Nearly 100 textiles and clothing factories were open on Tuesday, defying industry lobby groups’ decision on the closure until April 14, part of the national attempt to slow the spread of virus, police said. Even more, fewer than 300 garment factories paid wages for the last month and other allowances until Tuesday. On Monday, after a meeting of the Bangladesh Garment Manufacturers and Exporters Association, BGMEA, and the Bangladesh Knitwear Manufacturers and Exporters Association, BKMEA, reached a decision to shut plants in line with the countrywide lockdown. The Bangladesh Textile Mills Association, or BTMA, also followed suit. The trade groups requested their members to pay workers’ monthly wages and other allowances by April 16. Commerce minister Tipu Munshi on Tuesday also asked factory owners not to terminate any workers and clear wages and other allowances by April 16. Insiders said a total of 546 industrial units, including 98 textile and apparel were open out of the 7,602 factories located in six industrial zones. Ashulia, Gazipur, Chattogram, Narayanganj, Khulna and Mymensingh zones are overseen by the Industrial Police. Of the textile and readymade garment units, 54 are registered with the BGMEA, 10 with the BKMEA and 34 with the BTMA. Only factories making personal protective equipment (PPE) and having urgent shipments can continue operations after complying with health and safety requirements in consultation with the police and the state-run Department of Inspection for Factories and Establishments, according to the trade bodies. Out of 1,882 BGMEA-affiliated member factories, 186 paid wages and other allowances, police said. Some 57 and 46 member factories of the BKMEA and the BTMA paid March wages and other allowances out of 1,101 and 388 units respectively. Out of 364 factories regulated by the Bangladesh Export Processing Zones Authority, some 121 paid wages. Additionally, 614 non-textile factories out of 3,867 overseen by industrial police also made payment to their workers. Trade unions are irked by the decision to keep the factories open. Nazma Akter, a laobur leader, reiterated the demands for closure of all factories, wage payment and Eid bonus and other equivalent payments during the closure. “If garment workers are infected with coronavirus, brands, companies and suppliers should take the responsibility for putting their lives at risk,” she added. She alleged many workers have lost their jobs and when workers raised their voice for safety and protection from Covid-19, factories blacklisted them and forced them to sign different documents. Meantime, the BGMEA on Tuesday, in a letter to central bank, sought its support for the payment of March wages. The BGMEA president Dr Rubana Huq said due to the ongoing coronavirus outbreak, global buyers have suspended or put on hold current orders and delayed the shipment and slashed future orders. “As a result, our business has been hampered, resulting in a negative impact on export growth,” she said, citing data that showed shipment shrank by 30 per cent in March’20 compared with March ’19. Last month, production was affected due to the disruption in supply chain, she said, calling for measures from the central bank so that banks can reduce documentation requirement for wage payment. Between 10 and 15 per cent of smaller plants affiliated with the BGMEA failed to export from March 15 and might not get overdraft facility or anything from the banks to pay salaries, she said, urging the central bank to consider their case.

Bangladesh and five other countries have urged global brands, retailers and traders to consider all potential impacts on workers and small businesses in the supply chain while taking significant purchasing decisions.

Nine textile and garment business associations of STAR Network (Sustainable Textile of Asian Region) from six producing and export countries also called on their global partners to honour the terms of purchasing contracts, fulfil obligations therein, and not re-negotiate price or payment terms. This joint statement was made by Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), China National Textile and Apparel Council (CNTAC), Garment Manufacturers Association in Cambodia (GMAC), Myanmar Garment Manufacturers Association (MGMA), Pakistan Hosiery Manufacturers and Exporters Association (PHMA), Pakistan Textile Exporters Association (PTEA), Towel Manufacturers Association of Pakistan (TMA) and Vietnam Textile and Garment Association (VITAS). They called for taking delivery or shipment, and proceeding with payment as agreed upon for goods already produced and currently in production with materials ready, and not cancelling orders that are already in production. The joint statement said during this unprecedented time, responsible business has become more important than ever for the whole world to survive and recover from the crisis. Especially, responsible purchasing practices of brand companies, retailers and traders of the global textile and apparel supply chains will bring enormous impacts on the fundamental rights of millions of workers and the livelihood of their families in the supplier end, the statement reads. The organisations said it is time for global businesses to uphold and honour their commitment to labour rights, social responsibility and sustainable supply chains. They called for putting no responsibility on suppliers for delay of delivery or shipment and for claiming no compensation for such delays and no further improper pressure on suppliers by additional costs, rushing orders or unnecessary visits and audits. The organisations sought all efforts and engage with local stakeholders for a better understanding of the local situation and contexts. They underscored the need for dialogue and collaborative settlement to ensure mutually acceptable solutions to disputes. The organisations sought support for business partners on supply chain as much as possible, and aim at long-term strategy of business continuity, supply chain unity and social sustainability. “We appreciate the understanding, collaboration and support of our business partners and other stakeholders, and we are ready to work and walk with all responsible buyers globally to get through this crisis, towards a shared bright future,” said the joint statement.

