In a significant move, the Government has decided to allocate Taka 600 crore to settle the unpaid wages and service benefits of approximately 27,000 laid-off workers from 16 textile and garment units of the Beximco Group. This announcement was made by AHM Shafiquzzaman, Secretary of the Ministry of Labour and Employment.
The decision comes after the Government’s initial plan to pay the workers by selling shares of Beximco was deemed “not feasible within a short timeframe.” Shafiquzzaman mentioned that the deadline for finalising the payment has now been extended to 26th February.
“The sale of Beximco shares is a complex process that may not be completed quickly,” he noted, emphasising the need to adhere to labour laws that require timely payment to the affected workers. The Government is now considering taking loans from banks to ensure the workers receive their due payments.
Last week, Labour and Employment Adviser Brig Gen (Retd) M Sakhawat Hussain announced that the Government aims to clear the salary arrears before Ramadan in March. Despite ongoing efforts to sell shares from Beximco’s profitable divisions, the Government may encounter challenges with shares owned by Beximco’s owners.
Beximco Group has accumulated over Taka 40,000 crore in loans, primarily from various banks, yet the total value of its assets falls significantly short of this amount. The group’s 32 textile and apparel subsidiaries have collectively borrowed Taka 28,544 crore, with 16 of these subsidiaries existing only on paper.
The outstanding debts of Beximco include Taka 23,285 crore owed to Janata Bank, Taka 1,424 crore to Sonali Bank, Taka 420 crore to Agrani Bank, and additional amounts to several other financial institutions, highlighting the financial challenges faced by the conglomerate.
The Government’s initiative to provide financial support aims to alleviate the hardships faced by the laid-off workers during these challenging times.
