[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

RMG unrest will hurt exports and industrial output

Govt must prevent further disruptions, minimise damage

www.thedailystar.net

RMG unrest will hurt exports and industrial output
Govt must prevent further disruptions, minimise damage

VISUAL: STAR

We are concerned about the outcome of recent disruptions in the ready-made garments (RMG) industry. This vital sector—which last year fetched an all-time high of about $47 billion from exports—could be in for a rude shock this year after being rocked by frequent protests, factory closures, and vandalism over the past month or so. This is already having an impact, with many international buyers who regularly visit Bangladesh to finalise work orders cancelling their trips, affecting their planning for upcoming seasons. Citing a representative of a major European buyer, a report by this daily even said that many requests for value-added garments have already been cancelled or postponed.

In an environment of uncertainty and insecurity, it is natural that buyers would have a Plan B for sourcing apparel from alternative destinations where they can safely place orders. As well as supply-chain disruptions, buyers also have to think about reputational risks arising from placing orders in restive countries. There is already a concern among some buyers that about 5 to 10 percent of their work orders placed in Bangladesh could be affected by the latest unrest and other hurdles. What this means for local producers is that they are having to deal with concerns not just about future orders but also the profitability of existing ones, as they may now have to provide discounts and expensive air shipments because of supply delays.

Ironically, the problems in Bangladesh have raised hopes for rival apparel suppliers, including India, who are expecting a boost in their work orders. Even though India's apparel exports remain significantly lower than Bangladesh's, the country's offer of various incentives and policy supports to its garment hubs and manufacturers contrasts the frequent challenges facing our manufacturers. This shows how our position as the world's second-largest garment exporter could be upended if we don't ensure stability and competitiveness fast enough. True, Bangladesh can still turn around. Its competitive pricing, improved safety and environmental compliance, and increased capacity for diversified products are still a potent mix. But to prevent the recent incidents of work orders being shifted elsewhere from becoming a trend, we must significantly improve safety, support our manufacturers, and remove all hurdles in the supply chain.

A lot has been said about the recent protests by workers. At a recent press conference, the IndustriALL Bangladesh Council, which represents 18 trader unions, blamed local youth gangs, garment waste traders, and unemployed individuals for instigating the demonstrations in Savar, Ashulia, and Gazipur. Going forward, we must approach these disruptions in a manner that both addresses the genuine grievances of workers—including delayed wage payments and unlawful dismissals—and persistent security issues. The interim government has reportedly set a 12.65 percent export growth target for this fiscal year, but without fixing the problems in our biggest export sector, such targets cannot be reached successfully.​

 

[Saif]

We must stop the infighting to retain buyers

To maintain its position as a global leader in the garment industry, Bangladesh must prioritise unity and stability.

www.thedailystar.net

We must stop the infighting to retain buyers

A female worker inquires at the gate of a closed factory in Ashulia when it would reopen. FILE PHOTO: AKLAKUR RAHMAN AKASH

Bangladesh has been through an extremely challenging situation recently, especially with the change of leadership brought forth by a student-led mass movement. As a business community, we should now be looking forward to the coming months with a sense of optimism. For the ready-made garment (RMG) sector, this is a crucial period as apparel manufacturers look to complete autumn and winter orders.

Therefore, it is frustrating to see that pockets of unrest continue, leading to closures of garment factories, which are already under tremendous pressure of completing their work orders. This is taking place at a time when the nation is facing numerous economic challenges. When foreign exchange reserves are a big concern, creating trouble in the garment sector will deal a heavy blow to the economy and the country as a whole.

The recent labour unrest in garment factories of Dhaka's Ashulia and Gazipur has been attributed to a power struggle between local thugs with differing political allegiances. Some ringleaders are allegedly attempting to assert dominance after the regime change and their rivalry has intensified the unrest.

According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the protests began at the Dhaka EPZ gate, where demonstrators demanded jobs. The unrest spread to nearby factories, although initial impacts were minimal.

On August 31, workers from a major exporter began vandalising factories, according to industry insiders, workers, and law enforcement reports. They forced other factory owners to close their factories and urged workers to join the protests. Violence erupted as owners and workers resisted the shutdown, resulting in more vandalism. Some unrest has persisted since then, with some factory closures. Garment manufacturers have held separate meetings with government officials and law enforcement agencies since then.

Industry insiders believe the police should ensure factory security, but some officers were involved in violent crackdowns during the student uprising, which may have left them feeling hesitant to confront workers. Although the Bangladesh Army has been deployed nationwide, it is more challenging for them to manage the situation without sufficient police support.

So, what now? My personal perception is that global apparel buyers have faith in the Yunus-led government, and orders continue to be placed. However, it is frustrating to see that a vested group is attempting to further destabilise the garment sector.

Moreover, these ongoing tensions between political factions in Bangladesh pose a significant threat to Bangladesh's reputation, especially at a time when it must present a unified and stable front to retain the trust of international fashion buyers.

The RMG sector, which accounts for over 80 percent of Bangladesh's export earnings, is the backbone of the nation's economy. Any instability in this industry directly impacts not only the livelihoods of millions of workers but also the broader economic prospects of the country. For global fashion brands, who rely on consistency, reliability, and timely delivery from suppliers, such infighting sends the wrong message.

