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Business · 2026-11-02 · Morning briefing

Bangladesh garment factories reopen as wage dispute simmers

Garment factories across Bangladesh reopened on Monday after widespread protests over pay forced their closure a day earlier. Workers are demanding a minimum monthly wage of 30,000 taka ($243), a sharp increase from the current 12,500 taka. Recent demonstrations, which saw police use tear gas in Dhaka, disrupted operations at 529 factories and affected nearly 1 million workers.

The dispute puts the world's second-largest apparel exporter, after China, on edge. The ready-made garment sector is the backbone of the country's economy, accounting for over 80% of export earnings, employing around 4 million people, and contributing roughly 10% to GDP.

The government formed a wage board on Sunday to review the demands. Yet the industry's main trade body, the Bangladesh Garment Manufacturers and Exporters Association, has warned it will invoke a 'no work, no pay' policy if further protests force more shutdowns.

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