’ basic needs and some discretionary income and takes into account inflationary pressures.”
The AAFA even went as far as asking the government to avoid retaliating against unions and to respect “collective bargaining rights.” The U.S. State Department issued a statement saying, “We commend the members of the private sector who have endorsed union proposals for a reasonable wage increase.”
Further, global retailers are offering to eat into their profits by increasing the price they pay factories to help them offset increased wages. Currently, the cost of the labor to produce garments is a mere 10-13 percent of a product’s total manufacturing cost. The industry would have to increase that number by about 5-6 percent.
But are companies really committed to raising garment workers' wages? A spokesperson for the Clean Clothes Campaign, a rights group based in The Netherlands said, “The living wage commitments of brands are nothing but empty promises as long as they refuse to explicitly support the workers’ demand for a bare minimum, let alone a living wage.”
A survey of about 1,000 factories in Bangladesh, published in early 2023, revealed that companies like Zara and H&M underpaid factories for garment purchases, making it harder for them to pay their workers. When the COVID-19 pandemic led to global shutdowns, large retailers canceled orders and delayed payments.
One industry expert told The Guardian, “Only when suppliers are able to plan ahead, with confidence that they will earn as expected, can they deliver good working conditions for their workers.” Rather than dip into their profits to compensate for the market slowdown in 2020, many global brands simply refused to keep their financial commitments to Bangladesh’s factories, leading to downward pressure on wages.
Given this context, fast fashion’s stated support for a living wage increase and a commitment to swallow the resulting increased labor costs sound disingenuous.
It has been more than 10 years since the deadly collapse of Bangladesh’s Rana Plaza, the world’s worst garment industry disaster. The eight-story compound of factories in Dhaka was filled with thousands of workers when it crumbled under the weight of government neglect and worker exploitation in April 2013. More than 1,100 workers, most of them women, were killed.
The Rana Plaza disaster was a turning point for Bangladesh’s garment industry as workers were seen as dispensable pawns by governments and industries alike. In the wake of the disaster, North American brands refused to join other global companies in signing on to the Accord on Fire and Building Safety in Bangladesh. Citing high costs, they chose instead to form their own alliance for inspecting factories, one that applied lower safety standards. It was a stark indicator of where these companies’ priorities lay, one that frames their current lip service to higher wages for garment workers.
Fast fashion’s outlook is rosy. The industry has been steadily growing and, thanks to the cooperation of government heads such as Sheikh Hasina—who has been fixated on “growth” at all costs—it is expected to more than double its market size over six years, growing from $91 billion in 2021 to a projected $185 billion by 2027. Meanwhile, the workers who fuel the profits behind that expansion are facing starvation. This holiday season, perhaps the best gift we can give is a commitment to force the industry to pay up.
---
*Award-winning multimedia journalist, She is the founder, host, and executive producer of Rising Up With Sonali, a weekly television and radio show that airs on Free Speech TV and Pacifica stations. Writing fellow for the Economy for All project at the Independent Media Institute and the racial justice and civil liberties editor at Yes! Magazine, serves as the co-director of the nonprofit solidarity organization the Afghan Women’s Mission and is a co-author of Bleeding Afghanistan. Her recent book: Rising Up: The Power of Narrative in Pursuing Racial Justice. She sits on the board of directors of Justice Action Center, an immigrant rights organization. This article was produced by Economy for All, a project of the Independent Media Institute.Source: Independent Media Institute

Comments

TRENDING

From algorithms to exploitation: New report exposes plight of India's gig workers

By Jag Jivan   The recent report, "State of Finance in India Report 2024-25," released by a coalition including the Centre for Financial Accountability, Focus on the Global South, and other organizations, paints a stark picture of India's burgeoning digital economy, particularly highlighting the exploitation faced by gig workers on platform-based services. 

'Condonation of war crimes against women and children’: IPSN on Trump’s Gaza Board

By A Representative   The India-Palestine Solidarity Network (IPSN) has strongly condemned the announcement of a proposed “Board of Peace” for Gaza and Palestine by former US President Donald J. Trump, calling it an initiative that “condones war crimes against children and women” and “rubs salt in Palestinian wounds.”

