Urgent Action Needed to Ease the Mounting Hardships of Ordinary People

For the past several days, garment workers have blocked roads and staged protests in the capital, Gazipur and other areas, demanding higher wages. They say rising prices have made it increasingly difficult to run their households on their current salaries. They are demanding an increase in the minimum monthly wage from Tk 12,500 to Tk 30,000.

In December 2023, the minimum wage for garment workers was set at Tk 12,500 for three years. The period will end this December. Ahead of the deadline, workers have begun protesting to demand a new wage structure and higher salaries.

The government has already taken steps to form a wage board to set a new minimum wage. It has asked the garment workers’ federation to nominate three representatives to the board, which will determine the new wage structure. Workers’ organisations believe the formation of the board could ease the protests to some extent.

Meanwhile, garment factory owners have alleged that, despite the initiative to form the wage board, an interest group is trying to create unrest by provoking workers with various claims. Observers have urged the government to remain alert over the garment workers’ movement. They say winter is traditionally a period of political protests in Bangladesh, when opposition parties and various groups take to the streets.

They also point to the announcement that former prime minister Sheikh Hasina, who fled the country, would return in December. They allege that the banned Awami League and its allies are conspiring to destabilise the political situation ahead of her proposed return. Against this backdrop, they say it is possible that attempts could be made to fuel unrest by exploiting the garment workers’ movement.

There is no denying that inflation has pushed the prices of essential goods beyond the reach of many low- and fixed-income households. People are struggling to cover their living costs with their earnings. Both low-income and middle-class families are under pressure, and some households have been forced to leave the capital and return to their villages. This reflects the depth of the country’s economic difficulties.

The global economic slowdown linked to the Iran war, along with the severe economic problems inherited by the government, has placed further pressure on the economy. Weak investment, rising unemployment and declining import and export trade have worsened the situation across almost every major economic indicator.

The government is also facing financial constraints and has had to rely on borrowing. It has set a target of borrowing Tk 1.12 trillion from the banking sector in the current fiscal year. However, it had already borrowed Tk 242.45 billion in the first three months, from July to September, and is expected to borrow more.

At the same time, revenue collection is falling short of its target. The government set a revenue collection target of Tk 810.53 billion for the first two months of the fiscal year, July and August, but collected only Tk 555.62 billion, leaving a shortfall of around Tk 254.91 billion. This indicates weaknesses in the performance of the agencies responsible for collecting revenue.

The government has adopted long-term plans and initiatives to revive the economy, but implementing them will take time. In the meantime, urgent measures are needed to provide relief to ordinary people. Daily news reports clearly show the extent of their suffering.

The government must address what can be described as the present-time real crisis by taking immediate steps to ease people’s hardship. However, there has been little visible action in this regard, and the government has made few public statements about measures to provide immediate relief. As a result, people facing financial hardship are becoming increasingly frustrated, and garment workers and people in other professions are taking to the streets.

Garment workers argue that government employees have received substantial pay increases, contributing to inflation, and that their wages should also be raised. However, the crisis in the garment sector is closely linked to global economic conditions. Major economies, including those of Europe and the United States, are facing economic difficulties, which have affected the garment industry. Due to the economic slowdown, many international buyers have postponed or cancelled orders even after placing them.

This crisis cannot be resolved overnight. The government has already announced an incentive of Tk 60,000 to help reopen closed industrial factories. One practical step would be to simplify the process so factory owners can receive the assistance quickly and restart operations. This would help unemployed workers return to their jobs and create opportunities for further employment.

The real estate sector, another major source of economic activity and employment, has also stalled. Sales of flats and land have nearly dried up, leaving many people in the sector unemployed. The government needs to develop plans and take initiatives to revive this industry.

If the government fails to improve people’s living conditions, it will bear responsibility for their suffering. Ordinary people are increasingly frustrated because their incomes are no longer sufficient to cover their expenses. Although discontent is growing, many have so far remained patient. Garment workers and people in other professions have staged scattered protests, but most ordinary citizens have not openly turned against the government.

However, if the government fails to take urgent steps to ease their financial difficulties, that patience may soon run out. Opposition parties and the ousted Awami League are also waiting for opportunities to weaken or undermine the government. They could quickly exploit people’s legitimate grievances to further their political objectives.

The government must recognise these risks and act without delay to make life easier for people struggling to make ends meet. It should take steps to revive existing domestic industries and increase employment opportunities. It must also work to bring the prices of essential goods down to affordable levels and provide relief to ordinary households.

The government must remember that its long-term economic development plans will take time to produce results. To reach those goals, it must take urgent action now to ease the hardships people face. Without such measures, achieving its broader economic objectives will become increasingly difficult.