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[🇧🇩] Textile & RMG Industry of Bangladesh

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[🇧🇩] Textile & RMG Industry of Bangladesh
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G Bangladesh Defense Forum

Why this labour unrest in RMG sector?
Atiqul Kabir Tuhin
Published :
Sep 11, 2024 22:18
Updated :
Sep 11, 2024 22:18


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The ongoing labour unrest since August 29, which has led to several factory closures across the industrial hubs of Ashulia and Gazipur, has brought the lucrative Bangladesh readymade garment (RMG) sector to a critical crossroads, sending warning signals to buyers throughout the world.

This turmoil follows a period of political instability in July, from which the industry was hoping to recover after the formation of the interim government on August 8. However, the unrest, marked by attacks, property damage, looting, and arson in various factories, has raised concerns about industrial security. This disruption comes at a time when factories are under contract and immense pressure to meet deadlines for winter orders from global buyers, further exacerbating the crisis.

The reasons behind the unrest are the subject of much debate. The demands voiced by garment workers include equal opportunities for men and women, increased wages, improved benefits, and lighter workloads. In addition, delays in wage payments, alleged blacklisting of dismissed workers, and contentious issues surrounding unionisation have fuelled anger and dissatisfaction. Factory owners, on the other hand, claim the unrest is not primarily driven by the workers but by external elements, particularly political groups seeking dominance, especially over the scrap and rejects business. These groups, they argue, have incited disturbances to exert pressure on factory owners. A lack of adequate police presence has allowed the unrest to escalate and spread rapidly, presenting a grave threat to industrial peace and stability.

To quell the unrest, on September 2 the government deployed the army and police. While this intervention has restored some degree of order, the situation remains volatile and fragile, with approximately 100 factories in the Ashulia industrial zone alone forced to close on September 9 due to continued violent protests. This highlights that security measures alone cannot resolve the underlying grievances of the workers. There is an urgent need for factory management to engage in meaningful dialogue with the workers to address legitimate demands, as unrest in one factory can easily trigger a wave of disruptions across the sector.

This labour unrest, though seemingly localised, has far-reaching implications for both the economy of Bangladesh and the international reputation of its RMG sector. As the country's economic cornerstone, the garment industry contributes hugely as in 2023 it fetched over $47 billion from exports. Any prolonged disruption threatens not only the livelihoods of millions of workers but also the nation's macroeconomic stability. Bangladesh, as the world's second-largest garment exporter, faces intense global competition, particularly during peak seasons. Reports of international buyers diverting their orders to Cambodia, Indonesia, and elsewhere due to the instability should serve as a wake-up call for both the government and industry leaders.

Additionally, the unrest has diverted attention from other critical issues, such as energy shortages affecting the RMG sector as well as its backward linkage industries. The failure to address these challenges promptly will have ripple effects throughout the economy, exacerbating the difficulties already faced by the RMG sector.

The interim government, led by Nobel laureate Muhammad Yunus, has pledged to restore order and undertake necessary reforms. However, the urgency of stabilising the situation quickly cannot be overstated. Bangladesh's low-cost labour, while a competitive advantage, is insufficient to offset the risks associated with an unstable political environment. Restoring the confidence of international buyers will require more than security measures - it demands a comprehensive strategy that tackles the root causes of unrest, including workers' rights, governance, and corruption.

The sector should prioritise not only meeting international demands but also ensuring fair treatment of its workforce and bolstering security and governance in industrial zones. Failure to address these concerns risks deepening the current crisis, threatening not just the RMG industry, but also the entire economy.

The challenges facing the interim government are monumental. Political stability and law and order need to be restored swiftly if Bangladesh is to retain its standing in the global garment industry. The administration must collaborate closely with industry leaders to ensure that production timelines are met and that necessary governance reforms are implemented. Restoring the country's reputation as a reliable garment producer ought to be a top priority.

Moreover, the government should tackle the underlying issues that have plagued the sector for years, particularly corruption and political entanglement. While factory owners may have benefitted from political patronage in the past, these connections have now become liabilities. Reforming trade associations and ensuring transparency in business practices would go a long way towards restoring credibility in Bangladesh's garment sector.

Bangladesh's RMG industry stands at a pivotal juncture, facing both opportunities and challenges, especially as the country approaches graduation from its Least Developed Country (LDC) status. To thrive in the future, the industry will need to diversify its product range, embrace innovation, invest in technological upgrades, and enhance workforce skills. Collaboration among workers, factory management, and government remains essential to overcoming these challenges and sustaining the sector's growth.

Resolving disputes through dialogue could create a win-win situation for all stakeholders in the RMG industry. Positive relationships between workers and employers are crucial for fostering an environment of trust and mutual respect. This, in turn, will motivate workers and contribute to the sector's growth. By fostering a harmonious industrial environment, Bangladesh's RMG industry can navigate its current challenges and continue to play a crucial role in the country's economic development. The time for decisive action is now, and all stakeholders need to rise to the occasion.​
 

Deeper crisis feared as 219 factories shut

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With 219 garment factories shut in Ashulia yesterday amid worker unrest along the industrial belts, Bangladesh's apparel sector is feared to get into a deeper crisis if production does not resume on Saturday after the weekend.

Officials see conspiracies behind the unrest and believe "real workers" are not involved in the vandalism of some factories, while labour leaders blame the influence of partisan politics and control over fabric scrap trade for the situation.

Meanwhile, the inaction of a demoralised industrial police force and the "unusual demands" of the workers have frustrated the owners, who are under pressure from international buyers ahead of the next holiday season in the West.

Of the factories closed yesterday, 86 were shut indefinitely under the Labour Act, which empowers the employer to shut any unit in case of a strike.

The remaining 133 factories were closed as they declared a general holiday, said Md Sarwar Alam, superintendent of Ashulia Industrial Police-1.

The closed factories included 107 members of the Bangladesh Garment Manufacturers and Exporters Association, mainly in Ashulia and Zirabo, said Khandoker Rafiqul Islam, president of the association.

Although a few committees involving local politicians were formed in Ashulia to resolve the crisis through discussions, industry owners are worried about the safety of their factories, he said.

Industrial police have yet to start fully functioning more than one month after the ouster of the Awami League government, further fuelling safety concerns. Harsh measures like internet shutdown amid street protests during the mass uprising already hampered production and orders heavily.

Owners say they are not getting help from the industrial police even after lodging complaints. The number of personnel patrolling the industrial zones is inadequate.

Army personnel have been deployed to the industrial zones, but they do not have the magistracy powers to arrest protesters, said Shams Mahmud, managing director of Shasha Denims.

"We aren't getting the confidence to run the factories because of safety concerns," Mahmud told The Daily Star over the phone.

Foreign buyers are putting pressure for timely delivery but the factories are shut, said a frustrated Mahmud. Many shipments may get cancelled, or the buyers may demand big discounts or expensive air shipments, he added.

