Garment factory owners are considering the indefinite closure of 210 factories in Ashulia, Jamgora and Hemayetpur areas of Dhaka district as labour unrest continues to disrupt production.
An initial decision on the proposed shutdown was taken at an emergency meeting on Wednesday. A final decision is expected at a meeting of all members on Saturday.
Sparrow Group Managing Director Shovon Islam confirmed the matter on Thursday, saying the proposal to shut down the 210 factories had been made on the advice of industry leaders who attended Wednesday's meeting.
"The final decision will be announced at Saturday's meeting," he said.
Industry sources said production was suspended at 143 garment factories in Ashulia, Jamgora and Hemayetpur on Wednesday. Workers at many factories reported for duty but refused to work. Some punched their attendance cards before leaving, while others staged work stoppages. Several factories also reported vandalism, with production at some establishments remaining suspended for up to 11 consecutive days.
Meanwhile, seven garment factories in Savar and Ashulia have been declared closed indefinitely under Section 13(1) of the Bangladesh Labour Act, 2006. The affected factories include three belonging to Arunima Group, three to Newage Group and one operated by Jeans Manufacturing Company Limited.
A senior BKMEA leader told Dhaka Tribune that workers were refusing to work at several factories, while incidents of vandalism had also been reported in some areas.
"At the same time, discussions over wage increases are underway. Running factories under these circumstances has become increasingly difficult. Production has remained suspended at some factories for 11 days, leaving owners worried about how they will pay workers' wages," the leader said.
Workers maintain hardline stance, stage highway protests
Meanwhile, protests over wage increases continued on Thursday.
In the morning, workers from several factories blocked the Dhaka-Tangail highway in the Mouchak area of Kaliakair, Gazipur, bringing traffic to a standstill and causing long tailbacks.
Traffic resumed after police and Border Guard Bangladesh (BGB) personnel dispersed the protesters using sound grenades. Meanwhile, factory owners declared holidays at eight to nine factories in Mouchak and surrounding areas.
On the same day, workers at several factories in Jamgora and Narsinghpur areas of Ashulia refused to join work and staged work stoppages. The authorities subsequently declared general holidays at the affected factories.
However, production continued as normal at most factories in Ashulia, according to the Industrial Police.
Mohammad Mominul Islam Bhuiyan, superintendent of police of Industrial Police-1, said most workers in Ashulia had joined work on Thursday. However, workers at a few factories reported for duty before leaving without working.
He said law enforcement agencies were continuing patrols and surveillance to maintain order.
With production continuing at some factories while work stoppages, protests and closures persist in others, normal operations have yet to resume across the industrial belt.
Wage board talks expose widening rift between workers and factory owners
The government formed a new minimum wage board on November 1 in response to garment workers' demands for higher wages.
At the board's second meeting, the workers' representative proposed a monthly minimum wage of Tk32,000. The employers' representative said the owners would present their proposal at the next meeting.
The board's third meeting is scheduled for Monday, when the employers are expected to submit their written wage proposal. The meeting will also discuss minimum wages for workers and employees across different grades.
Despite the ongoing formal wage-setting process, some workers continue to protest, demanding a swift decision and its implementation. Factory owners, however, say continued unrest and production disruptions are unacceptable while negotiations are underway.
BGMEA President Mahmud Hasan Khan said wage negotiations could not continue alongside unrest in factories.
"Discussions over wages cannot go on while disorder continues. If the situation does not improve, we will take decisions in the interest of the industry," he said.
He said factory owners remained committed to resolving the issue through negotiations but stressed that normal production and discipline must be maintained.
Entire garment industry bears the brunt
The standoff between workers and factory owners is taking a toll on the country's entire garment industry.
Production shutdowns cost workers their working days and income, while factory owners must continue to bear expenses such as rent, electricity and gas bills, bank loan instalments, security and other operational costs. These expenses continue even when production remains suspended.
The biggest concern, however, is the potential impact on orders from international buyers. Failure to manufacture and deliver products on schedule could prompt buyers to demand discounts, cancel orders or shift future orders to other countries.
Major garment manufacturers, including Ha-Meem, Newage, Ananta Garments, Sterling, Envoy, Islam and Dekko, operate in Ashulia and Savar. According to BGMEA data, around 300,000 workers are employed in these areas.
If the proposed closure of 210 factories goes ahead, the jobs and livelihoods of a large number of workers could be at risk.
Sparrow Group Managing Director Shovon Islam told Dhaka Tribune that shifting production to other factories through subcontracting would not necessarily resolve the problem.
"International buyers have specific requirements regarding designated factories, production processes and quality control. This makes it difficult to shift production to alternative factories. Failure to meet shipment deadlines could force manufacturers to send goods by air at additional costs. There is also a risk of order cancellations," he said.