The garment sector is facing a crisis with no relief in sight. Due to changes in power, political instability, labor unrest, and an energy crisis, more than 185 ready-made garment factories have shut down across the country in past one year, leaving over a million workers unemployed.
In just the last month alone, more than 24 factories have closed, resulting in over 65,000 workers losing their jobs. Exports have also taken a hit, with garment shipments consistently declining in August and September. The sector is now under serious threat amid a host of domestic and international challenges.
Experts in the industry highlight the critical importance of prompt and effective government measures to keep production and exports on track.
Over the past two days, Pacific Jeans Group, one of the leading garment exporters, announced it would be closing eight factories indefinitely. The closures were triggered by conflicts among workers, attacks on the facilities, and poor working conditions. The factories affected include Pacific Jeans-1, Pacific Jeans-2, Pacific Attires, Pacific Accessories, Pacific Workwears, Universal Jeans, HT Fashion, and Jeans 2000, where more than 35,000 employees worked.
Twenty days ago, 16 factories under Nassa Group were permanently closed, rendering nearly 30,000 workers jobless. The shutdowns impacted factories located in Nishchintapur and Ashulia (10 factories), Gazipur (2 factories), Chittagong EPZ (2 factories), and Comilla EPZ (2 factories).
On August 5, 2024, after the Awami League government was ousted, Nazrul Islam Majumdar, chairman of Nassa Group, went into hiding. He was also the chairman of Exim Bank. Later, the police arrested him in several cases related to corruption and embezzlement. Since his arrest, unrest has arisen in Nassa Group’s factories. Workers' wages and benefits have remained unpaid, and subsequently, the factories began closing one after another.
At a tripartite meeting at Department of Inspection for Factories and Establishments (DIFE), the owners promised to sell assets to pay workers their September wages by October 30 and other dues by November 30.
Md. Mofazzal Hossain Pavel, President of Bangladesh Garment and Buying House Association (BGBA), stated that 185 garment factories have closed in the past year, causing thousands of workers to lose their jobs. Gas and electricity shortages have severely disrupted production, impacting exports as well. Garment exports have declined by about 5 to 6 percent in the last two months.
Bd-pratidin English/ ANI
