Bangladesh: RMG factory announced a mass layoff affecting 800 workers, citing decrease in purchase orders
Summary
Date Reported: 25 Dec 2023
Location: Bangladesh
Companies
Crony Tex Sweater Ltd - Supplier , Boohoo - Buyer , Lidl - Former buyer , Mango - Former buyer , Matalan - Former buyerAffected
Total individuals affected: Number unknown
Workers: ( Number unknown - Location unknown , Clothing & textile , Gender not reported )Issues
Impacts on Livelihoods , Purchasing practices: Order volumeResponse
Response sought: Yes, by BHRRC
Story containing response: (Find out more)
Action taken: Crony Tex Sweater allegedly supplies to Boohoo, MANGO, Lidl, Matalan; all brands provided a response to a request for comment from the Resource Centre. MANGO said it had last sourced from the factory one month before its closure in November 2023, Lidl said it had not had the factory had not produced for Lidl since the beginning of 2022. and Matalan said it had stopped sourcing from Crony Tex Sweater but did not specify when. Boohoo stated it had sourced from the factory until it was notified of its closure.
Source type: News outlet
"Decreasing orders: 800 RMG workers fear for livelihood as N'ganj factory announces layoff", 25 December 2023
"As there are no orders in the factory and until new work orders are received, according to Section-12 of the Bangladesh Labour Act 2006, the sweater division of Crony Tex Sweater Ltd has been declared lay-off until 7 February. All workers will be compensated as per labour laws," said a notice issued by the Crony Group today (25 December).
"At present, the whole world, including Bangladesh, is going through an economic crisis. The company's buyers reduced their orders. As a result, it has become impossible to run the activities of the sweater department," it also said...
A group of the laid off workers staged a protest on the Dhaka-Munshiganj road on Monday. They alleged that the factory was not paying their salaries regularly for the last few months.
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