Hundreds of garment factories in Bangladesh are facing disruptions as worker protests over low pay and the rising cost of living rock the country’s industrial hubs. The demonstrations have continued for a third day, with reports of protests in the Savar, Ashulia, and Gazipur areas, and a heavy police presence in Dhaka's Mirpur industrial area.

The protests highlight the precarious financial situation of garment workers in Bangladesh, whose current minimum wage of 12,500 taka ($101) is increasingly insufficient due to inflation. The workers are demanding a significant increase to 30,000 taka ($242) per month, more than double their current earnings, arguing they are not receiving a fair share of the industry's substantial export revenue.

Approximately 500 factories were temporarily shuttered after the protests began on Saturday. Thousands of workers have taken to the streets, encountering tear gas and sound grenades deployed by the police in an effort to control the demonstrations. In response, the Bangladesh government formed a new wage board on Sunday to review the minimum wage for garment workers, and Prime Minister Tarique Rahman held an emergency meeting with ministers and advisers.

The disruptions come as Bangladesh’s vital garment industry, a key source of export earnings and employment worth about $38 billion, faces a complex mix of challenges. Factory owners cite rising operational costs, energy market uncertainty exacerbated by the ongoing United States-Israel conflict in Iran, and a slowdown in demand from some export markets.

Despite these challenges, advocates for workers point out that Bangladesh offers some of the lowest wages in the global garment sector. Babul Akhter, general secretary of the Bangladesh Garment and Industrial Workers Federation, stated that if factory owners cannot afford to pay workers adequately, they should negotiate better terms with international buyers rather than relying on underpaid labor.

The Bangladesh Garment Manufacturers and Exporters Association acknowledged the government's step in forming the wage board. Its president, Mahmud Hasan Khan, expressed a hope that workers would allow the review process to proceed without further disruption, indicating that continued protests could lead to further operational halts.

This situation places significant pressure on the government and the industry to balance the economic viability of the sector with the basic living needs of its workforce. The outcome of the wage board’s review is anticipated to be a critical factor in resolving the current unrest.

Further analysis will depend on the wage board's recommendations and the response from both factory owners and workers, as well as the broader economic conditions affecting global demand for textiles.