Bangladesh’s apparel sector reportedly could plunge into a deeper crisis if production does not restart soon.
Concerns have been raised following the temporary closure of several factories, including Ha-Meem Group, Knit Asia, Sharmin Group, and Arunima Sportswear. While Ha-Meem remains uncertain about when operations will resume (as per a short conversation of team Apparel Resources with Group Chairman AK Azad), Sharmin Group, which was closed until Saturday, still feels heat due to labour unrest.
Arunima Sportswear, located in Ashulia, echoed this sentiment, confirming that they would resume operations as per the directive from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
BGMEA officials are actively monitoring the situation, with members urging factories to navigate the unrest in a manner that allows for a clear understanding of the underlying causes, which have been attributed to political turmoil.
However, there has been a wave of negative news circulating in the global industry, with many reports claiming that Bangladesh’s RMG factories are ‘permanently’ shutting down due to declining orders and operational issues.
In direct response to the negative speculation surrounding the RMG sector, a BGMEA representative stated, “We want to assure our partners that none of the information circulating is accurate. Our factories are committed to quality and stability, and we will navigate this change without destabilizing our operations.” He further added, “Some factories have applied Clause 13(1), not layoffs. According to Bangladesh labor law, Clause 13(1) and layoffs are not the same. These are two distinct terms, with different clauses and implications.”
“As the industry faces these challenges, stakeholders, brands, and buyers are encouraged to reach out for clarification regarding the situation. BGMEA representatives remain available to distinguish between misinformation and factual developments in the RMG sector,” the representative added.
According to BGMEA, Clause 13(1) under labor law, allows factories to opt for ‘no work, no pay’ clause if labour does not return to work. It’s worth noting here that labour unrest in the country is causing financial losses to the factories. According to an estimate, in September alone, collective losses suffered by RMG factories have crossed Taka 1,000 crore!
“This unrest is not related to wages,” stated Faruque Hassan, Managing Director of Giant Group, adding, “The wage hikes implemented last December have addressed compensation concerns, meaning the current unrest primarily centers around demands for changes in management and employment practices.”
“The current turmoil has seen some workers calling for the replacement of senior officials and a more equitable representation of male and female employees within factories. Additionally, external job seekers are complicating the landscape, demanding employment opportunities in a market that already declares a lack of available vacancies,” he added.