By complying with the instructions of the Directorate General of Health Services (DGHS) and Institute of Epidemiology, Disease Control and Research (IEDCR) effectively, factory owners can run their respective factories

Export-oriented apparel factories, which have enough work orders as well as an adequate number of personal protective equipment (PPE), masks and hand sanitizers, will continue to operate from Sunday since there is no restriction from the government as also from the garment trade bodies. “The government did not issue any directive on closures of export-oriented industries, which have international work orders and have enough coronavirus-related protective measures, including personal protective equipment (PPE), masks, hand sanitizers and medicines,” said the Department of Inspection for Factories and Establishments (DIFE) in a recent directive. By complying with the instructions of the Directorate General of Health Services (DGHS) and Institute of Epidemiology, Disease Control and Research (IEDCR) effectively, factory owners can run their respective factories, the directive added. However, it was mandatory to check workers’ temperature by thermal scanners before they entered factories and if there was any symptom of virus in anyone, the factory management had to provide quarantine and treatment facilities, the notification also said. “From the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), there is no restriction on keeping factory production closed. If a factory has work orders it will run and must maintain all safety measures for workers regarding coronavirus,” BKMEA first vice president Mohammad Hatem told Dhaka Tribune. However, it will be very tough to run factories as most of them do not have enough work orders, and the entire workforce may not be able to join, BGMEA Director Rezwan Selim said. Apparel factories located in Ashulia, Savar, Mirpur and Gazipur will run as usual as the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has asked its members to continue running their operations. The RMG factories were previously closed in line with the general holiday from March 25 till April 4.

Suppliers in the survey reported that 98.1% of buyers refused to contribute to the cost of paying the partial wages to temporarily suspended workers

 Over 91% of apparel brands and retailers who buy goods from Bangladesh but canceled their work orders due to the coronavirus pandemic, have refused to pay for production costs, according to a survey report by Pennsylvania State University. On top of that, suppliers in the survey reported that 98.1% of buyers refused to contribute to the cost of paying the partial wages to furloughed workers (temporarily suspended from work) that the law requires, and 72.4% of furloughed workers were sent home without pay. 97.3% of buyers refused to contribute to the severance pay of dismissed workers, also a legal entitlement in Bangladesh, it added. The report was published recently by Penn State’s Center for Global Workers’ Rights and the Worker Rights Consortium (WRC), titled “Impact of Covid-19 on Workers and Businesses at the Bottom of Global Garment Supply Chains.” Additionally, 72.1% of the buyers refused to pay for raw materials including fabric already purchased by the suppliers. According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) data, 1,098 apparel factories reported work order cancellations worth $3.01 billion as of Friday. “When orders were canceled, 72.1% of buyers refused to pay for raw materials (fabric and others) already purchased by the supplier, and 91.3% of buyers refused to pay for the cut-make-trim cost (production cost) of the supplier,” said the report findings. Also, 45.8% of suppliers reported that “a lot” to “most” of their nearly completed or fully completed orders were cancelled by their buyers, while 5.9% of suppliers had all their orders cancelled altogether, it added. The findings also show that due to lack of payment and order cancellations, 58% of the factories reported having to shut down most or all of their operations. As a result, more than one million garment workers in Bangladesh already have been fired or furloughed as a result of order cancellations and the failure of buyers to pay for these cancellations “There are moral obligations and ethical issues. Buyers cannot ignore taking the goods already produced as that was done through an agreement,” former World Bank lead economist in their Dhaka office, Zahid Hussain, told Dhaka Tribune. “There may be delays but cancellation is not a solution. In the case of worker payment issues it is a shared responsibility,” he added. He suggested a joint initiative from government, factory owners and the buyers, as workers cannot be made to suffer and it is for the sake of both manufacturers and buyers. “Though several buyers have canceled orders, we from the BGMEA are negotiating with them to reach a consensus,” BGMEA director Md Rezwan Selim told Dhaka Tribune. The buyers are imposing different types of conditions such as discounts, delayed payments, or payments in phases, he added. According to the BGMEA and some apparel makers, the brands and retailers that have agreed to take deliveries of their previous orders include H&M, INDITEX, PVH Corp, TARGET, KIABI, KappAhl, Benetton, Decathlon, M&S, C&A, Puma, Kontoor, Primark and Tesco.