Dhaka, Mar 27 (V7N) -More than three hundred workers of 'Hag Knit Wear' in Kamrangichala, Gazipur, arrived at work on Tuesday morning only to find the factory gate locked, as the owner had shut it down without prior notice, prompting them to protest and block the Dhaka-Tangail highway, which ultimately ruined their Eid celebrations.
Their families will not experience the joy of Eid.
During this period, 52 factories have shut down in Chittagong, along with many others across the country. In the three major industrial zones—Gazipur, Savar, and Narayanganj-Narsingdi—95 garment factories have been permanently closed, resulting in the loss of jobs for approximately 62,000 workers.
Most of these workers have yet to receive their outstanding wages or severance benefits.
According to industrial police reports, among the closed factories, 54 are in Gazipur, 23 in Narayanganj and Narsingdi, and 18 in Savar and Ashulia.
Statistics show that in Gazipur alone, over 50,000 workers have become unemployed. Around 6,000 workers have lost their jobs in Narayanganj and Narsingdi.
In Savar and Ashulia, 18 factories have permanently closed in the last seven months, leaving 10,127 workers jobless.
According to garment owners’ associations and labor unions, about 150 garment factories, including 52 in Chittagong, have shut down across the country, leading to job losses for around 122,000 workers.
Industry experts say that declining international orders, rising raw material costs, and the global economic crisis have forced many companies to shut down.
Workers claim that the sudden factory closures have pushed them into severe financial distress. Many factory owners have closed their businesses without paying wages and benefits, they allege.
Officials from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) stated that the ROR Fashion factory in Valuka, Mymensingh, was laid off on January 24.
The factory’s 1,376 workers will receive their January wages and layoff compensation.
However, they are still owed around 7 million BDT in wages for November and December. Last week, these workers protested in front of the BGMEA building in Uttara, demanding their dues.
Meanwhile, two factories under the Mahmud Group in Chandara, Gazipur, shut down late last year, and workers have yet to receive compensation.
On March 23, workers of Stylecraft and Youngone (BD) Limited in Gazipur staged a sit-in protest in front of the Department of Labor, demanding their dues.
During the protest, a worker named Ram Prasad Singh, 40, fell ill and died.
Gazipur Has the Most Factory Closures
Out of 2,176 registered factories in Gazipur, 54 have closed. Most of these were in the ready-made garments and textile sectors. Some of the notable closed factories include TMS Apparel, Niagara Textile, Mahmud Jeans, Hardy to Excel, Polycon Limited, Apparel Plus, and The Delta Knit. On February 28, 14 units of Beximco Industrial Park in Kashimpur and Sarabo, Gazipur, were shut down, leaving 33,244 workers unemployed.
52 Garment Factories Shut Down in Chittagong
Over the past six months, at least 52 garment factories have closed in Chittagong. Additionally, work orders have dropped by about 25%, leaving thousands of workers unemployed.
According to the industrial police, ahead of the upcoming Eid, at least 44 garment factories are struggling to pay workers’ wages and bonuses.
BGMEA sources indicate that out of 611 registered garment factories in Chittagong, only 350 are currently operational. A total of 261 factories have remained closed for a long time. Among the 350 active factories, 180 are fulfilling orders for foreign buyers, while the rest are engaged in subcontracting, though many have significantly reduced operations. Industrial police data shows that Chittagong has 580 factories under BGMEA, BKMEA, and BTMA, but 52 have closed in the last six months due to financial troubles.
23 Factories Closed in Narayanganj, Narsingdi & Munshiganj
Narayanganj, Narsingdi, and Munshiganj together house about 2,000 industries. However, in the past seven months, 23 factories have permanently shut down, resulting in job losses for approximately 6,000 workers.
According to Industrial Police-4, some of the recently closed factories in these three districts include Green Bangla Home Textile Industries, Asian Falcon Garments, GL Fashion, Master Textile, Star Cutting & Engineering, and West Best Attires. Most of these are small to medium-sized factories that were forced to shut down due to financial strain.
10,000 Workers Jobless in Savar-Ashulia
In Savar, Ashulia, and Dhamrai industrial areas, out of 1,863 factories, 745 are in the garment sector. Among these, 18 have shut down permanently, leaving 10,127 workers unemployed.
According to Industrial Police-1, some of the recently closed factories in this area include Generation Next Fashion, Best One Sweater, MS Sweater, Savar Sportswear, Barda Group, Rams Fashion, Priyanka Fashion, and Javan Tex Knitwear.
The Generation Next Fashion factory in Dhonaid, Ashulia, closed last August, leaving 4,500 workers jobless.
How Many Workers Have Lost Their Jobs?
Trade union data suggests that over the past seven and a half months, more than 100,000 workers have lost their jobs, most of them from the garment and textile sectors. Many are struggling to survive in Dhaka, while others have been forced to return to their villages. With no steady income, even meeting daily expenses has become a challenge, let alone celebrating Eid.
Dr. Khondaker Golam Moazzem, research director at the Center for Policy Dialogue (CPD), told Bangla Tribune that the government should collect accurate data on unemployed workers and take necessary measures. He suggested that an unemployment insurance scheme could be introduced, similar to the European Union’s COVID-19 relief funds, to help laid-off workers manage the crisis.
Labor organizations are urging the government to ensure compensation for jobless workers. Labor leader Babul Akter stated that if the government can secure compensation for Beximco workers, similar measures should be taken for others. He called for the formation of a tripartite committee to address the issue.
Why Are Factories Closing?
The crisis in the country’s garment industry is deepening. Financial struggles, political instability, and absentee owners are leading to continuous factory closures. This is not only causing job losses but also delaying wages and bonuses for workers.
There are three key reasons behind factory closures:
-
Economic crisis and lack of orders: The global economic downturn has affected Bangladesh’s garment industry. Major buyers have reduced their orders, making it difficult for many factories to sustain operations. The cash flow crisis is making it hard to pay workers.
-
Political instability: Recent political unrest has led to vandalism and arson in several factories. Many of the affected factories were associated with the previous Awami League government.
-
Absence of owners: Due to political uncertainty, some business owners linked to the previous government have gone into hiding, leaving their factories inactive and unpaid wages unresolved.
Although some factories have closed, data from the Export Promotion Bureau (EPB) indicates that Bangladesh’s garment exports have not declined. Some former factory workers have found jobs in larger factories, and the number of eco-friendly factories is increasing, offsetting some of the industry’s losses.
Comment: