Garment Owners Threaten Factory Closures Under ‘No Work, No Pay’

Garment factory owners across Bangladesh have announced that they will shut down production facilities indefinitely from Sunday if workers fail to report for duty, invoking Section 13(1) of the Bangladesh Labour Act. Under this legal provision, employees are not entitled to any wages during a lockout triggered by illegal strikes or work stoppages, effectively enforcing a strict “no work, no pay” policy across the nation’s vital apparel sector.

The ultimatum was delivered on Saturday during a joint press conference held at the headquarters of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in Uttara, Dhaka. BGMEA President Mahmud Hasan Khan made the announcement alongside leaders of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). The briefing followed an emergency morning consultation attended by more than 1,000 factory proprietors, who gathered to formulate a unified response to the ongoing industrial unrest.

Addressing reporters, Mr Khan revealed that 55 factories in the major industrial hubs of Savar, Ashulia, and Gazipur have already been closed indefinitely under Section 13(1). Production was also halted at an additional 92 facilities due to active worker demonstrations. He stated that any factory unable to operate normally from Sunday onwards would be authorised to suspend operations immediately under the same labour law clause.

The crisis stems from widespread protests that erupted last month as garment workers demanded a substantial increase in their minimum wage to cope with rising living costs. In response to the agitation, the government constituted the Minimum Wage Board on 1 November to review pay structures for the export-oriented sector, which accounts for the lion’s share of Bangladesh’s foreign exchange earnings.

During the board’s second meeting last Monday, workers’ representatives formally proposed setting the monthly minimum wage at Tk 32,000. Factory owners are scheduled to table their counter-proposal at the third meeting of the wage board next Monday. However, Mr Khan warned that if disorder persists in the industrial belts, employers will reconsider whether to participate in the upcoming negotiations at all.

Meanwhile, an alliance of five labour organisations has urged workers to exercise patience and restraint. At a joint press conference on Friday, union leaders appealed to employees to return to the production lines and give the wage board space to function without disruption. They cautioned workers against falling prey to provocation or engaging in activities that could derail the formal wage-setting process, while simultaneously urging factory owners to keep channels of dialogue open to resolve localised disputes peacefully. Although tensions have eased slightly since the wage board began its deliberations, normalcy has yet to return to several key manufacturing zones.

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Mursaline Mahmud Taisin | Sub-Editor । khaborwala.com

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