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Global Fashion Factories in Bangladesh Resigned to Slimmer Margins ahead of Wage Hike

Garment workers sew T-shirts at a factory in Dhaka, Bangladesh, in 2009. AFP/Getty Images
Garment workers sew T-shirts at a factory in Dhaka, Bangladesh, in 2009. AFP/Getty Images
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Global Fashion Factories in Bangladesh Resigned to Slimmer Margins ahead of Wage Hike

Garment workers sew T-shirts at a factory in Dhaka, Bangladesh, in 2009. AFP/Getty Images
Garment workers sew T-shirts at a factory in Dhaka, Bangladesh, in 2009. AFP/Getty Images

Several clothing factory owners in global fashion manufacturing hub Bangladesh are asking clients that include H&M to help them pay for an almost 60% government-mandated hike in wages, well aware that weaker sales might stymie their efforts.
Following a week of deadly clashes between garment industry workers and police over pay, the government on Tuesday said the minimum wage would rise by 56.25% to 12,500 taka ($114) a month from Dec. 1, the first increase in five years.
A panel of factory owners, union leaders and officials agreed to the increase unanimously, said Siddiqur Rahman, the owners' representative. Low wages have helped Bangladesh become the world's largest garment exporter after China, but soaring fuel and power prices have added to the spiraling cost of living for people in this developing South Asian nation.
Speaking to Reuters on Wednesday, Rahman said the wage hike - which comes ahead of a January general election - could be a "disaster" for an industry that accounts for almost 16% of GDP and generates more than $40 billion a year in export receipts.
Bangladesh is home to more than 4,000 factories that supply global brands ranging from fast fashion retailers such as Zara-owner Inditex and Gap Inc to the more upmarket Hugo Boss and Lululemon.
But like most makers of consumer goods, fashion retailers are grappling with high inventories and a slowing global economy, where shoppers in key markets are buying less as they feel the pinch. That has led to a 14% drop in Bangladesh's garment exports last month.
"The timing is not good," said Fazlul Hoque, managing director of Plummy Fashions and former president of the Knitwear Manufacturers & Exporters Association, about the wage hike.
"The industry is already struggling, order flow is slow, energy supply is not adequate and the overall economic situation is not good. In such a time, a big hike in wages certainly will be tough... but for workers, I agree it is a legitimate demand."
Hoque said the increase would add 5-6% to overall costs, a rise he and other factory owners have asked their clients to help shoulder by agreeing to higher rates. Labour accounts for 10% to 13% of their total costs.
He is not optimistic, however.
"In the past, we have seen that they increase only a bit, not enough to pay the extra cost," Hoque said. "There might be exceptions, but there are thousands of buyers, and not everyone will agree to cover the whole amount. There is no legal enforcement on the buyers."
Last month, several fashion brands including Abercrombie & Fitch, Adidas, Gap, Hugo Boss, Levi Strauss , Lululemon, Puma, PVH and Under Armour told Prime Minister Sheikh Hasina in a letter they were "committed to implementing responsible purchasing practices" to enable higher wages.
"We continue to recommend that the government of Bangladesh adopt an annual minimum wage review mechanism to keep up with changing macroeconomic factors," the letter said. In addition to the wage increase, the government has said that workers would be given a 5% annual increment.
Babul Akter, president of the Bangladesh Garment and Industrial Workers Federation, urged global brands to pay more, saying: "There could be some problems for the owners to cope with the increased salaries."
But Abdus Salam Murshedy, managing director of the Envoy Group that sells to Walmart, Zara and American Eagle Outfitter among others, said buyers were unwilling to pay the "right price, the fair price" with major economies slowing and the wars in Ukraine and in the Middle East raising geopolitical concerns.
"Words from buyers are fine but when they place orders, they say there are many other competing suppliers, so you better do this, do that," said Murshedy, who is also a lawmaker from Hasina's Awami League party.
"The industry needs to be able to pay for its costs. If there is no industry, where will the workers work?"

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Fashion

Invited to the Met Gala, Nothing to Wear? Hint: Find Yourself a ‘Superfine’ Suit

Designs by Jacques Agbobly, left, and Jeffrey Banks, intended for the upcoming Costume Institute exhibit, “Superfine: Tailoring Black Style," appear in the installation room at the Metropolitan Museum of Art in New York on March 20, 2025. (AP)
Designs by Jacques Agbobly, left, and Jeffrey Banks, intended for the upcoming Costume Institute exhibit, “Superfine: Tailoring Black Style," appear in the installation room at the Metropolitan Museum of Art in New York on March 20, 2025. (AP)
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Invited to the Met Gala, Nothing to Wear? Hint: Find Yourself a ‘Superfine’ Suit

Designs by Jacques Agbobly, left, and Jeffrey Banks, intended for the upcoming Costume Institute exhibit, “Superfine: Tailoring Black Style," appear in the installation room at the Metropolitan Museum of Art in New York on March 20, 2025. (AP)
Designs by Jacques Agbobly, left, and Jeffrey Banks, intended for the upcoming Costume Institute exhibit, “Superfine: Tailoring Black Style," appear in the installation room at the Metropolitan Museum of Art in New York on March 20, 2025. (AP)

What’s in a suit?