Many international retailers and brands are cancelling buying trips because of the unrest although this is the peak time to confirm work orders for the next winter season, exporters said.

"So, a massive impact of the unrest will be noticed in the next winter season," Mahmud said.

A senior officer of the industrial police, requesting anonymity, said they are conducting joint patrols in the industrial zones and responding to incidents. Industrial police are trying to be fully functional, the officer added.

AK Azad, chairman and CEO of Ha-Meem Group, echoed the views of Mahmud. He said most of the incidents were taking place in Ashulia and local groups were involved.

Police are not working, which is helping the unrest in one factory to spread to the others, said a garment exporter based in Narayanganj's Rupganj who asked not to be named.

In some cases, political issues are also involved, the exporter said.

For instance, he said, the unrest in the Beximco garment factory has political influence as one of its owners, Salman F Rahman, was an adviser to ousted prime minister Sheikh Hasina.

He also said that buyers, worried and frustrated over the situation, are sending a lot of queries to know about the condition of work orders for the next season.

Giant Group Managing Director Faruque Hassan claimed the ongoing unrest is not about wages because the pay was hiked in December last year.

In many cases, the workers are demanding the removal of senior officials, equal ratio in appointment of male and female workers, he said.

The workers are placing "unusual demands" in some cases, said Md Saleudh Zaman Khan, vice-president of Bangladesh Textile Mills Association.

For example, he said, protesters demanded the recruitment of 300 workers when a factory in Narayanganj needed only 20. The factory management decided to hire a little over 20 workers, but the protesters did not return to work, Zaman said.

Worker leaders pointed the finger at partisan politics and conflict in fabric scrap trade for the unrest. They said a section of fabric scrap traders were trying to maintain control by using the workers.

Many are taking advantage of weak law and order, said Md Towhidur Rahman, president of the Bangladesh Apparel Workers Federation.

If the factories do not reopen fully on Saturday, the sector may face a deeper crisis in near future, he said.

Nazma Akter, president of Sammilito Garment Sramik Federation, said many workers are also involved in partisan politics. In some cases, outsiders are instigating them to launch unrest, she said.

She recommended holding a dialogue among the stakeholders to find a way out of the crisis.

Labour and Employment Secretary AHM Shafiquzzaman believes those involved in the vandalism of factories are not real workers.

The secretary said he held a meeting with BGMEA leaders and union leaders at Tongi yesterday as part of measures to improve worker-owner relations.

Asif Mahmud, youth and sports adviser to the interim government, suspects a conspiracy behind the ongoing unrest in the garment sector.

Speaking at a media briefing at the Foreign Service Academy yesterday, he said that around 20 percent of total orders have been cancelled.

"And we have witnessed that the buyers of a certain country have been desperately lobbying to get those orders," he said, citing Secretary Shafiquzzaman.

Asif said that workers prevented attacks on factories by a group called Bekar Jubo Songho, or Unemployed Youth Association, and one leader of the association arrested in Netrokona was found to be involved with AL's student front Chhatra League.

He admitted that the protesting workers have some genuine demands besides the conspiracies.

The adviser also warned of strict action against fabric scrap traders who are fuelling the unrest.​
 

Authorities must immediately address apparel sector unrest
13 September, 2024, 00:00

THE ongoing labour unrest in the apparel sector that has led to the shutdown of more than a hundred factories is gravely concerning for owners and employees in the sector and the economy. The unrest at a time when fresh orders come aplenty is feared to have a lasting negative impact on the sector. September and October are crucial for the sector as most western buyers place orders in these two months targeting Christmas. Any disruption now in the sector, one of the pillars of the economy, will give benefits to Bangladesh’s competitors, which naturally eye to seize the market. Labour unrest shut down, as New Age reported on September 11, 114 factories in Ashulia and Gazipur industrial areas. Workers of several factories in the Beximco Industrial Park in Gazipur on September 11 went on demonstration demanding their wage for August and tried to mobilise workers of other factories, leading to a clash. About 32,000 workers in the Beximco Industrial Park had rallied for their overdue wage for August and although the authorities issued payment on September 10, many workers did not receive the wage. The workers also burnt a factory in Kashimpur after a clash between two worker groups.

In the wake of the unrest that has continued for a few days, at least 60 factories announced a paid general holiday while 54 units announced closure for an indefinite period. It is feared that about 100,000 workers might get laid off if the shutdown continues and if work orders do not come. Factory owners have, meanwhile, alleged that the unrest is created by outsiders and is politically motivated. While the allegation appears a typical response of owners, it bears some truth as a leader of the Chhatra League, the student wing of the Awami League, was arrested on September 8 after a provocative speech in front of apparel workers at Savar had gone viral. This suggests that the unrest might be, to some extent, politically motivated and outsiders, local or foreign, might have attempted sabotage. The authorities certainly need to examine the allegation and assess the situation. But at the same time, the authorities need to address the labour rights issue that continues to be a cause for concern. Bangladesh cuts a sorry figure when it comes to labour rights. The Global Rights Index has ranked Bangladesh among the 10 worst countries for workers for consecutive years since 2017.

The government needs to address the issue efficiently, effectively and immediately to bring stability in the sector. The authorities must provide security for industrial areas and investigate whether the unrest is an act of sabotage. The authorities, however, should by no means be high-handed to workers and heed genuine grievances of the workers. The labour unions also need to come forward and help bring stability in the sector.​
 

130 factories remain open in Ashulia on weekend

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Photo: Palash Khan/File

A total of 130 factories in the Ashulia industrial area, where there is no worker unrest, remained open today despite the usual weekly holiday, due to pressure from work orders.

Md Sarwar Alam, superintendent of Ashulia Industrial Police-1, confirmed the matter to our Savar correspondent this noon.

He said that there are a total of 1,863 factories in the Ashulia industrial area, most of which are garment factories. Due to heavy work order pressure, production continued today in 130 factories, mostly garment factories.

"In these factories, there are no issues with the workers, and due to the high volume of work orders, the owners decided to continue production even on holidays," said SP Sarwar Alam.

SP Sarwar Alam said the decision to keep some factories open during the holidays was made by the owners to compensate for the losses caused by recent worker protests. About 30 percent of the total factories in Ashulia area operated today.

He further said additional law enforcement personnel were deployed in front of the factories to prevent any untoward incidents.

Worker unrest has been ongoing in the Ashulia industrial area for the past two weeks due to various worker demands.

Yesterday, a total of 219 garment factories were declared shut in Ashulia Industrial area so far today due to the labour unrest. Of these, 86 factories were shut by the authorities for indefinite period under Section 13 (1) of the Labour Act, and the remaining 133 factories remained closed as they declared a general holiday.

