Worried over Bangladesh's RMG industry unrest, buyers avoid new orders

14 Nov '23

2 min read

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Expressing concern over the unrest in Bangladesh's garments industry, foreign buyers are avoiding placing new orders, according to the Bangladesh Garment Manufacturers and Exporters Association. As of November 12, 130 garment factories went on temporary shutdown.
Only 5 per cent of factories are hit and efforts are being made to find a solution, BGMEA said.

Foreign buyers have expressed concern over the ongoing unrest in Bangladesh’s readymade garments (RMG) sector and are avoiding placing new orders, according to Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

BGMEA has told buyers that only 5 per cent of factories are hit by the unrest and efforts are being made to find a solution, he said.

He said 130 garment factories went on temporary shutdown as of November 12. The factories are mostly located at Ashulia and Konabari of Gazipur., according to domestic media reports.

If a factory has more orders, it will get the work done from other factories that have lesser work burden, he said.

On 7 November, the Minimum Wage Board fixed the monthly minimum wage for the sector at Tk 12,500. The protesting workers are demanding Tk 25,000. They also sought 65 per cent basic wage instead of 50 per cent, and an annual increment of 10 per cent instead of 5 per cent.

After a year of working with the minimum wage adjustment, the workers will get a salary increment on an annual basis at the rate of 5 per cent of the basic wages, the gazette announcing the new wage says.

Meanwhile, BGMEA has urged the government to offer adequate security to run garment factories amid the unrest and subversive activities in the mills.

Fibre2Fashion News Desk (DS)

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