Wage Theft Crisis In Bangladesh’s Garment Sector Demands Global Action

Bangladesh’s garment industry, a cornerstone of the global fast-fashion economy, is in the midst of a deepening wage theft crisis that threatens to tarnish the country’s development success. Despite employing over 4 million workers—most of them women—and producing apparel for top global brands like H&M and Zara, thousands of factories across Dhaka, Ashulia, Narayanganj, and Chittagong have failed to pay full wages or have delayed payments, sparking protests and, at times, riots.

This ongoing issue underscores a darker side of globalization in the Asia-Pacific. While the region is hailed for its rapid industrialization, the economic expansion often comes at the cost of the most vulnerable. In March alone, reports indicated that over 7,000 factories failed to pay workers fully for the previous month’s labor, a trend exacerbated by inflation and weak labor law enforcement.

A central problem lies in the structural imbalance between Western brands and their Asian suppliers. Research by the University of Aberdeen and Transform Trade in 2023 revealed that more than half of surveyed Bangladeshi suppliers were paid below production costs by major international brands. These pricing pressures force factories to compromise labor standards, leading to wage theft and economic instability, while also damaging the reputation of the brands involved.

Government inaction has compounded the issue. Following the 2013 Rana Plaza collapse, which claimed 1,133 lives, Bangladesh pledged reforms. However, meaningful enforcement remains elusive. The current review of minimum wages appears inadequate as the gap between wages and the cost of living widens. Labor activists continue to face threats and intimidation, while the government prioritizes export earnings over workers’ rights—setting a worrying precedent of “economic performance at any cost.”

Global brands must step up. Ensuring that factories can pay living wages under fair purchasing terms is essential. While some companies have made voluntary ESG commitments, without third-party oversight and enforceable conditions, these remain hollow promises.

To ensure a more ethical future, Asia-Pacific countries must lead in establishing robust regional standards for fair labor practices. This includes moral leadership, practical cooperation, and reputational accountability. For Bangladesh, the ready-made garment industry has been a pathway out of poverty and toward global recognition. But without resolving wage theft and exploitation, this success story risks becoming an illusion.

Real change requires collaboration: domestic manufacturers must uphold social responsibility, governments must enforce labor laws, and international institutions must go beyond rhetoric to support sustainable reforms. A just and resilient supply chain begins by honoring the dignity and rights of the workers who sustain it.