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October 04, 2025

U.S. businessman urges Bangladesh government to resolve labor conflicts as soon as possible

The U.S. Garment and footwear industry groups have called on the Bangladeshi government to step in and mediate ongoing wage disputes within the country’s textile sector, expressing concerns that unresolved tensions could harm the reputation of American companies sourcing from Bangladesh. These groups are also alarmed by recent reports of labor rights violations, including worker arrests and police interventions in several factories. The American Apparel & Footwear Association (AAFA), which represents major brands such as Jones Apparel, VF Corporation, Kellwood, Cintas Corporation, Polo Ralph Lauren, and Phillips-Van Heusen, has sent a formal letter to Bangladesh’s ambassador to the U.S., Akramul Qader, urging peaceful negotiations to resolve the labor conflicts. AAFA’s leadership emphasized the importance of ensuring fair treatment for workers and compliance with ethical standards. Kevin Burke, President and CEO of AAFA, stated that the association hopes the Bangladeshi government will bring together all relevant stakeholders — including workers, manufacturers, and buyers — to address the wage disputes swiftly. He also highlighted that AAFA members are committed to ensuring their products are made under legal, humane, and ethical conditions. This commitment is not only a matter of corporate responsibility but also essential for maintaining brand trust and consumer loyalty. The situation in Bangladesh’s garment industry escalated after the minimum monthly wage was increased to $42 (3,000 taka) in July, a significant jump from the previous rate of $24 (1,662 taka). Despite this increase, workers still feel it is insufficient, especially given the 80% devaluation of the taka. Many are now demanding a raise to $72 (5,000 taka) per month, highlighting growing dissatisfaction among the workforce. U.S. importers have also raised concerns about reported labor abuses, including worker arrests, coercive tactics, and the shutdown of labor rights organizations like the Bangladesh Center for Worker Solidarity (BCWS). They have questioned the legality of these actions, particularly regarding the arrest of BCWS staff, and are calling for transparency and accountability. As the second-largest market for Bangladesh’s garment exports after the EU, the U.S. plays a critical role in the country’s textile industry. Between July 2008 and June 2009, U.S. imports of garments and knitwear reached $3.693 billion, making up approximately 30% of Bangladesh’s total garment exports. This underscores the economic significance of the relationship and the need for stable, ethical labor practices to sustain long-term trade partnerships.

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