A recent report from Industrial Police reveals that at least 52 garment factories in Chittagong have shut down in the past six months due to a significant 25 percent drop in work orders, exacerbated by ongoing political instability. The closures have left thousands of workers without jobs.
In addition to the shuttered factories, 44 more are reportedly struggling to meet wage and bonus payments ahead of the upcoming Eid festival. The Industrial Police has categorized these factories as “at-risk,” a classification that has been contested by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
According to BGMEA, of the 611 registered garment factories in Chattogram, only 350 are currently operational, with around 180 fulfilling foreign orders and the remaining 170 acting as subcontractors. However, data from Chittagong Industrial Police-3 indicates that 528 out of 580 factories associated with BGMEA, the Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA), and the Bangladesh Textile Mills Association (BTMA) are operational.
The closures have been attributed not only to dwindling orders but also to political turmoil and banking challenges. Rakibul Alam Chowdhury, former vice-president of BGMEA Chittagong, stated that many of the affected factories were non-bonded enterprises. He highlighted the plight of one factory owner who, speaking anonymously, reported repeated looting since August 5, forcing the factory’s closure.
Chowdhury also disputed the Industrial Police’s “at-risk” designation, asserting that no factory owner intentionally withholds wages from their workers. He expressed optimism that factory owners are making efforts to provide Eid bonuses by March 25 and wages by March 28, with BGMEA closely monitoring the situation.
Concerns have been raised about wage payments in the 44 at-risk factories, which employ approximately 21,000 workers across various locations in Chattogram. Many of these factories have previously faced protests over wage issues, contributing to their financial difficulties.
MDM Mohiuddin Chowdhury, a member of BGMEA’s administrative committee, emphasised that the factories’ financial struggles stem from order declines and delayed shipments. New regulations requiring simultaneous payment of earned leave, wages, and bonuses have also added pressure on factory owners.
Despite these challenges, Chowdhury asserted that factory owners do not wish to cease wage payments and are committed to retaining their workforce even amid reduced orders. He urged efforts to maintain stability during the Eid period, noting that political instability has prompted foreign buyers to seek alternative sourcing countries.
Md Jasim Uddin, senior assistant superintendent of Chattogram Industrial Police, reassured that while 44 factories have been identified as at-risk, it does not imply they will fail to meet their payment obligations. He remained hopeful that the current crisis could be resolved in the near future.
