Conspiratorial labour unrest threatens to ruin RMG sector

The ongoing labour unrest, initiated particularly in the Ashulia and Gazipur regions as part of a conspiracy, has immensely affected production at garment factories with exporters warning of significant financial losses, job cuts and a decline in foreign investment.

The businesspeople claimed that Bangladesh will lose readymade garment (RMG) exports worth $2-$5 billion in the next six months if the situation does not improve.

According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the production at 63 factories was halted on Monday due demonstrations by workers to press home their various demands. Of them, 60 are situated at Ashulia alone.

In a recent programme, Labour and Employment Secretary AHM Shafiquzzaman said a neighbouring country was fuelling the unrest in Bangladesh’s garment sector.

"There has been an attempt to spread a negative impression about Bangladesh's garment industry in the international arena. The conspirators are trying to prolong the unrest and divert the purchase orders to other countries," he added.

Talking to media, one of the top 10 RMG exporters, wishing anonymity, also alleged that a neighbouring country is hatching a conspiracy to ruin Bangladesh's garment sector.

After the fall of the Sheikh Hasina regime on 5 August, there has been a surge in conspiratorial activities to this end, he said, adding that the conspirators are using some trade union leaders to create an unstable situation in the RMG sector.

The exporter also claimed that the Bangladesh Army is not able to fully control the situation in the economic heartland amid police’s inaction. “There’re huge Awami League supporters in the law enforcement agencies who also want instability.”

From Hong Kong, BGMEA Director Shovon Islam said that owners met workers’ demands to bring an end to demonstrations. “However, they continue to reemerge with fresh demands, which indicates that a plot is on to ruin the industry.”

"Some trade union leaders take financial benefits from the conspirators and influence workers to continue the demonstrations," he said.

Shovon claimed that the industry is losing around $6.5 lakh every day due to the unrest. Shipment delay is a cause for order cancellation too as production has been halted for over a month. The unrest started on 28 August.

"The demonstrators violate labour laws. They attend factories but don't work. They leave the factories after joining work which is embarrassing for factory owners," he said.

Bangladesh faces image crisis in global market

Shovon claimed that he was meeting global top buyers and retainers in Hong Kong on Monday. “Buyers look for alternative sources due to the unrest. They don't want to take any risks. Indian exporters expressed happiness at it.”

He said 10 lakh workers will lose jobs due to the labour unrest. “Over 60 factories were closed on Monday. The country will lose $2-$5 billion due to the unrest. Besides, investors won’t want to invest here in the unsafe situation. To build a 20-line factory, Tk100 crore is needed. Factory vandalism or arson attacks by demonstrators discourage investors," he said.

Another BGMEA Director Mohiuddin Rubel said, "Our image is getting tarnished for sure alongside huge financial losses. If the situation continues, this will cause further problems. The industry has so far lost $3 billion due to the month-long demonstrations."

Six factories of Ha-Meem Group shut indefinitely

Six garment factories of Ha-Meem Group were closed indefinitely due to the ongoing worker unrest in Ashulia of Savar.

The closed factories are Ethereal Data Sportswear Ltd, Ethereal Gallery Ltd, Rishat Garments Ltd, E-Fashion Wear Ltd, Artistic Design Ltd and Center Calendar Ltd.

The decision follows disruptions to the operations of workers, officials and security staff, according to notices posted at the factory gates on Monday.

Workers want a collective announcement

General Secretary to Bangladesh Garment and Industrial Workers Federation Babul Akhter said, "We don't know about the conspiracy but the workers continue their demonstrations as owners are reluctant to meet the demands. The workers demand a minimum wage of Tk25,000 due to high inflation, a 15% annual increment and Tk60 as tiffin allowance."

Replying to a question about why workers demonstrate in this crisis moment, he said labourers could not raise their voices properly during the Sheikh Hasina regime. “So, workers think it’s the right time now to press for their demands.”

Babul alleged that owners never hike salaries or other allowances for workers despite an increase in their capacity.

“Owners always say that they have no capacity to meet workers' demands," he added.

The federation leader also said workers will stop their demonstrations after getting a collective announcement from the government, owners and law enforcement agencies, urging the interim government and law enforcement agencies to investigate properly and find the conspirators in a bid to stabilise the industry.