The central bank has offered soft loans for the apparel industry but the incentive has met with growing security concerns as worker protests forced dozens of readymade garment factories to suspend production near Dhaka on Sunday.
Bangladesh’s export-oriented industries are set to receive a soft loan to pay August salaries amid the ongoing instability in the country. The Bangladesh Bank extended this support in response to the industries’ call for help them wither the tough time.
In its circular issued Sunday, the central bank asked banks to take steps so that loan funds are disbursed directly to the workers’ bank accounts or through mobile financial systems.
The loan is repayable in a year with three months’ grace period.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Khandoker Rafiqul Islam earlier said approximately Tk2,800 crore is required to cover a single month’s salary for RMG workers.
But the good gesture came at a time when the apparel industry owners are faced with a fresh wave of labour protests.
At least 55 apparel factories in the Ashulia industrial area near capital Dhaka suspended production on Sunday as workers came out of factories and protested in the streets for rights and benefits, creating fresh worries among owners about safety of their industries.
Readymade garment industry insiders said workers’ monthly wages have been cleared, yet a section of workers were raising additional demands to create unrest amid a lax law and order situation since the fall of Awami League regime on 5 August amid massive uprising.
They alleged that “outside groups” were attempting to exploit the situation by escalating workers’ protests into a major unrest in this industrial hub.
Simultaneously, job seekers also demonstrated at Dhaka EPZ and Adamjee EPZ demanding employment and protesting what they said factories were biased towards females while hiring. They attempted to block roads in front of the EPZ gates, further exacerbating the situation.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said, “Outsiders were attempting to create unrest in industrial zones, particularly in Ashulia, targeting large factories.”
“Some outsiders also threw bricks at factories, forcing several to announce a day off today,” Hatem told The Business Standard.
“If the situation continues like this, it will have bad effects on export as already we are under pressure to ship goods on time,” said AK Azad, managing director of Hameem Group, one of the Ashulia factories that had to suspend production on Sunday amid workers’ protest.
The group has booked full capacity orders. “Now industries need security to meet their shipment deadline,” he told TBS yesterday.
Amid a growing sense of insecurity, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) made efforts to resolve the issues with cooperation from the army and industrial police. Industry leaders are scheduled to hold a meeting with Home Affairs Adviser Lt Gen (retd) Jahangir Alam Chowdhury on Monday afternoon at his office in the Secretariat. Two other advisers to the interim government, Md Nahid Islam and Asif Mahmud Shojib Bhuiyan, are also expected to present at the meeting, according to industry sources.
Prior to this, factory owners held an emergency meeting on Sunday at a city hotel to determine their next course of action to meet shipment deadlines with many exporters running well behind export schedules.
After a meeting on Sunday evening with factory owners and various law enforcement agencies, including the army, industrial police, and intelligence agencies, BGMEA President Khandoker Rafiqul Islam announced that all factories in the Ashulia area will remain open on Monday.
He said that law enforcement agencies have assured factory owners of their support in maintaining security. Referring to discussions with labour leaders, the BGMEA president noted that they have indicated they are not involved in the unreasonable demands that have surfaced. According to BGMEA officials, approximately 55 ready-made garment (RMG) units of some 40 groups were closed on Sunday as a result of worker unrest in the Ashulia area.
Ashulia a hotspot again
RMG workers from several factories blocked roads in Ashulia industrial area of Savar on Sunday despite there being no unpaid dues, according to BGMEA officials.
Industry sources said that the latest protests were brewing over the past week over various demands, such as increase in tiffin allowances, attendance bonuses, a 10% annual increment, and earned leave for all staff.
Workers from factories including Hameem Group, Shermin Group, Ananta garments, Newage Group, AM Design, NASSA Group, Unicron Sweater, Naba Knit, and Trouser Land came out on the streets in Ashulia, according to industry sources. Meanwhile, Pearl Garments and Gildan factories in the area granted their workers leave with pay and advised them to go home amid attacks and instigations from outside.
BGMEA officials said the latest wave of protest might have been influenced by NASSA Group workers’ protest against reported non-payment of full benefits for maternity leave and earned leave as well as increment arrears of the group’s management staff.
Hameem Group’s AK Azad said, “As per our knowledge NASSA Group’s workers are protesting from Saturday demanding some benefits. On Sunday they came out to the streets again and forced other factory workers to join them.”
The Business Standard could not reach NASSA Group officials for a comment despite repeated phone calls and text messages.
Naba Knit and Dress and Ideas factories suspended production under Sections 13/1 and 13/3/4 of the labour law, leaving hundreds of workers standing outside the factory gates. However, some factories resumed production in the later part of the day.
Among the operational factories were Skyline and NASSA’s second unit, though one unit remained closed while counselling was in progress.
“Other factories are running, and no roads are currently blocked. Industrial police and BGMEA officials are present, and the army is patrolling the area,” a BGMEA official stated later in the day.
BGMEA President Khandoker Rafiqul Islam noted that the organisation has been in discussions with trade union leaders, seeking their cooperation and identifying those involved in the unrest.
“The union leaders acknowledged that this is not the right time for demonstrations demanding benefit hikes, especially after the implementation of a new wage structure,” Rafiqul Islam said.
“We have also spoken with the current government to ensure security for industries during this period of economic volatility,” he added.
Job-seekers protest in Dhaka Old EPZ
According to BGMEA officials around 200-300 job seekers gathered in front of the main gate of old EPZ on rumour that EPZ authority started new recruitment. The EPZ authority denied such a claim and informed the army that they did not announce any vacancy.
The protesters added other demands like recruitment of equal numbers of male and female workers, and transparency in the recruitment process.
In this situation, army members immediately reached the location and tried to convince the job seekers and helped them take their demands to EPZ authority.
Similar protests took place in front of the Adamjee EPZ gate with 700-800 people asking for jobs. They accused the EPZ authority of only offering jobs to female candidates and being biased. They began protesting in front of the EPZ gate and tried to block the road.
Upon receiving a call from the EPZ authority, an army patrol unit persuaded the crowd to leave through negotiation with the authority.
