As Eid-ul-Fitr rapidly approaches, labour unrest is steadily increasing, particularly within the apparel sector, as factory owners and industrialists struggle to provide the required Eid bonuses to workers. The situation is becoming more critical, with a combination of political unrest and an acute shortage of industrial raw materials, exacerbated by the ongoing dollar crisis in Bangladesh. These challenges have led to a drastic decline in production, which has already dropped by nearly 50 percent.
The apparel industry, a cornerstone of the country’s export economy, is facing a severe crisis. Factory owners are under immense pressure to meet workers’ demands for Eid bonuses, which are a long-standing tradition. However, many are finding it increasingly difficult to do so due to mounting financial constraints caused by reduced production capacity and a lack of raw materials.
The ongoing political instability in the country has further complicated matters, with workers becoming frustrated over unpaid wages and delayed bonuses. As a result, labour unrest is spreading, leading to disruptions in industrial areas and beyond. In one of the more recent incidents, workers at a sweater factory in the Telipara area of Gazipur took to the streets to demand their Eid bonuses. The workers blocked the Dhaka-Mymensingh Highway, bringing traffic to a standstill and causing severe disruptions for commuters. The protest highlighted the growing dissatisfaction among workers in the apparel sector and the escalating challenges faced by factory owners.
This situation is putting significant pressure on the entire industrial sector, particularly in the garment industry, which has traditionally been one of Bangladesh’s top foreign currency earners. With production already at a fraction of its usual capacity, the possibility of further unrest looms large, raising concerns about the sector’s ability to meet export targets and continue operations.
The dollar shortage is a critical factor in this crisis, as many factories rely on imported raw materials to maintain production. With limited access to foreign currency, factory owners are finding it difficult to procure the necessary materials, which has led to a sharp decline in production. Additionally, factory owners are struggling to meet financial obligations, including worker salaries and bonuses, further fueling worker dissatisfaction.
As the situation intensifies, both factory owners and workers are calling for urgent government intervention. While factory owners are seeking financial relief and assistance to maintain operations, workers are demanding that their bonuses be paid on time to celebrate the upcoming Eid festival. The ongoing unrest threatens not only the livelihood of workers but also the stability of the country’s crucial apparel sector, which plays a vital role in the national economy. With tensions rising, it remains to be seen how the government will respond to the crisis and whether a resolution can be reached before Eid. As Eid-ul-Fitr approaches, industrial and factory owners are finding themselves under increasing pressure to meet the mandatory requirements of paying their workers’ wages and bonuses. However, many of these owners are struggling to fulfill these obligations due to a combination of factors that have put the sector in a fragile position.
Following the change of the political government, the industrial landscape has become increasingly turbulent. Workers in various industrial sectors have taken to the streets in protest over delayed salaries, allowances, and bonuses, creating unrest in industrial areas. This labor movement has led to decreased production, with many factories experiencing a significant dip in output-by as much as 30 to 50 percent in some cases.
Large-scale government projects have also come to a halt, further contributing to the slowdown of industrial production. Government expenditure has decreased, and several key sectors, including construction, are on the brink of collapse. As a result, factory owners are struggling to manage the reduced capacity and the pressure of paying workers’ salaries in time for the holiday.
While the ready-made garment (RMG) industry, one of the country’s largest export earners, has managed to stay afloat to some extent, it is not immune to the pressures. RMG factory owners are facing challenges such as low-priced work orders, a shortage of fuel in factories, and difficulty securing dollars for the import of raw materials. Despite these setbacks, a large portion of government incentives for the sector remains stuck, adding to the industry’s woes.
In response to these issues, the Tripartite Consultative Council (TCC) recently convened to discuss the labor situation and decided that factory owners must pay workers at least 15 days’ salary for the month of March, based on their financial capacity. Furthermore, all dues, including salary arrears and bonuses, are to be settled by the 20th of Ramadan.
