The government is set to serve a show-cause notice asking the Tuba Group management to explain why it will not be declared that the five factories of the Group were closed illegally.
The decision on issuance of the show cause notice came at a meeting of the labour ministry at the Secretariat Sunday amid the Tuba Group owner's appeal for support from
financial institutions to reopen the closed units.
"I can reopen the units if I get a loan at least to the tune of Tk 250 to 300 million at a low interest rate from any financial institution or bank," Tuba Group owner Delwar Hossain said at a press conference on the day.
However, the government found that closure of the five units under an article of the labour law that the Tuba Group authorities followed in doing so was 'not proper', meeting sources said.
So, the government was going to issue the show-cause notice. The move came just a week after the Tuba Group units had been declared shut under the article 13 (1) of the existing labour law, the sources said.
Labour leaders and workers of the closed factories and the owner are now locked in a row over payment of lawful compensation following the closure.
"We'll send a show cause notice to the Tuba Group authority Monday," a top government official said.
After consultation with legal experts, "we have reached the conclusion that the way the Tuba Group authorities declared their factories shut is not appropriate," said Inspector General of Department of Inspection for Factories and Establishments (DIFE) Syed Ahmed.
He further said the DIFE would formally inform the Tuba Group authorities on Monday that the article 13 (1) was not applied properly to closure of its units.
"If they fail to run the units, they have to shut the units according to the law of the land," he told the FE.
Explaining why the article was not applicable to the Tuba Group units' closure, he said: "The workers' demonstration was not illegal."
Moreover, they applied the law on a back date, he added.
Earlier on August 18, the authority of the Tuba Group in a notice announced closure of its five units for an indefinite period according to the article 13 (1) of the labour law with effect from June 11 last.
The Tuba Group owner at the press conference in the city said with resumption of production at the closed factories, the units could be able to export goods worth $4.0 to $5.0 million per month.
He claimed that he had no option but to shut down those units due to a financial crisis.
"There is no saleable land left at this moment. After securing bail from jail, I have sold a printing factory on 16 kathas of land, another nine kathas of land and garment machinery to collect Tk 53.8 million," he said.
Mr Delwar secured bail on a condition that he would pay the dues to the 1600 workers of the five Tuba Group units.
Replying to a question, he said workers were paid the wages for the months of May, June and July but he did not have the ability to pay the workers the festival allowances.
"Wage payments were distributed among all the workers and there are no dues," he claimed.
Due to imprisonment following the Tazreen fire, the units failed to bag direct work orders and did subcontracting, he said. His group lost a subcontract worth Tk 9.2 million as production was suspended by the workers for wages for the month of May.
In the absence of subcontracting orders, the authority failed to pay the wages and festival allowances, he added.
"I have lost everything and am unable to pay, unless the units are opened again," he said. He sought financial support from the government, banks and financial institutions.
The five closed factories are Tuba Fashion Limited, Tuba Textile Mills Limited, Mita Designs Limited, Taif Designs Limited and Bughshan Garments (Pvt) Ltd.
Earlier, around 1,600 workers of Tuba Group observed hunger strike for 11 days since July 28 to realise their due wages for the three months and festival allowance.
Later the workers were paid three months' wages and overtime bills on August 6, 7 and 10.
