Approximately 40,000 workers and officials from 16 textile and garment factories under Beximco Group are advocating for the reopening of their workplaces following recent layoffs. The appeal comes amid Government plans to sell the units due to the group’s substantial defaulted loans.
The layoffs were initiated by Beximco management, who attributed the decision to a downturn in work orders from international retailers, a situation worsened after the ousting of Prime Minister Sheikh Hasina’s Government on 5th August last year. The group’s vice-chairman, Salman F Rahman, has faced legal issues, being imprisoned for allegedly exploiting his political connections for personal gain.
Recent data from Bangladesh Bank reveals that Beximco Group’s debt has reached nearly Taka 50,000 crore, with over half of this amount categorised as non-performing loans. Despite this dire financial situation, management is keen to maintain operations and has proposed selling a portion of land in Narayanganj to help restructure their debts. However, this sale has not received approval from top Government officials.
Merchandiser Shefat Ahmed emphasized that the factories are not unprofitable, citing a history of collaboration with renowned global brands. Prior to the political upheaval, Beximco was exporting around US $ 30 million worth of textile and garment products each month.
The company maintains relationships with major brands like Inditex, C&A, and Marks & Spencer, among others. Ahmed noted that regular discussions are ongoing with management about reopening the facilities so workers can return to their jobs.
Khalid Shahrior, head of HR and compliance for the textile and garment division, underscored the importance of keeping the factories operational, highlighting that the layoffs affect not just direct employees but also a broader supply chain network.
The Government is exploring opportunities for displaced workers in factories associated with the Bangladesh Export Processing Zones Authority (Bepza) and Bangladesh Economic Zones Authority (Beza). However, many workers are hesitant to relocate to new job sites.
Management has submitted multiple proposals to Government financial authorities seeking clearance to resume operations and manage their debts. Long-time employee Md Abdul Latif expressed concerns about the uncertainty surrounding his service benefits, while executive Tariqul Islam noted that salary arrears have accumulated due to the layoffs.
AHM Shafiquzzaman, Secretary to the Labor and Employment Ministry, announced that an advisory committee would make a decision regarding the future of Beximco’s textile and garment units soon. The Government is also actively seeking foreign buyers for the closed factories while working to provide new job opportunities for laid-off workers.