As the situation grows more critical, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has urgently requested Tk 7,000 crore in financial assistance from the government by the 15th of Ramadan. BKMEA has warned that without this cash injection, the country’s export sector, especially the garment industry, could face an unprecedented crisis, particularly when it comes to paying workers their due wages and bonuses during Eid.
In a letter to the Finance Department of the Ministry of Finance, BKMEA president Mohammad Hatem outlined the severity of the situation. He noted that while the industry had seen an increase in work orders, many factories were struggling with cash flow issues. The combination of low-priced orders, a gas shortage, and a cash crisis has placed significant strain on factory owners. If workers’ salaries and bonuses cannot be paid, the potential for labor dissatisfaction and unrest is high, creating a further risk of destabilizing the industry.
Factory owners have also reported difficulties due to the gas shortage, which has reduced production capacity by almost 50 percent. Despite having captive gas-powered electricity systems, factories are unable to operate at full capacity, further compounding the crisis. The situation is dire, and industrialists are calling for immediate financial relief to avert further disruption.
If the government fails to intervene with the requested financial assistance, the RMG sector may face serious consequences, including labor unrest, factory closures, and increased production costs that could destabilize the entire export industry. Industrialists and workers alike are hoping for a timely resolution as Eid approaches, with the livelihoods of thousands of workers hanging in the balance.
The textile and knitwear industry is facing a tough time ahead of Eid-ul-Fitr, with factory owners grappling with a series of challenges that have put immense pressure on their ability to pay workers’ wages and bonuses.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), expressed his concerns about the current state of the industry. He explained that exporters are being forced to accept work orders at lower prices in order to keep factories operational. “The amount of money that is exported is not coming in. So there is no profit margin. As a result, exporters are having a hard time,” Hatem said. He emphasized that the industry remains committed to paying workers their dues before Eid, ensuring that no worker goes home without receiving their salary and bonus. However, he urged the government to show more leniency, pointing out that the government still owes the sector Tk 7,000 crore in incentives. While Tk 2,000 crore of that amount was recently paid, Hatem stressed the need for at least Tk 3,000 crore more to cover workers’ dues.
Meanwhile, the jute sector is also facing severe difficulties. Mohammad Mahbubur Rahman Patwari, managing director of Sonali Ansh Industries Limited, highlighted the financial struggles of jute and jute product exporters. He shared that paying the regular wages of about two lakh workers in this sector has become a major challenge. “Entrepreneurs have suffered financial losses due to lack of interest from global buyers, low work orders, and disruption of banking facilities,” Patwari explained.
In the textile sector, gas shortages continue to be a major hurdle for production. Owners of several industrial establishments have reported that, despite an increase in the price per unit for the assurance of uninterrupted gas supply, the promised gas is still not being provided. “Although production can be done in dyeing factories with diesel due to the gas shortage, standard and drake cannot be done. And since fabrics cannot be dyed, workers in the swing, finishing, knitting, and printing sections have to be paid on a staggered basis,” one factory owner shared.
The Bangladesh Textile Manufacturers Association (BTMA) also voiced concerns about the impact of international competition on the local textile sector. Khorshed Alam, a director at BTMA, mentioned that the ongoing conflict between India and Bangladesh has led to a situation where products worth about $150 million will remain unsold in the local market during Eid. Additionally, Bangladesh’s textile entrepreneurs have seen a significant decline in sales, with about $4 billion worth of products sold less over the past year.
Alam further explained that India’s government is offering 13 to 15 percent incentives to its yarn producers, which has caused a surge in yarn imports from India. “As a result, Bangladeshi businessmen have imported 30 percent more yarn from India. This is dumping domestic yarn,” Alam stated, highlighting the challenges faced by Bangladeshi producers due to foreign competition. As the holiday season approaches, the pressure on industrialists is growing, with many struggling to meet their financial obligations to workers. The demand for government intervention in the form of financial support and more favorable conditions is intensifying, as workers’ wages and bonuses remain a top priority for factory owners across the country.