However, the 219 factories that were closed yesterday remain closed today.​
 

Bring back normalcy in the RMG sector
Understand and act to calm the frustrations in industrial belts

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VISUAL: STAR

We are gravely concerned about the ongoing unrest in our RMG industry as workers continue to protest in Ashulia, Zirabo, Savar and Gazipur over payment of arrears, better pay, job regularisation, increase of allowances and benefits, etc. According to the BGMEA, on September 12 alone, 219 garment factories in Gazipur and Ashulia were closed down due to workers' protests. Reportedly, in many areas, the protests took a turn for the worse as a result of unresolved negotiations with factory owners over their demands. Workers allegedly vandalised many factories; some of them were also set on fire. The question is: how has the situation come to this point?

According to industry insiders as well as some labour leaders, outsiders and political elements are trying to instigate the workers. It is imperative that, under the circumstances, a proper investigation is conducted immediately to identify the external factors responsible for the vandalism and destruction of properties. Owners have also pointed out that the industrial police are yet to start functioning fully in the industrial belts since the Hasina government was ousted around six weeks ago, fuelling safety concerns. This prolonged state of insecurity must be addressed by the interim government urgently, and the role of the industrial police—who have been used by successive governments to quell workers' protests—must also be re-evaluated to restore trust in the force.

Even if the allegations of external forces trying to create instability in the sector are true, we need to understand and address the underlying frustrations of the workers. During the 15 years of Awami League rule, we saw how the workers' legitimate demands were routinely disregarded. Last year, when the workers demanded Tk 23,000-25,000 as their monthly minimum wage, the government fixed it at Tk 12,500 in compliance with the proposal made by RMG factory owners. Sadly, many owners are still depriving their workers of their dues and aggravating an already volatile situation. Meanwhile, RMG factories are yet to institute an equitable mechanism for negotiations between workers and owners. Such practices must come to an end and workers' grievances must be properly addressed.

As production in a lot of factories remains suspended, there are concerns among the owners about financial losses they might incur, which will eventually affect our economy and the workers at large. There are, in fact, real reasons to worry as the disruption in production has already led many international buyers to cancel their trips to the country to finalise work orders for the coming seasons. Under the circumstances, we urge the interim government to act promptly to understand and act on the simmering frustrations on the ground. Its decision to review the workers' wage through the minimum wage board is a step in the right direction. The government also said it would consider inflation and the rising prices of essentials while reviewing the minimum wage, which is only the right thing to do. It also needs to take steps to improve security at the RMG factories, support the manufacturers in need, address the international buyers' concerns, and ensure stability and competitiveness in the sector.​
 

Labour situation in RMG sector improves
Staff Correspondent 16 September, 2024, 00:09

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Representational image. | New Age file photo

The labour situation in the readymade garment sector in Ashulia and Gazipur industrial areas improved on Sunday while fresh unrest occurred in the Dhaka metropolitan area on the day.

Leaders of the Bangladesh Garment Manufacturers and Exporters Association said that most of the RMG factories in Ashulia resumed operations on Sunday, and the situation remained nearly normal throughout the day.

They also said that all the factories in Gazipur were operational and that no untoward incidents occurred.

However, production was suspended in at least 15 factories in the Dhaka metropolitan area on Sunday due to the fresh labour unrest.

According to the BGMEA, out of 407 member factories in Ashulia, only 16 units remained shut due to the unrest.

Of the 16 factories, 6 were closed under Section 13/1 of the Bangladesh Labour Act, 4 declared a general holiday, and workers at the remaining 6 factories declined to work after arriving in the morning.

Ashulia Industrial Police superintendent Mohammad Sarwar Alam told New Age that the labour situation in the Ashulia industrial belt improved on Sunday, with production resuming in almost all the RMG factories.

He said that a total of 18 BGMEA and BKMEA member factories remained closed under Section 13/1 of the Bangladesh Labour Act, while authorities at 4 factories declared a general holiday.

BGMEA statistics showed that all 876 member factories of the trade body resumed operations on Sunday morning and did not encounter any issues throughout the day.

According to the BGMEA data, authorities at 15 factories in Mirpur area in the city on Sunday forced to announce closure of their units due to the labour unrest.

More than hundred factories in the Savar, Ashulia, and Gazipur industrial belts, particularly in Ashulia, have struggled to operate for over two weeks due to the ongoing worker protests.

The workers have been demanding increased attendance and tiffin allowances, the removal of certain mid-level employees, the recruitment of more male workers, and an end to the blacklisting of workers involved in last year’s wage hike protests.

On Saturday, the government, factory owners and labour leaders held a meeting at BGMEA headquarters in the city to overcome the situation.

During the meeting labour leaders assured that they would provide support to continue production in the readymade garment sector.

Trade union leaders also urged garment workers to return to their respective workplaces immediately in an effort to restore normalcy and prevent further disruptions.

At the meeting industries adviser Adilur Rahman Khan urged factory owners to keep their factories open, warning that troublemakers in any individual unit would be dealt with strict measures.​
 

Why this turmoil in garment sector
SYED FATTAHUL ALIM
Published :
Sep 15, 2024 21:38
Updated :
Sep 15, 2024 21:38

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The recent labour unrest in the industrial belts in and around the capital city including Savar, Ashulia and Gazipur that led to the general holiday or closure of some 219 garment factories till Thursday last surprised many. It is not only garment factories but pharmaceutical, shoe and other industries have also been facing similar workers' agitation. The agitating workers in many cases came up with demands that were not raised before. For instance, in one garment factory in Ashulia, they demanded that there should be equal number of female and male workers in the factories. Despite the fact that the new wage structure is in place since January this year, the workers were demanding an annual increase in wage by 15 per cent, though just seven months back, it was settled at 5.0 per cent. But the workers placing such irrational demands, in most cases, reportedly, did not appear to be in a mood to sit with the management of the factories concerned for negotiations on whatever were their demands. On the contrary, they took to the street and resorted to street violence and attack on the garment units they worked for resulting in closure of many factories.

Similar stories were reported from pharmaceutical factories. However, the management of such industries (non-apparel) did try to resolve the issues with their workers at an early stage. But the situation was different in the case of garment factories. It is alleged that garment factory owners and industry leaders who used to have close connection with the erstwhile fallen regime tried to handle protesting workers even with genuine grievances in the same way that they did in the past. Obviously, that was through the use of force with the help of hired goons. But this policy is not supposed to work under the changed circumstances. In that case, those who allegedly pursued such strong arm tactics to suppress workers with legitimate demands were perhaps some Rip Van Winkles in the garment sector who failed to come to terms with the changed realities. As a consequence, the situation only worsened in the industry as it was rife with rumours that hit panic button among workers to resort to further violence and anarchy. However, as noted in the foregoing there were also instances of labour unrest that were not based on genuine demands, but meant to create chaos. In such cases, as reported by some garment workers, they were incited to agitation and violence by outsiders whom they were not acquainted with.

There is no question that the mass-student upheaval that unseated the immediate past regime has impacted different sections of the working people who think that they are somehow deprived and have a cause to fight for and hence demonstrate their strength to raise new demands. Also, there are others, who want to fish in troubled waters. They might be the beneficiaries of the past government who have a stake in destabilising the mainstay of the country's export sector. There is also the turf war over the lucrative jhut (garment waste) trade that has intensified with the change in political power.

