The garments industry is by far Bangladesh's largest exporter, employing roughly two million people, and accounting for 80 percent of the economy's foreign-exchange earnings. For years, these workers have accepted a precarious existence, working long hours for less than USD 1 a day. Over the last year, however, rapid inflation in food prices has made their wages unlivable.
Beginning on 23 May, rioting workers in and around Dhaka torched several garment factories and vandalised many more. The press responded to the rioting by flaying factory owners, both local and foreign, for exploiting their workers. The owners in turn pleaded with the government to restore law and order. After deploying security personnel to protect factories from vandalism, on 31 May the government established an official commission to review minimum wages in the garment industry. The move was subsequently endorsed by representatives of both workers and factory owners in a memorandum of understanding signed 12 June.
Violent protests may have waned, but the fact is that the garment industry is in crisis. In an industry that is healthy, most companies make a margin high enough to pay their workers a wage that is mutually acceptable to both the workers and employers. The recent riots show that the Bangladeshi garment industry is far from healthy.
Exports of Garments in major categories in USD millionsPeriodShirtsTrousersJacketsT-shirtsSweatersFY20011074656574597477FY2002871637412546518FY20031020644465642578FY2004111713353651062616FY2005 (est)105316674301349893Change over five years