4cr workers to welcome Eid with no wages

Around four crore workers will go home empty-handed with no salary and bonus to celebrate the biggest Muslim festival Eid-ul-Fitr, which is likely to be celebrated on Sunday provided that the moon is sighted.

Industry insiders said, during this Eid around half of the factories didn’t pay April’s salaries to their employees, let alone bonuses.

Apart from apparel sector, most of the workers in other sectors are employed on a contractual basis. Therefore, these workers don’t get salaries if there is no work. When regular salaries are not provided, chances are very slim they will get Eid bonuses.     

According to sources in the labour and employment ministry, there are around 1.2 crore officially-registered workers employed in 42 sectors. Both documented and undocumented workers make up around 6.5 crore workers in these sectors. Since ready-made garments (RMG) sector brings in the maximum export earnings, it draws more attention. Therefore, workers in this sector are comparatively less deprived than those of other sectors. Yet many of these RMG workers are frequently taking to the streets these days for salaries and allowances in arrears. When the RMG workers’ situation is such, it is quite understandable how fragile the financial situation of workers of other sectors is, added the insiders.

As per records, there are 42 lakh workers employed in apparel sector – the remaining ones are in other sectors. Though the gatherings as part of demonstration, claiming that they don’t have any choice; it increases the risk of workers being infected with coronavirus. 

It is learnt that half of the garment workers are yet to receive salaries for the month of April. So workers are staging demonstrations for salaries and bonuses every day in Gazipur, Ashulia and Savar. Though the apparel industries received loans under Tk 5,000 crore stimulus package for export-oriented industries, half of the member factories of BGMEA and BKMEA are yet to pay workers’ wages and allowances. On the other hand, they are passing the blame on to banks.

Of the 7,602 apparel factories across the country, only 3,175 factories -- less than half -- paid April’s salaries until Monday last, according to industrial police. Factories situated in Export Processing Zones are well ahead in terms of paying workers’ wages. On the other hand, BKMEA member factories are lagging behind when it comes to paying the wages, said sources in the industrial police.  

As per media reports, workers of a number of garment factories in the capital’s Mirpur area demonstrated, demanding their due salaries, overtime bills for February-March and Eid bonuses. The factories include MBM Garments Ltd, Lord Star Fashion Ltd, Dreamx Wear Ltd, Soroj Garments Ltd, Risal Garments Ltd, Jaki Garments Ltd, Vision Garments (pvt) Ltd, For U Clothing Ltd, Fashion 2000 Ltd, Daina Garments Ltd, Sentex Textile Ltd, Sentex Apparels Ltd, Hamim Apparels Ltd, Chittagong Fashion Ltd, and Power Vantage Wear Ltd. 

Sources also said, of the 1,882 BGMEA member factories; 991 factories have paid workers’ salaries. On the other hand, out of a total 1,101 BKMEA members, only 388 factories paid salaries. A total of 198 organisations among 389 members of Bangladesh Textile Mills Association have paid salaries. Among the other 3,866 factories, 2,572 haven’t paid salaries to their workers.    

To soften the adverse impact of coronavirus on the country's economy, the government on March 25 announced a stimulus package of Tk 5,000 crore for export-oriented industries so that industries could pay their workers. The Bangladesh Bank (BB) in this regard issued guidelines on disbursement of soft loan among the factory owners at 2 percent service charge and the amount is payable in two months. A total of 2,200 factories applied to the BB for loans worth Tk 3,250 crore through 46 banks. Of the applicants, 1,615 are BGMEA members and 550 BKMEA members. The remaining 35 factories are based in Export Processing Zones (EPZs). Against the loan applications, the central bank on May 3 released Tk 2,000 crore to the banks from the stimulus package.

Meanwhile, BGMEA President Rubana Huq binned the claim of industrial police that half of the garment factories haven’t paid April’s salaries. Until Monday, she said, a total of 1,509 BGMEA member factories paid April’s salaries. In addition, 33 factories paid bonuses, she said, adding that all the member factories of BGMEA would pay salaries and bonuses before Eid.    

