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Pacific Casuals, a subsidiary of the Pacific Knit Division, has announced the indefinite closure of its Unit-1 and Unit-2 factories located in the Chittagong Export Processing Zone (CEPZ). The decision was communicated through a notice issued late yesterday evening by the senior manager of the Human Resources and Administration department.
The closure follows a series of worker protests, which the management attributed to illegal production halts and what they termed “unjustified demands.” The notice cited Section 12(1) of the EPZ Labor Act 2019 as the legal basis for shutting down operations, which will remain suspended until further notice.
An insider from Pacific Knit Division, who requested to remain anonymous, highlighted that labour unrest had erupted across their factories approximately a month ago. The management had previously resolved the situation by conceding to the workers’ demands. However, on Sunday morning, workers at Pacific Casuals initiated another protest, calling for additional benefits, including breakfast and enhanced facilities, which were not directly related to wages or allowances. Due to escalating tensions, the factory was closed around 2 PM.
The source expressed concern about the potential for further shutdowns, stating, “If things continue like this, the authorities will be compelled to shut down all the factories.” Approximately 6,000 to 7,000 workers are employed across the two affected units.