Rising wages squeeze Bangladesh garment makers as factories await upgrades

Workers sort clothes at a garment factory near the collapsed Rana Plaza building in Savar, Bangladesh June 16, 2013 file photo. REUTERS/Andrew Biraj

DHAKA (Reuters) - Bangladesh garment factory owners say they are soaking up much of the cost of nearly doubling wages as some global retailers balk at price hikes, leaving less money for safety improvements urged by apparel chains after last year's Rana Plaza disaster.

The task of coping with a 79 percent increase in the minimum monthly wage to $68 (40.63 pounds), imposed last December at the urging of some retail chains, comes as competition intensifies among emerging markets producing garments for stores like Walmart and Zara. That is squeezing sales in Bangladesh's main export industry.