Labour unrest triggers risk of losing orders, financial fallout

For several days now, the export-oriented garment industry has been facing widespread labour unrest. Workers are protesting with various demands, leading to vandalism and looting in factories, particularly in industrial hubs like Savar, Ashulia, and Gazipur. 

This unrest has severely disrupted production and sparked concerns about potential losses of future orders.

Garment industry owners are deeply concerned about the ongoing disruptions. The instability is jeopardising the timely shipment of goods, which, in turn, could force them to resort to costly air shipments to meet export deadlines. Failure to manage this unrest might erode buyer confidence, making it difficult to secure orders for the upcoming season.

Additionally, if work orders decline, many workers could face unemployment, as factories would struggle to remain operational without sufficient demand. The financial losses due to the unrest have already been staggering. 

According to the Metropolitan Chamber of Commerce and Industries (MCCI), over the past month, incidents of vandalism and arson in hundreds of factories have caused an estimated loss of around 5,000 crore taka. 

Demands and justifications

The unrest initially stemmed from demands for wage increases and attendance bonuses, but workers have since called for gender equality in employment and jobs for the unemployed. Labour leaders and factory owners argue that while some demands are reasonable, others are not feasible. For example, wages are increased annually by 5% as per the Minimum Wage Board, with additional raises based on worker skill and work type. The mid-year demand for wage hikes, however, is seen as unreasonable by many owners.

BKMEA President Mohammad Hatem has voiced concerns that continued unrest will prevent timely exports, damaging Bangladesh's reputation among global buyers. "If this situation persists, we will struggle to secure necessary work orders for the next season," he warned, adding that both owners and workers will suffer if orders decrease, potentially leading to job cuts or factory closures.

Leadership and motives behind the movement

The current unrest has drawn attention for its lack of involvement from traditional labour unions. Both owners and union leaders claim that the movement is being driven by local political forces rather than genuine labour grievances. 

Political groups, particularly those affiliated with the Awami League and BNP, are allegedly using the protests to assert control over local businesses, such as fabric waste and supply chains.

A factory worker, speaking on condition of anonymity, confirmed that local political groups are exploiting the unrest to strengthen their positions following shifts in power. These groups, he said, are misleading workers to serve their own interests, further destabilising the industry.

Labour leader Sirajul Islam Roni echoed this sentiment, stating that the current unrest does not reflect a legitimate labour movement. He urged both the government and law enforcement to act swiftly to prevent further damage to the industry.

Abdullahil Rakib, Managing Director of Team Group and Senior Vice-President of BGMEA, told Jago News, "This unrest is more of a power struggle between the Awami League and BNP than a workers' movement. One side is trying to dominate the fabric waste business, while the Awami League is using it as a show of strength to assert their presence. The real issues of the workers are not at the forefront here. In one instance, a group of agitators demanded that work be split equally between male and female workers. They claimed that men were being overlooked in favor of women. But what they don't realise is that the intricate hand tailoring done by women is not something men typically do."

Calls for a return to work

Labour leaders and industry owners alike are calling for an end to the agitation. 

Najma Akhter, President of the Sammilita Garment Shramik Federation, emphasised the importance of resolving disputes through negotiation rather than destructive protests. "The garment industry is your family," she said, urging workers to return to work for the sake of the industry and their livelihoods.

With the garment industry serving as a critical pillar of Bangladesh’s economy, accounting for a significant portion of foreign exchange earnings, swift action is necessary to restore stability and protect both jobs and business interests.