Bangladesh: Garment factory shuts abruptly without paying workers' owed wages, allegedly due to 'declining orders'
Riepilogo
Date Reported: 24 Giu 2024
Location: Bangladesh
Companies
Anzir Apparels - Supplier , Mango - Former buyer , Lojas Renner SA - Buyer , ALDI South - Former buyer , River Island - Former buyer , ASOS - Buyer , C&A - Reported buyerAffected
Total individuals affected: 500
Workers: ( 500 - Location unknown , Clothing & textile , Gender not reported )Issues
Wage Theft , Impacts on Livelihoods , Purchasing practices: Order volumeResponse
Response sought: Yes, by BHRRC
Story containing response: (Find out more)
Action taken: Anzir Apparels allegedly supplies to ASOS, ALDI South, C&A, Lojas Renner, MANGO and River Island; ALDI South, C&A, MANGO and River Island provided a response to a request for comment from the Resource Centre. ALDI South and MANGO stated they had not had a commercial relationship with the factory since 2021. River Island stated its last orders were in March 2023. C&A stated it does not source from the factory. ASOS did not respond.
Source type: News outlet
"Workers in peril as Ashulia sweater factory shuts abruptly citing 'declining orders'", 24 June 2024
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"Upon my return after the Eid holidays, I saw that the factory had been closed indefinitely for lack of work orders from buyers," Babul told The Business Standard.
However, the factory owners' explanation for the shutdown failed to convince Babul.
"There was no shortage of work in the factory in the last two years," he said.
Like Babul, as many as 500 workers of two units of Anzir Apparels factory, located on Idris Road and in the Zirabo area of Ashulia, are now in great distress, losing their jobs, and over their due arrears.
However, the authorities of Anzir Apparels said they were compelled to shut the factory in the face of persistent losses caused by dwindling work orders from foreign buyers.
Sources said on the occasion of Eid-ul-Adha, workers of Unit-2 and 3 of Anzir Apparels were given only bonuses. However, the arrears of the previous three months [April, May, June] are still unpaid.
Several workers of Anzir Apparels said many of their colleagues were unable to visit their village homes to celebrate Eid due to non-payment of salaries, while some others managed to make the trip by borrowing money independently...
Assistant General Manager of Anzir Apparels, Mehedi Hasan told TBS that they have around 800 workers in two factories in Zirabo and Ashulia.
"The factory was incurring losses to the tune of Tk1-1.5 crore every month due to dwindling foreign work orders."
He further said the factory has been closed for the time being, but could not ascertain when it will be opened.
However, Managing Director Md Shahidullah denied that three months' salaries of the workers are unpaid.
He told TBS that maybe some workers are still owed half of their June salaries. However, a few months' salaries of some officials have yet to be paid.
He said he has closed the factory temporarily to avoid losses as the production was reduced because of load-shedding, leading to losing work orders from foreign buyers.
Meanwhile, RMG workers under the banner of Jatiya Sramik Federation held an agitation programme on the Jatiya Press Club premises yesterday.
They termed the abrupt shutdown of Anzir Apparels factory illegal, and demanded the reopening of it and payment of arrears of the 500 workers.
They also placed an 8-point demand that includes attendance bonuses; granting leave to workers as per law; payment of dues as per labour law in case of retrenchment of any worker; payment of annual leave; paid maternity leave.