India’s road to sustainability: Why alternative fuels matter beyond electric vehicles

By Suyash Gupta*  India’s worsening air quality makes the shift towards clean mobility urgent. However, while electric vehicles (EVs) are central to India’s strategy, they alone cannot address the country’s diverse pollution and energy challenges.

Gig workers hold online strike on republic day; nationwide protests planned on February 3

By A Representative   Gig and platform service workers across the country observed a nationwide online strike on Republic Day, responding to a call given by the Gig & Platform Service Workers Union (GIPSWU) to protest what it described as exploitation, insecurity and denial of basic worker rights in the platform economy. The union said women gig workers led the January 26 action by switching off their work apps as a mark of protest.

Jayanthi Natarajan "never stood by tribals' rights" in MNC Vedanta's move to mine Niyamigiri Hills in Odisha

By A Representative The Odisha Chapter of the Campaign for Survival and Dignity (CSD), which played a vital role in the struggle for the enactment of historic Forest Rights Act, 2006 has blamed former Union environment minister Jaynaynthi Natarjan for failing to play any vital role to defend the tribals' rights in the forest areas during her tenure under the former UPA government. Countering her recent statement that she rejected environmental clearance to Vendanta, the top UK-based NMC, despite tremendous pressure from her colleagues in Cabinet and huge criticism from industry, and the claim that her decision was “upheld by the Supreme Court”, the CSD said this is simply not true, and actually she "disrespected" FRA.

Stands 'exposed': Cavalier attitude towards rushed construction of Char Dham project

By Bharat Dogra*  The nation heaved a big sigh of relief when the 41 workers trapped in the under-construction Silkyara-Barkot tunnel (Uttarkashi district of Uttarakhand) were finally rescued on November 28 after a 17-day rescue effort. All those involved in the rescue effort deserve a big thanks of the entire country. The government deserves appreciation for providing all-round support.

Whither space for the marginalised in Kerala's privately-driven townships after landslides?

By Ipshita Basu, Sudheesh R.C.  In the early hours of July 30 2024, a landslide in the Wayanad district of Kerala state, India, killed 400 people. The Punjirimattom, Mundakkai, Vellarimala and Chooralmala villages in the Western Ghats mountain range turned into a dystopian rubble of uprooted trees and debris.

Over 40% of gig workers earn below ₹15,000 a month: Economic Survey

By A Representative   The Finance Minister, Nirmala Sitharaman, while reviewing the Economic Survey in Parliament on Tuesday, highlighted the rapid growth of gig and platform workers in India. According to the Survey, the number of gig workers has increased from 7.7 million to around 12 million, marking a growth of about 55 percent. Their share in the overall workforce is projected to rise from 2 percent to 6.7 percent, with gig workers expected to contribute approximately ₹2.35 lakh crore to the GDP by 2030. The Survey also noted that over 40 percent of gig workers earn less than ₹15,000 per month.

Fragmented opposition and identity politics shaping Tamil Nadu’s 2026 election battle

By Syed Ali Mujtaba*  Tamil Nadu is set to go to the polls in April 2026, and the political battle lines are beginning to take shape. Prime Minister Narendra Modi’s visit to the state on January 23, 2026, marked the formal launch of the Bharatiya Janata Party’s campaign against the ruling Dravida Munnetra Kazhagam (DMK). Addressing multiple public meetings, the Prime Minister accused the DMK government of corruption, criminality, and dynastic politics, and called for Tamil Nadu to be “freed from DMK’s chains.” PM Modi alleged that the DMK had turned Tamil Nadu into a drug-ridden state and betrayed public trust by governing through what he described as “Corruption, Mafia and Crime,” derisively terming it “CMC rule.” He claimed that despite making numerous promises, the DMK had failed to deliver meaningful development. He also targeted what he described as the party’s dynastic character, arguing that the government functioned primarily for the benefit of a single family a...