Govt plans jobs for laid-off workers of 16 Beximco factories

Highlights:

• Banks to auction Beximco's defaulting firms via Money Loan Court
• Non-mortgaged companies may sell assets through standard procedures
• Govt plans jobs for laid-off Beximco workers
• Beximco laid off 40,000 workers in mid-December
• Beximco to provide laid-off workers' list to govt

The government plans to create alternative employment opportunities for workers laid off from 16 apparel factories of Beximco Group in its Gazipur Industrial Park, according to a decision made in a recent meeting of the advisory committee overseeing the matter.

The apparel factories are designated for sale.

To facilitate this, the government will work in coordination with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Export Processing Zones Authority (Bepza), and the Bangladesh Economic Zones Authority (Beza), as per the meeting minutes.

In mid-December last year, Beximco announced the closure of 16 factories and the layoff of around 40,000 workers, citing a lack of orders and the absence of banking support following the ouster of Sheikh Hasina's government in August.

Among the 16 Beximco factories designated for sale by the government, the committee decided that banks will auction off the defaulting entities – which secured loans by mortgaging assets – through the Money Loan Court.  

For entities without bank mortgages, their assets may be sold through standard procedures to settle their liabilities.

The advisory committee meeting was held on 5 January to review the labour and business conditions of Beximco Group's companies.

The meeting discussed in detail how and through what methods the industrial entities at Beximco Industrial Park could be sold and how alternative employment opportunities for the workers could be arranged.

The meeting, chaired by Labour Adviser M Sakhawat Hossain, was attended by the finance adviser, home affairs adviser, industry adviser, trade adviser, and attorney general among others.

At the meeting, Attorney General Md Asaduzzaman said, "It is essential to know the actual number of workers in these companies, their assets and liabilities, details of mortgaged assets, bank loans, and so on.

"For companies whose assets are mortgaged with banks, the respective banks can directly sell them through the Money Loan Court. Other companies can take steps to sell their assets or companies through standard procedures." 

The advisory committee has requested detailed reports on the companies' assets, liabilities, mortgaged assets with the relevant banks, ongoing business, and revenue.

Additionally, the committee has sought opinions on how the assets of the companies can be transferred according to their articles of association.

It has also instructed Beximco's human resources and accounts department to provide "an accurate" list of workers employed at the Beximco Industrial Park.

On 15 December, Janata Bank paid one month's overdue wages to the workers of Beximco Industrial Park.

Earlier, a meeting of the committee was held on 15 December.

At the meeting, Janata Bank's managing director informed that the bank's board had approved funds for an additional two months' wages.

However, Finance Adviser Dr Salehuddin Ahmed said the government will not be able to provide any additional financial assistance beyond the three months' overdue wages for Beximco's workers.

"If Beximco is unable to continue the company's operations, it must decide whether to shut down. Otherwise, Beximco will have to take responsibility for the situation that arises," he said.

During the meeting, Osman Kaiser Chowdhury, managing director of Beximco Industrial Park, explained that the companies at Beximco Industrial Park could no longer operate due to a lack of orders and the companies being in default.

"In this situation, Beximco authorities must lay off or close the companies to control the law and order situation," he said.

Earlier, based on the recommendations of the committee, the Bangladesh Securities and Exchange Commission appointed independent directors to the boards of three listed Beximco Group companies – Beximco Limited, Beximco Pharma, and Shinepukur Ceramics.