Reliable Brokers
Online Investing
Alerts & Analysis
Easy Trading

Tuba Group workers deprived of lay-off benefits, bonuses

Update : 24 Aug 2014, 08:02 PM

The workers of five closed factories of Tuba Group are being deprived of termination benefits, gratuity and Eid bonuses as the factory owner yesterday expressed his inability to pay the dues.

“I am unable to run the factories. I had to shut them down as I am going though cash crunch,” said Tuba Group Managing Director Delowar Hossain at a media briefing at a city hotel yesterday.

Delowar described himself as being penniless. He said he lost everything since Tazreen Fashions fire that engulfed the factory.

In reply to a query, the owner claimed that the garment workers would not get any dues   as he had paid them three months’ wages and overtime.

“I am unable to pay the Eid bonuses for I am in a dire state and have not enough fund,” he said when asked about the bonus. 

On August 18, the Tuba Group owner announced the shutdown of five factories in line with article 13(1) of Labour Act 2006.

The closure of five RMG units had rendered around 1,500 workers jobless. The five were Tuba Fashions, Tuba Textiles, Mita Design, Taif Design and Bughsan Garments.

According to the Labour Act 2006, the employers may, in the event of an illegal strike by any section or department of any establishment, close down either wholly or partly such section or department and the striking workers shall not be paid any wages for such closure.

Meanwhile, the Tuba Group MD has sought Tk25 crore to Tk30 crore loan from financial institutions for reopening the closed factories.

“If I get the loan, I will be able to resume operation and export RMG products worth $5 million per month.”

Delowar added that he would also be able to employ over 2,000 workers at Tazreeen Fashions if the insurance company pays him Tk18 crore, which he owes them as fire insurance claim.

He called for the RMG factory owners to hire workers, who turned jobless in the wake of  shutdown of his five factories.

The Tuba Group boss laid blame on some outsiders, who he said, had stolen parts of the factory machinery and other equipment in the guise of workers during agitation that forced him to shut the factories.

According to the management, the Tuba Group shut eight units of its sister concern after the deadliest fire incident at Tazreen Fashions that killed 122 workers in 2012.

Currently, some four factories are running. The four are Tuba Garments, Tuba Printing, Tuba Knitting and Tuba Cartoon where around 1,200 workers are employed.

On July 28, at least 1,200 workers of the five factories of the group went on an indefinite strike at Hossain Market in Badda area, demanding payment of three months’ wages, overtime and Eid bonuses.

Following the demonstrations, BGMEA under the government pressure paid two months’ wages to more than 1,600 workers.

Later on August 10, the Tuba Group management paid the workers’ wages for the month of July and overtime dues, but the workers were yet to get Eid bonuses.

Top Brokers