So, whether the labour unrest in the garment sector arose out of workers' genuine demands or that it was the work of saboteurs out to create disorder should be found out before addressing it accordingly. The industry leaders must restore order in their own interest.

The police force that they would depend on so much during the previous regime to quell any labour unrest in their factories with an iron hand is still recovering from the trauma of September 5 revolution. And one should not fail to notice that in about every case of law and order issue, other supporting forces including the military have to come in aid of the police, an arrangement no doubt expensive. Understandably, the garment sector has a strong claim to the government's attention for the simple reason that their products make up more than 80 per cent country's exports. But given the fact that the current interim government which is only one-month-old and yet to fully organise itself, its response to every trouble may not be instant. The industry leaders need to understand this and not wait for the government's support to deal with day-to-day problems like in the past. It may be recalled at this point that in the beginning when the workers as well as troublemakers started to run riot in Savar, Ashulia and Gazipur, the industry leaders met with the interim government advisers a number of times seeking urgent strong action by the law-enforcement agencies. However, later they came up with the idea of conducting joint drives with help of the army, police and the BGB (Bangladesh Border Guard) and suggested the interim government accordingly. Thankfully, the joint drives have reportedly produced results with the arrest of some people (14 persons charged with instigating workers to create unrest). Meanwhile, the good news is, the majority of the garment factories except 49 units in Ashulia area reportedly started operation by Saturday as workers joined their duties. To maintain law and order, the police, Rapid Action Battalion (RAB), the Border Guard and Army personnel were found patrolling streets in the industrial area. Evidently, the wave of post-revolution uncertainties and instability that jolted society is gradually settling down. It is the unity of people that has made it possible. Every segment of society, the garment workers included, should own the change that has taken place and in this crisis time lend a hand so the nation may tide over.​
 

Almost all Savar, Gazipur garment factories resume

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Nearly all of the roughly 407 garment factories situated in the Ashulia area under Savar upazila and Zirabo and Zirani areas under Gazipur were operational yesterday after security measures were beefed up centring labour unrests.

Around 15 factories were kept shut by the owners, who also announced that they were implementing a "no work, no pay" clause under the labour law.

Workers at some of the factories have been staging demonstrations for more than 15 days over different benefits and allowances, such as higher night allowances, tiffin bills, attendance bonuses and incentives for achieving production targets.

They also want factory authorities to implement a four-month maternity leave and provide light work to expecting mothers in their fifth month.

Other demands include senior officials refraining from using abusive language in factories and an end to the arbitrary termination of workers by factory authorities. Furthermore, they want due benefits to be paid as per the law if an employee resigns.

No untoward incident was reported yesterday.

Workers at some of the factories have been staging demonstrations for more than 15 days over different benefits and allowances

"I am hopeful that the factories that remained shut will reopen from tomorrow [Monday]," Khandoker Rafiqul Islam, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Daily Star over the phone.

"Normalcy has been restored with improvements in law-and-order with the deployment of more police and army personnel," he said.

Law enforcers and labour leaders are holding talks for the reopening of the factories, which witnessed production losses over the last two months, firstly for the anti-discrimination student movement and subsequent labour unrest, Islam said.

The BGMEA has been assessing the loss of business during both periods.

Many factory owners will have to provide discounts and face order cancellations and expensive air shipments, he added.

AK Azad, chairman and executive officer of Ha-Meem Group, which has a garment factory at Ashulia, said his factory resumed operations from yesterday as law-and-order improved and workers rejoined their workplaces.

His factories were shut for 12 days in September and eight days in August because of the labour unrest and anti-discrimination student movement.

He is also assessing his losses and planning for recovery of the losses. His buyers have already expressed concern over the frequent unrests and production losses.

He said he has received a lesser amount of work orders from international retailers and brands targeting the upcoming winter season.

Normalcy has been restored at the garment factories and production is ongoing, said Md Towhidur Rahman, president of the Bangladesh Apparel Workers' Federation.

The factory owners should fulfil commitments made to workers during the labour unrest, he added.

Amirul Haque Amin, president of the National Garment Workers Federation, echoed the same.

"It is business as usual at the industrial zone," he said.

Bangladesh's garment sector has overcome much more critical times and it is expected that the production losses can be recovered, Amin added.

Nazma Akter, president of the Sammilito Garment Sramik Federation, said factory owners should meet the legitimate demands of the workers.

She said production fell by a substantial amount in the garment sector in July, August and September.

These three months comprise the peak season for the shipment of goods for the upcoming Christmas period as well as the peak season for booking work orders for next year's summer, autumn and winter seasons.

However, many senior officials of international retailers and brands cancelled business trips and work orders, delayed factory visits, sought big discounts or expensive air shipments.​
 

Unrest emerges as a new threat to RMG recovery
Labour leaders say owners should fulfil all logical demands

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PHOTO : AKLAKUR RAHMAN AKASH

The number of apparel work orders received by Bangladeshi companies from international retailers and brands for the autumn and winter seasons of 2025 dropped by nearly 10 percent compared to the past due to major shocks from the nationwide student movement and labour unrest in major industrial belts over the past two and half months.

In light of the tense situation prevailing since July, major buyers pushed back planned trips or altogether cancelled factory visits, which led to a fall in the number of work orders for the upcoming seasons.

The months of July, August and September are not only the peak season for shipping goods meant for sale during Christmas to Western retailers, they are also the busiest months in terms of booking work orders for the next autumn and winter seasons.

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However, that period coincided with an unprecedented breakdown in the law and order situation this year.

Production was severely hampered in mid-July, when the Sheikh Hasina-led Awami League government imposed a curfew and an internet blackout to quell the unrest stemming from the demand to reform the job quota system for public recruitment.

Ultimately, those measures proved futile. The Awami League government was overthrown by a mass uprising, with Hasina signalling the end of its tenure by fleeing to India on August 5.

After a new government was formed, led by Nobel laureate Professor Muhammad Yunus, different demands started coming up from workers of numerous sectors.

Of them, garment workers started raising charters of demand and production was halted for nearly 15 days as employees agitated.

Thousands of garment workers came out on the streets in industrial belts like Ashulia, Zirani, Savar, Tongi and Gazipur while some allegedly engaged in vandalism and arson.

Factory owners then began to shut down units one by one to avoid any spillover from the unrest as well as to protect the production units and machinery from vandalism.

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This was exacerbated by the fact that the law and order situation was practically non-existent following the changeover in power.

Members of the Industrial Police refrained from patrolling industrial areas as they feared for their safety given that police personnel were being attacked.

Alongside that, the police administration was being reshuffled following the change of government so almost all police stations were hamstrung.

As a result, factory owners dared not run their manufacturing units.

