Garment factory in Ashulia lays off 565 workers, cites business downturn
Factory cites a prolonged business downturn and shortage of work as reasons for the retrenchment; union demands immediate reinstatement of the workers.
Alliance Knit Composite Ltd, a garment factory in Ashulia, has announced the retrenchment of 565 workers, citing a prolonged business downturn, a shortage of work and inadequate bank financing.
In a notice signed by the factory's Human Resources and Administration Department published yesterday (6 August), the company said the retrenchment would take effect from tomorrow.
According to the notice, the factory has been experiencing a severe business slowdown due to both global and domestic factors.
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It said inadequate bank financing and a shortage of work had seriously disrupted production, forcing the management to reduce its workforce to sustain business operations.
The company said the retrenchment would be carried out in accordance with Section 20 of the Bangladesh Labour Act, 2006.
It also said retrenched workers would receive all legal dues and compensation within the timeframe stipulated by law, based on their length of service.
Citing Section 21 of the Labour Act, the company said the workers would receive priority for re-employment within the next year if production expands or new recruitment becomes necessary.
Attempts to contact the factory's Managing Director, Zaeem Ahmed, by phone and WhatsApp for comment were unsuccessful.
An Ashulia Industrial Police-1 official, speaking on condition of anonymity, confirmed the retrenchment, saying the factory had reduced its workforce because of a shortage of work orders and the gas crisis. The official declined to provide further details.
Mohammad Ziarul Haque, an operator in the factory's sewing section whose name appears on the retrenchment list, said he learnt of the decision through a text message while at his village home in Dinajpur during the factory's three-day holiday marking July Uprising Day.
"The factory declared a holiday marking 5 August, so I went to my village. Around 11pm yesterday, I received a text message informing me that I had been retrenched. I don't know why or on what grounds.
"The factory was supposed to reopen tomorrow. Later, I learnt that the notice had also been posted at the factory gate," he told The Business Standard over the phone.
Rafiqul Islam Sujon, president of the Bangladesh Garments and Industrial Workers Federation, alleged that the company's claim of a business downturn was merely an excuse.
"It is inhumane to suddenly retrench so many workers while the factory is closed for holidays. We demand that the notice be withdrawn immediately and that all retrenched workers be reinstated," he told The Business Standard.
