FE Today Logo

Fallout from labour unrest over wage dispute

Owners shut 130 garment factories sine die

Owner-worker standoff on new wage persists


MONIRA MUNNI | November 12, 2023 00:00:00


Many garment factories in Gazipur remain shuttered for an indefinite period in the aftermath of demonstrations by workers for wage hike. The photo taken in Konabari area of Gazipur on Saturday shows a factory entrance with a notice announcing the closure of the facility. — FE photo

Over 100 ready-made garment factories in different industrial zones, especially in Ashulia and Gazipur hubs, have been shut down amid protracted labour unrest on demand for wage hike, deepening crisis in Bangladesh's main export industry.

In another backlash, apparel makers have opted for a freeze on fresh recruitment following a BGMEA decision because of vandalism in factories over the latest wage-hike issue.

The owners rather want to utilise the full capacity of the factory hands amid a fall in work orders and reduce burden from factories.

On Saturday, workers from a total of 11 factories at Ashulia walked out of their respective factories and abstained from work, according to Industrial Police (IP) data.

However, there was no report of protests the same day.

A total of 130 factories were closed sine die in accordance with labour-law provision 13 (1). Of them, some 52 factories were at Ashulia, 25 at Konabari and one at Uttara, an IP official told the FE.

Some factories had announced closure since last Thursday after workers clashed with police on a key highway and ransacked Tusuka, a top garment-manufacturing unit, along with a dozen other factories.

Ripon Knitwear at Konabari, Cotton Club (BD), International Trading Services, Islam Group of Industries, Mondol Fabrics, AMA Syntex, Alim Knit (BD), Kaizer Knitwear and Montex Fabrics at Gazipur, among others, announced closure on Thursday as workers came out of factories and did not join despite repeated calls from the authorities and agencies concerned.

Workers have staged demonstrations demanding a pay hike since October, and at least three workers have been killed and some 100 factories ransacked or damaged so far amid the flare-ups, according to law-enforcement agencies.

The government announced Tk 12,500 as minimum monthly wage for the country's 4.0-million garment workers, mostly women, on November 07.

However, rejecting the wage hike as too inadequate because of price spirals, the agitated workers demonstrated again on November 08 and 09.

Garment workers have been on protests since October 23 on demand for wage hike to Tk 23,000, after apparel makers proposed Tk 10,400 as minimum monthly wage.

Protest against such yawning gaps in the minimum wage forced shutdown of 400 factories, industry people said.

However, the factories reopened on November 04 after government assurance of announcing the new wage on November 07.

Following protests on November 08-09, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in consultation with stakeholders on November 09 asked its members to halt all types of recruitment at garment factories.

When asked, BGMEA president Faruque Hassan said factories would go for "indefinite closure for safety if workers continued with vandalism".

About suspension of fresh recruitment, he says the move has been made mainly to cut financial pressure on factories.

"Moreover, there is shortage of work orders," says Mr Hassan, suggesting factories having a good flow of work orders compared to capacity to subcontract to units struggling for work orders.

"We'll recruit again once the situation of placing work orders by buyers improves," he told the FE on Saturday.

Talking to the FE, BGMEA vice-president Md Shahidullah Azim said workers might mull over leaving one factory to join another after unrest or vandalism.

"The decision to halt fresh recruitment is also aimed at preventing such vandalism," he noted.

When asked, Sammilito Garment Sramik Federation president Nazma Akter said, "Halting fresh recruitment or factory closure is not a solution."

She raised a question as to how factories would be run if there was no worker, saying that both workers and owners needed each other.

Regarding the recently announced wage hike, Ms Nazma said the wage was insufficient to meet daily necessities amid high prices of essential commodities.

Three workers died while many more were injured, and cases have been filed against many, she asserted, adding: "We also want justice."

According to Ms Nazma, the fixation of wage before the general election was not appropriate. "Why didn't they announce the wage before three months with effect from December 01 next?"

[email protected]


Share if you like