Akij Jute Mills sacks 6,300 temporary workers as export drops
Akij Jute Mills, country's largest active jute factory, has laid off 6,300 workers due to a decrease in export of manufactured goods abroad.
"We are unable to keep the factory fully operational for a lack of orders from foreign countries and increase in jute prices in the domestic market," said Akij Jute Mill Executive Director Sheikh Abdul Hakim yesterday.
About 7,000 workers from different upazilas of Jashore, Khulna and Narail districts work regularly in three shifts. They are transported to the factory by 23 buses every day. The mill authorities on Tuesday abruptly stopped the bus service and sacked all but 700 permanent workers.
Keep updated, follow The Business Standard's Google news channel
Abdus Salam, CBA president of the mill, said that the quality of jute available in the domestic market is not satisfactory and the price is also very high.
"Due to this, the authorities have limited the production. There are about 6,300 replacement workers. Basically they have been told not to come to work. The remaining 700 permanent workers are still running the mill. Moreover, foreign orders have also decreased," he told The Business Standard.
Sheikh Abdul Hakim also said that the mill's products mainly go to Turkiye.
"Due to the Russia-Ukraine war, the manufactured goods cannot be shipped. Shipping costs are also rising. Along with that, new orders have decreased. Work is now being done in two shifts with permanent workers to avoid losses."
He further said that workers are paid their dues every Thursday and the sacked employees have received their wages.
"If the situation returns to normal, the factory operations will resume in full swing with the replacement workers," the executive director told TBS.
