"Garment factories shut down for indefinite period", 5 August 2024

Out of fear of vandalism and subsequent losses amid the current spell of violence, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday instructed all the factory owners to keep their units shut until further notice...

This is yet another blow to the sector as the apparel factories were shut down for four days during the first round of violence two weeks ago though this is the peak season for Christmas shipments and taking work orders for the next summer and spring seasons...

Exporters now fear mounting losses as export performance had already been poor over the last two years because of the severe fallout of Covid-19 pandemic, Russia-Ukraine war, runaway inflation in the Western world, Red Sea crisis and a labour unrest at home.

Amid violence across the country, majority of garment factories were shut down yesterday on the first day of a countrywide non-cooperation movement called by the organisers of Anti-Discrimination Student Movement...

More than 400 garment factories in Narayanganj, Narayanganj BSCIC and Fatullah areas were closed though many of the units ran for some time in the morning.

Some factories were operational in Rupganj and Araihazar areas of Narayanganj district, said Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Also, almost all the factories in Ashulia, Savar, Maona, Tongi and Chattogram had started production in the morning, but after a few hours the student protests began and some factories were vandalised, leading to the closure of the units.

At least six garment factories were vandalised in Narayanganj BSCIC and its adjacent areas, Hatem said, adding that fearing further escalation of the vandalism, the other factory owners have shut down their units.

Hatem confirmed that the workers left their workplaces peacefully after the shutdown...

Factories in Konabari and Kashimpur under Gazipur district were shut down although those were opened in the morning, said Arshad Jamal Dipu, vice-president of the BGMEA.

The factories were shut down anticipating violence, he said but could not confirm how many factories were closed...

Moreover, this is the time for bond renewal of the export-oriented garment factories and already seven factories have complained to him that they cannot renew the bond licences because of the current crisis, Dipu also said.

The owners are also facing trouble in garment shipment and import of raw materials, he added.

Md Towhidur Rahman, president of Bangladesh Apparel Workers Federation, confirmed that all the garment factories in Kaliakoir area have been shut down by the owners fearing escalation of unrest in the sector.

The owners announced closure to save their factories and other assets, he said.

Nazma Akter, president of Sammilito Garment Sramik Federation, a workers' platform, said that the BGMEA leaders held a meeting with the union leaders on Saturday and asked them to be more responsible during the crisis so that the garment factories could remain safe.

The owners are announcing closure of the factories fearing spread of violence in the sector, she said...

Last week, international retailers and brands expressed concern at a meeting with the leaders of the BGMEA, flagging the difficulties in communication with their headquarters and local suppliers...

The BGMEA has already said they have incurred losses of Tk 6,400 crore because of the shutdown and internet blackout, while the losses estimated by Bangladesh Textile Mills Association stand at $58.8 million.