Bangladesh’s readymade garment factory owners and labour leaders on Tuesday failed to reach a consensus on the annual wage increment hike.

At a meeting at the labour ministry, factory owners upped their proposal to a 7 hike hike, revised from 6 per cent, while labour leaders adjusted their initial 15 per cent proposal to 12 per cent, sources said.

Sources said that the next meeting, scheduled for December 9, may see a resolution, as factory owners have requested more time to discuss the issue with stakeholders.

Fazlee Shamim Eshan, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said that factory owners proposed a 7 per cent annual wage increment during Tuesday’s meeting.

He explained that the last wage hike, announced a year ago, included a 56 per cent increase with a 5 per cent annual increment.

He said that the industry could not afford more than a 7 per cent increase due to rising production costs and price pressures.

Eshan also pointed out that workers would not benefit unless inflationary pressures are addressed, and noted that small and medium-sized factories, which make up 60 per cent of the sector, are struggling due to fewer work orders, despite larger factories receiving steady orders.

He added that the committee on minimum wage review has requested measures like rationing for garment workers and steps to control house rents in industrial zones.

Babul Akter, General Secretary of the Bangladesh Garments and Industrial Workers Federation, said that labour leaders had reduced their initial 15 per cent wage hike proposal to 12 per cent, pending a re-evaluation of wages.

He argued that the current wages are insufficient to meet basic needs amid high inflation and criticized factory owners for questioning the industry’s capability to bear wage increases, despite rising export earnings.

Currently, the minimum wage for an entry-level garment worker is Tk 12,500.

The Labour Ministry had previously formed a committee to address the 18-point demand, which was aimed at resolving labour unrest.