Publish: 10:30, 09 Mar, 2025

Workers of closed factories struggling to survive

Factory owners facing severe financial crisis as banks withhold loans and LCs
Shahed Ali Ershad
Workers of closed factories struggling to survive

Nearly 100 factories, large and small, remain shut following widespread vandalism, looting, and arson that began on August 5 last year. Around 100,000 workers who once relied on these factories for their livelihoods are now struggling to survive with their families, living in dire conditions. Meanwhile, factory owners are unable to resume operations due to a severe financial crisis, lack of bank loans, and political uncertainties.

The wave of attacks on factories, driven by worker unrest, intensified between August and October last year following a shift in the political landscape. For the past seven months, banks have refused to open letters of credit (LCs) for importing raw materials or to reschedule loans, leaving factory owners in a severe capital crisis.

Additionally, many factory owners have been arrested or have fled abroad due to their political affiliations with the previous Awami League government. Some of the affected businesses include 14 textile and garment factories of BEXIMCO Group, three plastic factories of Bengal Group, and several garment factories in Ashulia, Savar, Zirabo, and Jirani.

To provide some relief, the government has allocated Tk 525.46 crore to cover wages and other dues for 31,669 workers and 1,565 officials of BEXIMCO Group, with payments set to begin today. Senior officials at BEXIMCO Group have urged the government to allow the opening of at least two LCs in succession to restart operations on a limited scale.

Khalid Shahriar, head of human resources and compliance at BEXIMCO Group’s textile and garment division, stressed the importance of reopening factories to protect workers and their families, regardless of ownership disputes. "Despite repeated requests, the government has not allowed businesses to reopen," he said.

Arif Hossain, a worker from one of the closed factories, described the workers’ hardships as inhumane and called on the government to ensure factories continue running.

Jolly Talukder, Vice President of the Bangladesh Garment Workers Trade Union Center, said that about 100,000 workers from more than 90 garment factories are living in extreme distress. "Workers from these closed factories have been struggling to survive since August 5. Just as the government is compensating BEXIMCO workers, it should also ensure that workers from other factories receive their due wages. We urge the government to settle these outstanding payments before Eid," she said.

Md. Jashim Uddin, vice chairman of Bengal Group, stated that three of the group’s factories—producing plastic products, cement bags, and packaging materials—were burned down in August, along with their central warehouse. These factories in Jirani had employed over 2,000 workers and generated Tk 80 crore in monthly revenue. Jashim Uddin, a former president of the Federation of Bangladesh Chambers of Commerce and Industry, stressed the need for banks to reschedule a Tk 400 crore loan to rebuild the factories and purchase new machinery.

Md. Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said four severely damaged garment factories have yet to resume production. BGMEA Administrator Md. Anwar Hossain noted that some factories had already been struggling due to worker unrest and financial losses before finally closing in July last year.

With no clear path to reopening, thousands of workers remain in distress, awaiting urgent intervention from the government and financial institutions.

Bd-pratidin English/ Jisan

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