Bangladesh’s garment industry ranks as a mainstay of the global fast-fashion economy. More than 4 million people produce clothes for major brands such as H&M and Zara; most are female laborers. It’s a field under new scrutiny: From Dhaka to Ashulia, Bettiah to Narayanganj and on to Chittagong, thousands of factories have pay delays or denied full wages — leading to protests, in some cases even inciting riots.
The Asia-Pacific is often applauded for its rapid industrial growth and its contribution to the global supply chain. However, continued wage theft in Bangladesh is a dark mark of globalization. The most vulnerable continue soaking up the consequences of the region’s economic expansion.
In March, reports claimed that more than 7,000 factories had not paid full wages for the previous month’s labor. This problem is not new, but today’s crisis is intensified by inflationary pressures in every country and the weak enforcement of labor laws.
A Problem in the Chain: A Foreign Policy Disaster
The root problem in this crisis lies in the imbalance of power between Western brands and their suppliers in Asia. International clothing companies regularly force pricing constraints on Bangladeshi manufacturers, constraints that often drive them to cut things such as labor standards. A 2023 study by the University of Aberdeen and Transform Trade found that over 50 percent of surveyed Bangladeshi suppliers were paid less than cost-of-production by major brands, including those based in Europe and North America.
This process not only leads to the instability of local economies but also creates a problem of reputation for brands. In countries like Bangladesh that are heavily dependent on garment exports, wage theft is not just a labor issue but a political liability as well. It can bring about unrest in response to large-scale stoppages of production and the weakening of regional competitive positions.
Government Inaction and Structural Impunity
After the 2013 collapse of Rana Plaza and the deaths of 1,133 garment workers, Bangladesh has not kept its promise to strengthen enforcement mechanisms. Currently, there is a review underway for increasing the minimum wage. However, as the gap between proposed wage structures and the cost of living grows wider, this simple fact remains imminent. In addition, labor organizers are subject to intimidation at frequent intervals.
Intimidated by threats of international arbitration lawsuits on the one hand and demands from domestic actors for growth on the other, the government frequently chooses export revenues over worker rights. In practice, this sets an example for other countries too: “economic performance at any price.”
The Role of International Brands
Western and Asian retailers that have supply chains in Bangladesh must take every step they can to ensure that their own links are ethical. Factories must be able to afford living wages, given the terms of who bought what and when. Brands are simply obliged to commit themselves voluntarily, with third-party labor auditors to check it all is above board and enforceable conditions for supplier factories. Several global brands have voluntarily pledged to uphold workers’ rights. But without any means of enforcement, such pledges often end up being rhetorical flourishes.
In this current era, when companies are declaring themselves publicly to “do ESG (Environmental, Social, Governance) business,” the garment crisis in Bangladesh suggests the truth. Does the meaning of these values remain on paper, or are they operational principles to companies concerned with their survival above all else?
Toward a Brighter Regional Future
Asia-Pacific countries must be first-class pioneers. They have to set high standards for fair sourcing and the protection of labor rights.
South and Southeast Asia now have the largest manufacturing centers in the world. There needs to be not only moral guidance but material help as well in creating a regional code of conduct that covers fair labor standards on all sides, not only at home but abroad. Assuming the initiative on such policies would bring reputational gains to those that lead the charge.
Bangladesh’s ready-to-wear textile industry has been a success story, not one of failure. In this industry, millions of people have risen from poverty, and women obtained a respected economic status; moreover, the country was put on the map internationally. However, if wage theft and workers’ exploitation remain unresolved, this triumph will prove to be empty.
Domestic enterprises must exercise proper social responsibility. It is not enough to pay taxes along with everyone else, let alone blame the government for all of society’s problems. International institutions need to help implement sustainable policies and not just give lip service to them. Governments must regulate industries in the interests of the people.
A more just supply chain starts with giving the hands that make it all happen their proper dues.
