A new report from Swedwatch reveals the harsh realities faced by garment workers in Bangladesh. Despite decades of activism and corporate promises, most workers are still earning less than a living wage, forcing them into debt and dependence on overtime.
With the recent adoption of the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), there is hope for change. However, strong enforcement and further action are necessary to ensure workers can access fair wages and better working conditions.
The Reality for Garment Workers
Bangladesh is a major supplier to the global garment market, including the EU. Yet, it ranks among the worst countries for workers’ rights, according to the International Trade Union Confederation (ITUC) 2024 Global Rights Index. Workers face inadequate wages, restrictions on forming unions, and poor workplace conditions.
The recent increase in the national minimum wage to 12,500 taka (€94) is still far below the living wage of 23,000 taka (€198) demanded by unions and international organizations. This gap leaves workers struggling to cover basic needs like food, housing, and healthcare.
Swedwatch’s research, conducted in Bangladesh’s garment hubs of Dhaka, Ashulia, and Tongi, highlights the toll of low wages. Workers reported borrowing money to survive, with many caught in a cycle of debt. One worker, Shapna, shared how she lives on loans due to the lack of overtime work:
“When I get my salary, I repay the first person I borrowed from and then take another loan. This is how the cycle continues.”
The Challenge for Factories and Buyers
Factory managers in Bangladesh acknowledge the dire situation but cite challenges in addressing it. Asif, an executive manager, explained:
“The current salary for garment workers is not enough to support a family of four, even if both adults work in factories. But buyers aren’t paying higher rates for products.”
Suppliers face intense competition, and pressure from global buyers to lower prices makes it difficult to pay workers fairly. Short-term planning, late payments, and pricing below production costs further undermine the financial stability of factories.
The Role of the EU Directive
The EU’s CSDDD mandates companies to conduct due diligence on human rights and environmental issues, including fair wages. This directive is a significant step forward, but its success depends on how effectively it is implemented across EU member states.
Sofia Käll, a program officer at Swedwatch, emphasizes the opportunity for global brands to take responsibility:
“Brands sourcing from countries like Bangladesh must prioritize living wages and integrate sustainable wage structures into their value chains. The CSDDD should transform the garment industry by securing fair wages and improving working conditions.”
Swedwatch’s Call to Action
Swedwatch urges EU member states and global brands to fully embrace the potential of the CSDDD by ensuring fair wages and sustainable practices. Key recommendations include:
- Implementing robust laws that require fair purchasing practices.
- Supporting factories in providing living wages.
- Strengthening worker engagement and union rights.
For global brands, this is an opportunity to show true commitment to human rights and sustainable development by aligning their practices with the directive.
“The CSDDD must go beyond compliance. It should create a fair and just garment industry where workers are paid living wages and work in safe conditions,” says Sofia Käll.
A Shared Responsibility
The report highlights that the challenges faced by garment workers in Bangladesh are not unique but reflect a global problem in the garment industry. Addressing these systemic issues requires collaboration between governments, brands, and consumers.
By ensuring living wages and fair practices, we can take a step toward a more equitable and sustainable future for workers worldwide.