The factories could not be run properly even with the help of the army as it did not have any magistracy powers.

So, most factories in Ashulia, Savar, Zirani and Zirabo either remained shut or were vandalised by workers.

Finally, the factory owners had to turn to their ultimate weapon, shutting down factories under the clause 13(1) of the Bangladesh Labour Act, which mainly deals with the "no work, no pay" stipulation.


WHY DID THE UNREST TAKE HOLD AT THIS TIME?

Many may question why the unrest erupted when the nation was in such a delicate situation, especially considering that a new wage structure for garment workers came into effect in December last year.

However, the workers' standards of living have not improved significantly despite the hike in pay due to persistent inflationary pressure.

According to workers, union leaders, labour experts and factory owners, there were some other reasons behind the labour agitation.

During the latest spell of unrest, workers primarily raised demands to standardise tiffin and attendance allowances as different factories in the same industrial belt pay different rates.

Another demand from workers was to recruit males and females in equal proportion to remove "discrimination".

Moreover, influential locals, especially those with political links, also influenced workers to capitalise on the lack of law and order.

Alongside that, a struggle ensued to fill the power vacuum and take control of the 'jhut' (waste fabric generated during apparel manufacturing) business after the fall of the government on August 5.

At a view exchange meeting with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) this week, Major General Muhammad Md Moin Khan, general officer commanding of the 9th Infantry Division of Bangladesh Army, outlined three reasons for the unrest: instigation by outsiders, logical and illogical demands raised by the workers, and a turf war over the jhut trade.

Amid the unrest, the interim government said it may review the wage structure.

However, labour leaders said reviewing the wage structure is not the main demand of the workers this time.

Nazma Akter, president of Sammilito Garment Sramik Federation, said many workers had been laid off since the beginning of the movement in July. She also validated their demands, saying their standards of living were still not up to scratch.

The factory owners need to agree with the logical demands, including calls for social protection, removal of some clauses of the labour law, implementation of maternity leave and provident fund, and stopping abuse of female workers, for the greater interest of the garment business, Akter said.

Md Towhidur Rahman, president of the Bangladesh Apparel Workers Federation, echoed Akter's sentiments.

Outsiders are also involved in the latest spate of unrest, he said. However, he added that many garment factories had not paid salaries timely, which was another trigger for the unrest.

"Usually, garment workers get a low salary. So, if they are not paid timely, how will they run their families and meet expenses such as house rent and tuition for their children?" he asked.

As an example, he said that some garment factories had not paid workers their salary for the month of August yet.

Last week, Amirul Haque Amin, president of the National Garment Workers Federation, said more than 400 garment workers were blacklisted by different factories for alleged involvement in the unrest.

As attendance of workers is registered through biometrics, either through fingerprints or facial detection, blacklisted workers cannot get jobs at other factories.

So, Amin said factory owners should wipe the names of those workers from the blacklist since they engaged in the unrest only to realise their logical demands.

At present, normalcy is being restored to industrial belts, particularly areas in Ashulia, Savar, Zirani and Zirabo, as security has been beefed up by deploying more members of law enforcement agencies.

Almost all factories in these areas were reopened by Sunday and production started as the workers re-joined their workplaces.

IMPACT OF THE UNREST

Not only have a certain percentage of work orders been diverted from local factories, but officials are also concerned about whether they can ensure the timely delivery of goods.

Consequently, Bangladeshi garment exporters will have to provide big discounts or opt for expensive air shipments to offset the time lost.

In some cases, work orders may be cancelled due to a failure to ship goods timely.

But in most cases, exporters will choose air shipment despite steep costs in order to meet the strict lead times and maintain smooth relationships with retailers and brands.

However, they know all too well that the profit margin will be dented significantly due to the increased costs of air shipment.

To ship goods via air from the Dhaka airport to any destination in Europe, exporters must pay over $4 per kilogramme of dry cargo.

However, it would cost less than 10 cents to send the same shipment to Europe through the Chattogram seaport.

The long-lasting disruption to production is the latest setback for Bangladesh's garments industry, which was already struggling to recover from the severe fallout of the Covid-19 pandemic, the Russia-Ukraine war, persistent inflation, and the Red Sea crisis.

Khandoker Rafiqul Islam, president of the BGMEA, said that apart from a 10 percent decrease in work orders, nearly the same percentage of work orders have been diverted to other countries.

It will take time to recover the lost work orders and it depends on full restoration of the normal business environment, Islam told The Daily Star over the phone.

As many factories were struggling, the Bangladesh Bank helped them clear salaries for the month of August. Around 90 percent of units had paid salaries for August as of September 17, he added.

"We expect full normalcy to be restored to industrial belts and for business to go back to usual after workers rejoin their workplaces," the BGMEA president also said.​
 

Number of green apparel factories now stands at 229
Staff Correspondent 21 September, 2024, 22:34

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A file photo shows workers sewing clothes at a green readymade garment factory at Savar on the outskirts of Dhaka. | New Age photo

The total number of LEED-certified green factories in Bangladesh has now reached 229, following the recent certification of three more apparel and textile factories by the US Green Building Council under the Leadership in Energy and Environmental Design programme.

According to the Bangladesh Garment Manufacturers and Exporters Association, out of the 229 LEED-certified green factories in Bangladesh, 91 have achieved platinum ratings, while 124 have received gold certification.

With its recent advancements in sustainable practices, Bangladesh now boasts 61 of the top 100 highest-rated LEED certified factories in the world.

The newly certified factories are Sepal Garments Ltd in Gazipur, Unitex Spinning Ltd (Unit-2) in Chattogram and Ananta Huaxiang Limited in Narayanganj.

Both Sepal Garments Ltd and Unitex Spinning Ltd achieved platinum certification, scoring 85 and 43 respectively, while Ananta Huaxiang Limited earned gold certification with a score of 63.

Despite facing challenges from a global economic downturn and domestic issues, Bangladesh’s readymade garment industry continues to focus on sustainable growth, BGMEA director Mohiuddin Rubel said.

He said that the multiple LEED certifications reflected the apparel industry’s commitment to environmental sustainability and enhanced its reputation as a reliable sourcing partner.

Mohiuddin also mentioned that sustainability had always been integral to their operations, ensuring that their growth aligned with international best practices and promoted environmental responsibility.

‘With ongoing partnerships and commitment, we are confident that the Bangladesh RMG industry will reach new heights of excellence, further solidifying its position as a global leader in sustainable and ethical manufacturing,’ the BGMEA leader mentioned.

The Leadership in Energy and Environmental Design (LEED) certification, awarded by the US Green Building Council, is earned by projects that meet prerequisites and credits addressing carbon, energy, water, waste, transportation, materials, health and indoor environmental quality.

Platinum certification, the highest category, requires projects to earn more than 80 points out of 110, while gold certification ranges from 60 to 79 points, and silver certification from 50 to 59 points.​
 

When will the RMG industry owners change?

