Bangladesh’s Shipbreaking Industry to Enforce Minimum Wages Amid Safety and Sustainability Challenge
The shipbreaking industry in Bangladesh will implement the minimum wage structure for its workers starting tomorrow, January 1, 2025. Mohammad Siddique, secretary of the Bangladesh Ship Breakers and Recyclers Association (BSBRA), announced this significant development at an event titled “Sharing OSH Report on Shipbreaking Workers with Regional Stakeholders” held at a hotel in Chattogram on December 31.
“The industry leaders have decided to implement the government-declared minimum wages for workers to ensure sustainability, as the sector faces a critical period due to national and international crises, including dollar shortages, rising scrap ship prices, declining local market demand, and significant investments in green transformation,” said Siddique.
The minimum wage structure, introduced by the Ministry of Labour and Employment, outlines salaries for five categories of workers. Grade-1 workers, including foremen, ship in-charges, and electrical foremen, will receive a monthly salary of Tk31,750 and a daily wage of Tk1,225. Grade-2 workers, such as supervisors, assistant foremen, winch drivers, and crane operators, are entitled to a minimum monthly salary of Tk24,250 and a daily wage of Tk935. Grade-3 workers, comprising cutter men, fitters, electricians, and mechanics—those who face the highest risks during ship dismantling—will earn a minimum monthly salary of Tk21,250 and a daily wage of Tk820. Grade-4 workers, including cutter helpers, general workers, winch helpers, and crane helpers, will receive Tk16,000 monthly and Tk615 daily. Apprentice workers under Grade-5 will be entitled to a minimum monthly wage of Tk8,000.
Despite the government issuing a gazette notification in 2018 declaring the minimum wage structure, its implementation has faced delays. Fazlul Kabir Mintu, coordinator of the Bangladesh Institute of Labour Studies (BILS), attributed the delay to the reluctance of industry owners and the inaction of the Department of Inspection for Factories and Establishments (DIFE). “According to the law, DIFE can file cases against industry owners who fail to implement the minimum wages, but the authority has not taken a strong stand to enforce the law. On the other hand, there was no strong movement from the workers, which delayed the implementation,” he explained.
In response, Shipan Chowdhury, deputy inspector general of DIFE, assured that this time the department would closely monitor the implementation. “Businesses often keep two separate salary records: one that shows higher wages to labour inspectors, and the other that shows the actual wages paid to workers. This time, DIFE will ensure strict monitoring, leaving no chance for non-compliance,” he said.
The event also highlighted safety concerns in the industry. The Bangladesh Institute of Labour Studies revealed that the annual death rate in Bangladesh’s shipbreaking sector has declined over the past five years (2020-2024), averaging eight deaths per year, compared to an average of 17.8 deaths per year between 2015 and 2019. Between 2015 and 2019, 89 workers lost their lives, equating to an average of 17.8 deaths per year. In contrast, the last five years saw 40 fatalities, with annual deaths dropping to eight on average. Notably, 2024 recorded seven deaths, including six fatalities in a single accident at a green shipbreaking yard, SN Corporation, on September 7.
Accidents remain a concern, with 28 reported in 2024. During the first half of the year, 12 incidents caused one death and 15 injuries. However, the latter half saw 16 accidents, resulting in six deaths and 21 injuries. These figures underscore the persistent need for improved safety measures in the industry.
Tapan Datta, convener of the Shipbreaking Workers Trade Union Forum, chaired the event, which brought together stakeholders to discuss these pressing issues. While the implementation of the minimum wage is a positive step, many believe it must be accompanied by stricter safety protocols to safeguard the lives of workers.
The shipbreaking industry, a critical part of Bangladesh’s economy, provides employment to thousands of workers and supplies raw materials for the local steel industry. However, it has long faced criticism for poor working conditions and inadequate safety measures. With the introduction of the minimum wage and the promise of stricter enforcement by DIFE, stakeholders hope for a more sustainable and equitable future for the sector.