Global fashion factories in Bangladesh anticipate slimmer margins

Low wages have helped Bangladesh become the world’s largest garment exporter after China, but soaring fuel and power prices have added to the spiralling cost of living for people in this developing South Asian nation. — Reuters

DHAKA: 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 may 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 (US$114) a month from Dec 1, the first increase in five years.