RMG factory unrest may lead to 30% order shift to other countries
Recent protests in Bangladesh’s apparel industry have led to the shutdown of numerous factories, with 30% of upcoming season orders shifting to other countries like India, Vietnam, and Sri Lanka. Despite the industry’s recovery from a two-week unrest, workers in Ashulia and Gazipur resumed protests demanding a minimum wage of Tk 25,000. These protests have left factory owners confused, as most worker demands were reportedly met or under negotiation.
At an emergency meeting, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Khandoker Rafiqul Islam expressed concern over the situation, noting that significant orders had already moved out of Bangladesh. Industry insiders revealed that buyers are hesitant to visit Bangladesh due to the ongoing unrest, leading to fears of further order loss.
During negotiations, factory owners disagreed with two key demands: a wage board review and an annual 10% pay increase. However, 16 of the 18 demands presented by worker leaders, including wage arrears and provident funds, were resolved in a tripartite meeting at the labor ministry. Despite partial resolutions, the protests continue to pose a major threat to Bangladesh’s apparel industry.
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