In an effort to assist the 40,000 workers laid off by Beximco Group, the Bangladeshi Government is actively seeking job placements for them within factories governed by the Bangladesh Export Processing Zone Authority (Bepza) and the Bangladesh Export Zones Authority (Beza), according to a senior official from the Ministry of Labour and Employment.
Beximco Group, which operates 16 textile and garment units, announced the layoffs in December due to a significant drop in work orders from international clothing retailers.
AHM Shafiquzzaman, the labour secretary, noted that the Government is not only focused on re-employing these workers but is also pursuing foreign buyers for the textile and garment sectors. The decision to find new jobs for the displaced workers stemmed from discussions within the Government’s advisory council. As part of their support, laid-off workers will receive partial salaries from Janata Bank until March.
The troubles for Beximco Group escalated following the ousting of the Awami League Government in August, with its Vice-chairman, Salman F Rahman, now imprisoned on charges of leveraging political influence for personal gain. Recent data from Bangladesh Bank indicates that Beximco owes nearly Taka 50,000 crore in loans, with a significant portion classified as non-performing. Janata Bank alone accounts for over Taka 23,500 crore of that debt, and legal actions may lead to the sale of Beximco properties.
Shafiquzzaman emphasised that the Government will adhere to legal protocols in the sale of Beximco’s assets. An upcoming advisory council meeting is scheduled for 20th January to assess the progress regarding the sale of the group’s textile and garment units.
However, Osman Kaiser Chowdhury, director of finance and corporate affairs at Beximco Group, voiced opposition to the Government’s actions, questioning the legitimacy of external parties selling the company’s assets. He indicated that the group plans to seek legal intervention if the Government proceeds with the sale.
Chowdhury also pointed out that Beximco previously exported around US $ 30 million worth of textile and garment products each month before the Government’s fall last year. He claimed that if the Government permits the opening of letters of credit, Beximco could quickly resume its export operations, owing to established relationships with international retailers.
Ashik Chowdhury, the executive chairman of both Bida and Beza, confirmed that discussions are ongoing to relocate laid-off workers to other factories in the Beza and Bepza regions, where there is a demand for labour, as previous work orders for Beximco are likely to remain in Bangladesh.
Bida is currently working on customer proposals to facilitate the sale of Beximco’s textile and garment units, although the executive director declined to disclose the number of proposals received.
Beximco, which employs a total of 70,000 workers, has seen over 57 per cent of its workforce laid off, with notifications about the layoffs issued on 15th December. The notification stated that during the 45-day layoff period, affected workers would receive half their basic pay and other benefits as outlined by the Labour Law. The affected factories include several prominent names such as Shinepukur Garments and Urban Fashions, among others.
