BGMEA seeks over Tk58cr loans for 39 RMG factories hit hard by unrest

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has requested over Tk58.61 crore in soft loans from the government for 39 apparel factories "severely affected by the recent labour unrest."

In a letter to the finance adviser on 6 October, the apex trade body of apparel manufacturers said these factories, which employ over 56,000 workers, urgently require the assistance to cover wages. 

One of these affected exporters, Dekko Legacy Group, a relatively new player with two units in Ashulia, produces around 90,000 woven garments per month, with a monthly export value of $15 million, according to BGMEA data.

However, the past month has been difficult for the group.

Managing Director Kalpan Hossain described the situation as "abnormal," attributing it to security concerns that limited production to just three days in September. 

Despite the reduced output, the group faces a significant financial burden with monthly salaries ranging between Tk25 crore and Tk27 crore, he told TBS.

He said the group has sought soft loan support to alleviate financial strain and disburse September salaries to their 5,810 workers.

Similar to Dekko Legacy Group, AR Jeans Producer Ltd, a LEED-certified denim factory in Ashulia with an annual export value of around $120 million, was unable to operate properly in September due to the unrest.

"Some outside miscreants also attempted to set fire to AR Jeans factory last month, but thanks to the dedication of our community police and the timely intervention of law enforcement, the factory remained safe," said its Managing Director Nazmul Kabir.

The factory was forced to halt production for a total of 12 days last month, without any fault from the owners or their workers, he said, adding it is now seeking a soft loan to pay the September salaries of its 2,518 workers.

Speaking with TBS, Mirza Shams Mahamud, managing director of another factory SM Sourcing, said that one of their units, Mango Tex, was unable to operate for 19 days last month, with workers leaving after attendance on 12 of those days due to the unrest.

In August, the factory's exports totalled $1.8 million, but this dropped to $0.7 million in September. The unit employs 865 people, with a monthly salary expense of around Tk1.5 crore. "We have applied for a soft loan to pay the workers' salaries," he added.

According to the BGMEA, over 200 RMG factories were affected by the unrest in Savar, Ashulia, and Gazipur, causing some to halt production for up to 23 days. 

While some large groups can cover wages using income from other units or their own capital, others are struggling.

Ha-Meem Group, which employs over 75,000 people, faces a monthly wage bill of over Tk100 crore. In a recent BGMEA meeting, its managing director expressed frustration over paying September's wages.

Speaking to TBS, BGMEA President Khandoker Rafiqul Islam said, "These 39 factories have suffered heavy production losses due to the unrest, with one factory losing up to 20 days of production last month. This has weakened their financial capacity."

He explained that larger groups are using their own capital or income from other units to pay workers' wages and allowances, but some factories cannot afford to do so. 

In the letter, he urged the Finance Adviser Salehuddin Ahmed to arrange an interest-free soft loan for these factories.

RMG production resumes at full capacity

After nearly two months of unrest, RMG manufacturing activities in the key industrial zones of Savar, Ashulia, and Gazipur were back in full operation yesterday, with no reports of protests, roadblocks, or demonstrations.

Sources indicate that only nine factories remained closed in Ashulia, Savar, and Gazipur on Monday. 

According to BGMEA data, 99.58% of factories — 2,135 out of 2,144 — were operating normally across the country.