400-plus Bangladesh RMG units likely to face Eid payment woes: Reports

30 Mar '24

2 min read

Pic: Adobe Stock

Insights

At least 416 factories likely to face problems in paying wages and bonus, as per a list prepared by Industrial Police.
Of these, 171 are member factories of BGMEA, 71 members of BKMEA, and 29 are members of the Bangladesh Textile Mill Association (BTMA).
Many factories do not have enough purchase orders, reportedly claimed BKMEA executive president.

According to a list compiled by the Industrial Police, at least 416 factories are anticipated to encounter difficulties in disbursing wages and bonus to their employees before Eid-ul-Fitr. Among these factories, 171 belong to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), 71 to the Bangladesh Knitwear Manufacturers Association (BKMEA), and 29 to the Bangladesh Textile Mill Association (BTMA).

This is as per media reports, which added, the Industrial Police convened a meeting to strategize for averting any potential issues regarding the payment of salaries and Eid bonus to RMG workers even if in a subsequent press statement, Industrial Police urged garment factory owners who might face challenges to explore alternative solutions.

Chief of Industrial Police, Mahabubur Rahman, reportedly cautioned that the number of factories on the list could fluctuate in the days ahead but assured preparedness to tackle any arising issues.

Mohammad Hatem, executive president of BKMEA, cited insufficient purchase orders and delays in receiving incentives from the Bangladesh Bank as factors contributing to payment challenges in some factories.

He acknowledged that more factories might be grappling with financial crises beyond those listed by the Industrial Police.

Faruque Hassan, outgoing president of BGMEA, meanwhile reportedly attributed difficulties in bonus payments to the wage hike for RMG workers in December 2023, and reduced incentive facilities.

The Industrial Police oversee 9,467 factories in its jurisdiction, with additional factories under the purview of the Dhaka Metropolitan Police.

Fibre2Fashion News Desk (DR)

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