After the fall of the Sheikh Hasina government, unrest has emerged in the readymade garment sector again. The garment sector is one of the mainstays of the country's economic growth. Turmoil in the sector and labour unrest are nothing new. Analysing issues pertaining to the rights of workers in the garment industry, owner-worker relations, as well as the political clout and power of the owners, Shawkat Hossain writes about reforms in the sector.
Shawkat Hossain
Updated: 22 Sep 2024, 16: 44

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Reforms are needed in the management of the RMG sector. Most important are reforms in the mindset and behaviour of the owners.Prothom Alo

Bangladesh's readymade garment sector is 45 years old. This garment sector is the source of 80 per cent of the country's export revenue. It also generates employment. As a single country, Bangladesh now stands second in readymade garment (RMG) exports.

So much has happened over these 45 years, but only one thing hasn't changed. And that is the mindset and behaviour of the RMG industry management. The garment sector is still run on those old conventional lines. The only thing that the persons concerned in this sector have learnt, is to suppress any movements by means of coercion and fear. The garment owners are so politically powerful now, they have no problem whatsoever to ensure all decisions are taken in their favour.

On the other hand, with all regular means of protest shut down, the garment sector workers have no alternative but to take to the streets in order to voice their demands. They have learnt no other way.

Bangladesh will graduate from the Least Developed Country status in 2026. In order to meet the demands of the day then, it is imperative that the RMG sector also undergoes significant changes in its system of management. This requires reforms. And work on this must start now. After all, Bangladesh's economy cannot survive without the RMG sector.

Owners' reforms needed first

The RMG sector has two owners' organisations, BGMEA and BKMEA. Selim Osman, a member of the much touted Osman family of Narayanganj, had been the president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) for a stretch of 14 consecutive years. He first became the BKMEA president in 2010 after Awami League came to power. He was elected the association's president once in 2012 and then the rest of the time he became president through understanding and by force.

He had also been the member of parliament of Narayanganj-5. He would contest from Jatiya Party, while his brother Shamim Osman was the Narayanganj-4 member of parliament from Awami League. Selim Osman's main task was to hold onto the parliamentary seat. Under their dominance, BKMEA contributed nothing to the interests of the industry.

Meanwhile, with one or two exceptions, being the president of BGMEA meant entering the hallowed halls of becoming a member of parliament or being mayor of Dhaka City Corporation. So their main task was to extend support to the government. Only the interests of the government and the owners mattered.

In 2009, a total of 23 owners of garment factories were elected as members of parliament. BGMEA accorded a reception to the members who were elected in the national election. The former president of BGMEA Annisul Huq had been the FBCCI president. The late Annisul Huq later became the mayor of Dhaka City Corporation. Thus a new door opened for the top leaders of BGMEA. After Annisul Huq passed away, Atiqul Islam, another former BGMEA president, became the new mayor.

From 2009 to 2019, whoever had been the president of this organisation, all became either mayor or member of parliament or was placed in some top position. For example, Salam Murshedy who had been BGMEA president from 2009 to 2011, later became MP from Khulna. The next president of the association, Shafiul Islam Mohiuddin, became an MP from a seat in Dhaka. The next president was former mayor Atiqul Islam, now absconding. Then Siddiqur Rahman, Awami League's commerce and industries secretary, was president for four consecutive years. The BGMEA president of 2005-06 Tipu Munshi also became MP and later went on to becoming the commerce minister.

Much earlier, two presidents Mosharraf Hossain and Redwan Ahmed, became MPs from BNP. Redwan Ahmed went on to become a minister too. They were presidents of BGMEA from 1991 to 1996.

SM Mannan was the last elected president of BGMEA. He was the general secretary of Dhaka city (North) Awami League. Known as Mannan Kochi, this BGMEA leader was in the committee for around the last twelve years or so. Politically active Mannan Kochi was kept on the committee to keep political links with Awami League and to suppress any labour movement.
Over the last 45 years, BGMEA has learnt one thing very well and that is to use various agencies of the government to suppress movements, keep wage demands at a minimum and extract benefits and facilities from the government. Labour leaders were linked to them too. They would support the owners in exchange of money. This would happen more at the time of fixing the wage structure.

Actually, BGMEA or FBCCI are basically the business branches of the ruling party. This applies to the business chambers too. So these trade bodies need to undergo reforms. Only then will the use of politics in the interest of business be curtailed.

Demands vs. discussions

The owners complain that the movements in the garment sector do not follow any conventions or rules. On the other hand, the labour leaders say there is no system in the RMG sector for formal bargaining. That is why the movements are not carried out in any regulated manner.

Due to international pressure after the collapse of Rana Plaza in 2013, the registration process for labour unions in the garment sector was relaxed. So far there are 1300 labour unions registered in this industry. In the remaining 70 per cent of the factories there are committees. In most cases, persons with allegiance to the owners are in the leadership of these unions or committees. Those who are not of that camp, are harassed in all sorts of ways after every movement.

After Sheikh Hasina fled from the country and the interim government was formed, like many others, the RMG workers too took to the streets with their demands. While the others have all returned to work, the unrest prevails in the garment sector. The owners can no longer use the intelligence agencies or police to threaten and scare them. In such circumstances, a way for a regulated manner to voice the workers' demands must be formulated. Also, a way for discussions to meet their demands must be created. And whenever there is a movement, random accusations of outside conspiracies, foreign instigation, etc, must halt.

The demands this time

The workers have at least 20 types of demands this time. The written demands of several factories have been analysed. The demands include, increase of annual incentive from 50 per cent, introducing provident fund, 15 days paternal leave, increase of tiffin bill from 35 taka to 50 taka, increase of attendance bonus, increasing maternity leave to 6 months, providing Eid bonus equal to net wage, increasing lunch allowance if working on Fridays, 20 days festival leave, earned leave 30 days, medical leave 20 days and payment of wages within the last five working days of the months.

The other demands of the workers are arranging for one free ultra-sonogram, providing the women with sanitary pads, increasing daycare facilities, two days leave during mensuration, installing an ATM booth, providing Vitamin C during pregnancy and arranging for eye tests and sunglasses.

In 2023 the minimum wage in the garment sector proposed by the workers was Tk 20,393, while the management proposed Tk 10,400. The workers were enraged at the management's proposal and took to the streets, resulting in the death of a worker. When the situation went out of control, the management proposed a minimum wage of Tk 12,500 and that was finalised. But when the movement continued, 43 cases were filed and 114 were arrested. While there is dissatisfaction with that wage, the workers are not demanding for a wage now, after the fall of the government. They are wanting certain benefits and facilities.

If wages and allowances are not paid regularly, workers will invariably take to the streets. If the present or future movements are to be halted, it is the garment sector management that needs to be reformed

The owners get all

The first wage board for the garment sector was formed in 1994 and the minimum wage was Tk 930. Now 30 years hence, the wage has increased to Tk 12,500. In the 1994-95 fiscal, export revenue from the garment sector was USD 2.23 billion (USD 223 crore). That revenue has now increased to USD 40 billion (USD 4000 crore). Government and international policy support had a significant role to play in this revenue increase.

