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Bangladesh’s industrial sector is facing mounting pressure from multiple challenges, including global economic uncertainty, energy shortages, declining orders, and persistent power outages. As businesses struggle to survive, factories are shutting down almost every month, raising concerns about widespread job losses across the country.
Industry owners say many factories are operating at a loss due to reduced production. To cope with financial strain, employers are increasingly cutting manpower, leaving thousands of workers worried about their livelihoods.
Stakeholders in the ready-made garment (RMG) sector claim that during the previous interim government's tenure, many business owners felt cornered and hesitant to operate freely due to fears of harassment. As a result, the business-friendly environment deteriorated, and the sector has yet to fully recover. Although brief periods of growth were recorded over the past 11 months, most months experienced a downward trend that continues today.
In Savar, home to numerous garment factories, several industrial units have already reduced their workforce. Recently, Al-Muslim Group laid off 1,868 workers from seven garment factories. In response, workers have staged daily protests in areas including Radio Colony, Ulail, and Zirabo in Ashulia. Demonstrators have also occupied service lanes of the Dhaka-Aricha Highway, demanding reinstatement, unpaid dues, and compliance with labor laws.
In Chattogram, around 460 medium-sized garment factories are currently operating. However, several factories have closed over the past year due to financial losses and other challenges. Workers at a major garment factory in the Kalurghat area reportedly have not received salaries for an extended period and have been informally advised to seek employment elsewhere.
Narayanganj, which hosts approximately 1,834 garment factories, has also witnessed declining production levels. While a handful of large factories have managed to maintain operations, smaller units are struggling to survive. Many employers have been forced to reduce staff in an effort to stay afloat.
Mohammad Kabir Hossain, a former supervisor at United Garments, said he had not received his salary for several months before being laid off along with many colleagues. He described the situation as financially devastating for affected workers and their families.
Similarly, Abir Fashion worker Mohammad Mizan said management informed employees after Eid that the factory lacked sufficient orders and no longer required their services. He expressed concern over the uncertainty of finding new employment in the current economic climate.
Iqbal Hossain, General Secretary of the Narayanganj District Committee of the Bangladesh Trade Union Centre, said layoffs have increased significantly before and after Eid. According to him, more than 2,000 workers have lost their jobs in Narayanganj in recent months, warning that continued layoffs could fuel instability in industrial zones.
Although Gazipur has not experienced large-scale layoffs recently, workforce reductions have occurred in several factories. Workers at Libas Knitwear Limited in the Chandana area reported that several employees were dismissed in May, fueling concerns among the remaining workforce.
According to Industrial Police sources, between 17 May and 7 June, a total of 560 workers were laid off from 19 factories across Gazipur due to reasons including insufficient work orders, excess labor relative to demand, allegations of labor unrest, unreasonable demands, misconduct, and violations of factory regulations.
Responding to the situation, BGMEA Senior Vice President Inamul Haque Khan Bablu said employers do not dismiss workers intentionally. He acknowledged that businesses are facing difficult conditions and warned that the situation could worsen in the coming months. While workforce reductions may be necessary for some companies to survive, he stressed that all workers must receive their legally entitled compensation.
Industrial Police Director Mominul Islam said factory owners are generally following labor laws by issuing notices and settling workers' dues before carrying out layoffs. However, many workers complain that they only learn of their dismissal after returning from Eid holidays. He added that industrial police have increased monitoring in areas vulnerable to labor unrest and are working to mediate between employers and workers when necessary.
The growing wave of layoffs highlights the challenges facing Bangladesh’s industrial sector as businesses struggle to navigate a difficult economic environment while workers grapple with increasing uncertainty about their future employment.
https://thedailyexpress.news/news/business/1f166ef2-456a-60f0-a54e-6c80a61e59db