Beximco Group laid off around 40,000 workers from its 15 garment factories

TDS Desk

Country’s ready-made garment (RMG), textile, and knitwear sectors are in a deep crisis. Industry owners say energy shortages, labor unrest, and instability in the banking sector are negatively impacting these industries. Over the past year, 140 factories in the garment, knitwear, and textile sectors have been shut down. This includes 76 in the garment sector, 50 in knitwear, and 14 in textiles.

According to industry insiders, a total of 94,000 workers have lost their jobs due to the closure of 140 factories over the past year. Recently, the Beximco Group laid off approximately 40,000 workers from its 15 garment factories. In total, 134,000 workers have lost their jobs due to the closure of 155 factories.

Industry experts point to several reasons for this crisis, including labor unrest, high interest rates on bank loans, difficulties in opening Letters of Credit (LC) for raw material imports, persistent gas shortages, increased gas tariffs, unreliable electricity supply, and rising wages. These factors have raised production costs, making it difficult for many to stay competitive. Some factory owners have even shut down operations due to their inability to pay workers’ salaries.

Neighboring countries are taking advantage of the instability in Bangladesh’s RMG sector, capturing portions of its export market. This is not only harming factory owners but is also expected to negatively impact the country’s export earnings in the long run. Exports of Bangladeshi garments to the U.S. market have already declined.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reported that 76 member factories shut down in the past year, leaving 51,000 workers unemployed. At least 158 factories are struggling to pay workers’ salaries. Similarly, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) stated that over 50 factories in the knitwear sector have closed within a year, rendering more than 35,000 workers jobless.

Meanwhile, the Bangladesh Textile Mills Association (BTMA) reported that 14 large factories under its membership have completely ceased operations, resulting in job losses for nearly 8,000 workers.

Tanjina Begum (36), a worker laid off from a Beximco factory, shared her plight: “I joined five years before the shutdown. While life wasn’t luxurious, my salary provided three meals a day for my family of five. Now that the factory is closed, that lifeline is gone. Back in Rangpur, my elderly parents and school-going daughter depend on the money I send. Without it, they will go hungry, their medications will stop, and my daughter’s education will end.”

Amirul Haque Amin, President of the National Garment Workers Federation, said, “We have appealed to the government to seize Beximco Group’s assets and keep the factory running to avoid putting so many workers at risk.”

AHM Shafiquzzaman, Secretary of the Ministry of Labor and Employment, commented, “Despite various government initiatives, factories cannot remain operational. As a result, owners have been forced to shut down operations due to their inability to pay wages. Over the last four months, the government has had to shoulder nearly 3 billion BDT in wage payments for Beximco factories, as the company lacks proper export revenue accountability. The group has reportedly misappropriated approximately 240 billion BDT from a state-owned bank.”

Mohiuddin Rubel, former director of BGMEA, stated, “Around 76 garment factories in the country have shut down this year, with over 51,000 workers losing their jobs due to rising production costs and labor unrest. Many financially weak owners could not survive.”

BKMEA President Mohammad Hatem expressed concerns, saying, “Over 50 knitwear factories have closed in the past year, and more closures are expected in the next three to five months. Already, over 35,000 workers have become unemployed. Labor unrest and vandalism have caused job losses for many workers. Some have even been arrested or filed lawsuits due to illegal factory closures.”

BGMEA Vice President Rakibul Alam Chowdhury highlighted the severe impact on orders: “Instability in the garment sector has resulted in a 30% drop in purchase orders. Buyers are reluctant to place orders amidst this uncertainty. Previously, buyers used to approach Bangladeshi factory owners; now, orders are shifting to other countries. We are now chasing buyers to sell our garments. In Chattogram, four BGMEA-member factories have shut down in the past four months due to unsustainable losses. To resolve this crisis, the government must form a task force to identify and address the problems systematically.”

Source : Kaler Kantho