Garment Factory Crisis: Many Units Remain Closed After Eid, Workers’ Lives in Turmoil

Economics Desk

Many garment factories remain closed after the Eid-ul-Fitr holidays due to a shortage of work orders. Factory owners are unable to resume operations due to various reasons including order shortages, production deficits, and announced layoffs. They are also not receiving any government support to restart their factories.

According to data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), 11 factories remain closed as of April 21 after the Eid holidays. Thousands of workers associated with these factories are living in uncertainty, with their dependent family members also facing hardship.

BGMEA sources indicate that out of their 2,034 member factories, 2,023 have already reopened. The remaining 11 factories are still on extended shutdown.

Investigations reveal that 7 factories in Gazipur and Mymensingh regions remain closed, along with 4 factories in Savar-Ashulia and Jirani areas. Additionally, one factory in Narayanganj is still not operational.

When asked why these factories remain closed, BGMEA stated that some factories have announced layoffs, some face production shortages, and others are struggling with export order deficits.

Meanwhile, 5 factories have failed to pay February salaries to workers. These include Basic Knitwear Limited, TNGZ Apparels Limited, Apparel Plus Eco Limited, Basic Clothing Limited, and Roar Fashion Limited. Regarding March salaries, 2,019 factories have paid 15-30 days’ wages, while 5 factories have not paid at all.

While there is some concern about these factory closures, industry insiders aligned with the government consider this situation normal.

Former BGMEA director and Managing Director of Bangladesh Apparel Exchange Mohiuddin Rubel said, “Factory openings, closures, or new startups are ongoing processes in the garment sector.”

He added that due to economic problems and order shortages, some operating factories may temporarily close. It’s quite normal that not all factories remain 100% operational all the time. About 99.48% of factories have already reopened, which is undoubtedly a positive sign.

He commented that this is the result of combined efforts by entrepreneurs and workers.