At least 24 apparel manufacturing factories have been forced to shut down in Bangladesh for losses since the implementation of new pay structure for workers back in January 2019. Insiders in Bangladesh Garments Manufacturers and Exporters’ Association (BGMEA) say the shuttering of factories has left over 12,000 workers jobless. But labour leaders say, the number would be far lesser since most of the shuttered factories were sub-contracting units. BGMEA Vice President MA Rahim told Bangladesh Apparel News that 24 factories have been closed since January, rendering 12,637 workers jobless. “They were all medium and small factories who closed down because of not being able to cope up with costs.”
According to him, even the bigger factories in Bangladesh, which employs over thousands of workers alone, are currently facing a crisis due to this double blow. BGMEA President Rubana Huq has reportedly said, some 14 factories shut down in May alone, unable to bear the burden of the wage hike of workers, low prices of buyers, and poor orders. Insiders and industry stakeholders have said, about 60 other factories have been marked vulnerable and prone to closure. They are fearing that unrest might break out at these factories when they will be unable to pay the workers ahead of Eid-ul-Fitr.
