Bangladesh’s garment industry is facing growing uncertainty as workers continue demanding higher wages, while factory owners consider shutting down operations over production disruptions, vandalism and security concerns.
Owners of 210 garment factories in Ashulia, Jamgora and Hemayetpur are considering an indefinite closure following continued labour unrest. A preliminary decision was taken at an emergency meeting on Wednesday, with a final decision expected at a meeting of all members on Saturday, Sparrow Group Managing Director Shovon Islam said.
Industry sources said production was suspended at 143 factories in the three areas on Wednesday. In many factories, workers reported for duty but refused to work, while some punched their attendance cards and left. Several factories also reported vandalism, with production remaining suspended at some units for up to 11 consecutive days.
Seven factories in Savar and Ashulia have already been declared closed indefinitely under Section 13(1) of the Bangladesh Labour Act, 2006. They include three units of Arunima Group, three of Newage Group and one of Jeans Manufacturing Company Ltd.
Meanwhile, protests over wage demands continued on Thursday. Workers from several factories blocked the Dhaka-Tangail highway in the Mouchak area of Kaliakair, Gazipur, triggering long traffic queues. Police and Border Guard Bangladesh personnel used sound grenades to disperse the protesters. Owners subsequently declared holidays at eight to nine factories in and around Mouchak.
Industrial Police-1 Superintendent Mohammad Mominul Islam Bhuiyan said most factories in Ashulia operated on Thursday, although workers at some units left after marking attendance. Law enforcers continued patrols and surveillance.
The unrest comes as the newly formed minimum wage board considers workers’ demands. At its second meeting, the workers’ representative proposed a monthly minimum wage of Tk32,000. The employers’ representative is expected to present a counterproposal at the board’s third meeting on Monday.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan said wage discussions could not continue alongside disorder. He said the owners were willing to resolve the issue through talks but stressed the need to ensure normal production and discipline.
The disruptions are affecting both workers and businesses. Workers risk losing wages and working days, while owners continue to bear factory rent, utility bills, loan instalments and other operating costs even when production stops.
There are also concerns that delayed shipments could prompt international buyers to seek discounts, cancel orders or shift future business to other countries.
Sparrow Group Managing Director Shovon Islam said shifting production to subcontracting factories would not necessarily solve the problem, as buyers often impose specific requirements on factories, production processes and quality control. Delayed shipments could also force exporters to use costly air freight or risk losing orders.
Former BGMEA director and Bangladesh Apparel Voice CEO Mahiuddin Rubel said both workers and businesses suffer from such disruptions, while instability could damage Bangladesh’s reputation as a sourcing destination.
CPD Distinguished Fellow Dr Fahmida Khatun called for regular dialogue, transparent wage-setting and effective grievance mechanisms. She said fair wages and safe working conditions must be balanced with the industry's production costs and international competitiveness, while buyers should also ensure fair prices for garments.