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BKMEA asks member factories to suspend fresh recruitment

FE REPORT | Wednesday, 15 November 2023


Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has asked its members to suspend fresh recruitment amid the ongoing local political unrest and global situation that has created pressure on the economy.
In a circular on November 12, it issued a seven-point instruction that also included shutting factories according to the labour law provision 13 (1) if workers observe work abstention after joining or by going out from the factories.
The trade body further asked its members to refrain from sharing any information about their factories without written approval from the BKMEA.
Earlier, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at a press conference on Sunday last also issued similar instructions of freezing fresh recruitment and factory closure, following demonstrations since October 23 demanding wage hike.
BKMEA President AKM Salim Osman in the circular said the sector has been passing through a tough time due to political instability at home and wars in other parts of the world that deepened the economic crisis.
"Suspend fresh recruitment and make the notice visible at the gate. If new recruitment is required, verify workers' all required information before appointment," he said.
The BKMEA also asked for ensuring all personal information of workers from their database and regularly updating the database.
The trade body's instructions included holding regular consultation with the workers, listening to their issues, taking notes of their concerns and resolving immediately if there is any problem.
Meanwhile, the BGMEA in a separate letter to Nate Herman Senior Vice President, Policy at American Apparel and Footwear Association, on Monday urged for raising prices of apparel items in line with the new wage structure.
On October 11, Mr Herman in an email attached with a letter from 15 brands to Prime Minister Sheikh Hasina shared concerns over minimum wage negotiations.
As per the new minimum wage, the gross minimum monthly wage of the 7th grade workers is set at Tk 12,500, equivalent to around US$ 113.63, a 56.25 per cent increase of the gross wage while the basic wage has gone up by 63.41 per cent, the BGMEA president said.
"To ensure uninterrupted and smooth operation in the industry, it is important that the prices of all goods which will be shipped from December 1, 2023 are duly adjusted / up-charged covering the increment in wage component," he said.
Furthermore, from now onward, all the business negotiations and deals will have to be made adhering to the new minimum wage policy, he added.
However, ensuring decent living of the workers also is a top priority for us, as well as for global brands and retailers, he said, adding that since they have accepted the new minimum wage, they will ensure implementation of it, and sought support in terms of responsible purchasing practices.
The BGMEA president in the letter requested pursuing the 15 global brands as well as all the other brands under the AAFA membership, to collaborate with their Bangladeshi suppliers with due empathy and consideration.

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