For example, before the formation of the World Trade Organisation (WTO), from the time of GATT negotiations, Bangladesh would receive quota facilities up till 2004 under the Multi Fibre Arrangement (MFA). Even though the quota system was lifted in 2005, Bangladesh did not fall back in competition. It is receiving Generalised System of Preference (GSP) facilities from the European Union. Several countries, on a bilateral basis, are still providing Bangladesh with tariff-free market access.

In the meantime, in 1982 changes were made to the industrial policy. There were duty drawback facilities in place for exports. By this, while entrepreneurs paid duty when importing raw materials, this would be reimbursed after export. However due to delays, corruption and procedural problems, the bond facilities were put in place instead. Under this, the garment industry owners could import all sorts of raw material for garment manufacture, free of duty.

In 1986-87 the government introduced back-to-back LC. Under this system, after the export revenue was received, only then would the bank have to be repaid. Researchers feel these two policies have played a vital role for the advancement of the garment sector. Even after that, the government has provided all sorts of concessions including cash incentives. And whenever the garment owners were in a crisis, they have reached out to the government, and the government has fulfilled all their demands.

Giving, not just taking

The readymade garment owners never want to admit that business is doing well. Speaking to any garment factory owner, they will invariably say that business is in a bad shape, orders are dwindling, buyers are purchasing garments at low prices, production costs have shot up and the productivity of the workers here is low.

Yet leaders who work with the workers of the garment sector say that the wealth and the lifestyles of the garment owners do not indicate that business is bad. Even in 2022 the dollars rate was Tk 86. That dollar now stands at Tk 120. So they are receiving Tk 36 more than before for every dollar of their export earnings. Also, if they want productivity to increase, they must give workers fair wages and other facilities and benefits. You can't expect highest productivity with lowest wages. There must be an adjustment between the two.

Another problem in the garment sector is the trade related to waste fabric scraps known locally as 'jhut'. Leaders and activists of the ruling party control this business. The garment factory owners are obliged to sell the fabric scraps or 'jhut' to the political goons. Whenever there is a change in the government, the control of this trade changes hands. So long the Awami League men had controlled this business, now the BNP men are trying to take over.

This too has provided instigation in the present movement. The garment factory owners say if they got fair price for the fabric scraps, they could use this for the workers' welfare. Whether they actually would or not, is another question. But this problem must be resolved. This requires political commitment and the rule of law, and that needs to be ensured by the government.

If wages and allowances are not paid regularly, workers will invariably take to the streets. If the present or future movements are to be halted, it is the garment sector management that needs to be reformed. Most important is the reforms of the owners' mindset and behaviour. The habit of giving, not just taking, must be formed.

* Shawkat Hossain is head of online, Prothom Alo​
 

British-Irish firm to invest $36m in Bepza EZ

British-Irish company Deltaport Ltd will invest $36 million to set up a garment factory in the economic zone of Bangladesh Export Processing Zones Authority (Bepza) at Mirsarai in Chattogram.

The company has set a target to annually produce 20 million pieces of protective clothes, workwear, various garments, PPE, hospital gowns, masks, bed sheets, curtains and other items.

The factory will create employment for 5,980 Bangladeshi nationals.

Deltaport Ltd is a sister concern of Eastport Ltd, a garment manufacturing company of the Cumilla EPZ that has been operating since 2013.

According to a press release, Md Ashraful Kabir, member (investment promotion) of Bepza and Junaid Iqbal Umerani, representing Deltaport, signed the agreement at the Bepza Complex in Dhaka recently.

Major General Abul Kalam Mohammad Ziaur Rahman, executive chairman of Bepza, Mohammad Faruque Alam, member (engineering), and ANM Foyzul Haque, member (finance), were also present.​
 

Fresh labour unrest shuts 70 apparel factories in Bangladesh
Staff Correspondent 23 September, 2024, 23:28

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Army personnel detain 24 people on charge of creating anarchy in the industrial area at Kaliakair in Gazipur on Monday. | New Age photo

The authorities of at least 70 industrial units, including 59 readymade garment factories in Savar, Ashulia, and Gazipur, were forced to suspend operations on Monday as fresh workers’ protests broke out over several demands, including a wage hike.

According to the Industrial Police, out of 70 industrial units, 52 are located in Savar and Ashulia while the rest 18 factories are in Gazipur industrial area.

Law enforcers detained 21 individuals in Gazipur on the charges of instigating labour unrest in different factories.

Against the backdrop of fresh labour unrest, the Bangladesh Garment Manufacturers and Exporters Association convened an emergency general meeting on Monday night at its headquarters in Uttara in the capital.

During the meeting majority of the factory owners opposed to increase wage and raise the annual increment from the current 5–10 per cent.

They argued that the new wage was set in December 2023 and the sector was currently grappling with several challenges stemming from both global and internal factors, including a decline in global demand and high production costs exacerbated by rising energy prices, and elevated bank interest rates.

Factory owners said that production had been suspended for over two weeks this month and that they had previously experienced closures during the July–August anti-discrimination movement, which led to buyers shifting work orders to other countries.

The emergency general meeting was still in progress at the time of filing this report about 8:30pm.

Ashulia zone Industrial Police superintendent Mohammad Sarowar Alam told New Age that total 43 factories, mostly RMG units in Ashulia belt, were closed under the section 13(1) of the Bangladesh Labour Act, while eight others announced general holiday on Monday amid the labour unrest.

Sources from the Industrial Police headquarters said that production in 18 industrial units was suspended in Gazipur area on the day.

Police sources said that workers from the Seasons Dress garment factory in Gazipur took to the streets on Monday morning, blocking the Dhaka-Mymensingh highway over unpaid wages for part of July and August.

Meanwhile, workers from Generation Next in Ashulia also gathered on the Bipail-Abdullahpur road, demanding wage payments and other issues.

Industrial Police and Army personnel were dispatched to both locations, where demonstrating workers were joined by workers from other factories, they added.

The police said that workers from many factories on Monday demanded a wage hike, which was a fresh demand since no such demands came earlier from the protests that began since the end of August to continue for over three weeks.

On September15, the unrest was brought under control as most factories reopened and workers returned to work, following a tripartite call from factory owners, labour leaders, and advisers of the industries, labour and employment, and fisheries and livestock.

The situation improved last week despite protests within some units over various demands continued.

But from Sunday the situation deteriorated again when workers blocked two major highways in Ashulia and Gazipur over issues, including unpaid dues, wages and tiffin bonuses.

Considering the situation, the labour ministry on Monday held a meeting with factory owners and labour leaders to find ways to calm the situation.

At the meeting labour leaders placed a 18-point demand compiling the demands of agitated workers in several garment factories in Ashulia and Gazipur.

