Apparel industry leaders and top officials from the industrial police are optimistic about clearing of the monthly payments and Eid bonuses for workers before the vacation though “over 100 factories have yet to pay their workers’ February salaries”, according to industry insiders.
Since the time for March salary payments has already begun, factory owners are required by labour law to pay their workers within the first seven working days.
Apparel industry leaders have said they are trying to pay their workers before the Eid vacation, especially considering that government holidays are scheduled to begin on 10 April.
However, in many readymade garment factories, festival leave will start from 7 April to avoid traffic congestion and chaos on the highways.
The Industrial Police recently released a report mentioning that 271 apparel and textile factories are likely to face difficulties in paying wages and bonuses to their employees before Eid-ul-Fitr.
Among them, 171 are member factories of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), 71 are members of the Bangladesh Knitwear Manufacturers Association (BKMEA), and 29 are members of the Bangladesh Textile Mill Association (BTMA).
“Despite all challenges, we are committed to paying our workers before the Eid vacation.”
Mohammad Nasir, vice president, BGMEA
Several factories in Savar, Ashulia, and Gazipur have faced workers’ protests, with demands for salary and Eid bonuses since last week.
Taslima Akhter, president of Bangladesh Garment Sramik Samhati, told TBS, “To our knowledge, some factories have already laid off workers who raised their voices demanding timely payment of their monthly wages.”
She added that some factories have announced holidays and provided a lump sum payment to their workers.
Furthermore, she said, such behaviour from factory owners before Eid vacations is unacceptable.
BGMEA Vice President Mohammad Nasir said that some factories are experiencing financial crises due to increases in wage and utility costs, while buyers are reducing product prices.
“Despite all challenges, we are committed to paying our workers before the Eid vacation,” he added.
Nasir said that the BGMEA is addressing this issue, especially focusing on factories at risk of facing worker unrest before Eid.
He further said that BGMEA officials are working across different groups to resolve these issues, including engaging with factory owners and their respective banks to find solutions.
BKMEA Executive President Mohammad Hatem said over 100 factories – belonging to both BGMEA and BKMEA — have failed to clear their workers’ February salaries.
He further said the apparel industry required about Tk5,600 crore to pay their workers’ salaries alone. However, the government only released Tk2,000 crore as cash incentives.
He added that apparel exporters sought cash incentives totaling about Tk6,000 crore.
“If the government allocates the release of at least another Tk2,000 crore, the factory owners will be able to pay Eid bonuses and March salaries,” said Hatem.
He also said that otherwise bank loans could be an alternative to pay workers, but banks may not approve them as, in most cases, factory owners have significant liabilities.
RMG workers protest for Eid bonus, salary
Hundreds of workers of Odyssey Craft (Pvt) Ltd, a garment factory located in the Sombhag area of Dhamrai started demonstrations after they found the factory closed on 3 April without any prior notice, just before the scheduled date for Eid allowance payments.
There are more than 2,000 workers in the factory, according to protesters.
The protest continued yesterday morning, and the factory owner, along with the police and workers’ representatives, convened to discuss the situation. After the discussion, the owner pledged to pay the workers’ wages by 8 April.
According to industrial police sources, there are at least 100 factories in Savar, Ashulia, and Dhamrai that may not be able to pay any salary and bonuses to their workers. Among them, there are 50 factories employing more than 2,000 workers.
However, so far, there have been no significant incidents of labour unrest except for two isolated incidents in Savar, Ashulia, and Dhamrai areas, sources say.
Police Superintendent of Industrial Police-1 Sarwar Alam told TBS, “We are sincerely working on the issues. The problems of many factories have been resolved. I will not say that we can solve all the problems; maybe some problems will remain unresolved.”
“We have already held meetings with the owners, labour representatives, and labour leaders,” he added.
90% factories in Narayanganj yet to pay salary, bonus: Labour leaders
From December to March, there have been at least 15 incidents of worker unrest related to salary and allowances in Narayanganj. Many factories have a record of non-payment of wages for two to three months, according to labour leaders.
District Member Secretary of Bangladesh Samajtantrik Dal Abu Naeem Khan Biplab told TBS, “Lump sum bonuses have been given to fine knit workers in the Tagarpar area of Fatullah, Narayanganj. There is anger among the workers.”
Deputy Inspector General of Industrial Police Md Azad Mia said, “We are collecting information through the intelligence and police. Some factory authorities have not paid the workers’ salaries. We are working behind the scenes to pay the salaries before Eid by listing them.”