Owners mull keeping RMG units shut until after Eid

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Aggrieved RMG workers throwing brickbats at policemen during a fierce clash at Fatullah in Narayanganj Thursday. — FE Photo

Monira Munni Ready-made garment (RMG) manufacturers now find themselves in a difficult situation in keeping production going at factories. Industry insiders said meetings between them and top government authorities had failed to make any headway in cooling down the ongoing labour unrest. According to them, most of the factory owners were feeling deeply concerned over the last five days about the workers' agitation over wage hike in different industrial belts. Given the adverse condition, the RMG unit owners are planning to keep their factories shut until after the Eid-ul-Azha as per the provision of 13(1) of Labour Law apprehending a deteriorating situation. Since September 21-September 25, production at about more than 150 factories remained suspended every day due to the agitation, at times turning violent. The unrest continued in some areas like Ashulia, Savar and Narayanganj yesterday (Thursday), with more than 25 factories declared shut in those areas. According to BGMEA, there are 1110 factories in Gazipur and Konabari, about 600 at Ashulia and Savar and 444 factories in Narayanganj. Apparel industry leaders in the last couple of days sat with the shipping minister, the home minister and the labour state minister and with other authorities concerned seeking security for keeping their factories open. The RMG manufactures are still passing through uncertainties regarding keeping the factories open in the coming days in the midst of the bouts of unrest. The buyers are closely monitoring the situation, the insiders added. "We are not fully confident about the home minister's assurance as unrest prevailed on Thursday as well in some industrial belts including Ashulia, Savar and Narayanganj," vice president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Md Hatem told the FE. If this situation continues for a longer time, the apparel manufacturers will declare their factories closed until after the Eid-ul-Azha, he said adding they would not wait for any announcement from either BGMEA or BKMEA, as many of them have already informed both the trade bodies about it. Hossain-bin-MA Khaleque, a factory owner at Zirabo Bazar in Ashulia, said he had kept production at his factory suspended on Thursday due to security concerns. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice president Shahidullah Azim also said that many of the factory owners have informed the association that they would announce a prolonged shutdown of their factories if the unrest continued further, and the government failed to provide them with adequate security. "One day's production suspension means a huge loss," he said, adding during the last five days, the sector has incurred a production loss worth Tk 3.0 billion, while many others might have to go for air shipment of their products that will involve Tk 2.0 billion to Tk 2.50 billion in cost. "A shipment of 9800 pieces of apparel was supposed to be made on September 24, which got delayed due to the unrest," he said adding: "Now my factory has to face an additional expenditure of Tk 1.5 to Tk 1.6 million for the air-shipment." SM Mannan Kochi, acting president of BGMEA, said, "We don't want to stop our production, but the situation has compelled the owners to shut down their factories." Wages and allowances of the workers will be given in accordance with the decision of the wage board formed by the government. The workers should refrain from organising a violent movement until the new wages are announced by the government, he added. Managing director of Envoy Group Abdus Salam Murshedy said although the degree of unrest had reduced to some extent on Thursday, owners were still worried about the tense situation but kept their production on. If production remained suspended for a longer time, many of the owners might not be able to pay wages, bonus and other benefits before the upcoming Eid, he apprehended. Rubana Haq, managing director of Mohammadi Group, said buyers usually don't cancel order for a week's delay, but the impact is enormous. The shipment might face 'discount' for delays, or even the costly air-shipment. Discounts vary from 5 to 15 per cent for a week's delay, while air-freight might cost $1.50 per piece. "We will lose the reputation of being able to supply products on time. This will also convey a negative image of Bangladesh always as being a land of labour unrest," she said adding buyers were frequently making queries about the ongoing unrest. A report published on September 24 said Target is among the retail companies monitoring violent protests by garment workers in Bangladesh. They said the $21 billion industry was already facing several challenges like tremendous pressure and criticism from both local and international quarters. Its image had already been immensely tarnished following the two successive industrial blazes at Tazreen and Smart factories and the collapse of Rana Plaza at Savar that housed five garment units.