Bangladesh Shipbreaking Industry Implements Minimum Wage
The shipbreaking industry in Bangladesh is set to implement a minimum wage for its workers starting January 1, 2025. This decision comes as part of an effort to ensure fair compensation and improve working conditions in a sector that has faced numerous challenges in recent years. Mohammad Siddique, secretary of the Bangladesh Ship Breakers and Recyclers Association (BSBRA), announced this significant development during an event in Chattogram. The move aims to address the pressing issues of sustainability and worker welfare amid ongoing national and international crises.
Minimum Wage Structure for Workers
The newly established minimum wage structure categorizes workers into five distinct grades, each with specific salary levels. Grade-1 workers, which include foremen and ship in-charges, will receive a monthly salary of Tk31,750, translating to a daily wage of Tk1,225. This tier is crucial as these workers often hold supervisory roles and bear significant responsibilities.
Grade-2 workers, such as supervisors and crane operators, will earn a minimum monthly salary of Tk24,250 and a daily wage of Tk935. The third tier, Grade-3 workers, includes cutter men and electricians, who face considerable risks during ship dismantling. They will receive a monthly salary of Tk21,250 and a daily wage of Tk820.
The structure continues with Grade-4 workers, which encompasses various helpers and general workers, entitled to a minimum monthly salary of Tk16,000 and a daily wage of Tk615. Lastly, apprentice workers, classified as Grade-5, will receive a minimum monthly wage of Tk8,000. This comprehensive wage structure aims to uplift the financial status of workers across different roles in the shipbreaking industry.
Challenges in Wage Implementation
Despite the government’s announcement of minimum wages back in 2018, the implementation has faced significant delays. Fazlul Kabir Mintu, coordinator of the Bangladesh Institute of Labour Studies (BILS), highlighted that the reluctance of industry owners and the inaction of the Department of Inspection for Factories and Establishments (DIFE) contributed to this delay. Although DIFE has the authority to take legal action against non-compliant industry owners, a lack of enforcement has hindered progress.
Moreover, Mintu pointed out that there has been insufficient movement from workers to demand their rights, which has further complicated the situation. Shipan Chowdhury, deputy inspector general of DIFE, acknowledged the issue of businesses maintaining dual salary records. He assured that DIFE would closely monitor the implementation of the minimum wage to prevent any exploitation of workers.
The commitment to enforce minimum wages is crucial for the future of the shipbreaking industry, especially as it navigates through economic challenges, including rising scrap prices and declining local demand. The successful implementation of these wages could lead to improved working conditions and a more sustainable industry overall.