Mohammed Hatem, first vice president of Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA), said April’s salaries will be paid to workers as per instructions set by the government and owners have nothing much to do in this regard. All the documents have been submitted to the banks and now onus is on banks to send the money into workers’ mobile accounts, he said. Owners won’t take the responsibility if banks fail, said Hatem, adding: “We notified earlier that paying salaries in this system would create complications.”

Some banks haven’t started processing the factories’ applications; as a result, many factories won’t be able to pay workers’ wages in time, he said, adding that owners should be not blamed for this. He demanded that banks be kept open in industrial areas on Friday and Saturday.     

Contacted, secretary of the labour and employment ministry KM Ali Azam said the ministry works to ensure that workers’ rights are protected. Regarding workers’ salary and bonus, the ministry held a number of meetings with factory owners. From the meetings, a resolution— agreed upon by both owners and workers — was made to pay all workers April’s salaries alongside bonuses before Eid, said the secretary.   

He said different monitoring teams visit factories on a regular basis and report to the authorities concerned if any irregularities are found. There are provisions to take actions against owners, he said, requesting the owners to pay workers’ due salaries and allowances.    

On Saturday, a tripartite meeting was held between factory owners, government higher-ups and trade union leaders, with Home Minister Asaduzzaman Khan Kamal in the chair at his secretariat office in Dhaka.

State Minister for Labour and Employment Monnujan Sufian, BGMEA-BKMEA leaders, workers’ representatives and high officials of law enforcement agencies were present at the meeting. The meeting came up with a decision that garment and textile factory owners will immediately pay workers 50 percent of their basic salaries as an Eid bonus and pay the remaining half within the next six months.

Meanwhile, the worker leaders said they don’t know how and when the bonus will be paid. They are in the dark if the bonuses will be paid via mobile bank accounts or in cash. 

Sirajul Islam Rony, president of the Bangladesh National Garment Workers Employees League, said many factories are not complying with the decision to pay workers 50 percent of their basic salaries as an Eid bonus. Most of the medium-size factories and those working on sub-contract have already informed their workers that they won’t be able to provide Eid bonuses, prompting the workers to vandalism in capital’s Mirpur area, he added.

Since these factories won’t get incentive from the government’s package, they are not willing to spend money from their own pocket, he said. Moreover, the factories that have ability to pay workers salaries and bonuses are also dilly-dallying in making the payment, said Rony, adding that there is a misunderstanding going on between owners and workers that sparks workers’ demonstration.

Nazma Akhter, president of the Sommilito Garments Sramik Federation, said only factory owners can solve the problem -- they should come up with a solution by talking to their workers. 

Big factories won’t have any problem to pay full bonus as they receive money from the government’s stimulus package, she said. Besides, BGMEA and owners can ensure that workers of small factories also get salaries and bonuses, she said. If the issues were settled earlier, workers would not take to the streets, said Nazma. Workers’ gatherings as part of protest will rather increase their risk of getting infected by coronavirus, she said. Though the government gave a decision taking into consideration the owners’ problems, it is not quite understandable why the owners are delaying in paying the salaries and bonuses, Nazma added.             

Joly Talukdar, general secretary of Garments Sramik Trade Union Kendra, said with the pace April’s salaries being disbursed among workers, it is not quite sure if all the workers will get their due salaries before Eid -- let alone bonus.

Owners are responsible for this situation, he alleged, warning that the situation might go out of hand if not properly taken care of.

The government announced Tk 5,000 crore package so the owners could pay workers’ wages. But there is a lack of monitoring activities on the part of government whether the workers are getting the benefits properly, allowing the owners to act in an autocratic way, alleged Joly.  

Sahida Akhtar, a sewing operator of Daina Garments Ltd in Mirpur, said the factory authorities are procrastinating in paying the overtime bills of last two months. Moreover, April’s salary hasn’t been paid yet and no decision has been reached regarding Eid bonus, she said.   

“How will we sustain without money in this situation?” she questioned.

Another worker Sheoly Akhter, employed in a factory in Mirpur, said though a decision has been made to pay workers 50 percent of their basic salaries as an Eid bonus, owners don’t comply with the decision. 

The factory authorities are not even paying the overtime bills of last two months, she said, adding: “Penniless, life is unbearable.”

ak/at/wi