Minimum Wage Impact on RMG Sector of Bangladesh: Prospects, Opportunities and Challenges of New Payout Structure

Ashik-Uz-Zaman; Md Abdul Mannan Khan

doi:doi:10.11648/j.ijber.20211001.12

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Minimum Wage Impact on RMG Sector of Bangladesh: Prospects, Opportunities and Challenges of New Payout Structure

Ashik-Uz-Zaman, Md Abdul Mannan Khan

Published in International Journal of Business and Economics Research (Volume 10, Issue 1)

Received: 24 November 2020 Accepted: 17 December 2020 Published: 12 January 2021

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Abstract

Strike and labor unrest is very much common for the Readymade Garments (RMG) sector of Bangladesh. Most of them are basically for payment related issue like irregular wage payment practice of the garment factories owners and significant lag time of wage payment to the workers. With a view to maintaining stability in RMG sector, Ministry of Labor and Employment published new wage structure specially for the RMG sector in November 2018. Though new payout structure has been approved the effective implementation has become a great challenge for the governmental or regulatory authority as more than 50 percent increment in the lower graded workforce gross payout generates expectation gap of the owners of the RMG factories regarding the passion and value generating activities of the lower graded or minimum payout holder working force. High turnover in lower graded labor force and lack of working dedication generates reluctance of the owners to implement new payout structure of RMG sectors. However early stage patience and passion for working in RMG sector may gift a better career growth for the new workforce. Results have also justified the affiliation of a number of factors that may get influenced for the implementation of new minimum wage payout in the RMG sector.

Published in	International Journal of Business and Economics Research (Volume 10, Issue 1)
DOI	10.11648/j.ijber.20211001.12
Page(s)	8-20
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

RMG Sector, Minimum Wage Payout, Payout Structure, BGMEA

References

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APA Style

Ashik-Uz-Zaman, Md Abdul Mannan Khan. (2021). Minimum Wage Impact on RMG Sector of Bangladesh: Prospects, Opportunities and Challenges of New Payout Structure. International Journal of Business and Economics Research, 10(1), 8-20. https://doi.org/10.11648/j.ijber.20211001.12

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ACS Style

Ashik-Uz-Zaman; Md Abdul Mannan Khan. Minimum Wage Impact on RMG Sector of Bangladesh: Prospects, Opportunities and Challenges of New Payout Structure. Int. J. Bus. Econ. Res. 2021, 10(1), 8-20. doi: 10.11648/j.ijber.20211001.12

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AMA Style

Ashik-Uz-Zaman, Md Abdul Mannan Khan. Minimum Wage Impact on RMG Sector of Bangladesh: Prospects, Opportunities and Challenges of New Payout Structure. Int J Bus Econ Res. 2021;10(1):8-20. doi: 10.11648/j.ijber.20211001.12

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@article{10.11648/j.ijber.20211001.12,
  author = {Ashik-Uz-Zaman and Md Abdul Mannan Khan},
  title = {Minimum Wage Impact on RMG Sector of Bangladesh: Prospects, Opportunities and Challenges of New Payout Structure},
  journal = {International Journal of Business and Economics Research},
  volume = {10},
  number = {1},
  pages = {8-20},
  doi = {10.11648/j.ijber.20211001.12},
  url = {https://doi.org/10.11648/j.ijber.20211001.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211001.12},
  abstract = {Strike and labor unrest is very much common for the Readymade Garments (RMG) sector of Bangladesh. Most of them are basically for payment related issue like irregular wage payment practice of the garment factories owners and significant lag time of wage payment to the workers. With a view to maintaining stability in RMG sector, Ministry of Labor and Employment published new wage structure specially for the RMG sector in November 2018. Though new payout structure has been approved the effective implementation has become a great challenge for the governmental or regulatory authority as more than 50 percent increment in the lower graded workforce gross payout generates expectation gap of the owners of the RMG factories regarding the passion and value generating activities of the lower graded or minimum payout holder working force. High turnover in lower graded labor force and lack of working dedication generates reluctance of the owners to implement new payout structure of RMG sectors. However early stage patience and passion for working in RMG sector may gift a better career growth for the new workforce. Results have also justified the affiliation of a number of factors that may get influenced for the implementation of new minimum wage payout in the RMG sector.},
 year = {2021}
}

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TY  - JOUR
T1  - Minimum Wage Impact on RMG Sector of Bangladesh: Prospects, Opportunities and Challenges of New Payout Structure
AU  - Ashik-Uz-Zaman
AU  - Md Abdul Mannan Khan
Y1  - 2021/01/12
PY  - 2021
N1  - https://doi.org/10.11648/j.ijber.20211001.12
DO  - 10.11648/j.ijber.20211001.12
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 8
EP  - 20
PB  - Science Publishing Group
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UR  - https://doi.org/10.11648/j.ijber.20211001.12
AB  - Strike and labor unrest is very much common for the Readymade Garments (RMG) sector of Bangladesh. Most of them are basically for payment related issue like irregular wage payment practice of the garment factories owners and significant lag time of wage payment to the workers. With a view to maintaining stability in RMG sector, Ministry of Labor and Employment published new wage structure specially for the RMG sector in November 2018. Though new payout structure has been approved the effective implementation has become a great challenge for the governmental or regulatory authority as more than 50 percent increment in the lower graded workforce gross payout generates expectation gap of the owners of the RMG factories regarding the passion and value generating activities of the lower graded or minimum payout holder working force. High turnover in lower graded labor force and lack of working dedication generates reluctance of the owners to implement new payout structure of RMG sectors. However early stage patience and passion for working in RMG sector may gift a better career growth for the new workforce. Results have also justified the affiliation of a number of factors that may get influenced for the implementation of new minimum wage payout in the RMG sector.
VL  - 10
IS  - 1
ER  -

