Problem With Minimum Wage Essay

In a published interview with Saiful Islam Khan, MD at Essential Clothing Ltd, it was heard that if the minimum wage increases to BDT 10 thousand then one-third of the factories might shut down because it would be tough for them to survive specially for the small and medium sized companies. On the other hand, it was also heard that the companies or factories can still absorb additional 20% increase of the minimum wage rate without causing the disruption in such factories. he article 123 of the Labour Act states that workers should receive their monthly wages by the end of 7th day. However, it is still seen that workers are not paid accordingly. This is the main reason for which the workers try to form a trade union in order to fight such exploitations. They start facing problems such as managing the payments for rental houses, payment for food and sending money to their home towns, as the payment gets

Usually, they receive the payments during the middle and in some cases at the end of the month.
Problem with overtime payments
Although there have been drastic steps taken to improve the RMG worker’s situation just after such tragic events, but there still seems that the problem of forced overtime and denial in paying wages and overtime payment exists. Workers in many factories are still forced to work at night and do not receive the overtime earnings that they are entitled to. Through an article published by Human Rights Watch, it can be seen that major garment factories still fuels exploitation of labours. In order to maximize profit and reduce its costs, factory owners seem to cut on overtime payments for the workers. They force the workers to work extra in order to meet their orders, but in return only receive the regular payments and not the entitled overtime wages. Owners of such garments factory tend to be involved in politics which gives them considerable upper hand and acts as a barrier to mitigate workplace exploitations. The article also