ABSTRACT

This chapter describes the economic significance of the textile and garment industry in the five countries. These five countries are: Bangladesh, Cambodia, Pakistan, South Africa and Vietnam. An empirical focus on the textile and garment industries in developing countries is valuable for understanding the effectiveness of minimum wage systems. The chapter describes the core features of each country's minimum wage system and its interactions with industrial relations. It compares the diverse institutional context of each country, focusing on its national minimum wage system and its intersection with arrangements for collective bargaining. The empirical evidence suggests a strong role of central government in influencing the minimum wage for workers in jobs requiring few skills. The effectiveness of a minimum wage is determined to a large extent by the share of the total workforce covered by its protection. To be effective, minimum wage protection for garment industry workers requires the strong support and proactive intervention of trade unions.