Thursday, May 02, 2024
More than a hundred ready-made garment (RMG) factories have not yet paid their workers’ salaries for the month of February. The sector’s Eid-ul-Fitr holiday starts next Sunday and industry insiders claim that nearly 252 RMG factories are in a risky situation due to their weak financial condition. This may result in workers taking to the streets demanding their salaries and bonuses.
A senior officer of the Industrial Police confirmed the matter to The Business Post and said, “We held a meeting with the industry stakeholders on March 25 at the Industrial Police Headquarters and urged the sector’s apex body leader to take the initiative to pay the wages.”
“We are also concerned and have enough preparation to take action in case of an unwanted situation. Although most of these factories are suffering losses, hopefully, they will be able to pay February’s salaries as soon as they can. March’s wages and festival bonuses will be paid next week,” he added.
Meanwhile, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Standing Committee on ILO & Labour Affairs Chairman ANM Saifuddin said, “The law enforcement agencies informed us that 252 RMG factories are likely to fail in paying March’s wages and festival bonuses for their weak financial condition. BGMEA and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) are jointly working to support them.”
Additionally, the government allocated Tk 2,000 crore as a cash incentive for the export sector, while factories are owed nearly Tk 6,000 crore by their employees. According to industry insiders, the factory owners urged the government to allocate another Tk 2,000 crore as a cash incentive to pay the workers’ salaries and bonuses.
The sector leaders have stated that if the government allocates another Tk 2,000 crore, the small and medium-sized factories will be the priority in obtaining liquidity, and then the large-sized factories will receive the rest of the amount.
In that case, all factories will be able to pay their workers before the Eid holiday starts. Otherwise, many small and medium-scale factories will be unable to pay their workers, which may result in a backlash from the RMG workers before Eid-ul-Fitr.
BKMEA Executive President Mohammad Hatem said, “The government released only Tk 2,000 crore as the cash incentive instead of Tk 6,000. We demanded at least Tk 4,000 crore. If the government allocates another Tk 2,000 crore, all factories will be able to pay Eid bonuses and March’s wages to their workers.”
“The government should understand that we have implemented a new wage structure in December, while the minimum salary hiked by 56 per cent. On the other hand, export earnings this financial year are not up to the mark. So, the government should consider our demand as the fund is not aid but is owed to the owners.”
Leaders of BGMEA and BKMEA stated that although the government holiday will start on April 10, festival leave for many RMG factories will start on April 7 to avoid traffic congestion and disorder on the highways. Hence, many factories that announced early leave have already paid the festival bonuses and are working towards paying their workers' April salaries.
Saifuddin explained, “Workers want to enjoy Eid with a long holiday, so they work during the month of Ramadan. Besides, those who have already completed their shipment work have also announced early leaves.”
