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Normalcy returning to RMG sector
STAR BUSINESS REPORT
Normalcy has started to return to the garment factories as the workers have resumed work, avoiding further unrest after the owners have accepted all the 18 of their demands.
Most factories in key industrial hubs like Ashulia and Gazipur were operating smoothly yesterday.
However, a few factories are still planning to reopen soon, Khandoker Rafiqul Islam, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said over phone.
The situation is expected to remain peaceful since all the stakeholders, including the government, union leaders, and factory owners, have agreed to the workers’ demands, he said.
“Garment factory owners lost more than $100 million during the recent unrest, as many were unable to maintain production. Currently, the rapid pace of production and shipping goods to clear the backlog caused by the labour unrest are the two major challenges,” the BGMEA chief added.
As a result, the exporters may have to either offer discounts to international retailers and brands or resort to costly air shipments to meet the tight lead times set by their buyers, he said.
However, retailers and brands remain supportive and have assured exporters that they will wait until normal operations are restored.
Islam plans to meet with representatives of major international retailers and brands on Monday or Tuesday to discuss the current situation and future business strategies.
Garment factory owners agreed to all the 18 of the workers’ demands yesterday, including provisions for tiffin and night allowances, to quell the ongoing unrest.
As part of the agreement, the owners will provide an additional Tk 225 as an attendance bonus and increase night and tiffin allowances by Tk 10, bringing the total to Tk 100. The outstanding wages will also be cleared soon.
Labour and Employment Secretary AHM Shafiquzzaman said at a press briefing yesterday that around 1 percent to 2 percent of the garment factories are yet to implement the new wage structure, which took effect in December last year.
The factories need to comply with it as soon as possible, he said.
The government will also support workers in dense industrial areas through the Trading Corporation of Bangladesh’s open market sales programme, allowing them to purchase essential goods at lower prices.
Additionally, the government plans to regulate the jhoot (waste fabric) trade, as disputes over control of this market have been identified as a key factor behind the recent unrest.
As of 2pm yesterday, the situation was stable in most factories in Gazipur, Gazipur Industrial Police Superintendent Mohammad Sarwar Alam told The Daily Star.
Most workers have returned to their jobs and 13 closed factories in Gazipur are expected to reopen in the coming days.
However, he said not everything is fully resolved as today workers from Full Ibar BD Ltd in the Gacha area blocked the Dhaka-Mymensingh highway, demanding unpaid wages and the reopening of their factory.
Enamul Haque, an employee at Star Craft Ltd in Gazipur, told The Daily Star that the attendance bonus will be implemented in his factory and the workers are pleased to see the acceptance of the 18-point demand.
Ziaul Kabir Khokon, president of the Garment Workers Trade Union’s Gazipur district branch, confirmed that several factories are providing additional attendance bonuses to workers who have no record of lateness and maintain regular attendance.