Pharmaceuticals back in production, ending worker unrest

A significant relief has arrived for Bangladesh's healthcare sector as over two dozen pharmaceutical companies have successfully resolved a 7-10-day worker unrest that had threatened a potential medicine supply shortage.

Negotiated minimum wage increases, announcements of increments, and other accepted demands aimed at improving workers' lives in the face of high inflation have brought pharmaceutical workers back to work in Savar, Gazipur, and Mymensingh, according to industry sources.

"Thanks to the leading companies that began generous negotiations with their workers late last week, recognising the importance of maintaining product availability," said Abdul Muktadir, president of the Bangladesh Association of Pharmaceutical Industries (BAPI) and chairman and managing director of Incepta, the country's second-largest pharmaceuticals firm.

He added that workers who had left their posts started returning on Friday, and by yesterday morning, all two dozen plants were back in production.

"While companies did face production losses and cost increases, this will not cause a supply shortage. The lost production will be made up with additional shifts," Abdul Muktadir said.

According to BAPI, the industry keeps enough inventory to supply the market for one month.

"We brought our Dhaka plant workforce back to the production floors on Friday after a week-long gap, which resulted in a production loss of around Tk90 crore," said Muhammad Zahangir Alam, chief financial officer of Square Pharmaceuticals, the largest company in the sector.

"We have enough inventory of finished products and will recover the lost production by adding some extra shifts," he added.

Pharmacy owners in Shahbagh, Shyamoli, and Hatirjheel told TBS that medicines are available as usual. Doctors specialising in cancer, kidney, and gynecology also reported no shortages in their respective fields.

The government-set minimum wage for pharmaceutical workers is too low—less than Tk9,000 a month and the industry had previously raised it to Tk10,000-13,000, according to companies.

According to workers from four large companies, they are seeking a minimum wage of Tk14,000-16,000, better benefits including paid maternity leave, higher annual increments, extended holidays, improved transportation, medical facilities, injury or death coverage, and the right to join employee unions.

"Demands varied among different factory workers, and the companies negotiated separately," said the BAPI president.

On 3 September, the association held a press conference opposing the workers' aggressive stance, fearing it might be a conspiracy against the country's growing pharmaceuticals sector.

Several entrepreneurs told TBS that pharmaceutical workers enjoy a comparatively higher wage and job benefits in Bangladesh as firms need their skills. 

Despite the sharp hikes in costs of raw material imports amid state-controlled pricing, most companies were increasing workers' pay to a decent extent. 

However, workers demanded more at once, leading to unrest and halting production in over two dozen plants.

For example, Square Pharmaceuticals' Dhaka Unit workers requested a minimum wage of Tk25,000, a 25% annual increment, more bonuses each year, and company-funded Hajj trips for permanent workers after 15 years on the job.

Similarly, ACME Pharmaceuticals workers asked for a 30% increase in their monthly gross pay and at least a 20% annual increment.

"The high inflation made wage increases insufficient for workers' families. At the same time, companies have struggled to fully meet these demands," said a senior executive from a top drugmaker.

"Not all companies are financially strong enough to meet all their workers' demands," he added.

"We had successful negotiations with our factory workers because we care about their well-being," said Square's CFO. He noted that many long-serving employees have even sent their children to work at the company.

Incepta's Chairman Abdul Muktadir said, "We addressed everything our workers wanted."

Incepta has raised the minimum wage to Tk14,000 for casual workers, and Tk15,000 or more for confirmed employees, along with bonuses, profit shares, a flat Tk3,000 monthly pay hike for all employees, regular increments, four months of paid maternity leave for casual workers, paid sick leave, Tk3 lakh compensation for disability, and Tk5 lakh for death. 

Additionally, they will employ at least one child of a deceased worker and support the right to form employee unions.

Workers have also shown a willingness to find amicable solutions. For instance, Renata, a successor to Pfizer Bangladesh, got its Dhaka workers back to work the same day by assuring them of the company's support.

With production resumed, the industry is now waiting for meetings and talks with the government to prevent future unrest, according to sources.