The demands include—reconstitution of the wage board to set new minimum wages for workers; quick implementation of the 2023 minimum wage in factories; amendments to labour laws; immediate payment of all outstanding wages; and increase in attendance bonuses, tiffin bills and night allowances at the same rate across all factories.

The demands also include establishment of provident funds in all factories; 10 per cent yearly wage increase and food rations for workers; no blacklisting of workers following the biometric database; withdrawal of cases against those involved in the 2023 wage protests; enactment of guidelines to limit the dominance of jhut (garment factory waste materials) business; and establishment of non-discriminatory employment practices in factories.

The demands further include compensation and medical care for workers killed or injured during the July-August movement; initiatives to support the well-being of Rana Plaza survivors; mandatory establishment of day-care centres in all factories as required by labour laws; and stopping of unlawful terminations; and extension of maternity leave to 120 days.

Labour secretary AHM Shafiquzzaman at the meeting assured labour leaders that the government was addressing several of the workers’ demands, including compensations for those killed in the July-August movement and the Rana Plaza building collapse.

Some issues, such as wage reviews, depended on policy decisions, and the ministry was committed to working on them, he said adding that factory owners agreed to meet some factory-level demands, including various bills, payment of dues, and the implementation of wages.

Regarding other matters, including the 10 per cent yearly increment, factory owners said that that they would announce their decision following discussions with fellow factory owners.

During the meeting, factory owners termed security as the prime concern for running factories at the moment.

Export orders were shifting to other countries due to the unrest forcing many factory owners to struggle to pay September wages in time, they said.

Hameem Group managing director AK Azad, former Bangladesh Textile Mills Association president Tapan Chowdhury, Bangladesh Garment Manufacturers and Exporters Association president Khandoker Rafiqul Islam, Garment Workers Trade Union Centre president Montu Gosh, Sammilita Garment Shramik Federetion president Nazma Akter, Bangladesh Garment and Industrial Workers Federation president Babul Akter, and Sramik Samhati president Taslima Akhter, among others, spoke at the meeting.​
 

Factory owners accept all 18 demands of RMG workers

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Army personnel are posted outside a shuttered garment unit in the Narasinghpur area of Savar. Industrial belts have been hit hard by unrest as garment workers agitated to have their demands met. The government and factory owners yesterday accepted all of their demands. Photo: Aklakur Rahman Akash

Garment factory owners in Bangladesh have accepted all 18 of the demands of the workers, such as ensuring provisions for tiffin and night allowances, to tame ongoing unrest in the sector.

Labour and Employment Secretary AHM Shafiquzzaman announced the decision at a press briefing at the labour ministry in Dhaka yesterday. He was joined by four advisers to the interim government, union leaders and leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

According to our Savar correspondent, around 55 garment factories in the Ashulia area remained closed yesterday.

Normal operations in the industrial zones are expected to resume on Wednesday as demands have been addressed, Labour and Employment Adviser Asif Mahmud Sajib Bhuiyan said at the briefing.

The arrears in salary will also be cleared, he said, adding that normalcy would be restored to the sector from today.

Home Affairs Adviser Jahangir Alam Chowdhury echoed Bhuiyan's sentiments, urging workers to return to their workplaces.

"I want to see all industrial units operating from tomorrow [Wednesday]. Please do not take the law into your own hands," Chowdhury said at the meeting.

Speaking on behalf of union leaders, Kutub Uddin Ahmed, former secretary general of IndustriALL Bangladesh Council, also urged workers to return to work.

He added that different quarters outside the garment sector had been instigating the unrest.

The workers' key demands included implementing the existing minimum wage in all factories and settling all outstanding payments. Additionally, workers sought to raise attendance bonuses by Tk 225, night shift bonuses by Tk 10 and tiffin allowance by Tk 10.

Shafiquzzaman said around 1 to 2 percent of garment factories did not implement the latest wage structure that came into effect in December last year.

He added that the government would also provide support in dense industrial areas under the Trading Corporation of Bangladesh's open market sales programme, allowing workers to buy essentials at cheap rates.

The government will frame a policy to centrally control the jhut (waste fabric) business as control for the trade of scrapped clothes emerged as one of the main reasons for the unrest.

A separate review committee will submit a report on the industry's capacity to review the wage structure, the labour secretary said, adding that the government will also review police cases against workers to ensure they are not harassed.

Md Sarwar Alam, superintendent of Ashulia Industrial Police-1, said yesterday: "Of the closed factories, 46 were shut today due to workers' protests over demands for salary increases, increments and other benefits while nine had declared a general holiday."

Labour leaders reported that workers of several factories gathered in front of the premises in the morning but left when they were found to be closed.

According to the Industrial Police, the closed factories are primarily located along the Bypail-Abdullahpur road in the Jamgora, Narasinghpur, and Zirabo areas of Ashulia.​
 

A welcome decision to resolve RMG unrest
Cooperative efforts, sound leadership vital going ahead

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VISUAL: STAR

We welcome the decision of garment factory owners to accept all 18 demands of agitating workers, a much-needed development that will hopefully resolve the unrest that plagued the sector for weeks. According to a report by this daily, factory owners on Tuesday agreed to workers' demands including enforcing the minimum wage in all factories, clearing outstanding payments, provisions for tiffin and night allowances, etc. The government will also help workers in dense industrial areas buy subsidised essentials through its Open Market Sales (OMS) programme, regulate the scrapped clothes business (a key source of the unrest), and review police cases against workers to prevent harassment.

As expected, the decision has had an immediate impact as most factories in Savar and Ashulia reopened on Wednesday, with workers returning to their duties in a peaceful manner. Security has also been beefed up to prevent any untoward situation. However, some factories still remained closed, mainly owing to disruptions caused by financial constraints. This again highlights the urgency of addressing the losses suffered by factories not just during protests but also in the unprecedented mayhem that ravaged various industrial units since the regime change on August 5. The truth is, while we recognise the importance of Tuesday's decision to restore order, we cannot ignore the tremendous challenges that lie ahead for the industry.

The cumulative effect of frequent factory closures and suspensions of production and the vandalism witnessed over the past month and a half is that a number of international buyers have diverted their orders to competing nations. We have earlier commented on how this situation is affecting business, especially after many requests for value-added garments were cancelled or postponed because buyers had to cancel their trips. For a country heavily reliant on its garment exports, such shifts in buyer confidence and preferences do not bode well for both the sector and the country.

The diminished work flow will likely continue to haunt the industry, affecting not just workers and owners but also the scope of investment in modernisation, sustainability, and compliance with global standards. As highlighted by an industry insider, a consolidation phase appears imminent with smaller and financially weaker factories potentially closing. There are lessons for all stakeholders in this: the government, factory owners, and union leaders. Going ahead, they all must ensure collaborative efforts and sound leadership to prevent any further turmoil. The government, in particular, must undertake a comprehensive review of the health of the industry and provide necessary support to help it rise again.​
 

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