Low wages and constant pressure to meet production targets have put significant negative impacts, including reliance on overtime, rising debt, health risks and limited access to essential services, on Bangladeshi garment workers, according to a study.

According to the study ‘Paying the price for fashion: securing a living wage for Bangladesh’s garment workers’ published on November 21, despite being a major supplier to the European Union, most workers in the Bangladesh readymade garment sector earn insufficient wages to cover basic living costs.

The report highlighted how workers’ lack of bargaining power, compounded by pressure from global buyers, led to heavy reliance on overtime pay.

Swedwatch, a Sweden-based research organisation, conducted the study in May 2023 across major garment production hubs in Dhaka, Ashulia and Tongi, in collaboration with the Awaj Foundation, an organisation dedicated to advocating for workers’ rights in the garment sector.

After China, Bangladesh is the second-largest supplier of textiles and clothing to Sweden, with imports valued at approximately 8.8 billion SEK in 2022.

The report observed that the recent increase in Bangladesh’s RMG sector minimum wage — from Tk 8,000 to Tk 12,500 a month — still fell short, leaving workers with only 38 per cent of what would be considered a living wage.

This amount is also well below the Tk 23,000 demanded by workers, unions and international organisations, including those affiliated with IndustriALL Global Union Bangladesh.

As a result, many workers struggle to afford essential needs such as food, housing, healthcare and education for their children, which perpetuates cycles of debt and exploitation, the report said.

It also said that long working hours and excessive overtime remained a major issue, with factory owners often imposing 12–16-hour shifts seven days a week, due to pressure from global buyers to meet production targets and unreasonable deadlines.

According to the report, workers in Bangladesh’s garment sector have limited options and are often forced to accept excessive overtime.

A decreasing proportion of their basic salary has left many reliant on overtime pay, with refusal to work extra hours sometimes resulting in punishment, the report mentioned.

It said that this situation severely impacted workers’ well-being, with many reporting stress-related illnesses, depression and fatigue.

The minimum wage structure in Bangladesh included various elements such as a basic salary along with allowances for health, housing, transport and food.

However, the basic salary percentage is particularly important for workers, as it determines not only overtime pay but also bonuses, annual pay rises, and other benefits, including maternity payments.

Over time, the reduction in the basic salary percentage has forced workers to depend on overtime for income, while the overall value of their basic salary has continued to decline.

The basic pay for garment workers in Bangladesh has declined by 14 percentage points, now making up only 53.6 per cent of the total minimum monthly wage of Tk 12,500 set in 2023.

In comparison, basic pay accounted for 67.67 per cent of the minimum wage of Tk 1,663 in 2006, according to the report.

Garment workers in Bangladesh remain trapped in an exploitative system that leaves them unable to meet their basic needs, the report said.

Despite decades of activism and corporate commitments, a living wage – a fundamental human right – continued to elude these workers, it mentioned.

Sofia Käll, programme officer at Swedwatch, who conducted research in Bangladesh, said ‘With global brands sourcing garments from Bangladesh facing stricter human rights requirements, they have no excuse but to take immediate and decisive action to improve workers’ access to living wages.’

The report recommended that global brands strengthen their due diligence efforts by meaningfully engaging with garment workers, unions and non-governmental organisations to address negative impacts.

It urged the brands to adopt responsible purchasing practices to prevent wage suppression, ensure worker well-being, promote supply-chain transparency and provide accessible grievance mechanisms.

The report also stressed the importance of continuous engagement to support suppliers and ensure living wages.

Swedwatch called on the EU member states and the global brands to fully leverage the potential of the corporate sustainability due diligence directive by guaranteeing fair wages and safe working conditions.