Political unrest, labour strikes, and factory closures signal an unpredictable business environment. International buyers, operating in a highly competitive market with tight deadlines, cannot afford disruptions in their supply chains.

This does not bode well for Bangladesh, especially when other nations such as Vietnam, India, and Cambodia, are emerging as competitors in the global garment industry. These countries present themselves as stable, reliable alternatives, further exacerbating Bangladesh's challenges in maintaining its market share. Infighting within the RMG sector weakens the industry's competitive edge by diverting attention away from productivity and innovation and toward internal strife. The situation is particularly concerning given the country's dependence on international buyers, many of whom have voiced their support for ethical and sustainable sourcing practices.

To maintain its position as a global leader in the garment industry, Bangladesh must prioritise unity and stability. The government, industry leaders, and political factions must work together to create an environment conducive to business, signalling to the world that Bangladesh is a trustworthy and dependable partner. If the country fails to present a unified voice, it risks losing the confidence of global buyers, leading to devastating economic consequences for millions of workers and the nation as a whole.

In the past few weeks, buyers, NGOs, and rights groups have urged fashion brands to stand by Bangladesh amid its change of leadership. But we must repay this loyalty by providing a stable and reliable business environment. Major customers are supportive of our efforts but there is only so much they will tolerate before saying: enough.

Mostafiz Uddin is the managing director of Denim Expert Limited. He is also the founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE).​

 

[Saif]

Textile millers want immediate improvement in gas supply

Textile millers yesterday urged the interim government to take immediate steps to improve gas and power supply to production units, as most are now running at only 30 percent capacity.

www.thedailystar.net

Textile millers want immediate improvement in gas supply

Textile millers yesterday urged the interim government to take immediate steps to improve gas and power supply to production units, as most are now running at only 30 percent capacity.

They also urged the authorities to restore law and order urgently as garment factories are facing challenges in running operations.

They demanded that yarn imports from India be stopped through all land ports as large quantities are entering without proper documentation and quality testing, deteriorating sales of the domestic primary textile sector, where $22 billion has been invested.

The millers said yarn imports can be allowed through the Chattogram port as it contains facilities for quality testing.

They also urged to stipulate that any yarn which is sought to be imported from India needs to undergo quality tests at the Bangladesh University of Engineering and Technology.

In most cases, double the quantity mentioned in letters of credit is being imported through misdeclarations, said leaders of the Bangladesh Textile Mills Association (BTMA) at a press conference at its office in Dhaka.

Over the last eight months, textile millers at Bhulta, Gausia, Rupganj and Narayanganj areas have been suffering a lot because of low gas pressure in the supply lines, said BTMA Vice-President Md Saleudh Zaman Khan.

The textile mills are being run with alternative fuels such as diesel, methane-based compressed natural gas and liquified petroleum gas, which is composed of propane, butane, propylene, butylene, and isobutane, he said. This is also increasing the cost of production.

The mills are running at only 30 percent capacity and falling behind in competition with Indian companies as the latter get adequate gas supply alongside government incentives, he added.

Moreover, gas prices in Bangladesh have been hiked by over 400 percent in the past 2-3 years, he said.

BTMA President Showkat Aziz Russell said they have already written to Muhammad Yunus, chief adviser to the interim government, to review whether Bangladesh is truly qualified to make the United Nations country status graduation from a least developed country to a developing nation in 2026.

This is because, during the tenure of the last government, state data miscalculations led to export figures being inflated by around $14 billion to nearly $48 billion in fiscal year 2022-23, he said.

He also urged banks to provide loan rescheduling facilities as businesses suffered due to political unrest over the past two months.

Moreover, the interim government should provide incentives to the primary textile sector to make the domestic industry more competitive, he added.

Russell hoped for improvements in the law and order situation, saying it was especially necessary for the smooth operation of garment factories. He and other BTMA members accused "outsiders" of recent vandalism at garment factories.

The BTMA leaders said no textile mill had been attacked so far, although hundreds of garment factories have been facing trouble for labour unrest over different demands.​

 

[Saif]

Why this labour unrest in RMG sector?

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

thefinancialexpress.com.bd

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

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.​

 

[Saif]

Deeper crisis feared as 219 factories shut

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.

www.thedailystar.net

Deeper crisis feared as 219 factories shut

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.​

 

[Saif]

Authorities must immediately address apparel sector unrest

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...

www.newagebd.net

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.​

 

[Saif]

130 factories remain open in Ashulia on weekend

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

www.thedailystar.net

130 factories remain open in Ashulia on weekend

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.​

 

[Saif]

Bring back normalcy in the RMG sector

Understand and act to calm the frustrations in industrial belts.

www.thedailystar.net

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

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.​

 

[Saif]

Labour situation in RMG sector improves

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...

www.newagebd.net

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

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.​

 

[Saif]

Why this turmoil in garment sector

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

thefinancialexpress.com.bd

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

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.​

 

[Saif]

Almost all Savar, Gazipur garment factories resume

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.

www.thedailystar.net

Almost all Savar, Gazipur garment factories resume

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.​

 

[Saif]

Unrest emerges as a new threat to RMG recovery

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...

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

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.

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.

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.​