Bangladesh: Concerns raised over brand purchasing practices as violent protest crackdown puts garment industry in crisis
In July 2024, students led demonstrations against the Bangladesh government's employment quota system. This was met with a violent crackdown on protesters, who faced attacks, arrests, torture and harassment, with more than 150 people reported killed, and over 1,600 injured as the police imposed a 'shoot-on-sight' curfew across Bangladesh. A telecommunications blackout imposed for several days, with no access to internet or mobile services. Five garment workers were reportedly killed during the protests.
Due to the curfew and continued unrest, garment factories had to shut down production, with the industry reportedly losing US $150 million a day as a result. As factories gradually reopened after four days, suppliers expressed concerns that due to the factory closures, the difficulties in transporting orders to the port for shipment, as well as the difficulties in communicating with brands due to the telecommunications blackout, brands would cancel or shift orders elsewhere, or demand discounts or costly air shipments of orders.
Due to the sharp deadlines set by brands, and the factory closures happening during peak production season, manufacturers have reported running their factories for additional overtime to meet order deadlines. Suppliers also reported a 30-40% reduction in orders, as buyers follow a 'go-slow' policy in response to the unrest, with buyers not yet confirming future orders or prices for goods. Suppliers have subsequently reported fears regarding paying workers' July salary, due to losses and the lack of confirmation of prices for goods due to the blackout.
Those returning to the factories to work have reportedly faced stops by police, overtime work to ensure timely shipments, and increased transport fares to reach their factories.
Brands have been called on to adjust their expectations and purchasing practices to adapt to these circumstances, for example, by extending production timelines.
Labour leaders have urged for: security to protect garment workers, workers to not face any wage reductions, timely payment of full wages in July, and no lay-offs of workers.