More than 500 workers have been laid off at Alliance Knit Composite Limited, an export-oriented garment factory at Ashulia in Savar, during the government-declared holiday on August 5.
According to a notice issued on Thursday by the factory's Human Resources and Administration Department, a total of 565 workers from various sections of the factory have been retrenched.
The notice states that the factory is currently facing a severe business downturn due to a combination of global and domestic challenges. It says that inadequate banking and financial support, coupled with a shortage of work orders, has significantly disrupted production.
As a result, the management said it had been compelled to reduce its workforce to safeguard the factory's operations and ensure business continuity. In accordance with Section 20 of the Labour Act, 2006, the factory decided to retrench 565 workers, effective August 8, after following the required legal procedures.
The notice further states that all retrenched workers will receive their statutory dues and full compensation based on their length of service, within the legally stipulated timeframe.
It also says that, under Section 21 of the Labour Act, if the factory's workload increases or new recruitment becomes necessary within the next year, the retrenched workers will be given priority for re-employment.
Attempts to contact the factory's Managing Director, Zaeem Ahmed, by phone and WhatsApp for comment were unsuccessful, as he did not respond.
A senior official of Industrial Police-1 in Ashulia, speaking on condition of anonymity, confirmed the layoffs. The official said the factory had informed the police that the retrenchment was primarily due to a shortage of work orders and a business slowdown exacerbated by the ongoing gas supply crisis. However, the official declined to provide further details.
One of the affected workers, Md. Ziarul Haque, an operator in the sewing section whose name appears at serial number 463 on the retrenchment list, said he had travelled to his hometown in Dinajpur during the three-day holiday after the factory announced its closure for August 5.
"I received a text message informing me that I had been retrenched. I don't know why or on what grounds I was laid off,” he said.