IDEAS home Printed from https://ideas.repec.org/a/spr/ijlaec/v65y2022i2d10.1007_s41027-022-00375-9.html
   My bibliography  Save this article

The Paradoxical Impacts of the Minimum Wage Implementation on Ready-made Garment (RMG) Workers: A Qualitative Study

Author

Listed:
  • Humayun Kabir

    (University of New England
    University of Dhaka)

  • Myfanwy Maple

    (University of New England)

  • Md. Shahidul Islam

    (University of New England)

  • Kim Usher

    (University of New England)

Abstract

There is no regular mandated increase in minimum wages for workers employed in the Bangladesh ready-made garment (RMG) industry. Workers in the past have relied on optional bonuses added to their monthly incomes to supplement their wages. However, a new minimum wage implemented in January 2019 in the Bangladesh RMG sector increased wages for many workers who are known to work under poor and exploitative working conditions. Qualitative in-depth interviews were conducted with fifteen currently employed RMG workers (female: 13, male: 2), which led to data saturation. The participants were purposively recruited from both export processing zone (EPZ) and non-EPZ factories located in Dhaka and Chattogram, the two largest cities of Bangladesh where the majority of RMG factories are situated. Transcribed interviews were analysed thematically. The findings revealed that working hours, production targets, work pressure, and workplace abuse have an impact on workers’ health and well-being. In line with the Marxist notion of the “accumulation of capital”, we argue that due to the profit maximization mindset of RMG owners and international brands, workers have not received the potential benefit of the newly implemented minimum wage as their conditions have been changed in other ways to offset the increase in salary. The article contributes to understanding how factory owners’ profit maximization mindset dispossessed workers from receiving the real benefits of the newly implemented minimum wage and forced them to continue working within exploitative working environments. The study shows that the impact of minimum wages on poverty reduction is unlikely and outline the need for RMG labour market reform.