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Author Information

Ashik-Uz-Zaman

Department of Accounting & Information Systems, Bangabandhu Sheikh Mujibur Rahman Science & Technology University, Gopalganj, Bangladesh
Md Abdul Mannan Khan

Department of Accounting & Information Systems, Bangabandhu Sheikh Mujibur Rahman Science & Technology University, Gopalganj, Bangladesh

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Plain Text BibTeX RIS

APA Style

Ashik-Uz-Zaman, Md Abdul Mannan Khan. (2021). Minimum Wage Impact on RMG Sector of Bangladesh: Prospects, Opportunities and Challenges of New Payout Structure. International Journal of Business and Economics Research, 10(1), 8-20. https://doi.org/10.11648/j.ijber.20211001.12

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ACS Style

Ashik-Uz-Zaman; Md Abdul Mannan Khan. Minimum Wage Impact on RMG Sector of Bangladesh: Prospects, Opportunities and Challenges of New Payout Structure. Int. J. Bus. Econ. Res. 2021, 10(1), 8-20. doi: 10.11648/j.ijber.20211001.12

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AMA Style

Ashik-Uz-Zaman, Md Abdul Mannan Khan. Minimum Wage Impact on RMG Sector of Bangladesh: Prospects, Opportunities and Challenges of New Payout Structure. Int J Bus Econ Res. 2021;10(1):8-20. doi: 10.11648/j.ijber.20211001.12

Copy | Download

@article{10.11648/j.ijber.20211001.12,
  author = {Ashik-Uz-Zaman and Md Abdul Mannan Khan},
  title = {Minimum Wage Impact on RMG Sector of Bangladesh: Prospects, Opportunities and Challenges of New Payout Structure},
  journal = {International Journal of Business and Economics Research},
  volume = {10},
  number = {1},
  pages = {8-20},
  doi = {10.11648/j.ijber.20211001.12},
  url = {https://doi.org/10.11648/j.ijber.20211001.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211001.12},
  abstract = {Strike and labor unrest is very much common for the Readymade Garments (RMG) sector of Bangladesh. Most of them are basically for payment related issue like irregular wage payment practice of the garment factories owners and significant lag time of wage payment to the workers. With a view to maintaining stability in RMG sector, Ministry of Labor and Employment published new wage structure specially for the RMG sector in November 2018. Though new payout structure has been approved the effective implementation has become a great challenge for the governmental or regulatory authority as more than 50 percent increment in the lower graded workforce gross payout generates expectation gap of the owners of the RMG factories regarding the passion and value generating activities of the lower graded or minimum payout holder working force. High turnover in lower graded labor force and lack of working dedication generates reluctance of the owners to implement new payout structure of RMG sectors. However early stage patience and passion for working in RMG sector may gift a better career growth for the new workforce. Results have also justified the affiliation of a number of factors that may get influenced for the implementation of new minimum wage payout in the RMG sector.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Minimum Wage Impact on RMG Sector of Bangladesh: Prospects, Opportunities and Challenges of New Payout Structure
AU  - Ashik-Uz-Zaman
AU  - Md Abdul Mannan Khan
Y1  - 2021/01/12
PY  - 2021
N1  - https://doi.org/10.11648/j.ijber.20211001.12
DO  - 10.11648/j.ijber.20211001.12
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 8
EP  - 20
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20211001.12
AB  - Strike and labor unrest is very much common for the Readymade Garments (RMG) sector of Bangladesh. Most of them are basically for payment related issue like irregular wage payment practice of the garment factories owners and significant lag time of wage payment to the workers. With a view to maintaining stability in RMG sector, Ministry of Labor and Employment published new wage structure specially for the RMG sector in November 2018. Though new payout structure has been approved the effective implementation has become a great challenge for the governmental or regulatory authority as more than 50 percent increment in the lower graded workforce gross payout generates expectation gap of the owners of the RMG factories regarding the passion and value generating activities of the lower graded or minimum payout holder working force. High turnover in lower graded labor force and lack of working dedication generates reluctance of the owners to implement new payout structure of RMG sectors. However early stage patience and passion for working in RMG sector may gift a better career growth for the new workforce. Results have also justified the affiliation of a number of factors that may get influenced for the implementation of new minimum wage payout in the RMG sector.
VL  - 10
IS  - 1
ER  -

Copy | Download