Unionised RMG workers earn 10pc higher wages than non-unionised ones: Study

Unionised readymade garment (RMG) factory workers earn 10 per cent higher wages than non-unionised RMG and non-RMG workers, according to a recent study.

At the sectoral level, workers in the RMG industry earn a statistically significant 19 to 22 per cent higher wage, reflecting stronger compliance regimes, formalised structures, and higher skill intensity, the study showed.

The findings of the study, titled “Wage earnings of manufacturing workers in Bangladesh: Do trade unions matter?”, were shared at the third session of the two-day Annual BIDS Conference on Development 2025, held Sunday in Dhaka.

The study was conducted on 3,005 workers across 20 industries in three districts surrounding Dhaka.

Sharing the findings, Mahmudul Hasan, Research Director at the Bangladesh Institute of Development Studies (BIDS), said empirical results show an overall unionisation rate of 11.35 per cent, with unionised workers earning roughly 10 per cent higher gross wages than their non-unionised counterparts.

He added that while part of this differential is attributable to greater experience and tenure among union members, the wage premium remains positive and statistically significant even after controlling for these factors.

BIDS researcher Mohammad Yunus moderated the third session of the annual conference, where two more study findings were shared.

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