Suggested Citation

  • Humayun Kabir & Myfanwy Maple & Md. Shahidul Islam & Kim Usher, 2022. "The Paradoxical Impacts of the Minimum Wage Implementation on Ready-made Garment (RMG) Workers: A Qualitative Study," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(2), pages 545-569, June.
    • Handle: RePEc:spr:ijlaec:v:65:y:2022:i:2:d:10.1007_s41027-022-00375-9
    DOI: 10.1007/s41027-022-00375-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s41027-022-00375-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s41027-022-00375-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Khondaker Golam Moazzem & Md. Arfanuzzaman, 2018. "Livelihood Challenges of RMG Workers: Exploring Scopes within the Structure of Minimum Wages and Beyond," CPD Working Paper 122, Centre for Policy Dialogue (CPD).
    2. Naila Kabeer & Simeen Mahmud, 2004. "Globalization, gender and poverty: Bangladeshi women workers in export and local markets," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(1), pages 93-109.
    3. Ibrahim Bousmah & Gilles Grenier & David M. Gray, 2021. "Linguistic Distance, Languages of Work and Wages of Immigrants in Montreal," Journal of Labor Research, Springer, vol. 42(1), pages 1-28, March.
    4. Alakh N. Sharma, 2017. "Debate on Universal Basic Income Is Needed: Introduction to the Symposium Issue," Indian Journal of Human Development, , vol. 11(2), pages 139-140, August.
    5. Taiwo Aderemi, 2017. "Minimum Wage and the Working Poor in Nigeria: Is there a Link?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(3), pages 481-499, September.
    6. Mark Anner, 2020. "Squeezing workers’ rights in global supply chains: purchasing practices in the Bangladesh garment export sector in comparative perspective," Review of International Political Economy, Taylor & Francis Journals, vol. 27(2), pages 320-347, March.
    7. Kausar Parvin & Mahfuz Al Mamun & Andrew Gibbs & Rachel Jewkes & Ruchira Tabassum Naved, 2018. "The pathways between female garment workers’ experience of violence and development of depressive symptoms," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-17, November.
    8. Ahmed, Faisal Z. & Greenleaf, Anne & Sacks, Audrey, 2014. "The Paradox of Export Growth in Areas of Weak Governance: The Case of the Ready Made Garment Sector in Bangladesh," World Development, Elsevier, vol. 56(C), pages 258-271.
    9. Meghan J. Millea & Jon P. Rezek & Brian Shoup & Joshua Pitts, 2017. "Minimum Wages in a Segmented Labor Market: Evidence from South Africa," Journal of Labor Research, Springer, vol. 38(3), pages 335-359, September.
    10. Uma Rani, 2017. "Minimum Wage Policies and Their Effects in Developing Countries: A Comparative Perspective," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(1), pages 33-55, March.
    11. Humayun Kabir & Myfanwy Maple & Md Shahidul Islam & Kim Usher, 2021. "Prevalence of Suicide Thoughts and Behaviours among Female Garment Workers Who Survived the Rana Plaza Collapse: An In-Depth Inquiry," IJERPH, MDPI, vol. 18(12), pages 1-15, June.
    12. Humayun Kabir & Myfanwy Maple & Md Shahidul Islam & Kim Usher, 2019. "The Current Health and Wellbeing of the Survivors of the Rana Plaza Building Collapse in Bangladesh: A Qualitative Study," IJERPH, MDPI, vol. 16(13), pages 1-21, July.
    13. Mahmud , Simeen & Kabeer, Naila, 2003. "Compliance Versus Accountability: Struggles for Dignity and Daily Bread in the Bangladesh Garment Industry," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 29(3-4), pages 21-46, Sept-Dec.
    14. Noemi Sinkovics & Samia Ferdous Hoque & Rudolf R. Sinkovics, 2016. "Rana Plaza collapse aftermath: are CSR compliance and auditing pressures effective?," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 29(4), pages 617-649, May.
    15. Ruchira Tabassum Naved & Mahfuz Al Mamun & Kausar Parvin & Samantha Willan & Andrew Gibbs & Marat Yu & Rachel Jewkes, 2018. "Magnitude and correlates of intimate partner violence against female garment workers from selected factories in Bangladesh," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-22, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. ASM Anam Ullah, 2024. "Explaining Low Level of Trade Unionism: The Case of RMG Sector in Bangladesh," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(3), pages 909-933, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mia Mahmudur RAHIM & Sk Samidul ISLAM, 2020. "Freedom of association in the Bangladeshi garment industry: A policy schizophrenia in labour regulation," International Labour Review, International Labour Organization, vol. 159(3), pages 423-446, September.
    2. Rajneesh Narula, 2019. "Enforcing higher labor standards within developing country value chains: Consequences for MNEs and informal actors in a dual economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1622-1635, December.
    3. Syadani Riyad Fatema & Kylie Rice & Adam Rock & Md Shahidul Islam & Leah East & Kim Usher, 2023. "Physical and mental health status of women in disaster-affected areas in Bangladesh," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 117(3), pages 2715-2733, July.
    4. Robayet Ferdous Syed & Kazi Tanvir Mahmud & Ridoan Karim, 2024. "Do Labour Welfare Policies Matter for Workers? Evidence from the Garment Supply Chain Industry in Bangladesh," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(1), pages 237-253, March.
    5. Humayun Kabir & Myfanwy Maple & Md Shahidul Islam & Kim Usher, 2021. "Prevalence of Suicide Thoughts and Behaviours among Female Garment Workers Who Survived the Rana Plaza Collapse: An In-Depth Inquiry," IJERPH, MDPI, vol. 18(12), pages 1-15, June.
    6. Suraiyah Akbar & Craig Deegan, 2021. "Analysis of corporate social disclosures of the apparel industry following crisis: an institutional approach," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(2), pages 3565-3600, June.
    7. Robertson, Raymond, 2019. "Working Conditions, Transparency, and Compliance in Global Value Chains: Evidence from Better Work Jordan," IZA Discussion Papers 12794, Institute of Labor Economics (IZA).
    8. Carlson, Laura A. & Bitsch, Vera, 2018. "Social sustainability in the ready-made-garment sector in Bangladesh: an institutional approach to supply chains," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(2), March.
    9. Bossavie, Laurent & Cho, Yoonyoung & Heath, Rachel, 2023. "The effects of international scrutiny on manufacturing workers: Evidence from the Rana Plaza collapse in Bangladesh," Journal of Development Economics, Elsevier, vol. 163(C).
    10. repec:unu:wpaper:wp2012-02 is not listed on IDEAS
    11. Dejardin, Amelita King., 2009. "Gender (in)equality, globalization and governance," ILO Working Papers 994327273402676, International Labour Organization.
    12. Maryam Almasifard & Sasan Torabzadeh Khorasani, 2017. "Relationship Between Domestic Production in Agricultural and Industrial Sectors and Purchasing Power by Controlling for International Trade Variables (Iran)," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 244-253.
    13. Md Sultan Mahmood & Nilima Haque Ruma & Toufiq Ahmed & Yukari Nagai, 2021. "Exploring Suppliers’ Approaches toward Workplace Safety Compliance in the Global Garment Sector: From Bangladesh Perspective," Social Sciences, MDPI, vol. 10(3), pages 1-31, March.
    14. Alicia Adserà & Aditi Bhowmick, 2022. "English Proficiency, Gender and the Occupations of Childhood Immigrants in the US," Journal of Labor Research, Springer, vol. 43(3), pages 321-344, December.
    15. Haroon Bhorat & Karmen Naidoo & Morné Oosthuizen & Kavisha Pillay, 2015. "Demographic, employment, and wage trends in South Africa," WIDER Working Paper Series 141, World Institute for Development Economic Research (UNU-WIDER).
    16. Günseli Berik & Yana Van Der Meulen Rodgers, 2010. "Options for enforcing labour standards: Lessons from Bangladesh And Cambodia," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(1), pages 56-85.
    17. Yassaman Saadatmand & Dennis Barber, 2019. "Globalization, Gender And Entrepreneurial Activities In Latin America," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-22, December.
    18. Germano Glufke Reis & Carla Forte Maiolino Molento, 2020. "Emerging Market Multinationals and International Corporate Social Responsibility Standards: Bringing Animals to the Fore," Journal of Business Ethics, Springer, vol. 166(2), pages 351-368, October.
    19. Ali Fakih & Pascal L. Ghazalian, 2013. "Female Labour Force Participation in MENA's Manufacturing Sector: The Implications of Firm-related and National Factors," CIRANO Working Papers 2013s-46, CIRANO.
    20. MILE 02, Anirudh Shingal, 2015. "Labour market effects of integration into GVCs: Review of literature," Papers 1109, World Trade Institute.
    21. Arif Mostafa Khan & Meine Pieter van Dijk, 2024. "The role of multi‐stakeholder initiatives in advancing circularity and social sustainability in the textiles sector of Bangladesh," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(3), pages 1765-1788, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ijlaec:v:65:y:2022:i:2:d:10.1007_s41027-022-00375-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.