Worry about export slump as 258 industrial units stay shut

Interim govt adviser says unrest to be set at rest soon

FE REPORT | Published: September 12, 2024 23:16:02

Industrial unrest stokes worry about export timing and resultant order diversion as around 250 factories in Savar-Ashulia and Gazipur belts stay shut in fear of vandalism as a section of workers continued demonstrations undeterred.
However, the post-uprising interim government Thursday expressed their optimism that the situation in the export industrial belts would return to normal soon.
According to industrial police and industry sources, some 250 factories, including readymade garments, remained closed Thursday, of which at least 86 announced closure for an indefinite period under labour-law provision of 'no work, no pay'.
Talking to the FE correspondent, Mohammad Sarowar Alam, superintendent of Industrial Police-1 (Ashulia), said a total of 133 factories--both RMG and non-RMG--announced paid holiday on Thursday to avert risks.
"Another 86 factories were closed in line with the labour-law provision of 13 (1)," he said, adding, "No road blockade or demonstrations had been reported until evening."
According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at least 115 of its member-factories located in Savar, Ashulia and Gazipur industrial zones were forced to announce closure on Thursday.
Out of the 115 units, some 75 opted for 'no work, no pay' and the rest 40 announced a general holiday with pay, according to the trade body's count.
Sources said some 30 garment factories located in Gazipur announced holiday in fear of vandalism on the day, adding that when workers in a particular factory demonstrate or go out of factory, they gather in front of other units.
"A vested group took advantage of such gathering or protests", resulting in vandalism and arson, they said, adding that many factory owners announced closure or holiday in fear of such chaos that caused huge financial losses.
Citing example of Wednesday's fire at a factory warehouse located in Kashimpur in Gazipur, they said the fire caused huge financial loss to the factory as a large quantity of fabrics and other materials were stuffed inside.
Factory owners in a recent meeting with the BGMEA leaders expressed concern that if a factory is set on fire or vandalized, "it is next to impossible for the authority to return to business".
Talking to FE, a number of factory owners and labour leaders said the unrest was yet see an end mainly because law-enforcing agencies, especially industrial police, have yet to be fully functional while there are also problems inside some of the factories as workers had agitated for a long time and now took the advantage of current situation.
According to them, majority of the problems would be over once the factory- outside trades like jhut (garment waste), extra fabric, tiffin and transportation are settled as local political groups are engaged in taking control of garment-related such trades with the change of government.
Some factory owners also think the current BGMEA board has lack of experience in dealing with such situation.
Talking to this reporter, BGMEA senior vice-president Abdullah Hil Rakib said they continued discussions with all, including workers, local political groups and also labour leaders, to resolve the problems.
Regarding the factory closure in line with the labour-law provision 13 (1), he said, "Factories announced closure under the provision as last resort as none wanted to keep their factories closed and workers without pay."
He, however, reiterates the hope that the problems would come to an end and the situation would improve by Saturday.
Exporters and industry people said the ongoing labour unrest would put the sector, already being affected by multiple factors, including energy crisis, dollar issue and low work orders following a decline in global demand, in further trouble.
They fear a shift in work orders to competitor countries as global apparel buyers are expressing concern over the current labour situation and suspension of production.
"And once the orders are shifted, especially those who don't have any office in the country, it would be difficult to bring them back," an exporter notes.
Munni_fe@yahoo.com