51 factories shut down in Gazipur in 5 months, leaving over 50,000 jobless | The Business Standard
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FRIDAY, JUNE 20, 2025
51 factories shut down in Gazipur in 5 months, leaving over 50,000 jobless

Bangladesh

Asaduzzaman Saad
26 January, 2025, 12:30 am
Last modified: 26 January, 2025, 03:33 pm

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51 factories shut down in Gazipur in 5 months, leaving over 50,000 jobless

Asaduzzaman Saad
26 January, 2025, 12:30 am
Last modified: 26 January, 2025, 03:33 pm

Infographic: TBS
Infographic: TBS

Fifty-one industrial factories in Gazipur have ceased operations over the past five months amid unrest over different demands in the wake of the July uprising and subsequent change in government.

Of these, 41 have been permanently closed, and 10 are temporarily shut, affecting more than 50,000 workers and their families.

Earlier this month, Keya Group announced the closure of six additional factories from May, citing financial and operational difficulties. As a result, around 10,000 workers will lose their jobs.

The widespread unemployment has led to uncertainty among workers, with many continuing to protest on highways demanding the reopening of factories and payment of outstanding salaries.

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Highways such as Dhaka-Tangail, Dhaka-Mymensingh, and Chandra-Nabinagar remain frequently blocked, disrupting traffic and leaving law enforcement struggling to manage the unrest.

Laid-off workers are living inhumane lives. We are seeking the government's cooperation to lift the layoff and resolve banking constraints by reopening back-to-back LCs.

SM Abdul Latif, senior GM (admin), Beximco Industrial Park

Reports of vandalism, attacks, and arson have surfaced, with a recent arson attack targeting Grameen Fabrics and Fashion Limited, owned by Grameen Telecom Trust.

Gazipur, an industrial hub with affordable housing and plentiful job opportunities, now faces widespread discontent.

Millions of workers depend on the thousands of factories in Gazipur metropolis, Kaliakair, and Sreepur, which also support countless businesses, transport services, and auxiliary industries.

According to the Gazipur Industrial Police, the district has 2,176 registered factories, including 1,154 in the readymade garment (RMG) sector.  

However, financial difficulties have led to widespread salary delays. At least 35 garment factories, or 2% of the total, failed to pay workers' wages since November.

By December, 45% of factories faced arrears, with labour unrest affecting 5% of all factories. Additionally, salary increment disputes persist in 9% of the factories. Amidst this turmoil, 41 RMG factories have been permanently closed, and 10 are temporarily shut.  

Gazipur Industrial Police-2 Superintendent of Police AKM Johirul Islam, told TBS that factory closures have resulted from various reasons, including financial complexities.

He added, "Many unemployed workers are protesting on the streets, demanding outstanding salaries and factory reopenings. Maintaining law and order remains a significant challenge."

Among the prominent closures are 16 factories at Beximco Industrial Park in Sarabo, TMS Apparels in Tongi, and Niagara Textile and Mahmud Jeans in Kaliakair.

Beximco, owned by Salman F Rahman, an advisor to former prime minister Sheikh Hasina, attributed its closures to a lack of orders and banking complications.

Following a 15 December decision by the advisory council to review labour and business conditions, the park closed its facilities, leaving 42,000 workers jobless.

Beximco Industrial Park Senior General Manager (Administration) SM Abdul Latif, explained, "Laid-off workers are living inhumane lives. We seek the government's cooperation to lift the layoff and resolve banking constraints by reopening back-to-back LCs."

Keya Group, a long-standing entity in Gazipur employing around 15,000 workers, including more than 1,000 speech and hearing-impaired individuals, recently announced that they will be closing down six factories from May.

These include Keya Cosmetics Limited's knitting, spinning, and cotton divisions, as well as Keya Yarn Mills.

The group, which has won the national export trophy five times, cited market instability, banking discrepancies, raw material shortages, and low production efficiency as reasons for the closures.

Sabina Yasmin, Keya Group's Human Resources Manager, said, "All dues of workers, officers, and employees will be paid within 30 working days as per the Bangladesh Labour Act. Political cases filed by the previous government and unresolved banking issues have contributed to this situation."

The closures have turned Gazipur into a city of protests.

Bangladesh Garments Industry Workers Federation's Gazipur metropolitan unit President Shafiul Alam noted, "Several factories closed after 5 August due to salary arrears and other issues. While workers hoped for increased employment opportunities, the opposite has happened.

"Labour unrest continues because the government did not take the necessary tripartite steps to resolve disputes. Workers must be brought to the negotiation table to ensure fair solutions."

The ongoing closures and labour unrest highlight the need for comprehensive interventions to address the grievances of Gazipur's industrial workforce and stabilise the region's vital industrial sector.

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Gazipur / factory shut down / Jobless workers

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