500 RMG factories at risk of unrest over wages, bonuses before Eid-ul-Fitr

Highlights:

• 200 factories under close monitoring
• 36 units identified as highly vulnerable to unrest
• Vulnerable units may require financial support
• RMG owners form 15 teams to monitor situation
• BGMEA for paying half March salary before Eid

As many as 500 readymade garment (RMG) factories have been identified as at risk of facing unrest over the payment of wages and festival allowances ahead of Eid-ul-Fitr, according to commerce ministry sources.

An intelligence report based on factory financial assessments and submitted to the commerce ministry has pinpointed 500 factories facing potential difficulties, ministry officials have told TBS.

The report, seen by The Business Standard, also noted that about 200 factories are under close monitoring of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), industrial police and other intelligence agencies.

The report noted that 36 factories have been identified as highly vulnerable to worker unrest and may require financial support to pay their employees' wages and festival allowances on time before the holidays.

According to BGMEA officials, some factories are facing financial difficulties due to several reasons, including last year's worker unrest, energy crisis and order shortages.

The association has already formed 15 teams to monitor the industrial law and order situation in the lead-up to Eid-ul-Fitr, which will be celebrated at the end of March.

At the same time, it plans to request factory owners to pay workers' Eid bonuses before the holidays.

The officials also mentioned that this year they will request factory owners to pay workers half of their March salary before the Eid vacation. However, this will depend on each factory's financial capacity, they say.

The BGMEA officials say the request is likely to be made during a tripartite committee meeting involving the government, labour leaders and association leaders during Ramadan.

As per labour law, factory owners must pay workers' wages within seven working days of the following month.

According to the BGMEA, a total of 28 factories have failed to pay their workers' January salaries, and two factories have not cleared December salaries as of Thursday evening.

Another intelligence report

Another state-run intelligence report seen by TBS mentions that about 170 factories employing over 186,000 people are at high risk regarding paying workers' Eid bonuses and monthly wages before the holidays.

Approximately 68,000 workers are employed at 41 of these factories in the Gazipur industrial zone.

The highest number of 57 factories are located in the Savar-Ashulia industrial zone, where over 60,000 people are employed.

The second highest number of 42 factories are located in the Dhaka zone, employing over 26,000 people.

The Chittagong zone has 17 factories with over 9,000 workers.

Seven factories in Narayanganj, four in Mymensingh and two factories in Tangail's Ghatail employ over 8,500, 3,300 and 8,000 people respectively.

The report mentions that of the 170 factories, 128 have BGMEA membership while 16 are Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) members and only four textile mills are associated with the Bangladesh Textile Mills Association (BTMA).

Nine factories are under the Bangladesh Export Zone Authority (Beza) and 13 are from other industries.

What have BGMEA, Industrial Police done? 

According to BGMEA officials, as in previous years, the Ministry of Home Affairs will hold a law and order meeting at the Secretariat ahead of Eid-ul-Fitr. The meeting, to be chaired by the home affairs adviser, will focus on ensuring the timely payment of wages and bonuses to workers.

Additionally, the Ministry of Labour will convene a tripartite meeting to issue directives for the disbursement of wages and bonuses before the Eid holidays.

To facilitate the process, a 30-member BGMEA team, divided into 15 groups, has identified several factories facing challenges and is working to resolve issues through discussions with workers.

To ease traffic congestion on highways, the BGMEA will request all its member factories to grant leave in phases. Factory owners will coordinate holiday schedules with their shipment plans and submit advance reports accordingly.

Furthermore, various state intelligence agencies are keeping certain self-proclaimed labour leaders under surveillance. These individuals have previously attempted to incite labour unrest by turning minor issues into major concerns.

The BGMEA has decided to set up a central control room on the ground floor of its headquarters.

Greater Dhaka has been divided into 15 zones, each with a committee comprising assistant directors, factory owners and BGMEA officials. These committees will work to prevent and resolve labour unrest in their respective areas.

Solutions are being devised based on the nature of the problems. To address these concerns, 15 BGMEA monitoring teams are working in the field round the clock.

As in previous years, the BGMEA is engaging with labourleaders to prevent any untoward incidents, labour unrest or disruption in the export-oriented garment industry. The meeting will be attended by the relevant adviser, secretary and representatives of law enforcement agencies.

Regional crisis committee

The government has formed a regional crisis committee comprising local public representatives, the Ministry of Labour, BGMEA, BKMEA, law enforcement agencies and labourleaders.

Additionally, to ensure a smooth disbursement of wages and allowances and facilitate the safe travel of workers during the Eid season, the BGMEA has urged the relevant district administrations and law enforcement agencies to take necessary measures.

According to a recent audit report by Hoda Vasi Chowdhury & Co, the BGMEA has 1,806 active member factories.

Of the active members, 1,482 are from the Dhaka zone and 324 are from the Chattogram zone.

Financial support

Talking with TBS, BKMEA President Mohammad Hatem emphasised that banks must cooperate with factory owners to help them pay workers. 

Citing an example, he said, "Recently, we communicated with the authorities to facilitate the release of Mahmud Denim's pending cash incentive of Tk8.30 crore to pay its workers. Unfortunately, one bank adjusted the amount against its pending payments."

The country's exporters have pending cash incentive claims of over Tk5,000 crore. The Ministry of Finance should take the initiative to release these funds as it would help  the workers receive their wages and Eid benefits before the holidays.

The BKMEA president also mentioned that the association would write to the ministry, requesting the release of the funds by the second week of Ramadan.

Hatem added, "As we know, the interim government is pro-worker, and we hope it will take immediate steps to address these issues."