Hundreds of garment factories in Bangladesh are facing disruptions as worker protests over low pay and the rising cost of living rock the country’s industrial hubs.

There was a heavy police presence in the Mirpur industrial area of Dhaka on Monday and reports of protests taking place for the third day in the Savar, Ashulia and Gazipur areas, Al Jazeera’a Tanvir Chowdhury reported from the capital.

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About 500 factories were temporarily shuttered after the protests began on Saturday. Thousands of workers have taken to the streets, facing tear gas and sound grenades from police.

In an attempt to quell the demonstrations, Bangladesh formed a new wage board on Sunday to review the minimum wage for garment workers. Prime Minister Tarique Rahman, meanwhile, held an emergency meeting with his ministers and advisers.

Workers are seeking a minimum monthly wage of 30,000 taka ($242), more than double the current wage of 12,500 taka ($101).

Bangladesh’s garment industry is worth about $38bn and is a key source of export earnings and employment.

But workers’ current wages are “not enough because of the rising cost of living”, Chowdhury said.

Workers “cannot handle the lifestyle with that kind of money, and they want a share” of the multibillion-dollar export industry, he added.

Slowing demand

The protests come as Bangladesh’s garment industry, which competes with Vietnam’s, Cambodia’s and India’s, faces a range of challenges.

Factory owners said the industry is struggling with higher costs, energy market uncertainty during the United States-Israel war on Iran and slowing demand in some export areas.

Still, Bangladesh has “among the lowest garment wages in the world”, said Babul Akhter, general secretary of the Bangladesh Garment and Industrial Workers Federation and a representative for workers on the wage board.

“If factory owners cannot pay workers properly, they should negotiate better prices with international buyers. They cannot build a business on the backs of underpaid workers,” Akhter added.

The president of the Bangladesh Garment Manufacturers and Exporters Association, Mahmud Hasan Khan, said the government “has already taken a step by forming the wage board”.

“We expect workers to allow the review process to proceed,” he said.

If protests continue throughout Monday, Khan added, “we will have no option but to invoke the ‘no work, no pay’ provision.”