According to curators busy prepping the newest Met Gala exhibit, a whole lot more than tailoring: history, culture, identity, power and, most of all, self-expression.

“Superfine: Tailoring Black Style,” this year’s spring show at the Metropolitan Museum of Art’s Costume Institute, will be launched as usual by the star-packed Met Gala a few nights earlier, on May 5. It’s the first Met show to focus exclusively on Black designers, and the first in more than 20 years to have a menswear theme.

As always, the exhibit inspires the gala dress code, and this year’s — “Tailored For You” — makes clear that guests are invited to be as creative as possible within the framework of classic tailoring.

In other words, expect a lot of great suits.

“Everything from Savile Row to a track suit,” quipped guest curator Monica L. Miller, a Barnard College professor of Africana studies, considering the versatility of a suit. She sat recently in a conference room at the Met with photos and notes plastered on the walls. She was in the middle of writing descriptive labels for the more than 200 items in the show — an exhaustive (and exhausting) task.

The suit, Miller said, “represents so many things.” And tailoring, she added, is a very intimate process.

“It’s not just about getting a suit that fits you physically,” Miller said, “but, what do you want to express that night?

It was Miller’s 2009 book, “Slaves to Fashion: Black Dandyism and the Styling of Black Diasporic Identity,” that inspired the show and led Andrew Bolton, curator of all the blockbuster Costume Institute shows, to bring her in as guest curator. The show uses dandyism as a lens through which to explore the formation of Black style over the years.

“Dandyism was about pushing boundaries,” Miller said.

Behind her, a section of wall was devoted to each of the 12 themes that divide the exhibit: Ownership, presence, distinction, disguise, freedom, champion, respectability, jook, heritage, beauty, cool and cosmopolitanism.

The early sections will begin with the 18th century and focus more on historical artifacts, with later sections looking at the 20th century and beyond. In addition, each section will begin with historic garments, accessories or photographs, and end with contemporary fashion.

Getting the first look at all this, on the traditional first Monday in May, will be a high-powered crowd from the worlds of entertainment, fashion, sports and beyond. Gala co-chairs this year are musician-designer Pharrell Williams, Formula 1 star Lewis Hamilton, actor Colman Domingo and rapper A$AP Rocky; NBA superstar LeBron James is honorary chair.

If that weren't enough star power, this year, there's an additional host committee with athletes like Simone Biles and Jonathan Owens, Hollywood figures like Spike Lee and Ayo Edebiri, musicians like Janelle Monáe and André 3000, author Chimamanda Ngozi Adichie and other artists, playwrights and fashion figures.

They and other guests will be free to tour the exhibit before the lavish dinner begins. This year, exquisitely tailored celebrities will examine other examples of exquisite tailoring — as well as historical artifacts like a horse jockey uniform worn between 1830 and 1840.

In an installation room late last month, a museum staffer worked painstakingly on restoring those jockey trousers, a pin cushion at the ready. Near her, two items were already hanging on mannequins. One was a classic Jeffrey Banks suit from 1987, a double-breasted jacket and trousers paired with a dapper plaid wool coat, the ensemble finished off with a light pink tie.

“See how the coat and suit play off each other,” noted Miller.

Next to it was a very different kind of suit — a denim jacket and trousers embellished throughout with beads — by a far less widely known designer: Jacques Agbobly, whose Brooklyn-based label aims to promote Black, queer and immigrant narratives as well as his own Togolese heritage.

The show makes a point, Miller said, of highlighting designers who are well known and others who are not, including some from the past who are anonymous. It will veer across not only history but also class, showing garments worn by people in all economic categories.

Because there are not many existing garments worn or created by Black Americans before the latter part of the 19th century, Miller said, the early part of the show fills out the story with objects like paintings, prints, some decorative arts, film and photography.

Among the novelty items: The “respectability” section includes civil rights activist W.E.B. Du Bois’ receipts for laundry and tailoring. “He’d go to Paris and London, he would visit tailors and have suits made there,” she said.

And the “jook” section includes a film clip of the tap-dancing Nicholas Brothers — who in 1943's “Stormy Weather” produced one of the most astounding dance numbers ever to appear on film.

“We wanted to show people moving in the clothes,” Miller explained. “A fashion exhibit is frustrating because you don't see people in the clothes.”

Miller wondered aloud whether there might be a stretch material in the pair’s tuxedos (they perform multiple splits coming down a staircase). She also noted that the tuxedo, like the suit in general, is a garment that cuts across social categories. “If you are at a formal event the people serving are also in tuxedos, and sometimes the entertainment is in tuxedos, too,” she said.

“It's a conversation about class and gender.”

The exhibit opens to the public on May 10 and runs through Oct. 26.