Living wage

LAHORE: Global focus on sustainability has brought the exploitation of workers into focus as well. A bad environment in manufacturing processes is a tax on workers, and low wages also make workers weak and less productive.

Although sustainability measures have gained momentum due to adverse climate change worldwide, they have also benefited workers in regions where they are practiced. These measures have necessitated better manufacturing practices to reduce the environmental carbon footprint.

It was during this sustainability push that the developed world also realized the minimum wage fixed by different governments, particularly in developing economies, is often unfair.

Governments tend to favor their exporters by setting lower minimum wages. However, in developing economies, exporters are bound to pay the minimum wage to their workers as foreign buyers insist on adherence to national labor welfare rules.

Relief for workers in developing countries, including Pakistan, has often come when Western media has highlighted their plight. Now, textile exporters have constructed the required number of washrooms as dictated by buyers, and these facilities are kept clean at all times.

Manufacturing floors are fully illuminated and have emergency exits on each level. Additionally, exhaust systems ventilate the manufacturing floors to remove hot air.

Most exporters have clinics on factory premises for workers, as well as fair-price shops that provide discounted groceries. Some even provide meals to their workers during working hours.

Despite these improvements, workers still struggle to meet basic needs, as minimum wages in most of these countries are too low to afford a decent living for their families.

Recent protests by Bangladeshi workers demanding an increase in their minimum wage brought their plight to the attention of Western countries that purchase most of the apparel from that country. Workers were demanding Tk 2300 per month as a minimum wage, but the government and industry fixed it at Tk 1000 less.

While workers have returned to work, they have publicly expressed their displeasure. Western media and the US government have urged the Bangladeshi government to fix a livable wage.

Now, instead of simply a minimum wage, workers worldwide are demanding a livable wage—one that allows them to live decently with their families.

Experts argue that the current minimum wage in Pakistan is also not a livable wage. Massive inflation has significantly diluted the purchasing power of workers.

The industry might not be able to afford a higher wage due to the gloomy economic climate, high inflation, and high-interest rates. In Bangladesh, many global brands have assured garment suppliers that they would share the burden of paying a fair wage. They can in fact do so because of their low procurement rates from Bangladeshi suppliers compared to their significant price markups at retail.

This phenomenon is not limited to Bangladesh but is more pronounced in Pakistan.

However, the problem is that the order size in Pakistan is too low, and buyers may ignore Pakistan in this regard. Bangladesh has the advantage of operating factories on sustainable processes, while most factories in Pakistan lag far behind global standards. The Pakistani apparel sector would gain global support if it certified its factories through accredited agencies as soon as possible. Failure to do so would divert orders away from the country.