Garment industry lost $400m to worker unrest

The garment industry of Bangladesh has suffered collective production losses of nearly $400 million due to a series of labour unrest in September and early October, exporters said.
However, the industry has now regained stability as the labour situation in major industrial belts improved, according to Khandoker Rafiqul Islam, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
He made this remark during a press conference at the BGMEA office in Dhaka yesterday.
Islam highlighted that maintaining law and order alongside discipline is now the major challenge for the garment industry as factories are currently operating as usual.
Also, the BGMEA chief urged the interim government to allow the use of gas from CNG refuelling stations as industrial units are not getting an adequate supply of the fuel.
Over the past few years, many garment and textile units have been using compressed natural gas (CNG) purchased from refuelling stations to power production equipment as they are not getting enough supply from government pipelines.
Furthermore, Islam asked the authorities not to disconnect factories from utility services, such as gas or electricity, for failing to pay bills for the next three months as most of them were affected by the labour unrest.
Additionally, he sought government intervention to lower bank interest rates to a single digit and suggested that a joint security force led by the army should be formed to ensure safety at the garment industrial belts.
Other requests placed by the BGMEA included allocating interest-free bank loans for 39 manufacturing units based in Ashulia that were unable to pay their workers’ wages for September amid the unrest.
In regard to improving the ease of doing business, Islam sought the interim government’s cooperation in expediting the loading and unloading activities at Chattogram port.
The BGMEA chief also urged to ensure that none of the reform or punitive measures for certain sectors, companies or individuals end up adversely impacting industrial operations in the country.
The interim government recently formed a taskforce involving officials of the Bangladesh Bank and National Board of Revenue to create a more business friendly environment.
Besides, the formulation of a sustainable power policy, which includes fixing a rational price for electricity and ensuring its adequate supply, is needed, he said.
The BGMEA’s charter of demands included keeping the recycling of waste fabric, locally known as jhut, and other garment products away from the outside influence by formulating a separate policy.
Shams Mahmud, a director of the platform for apparel makers and exporters, said the BGMEA is continually engaging with foreign stakeholders to attract them more.
“We are constantly updating our partners and different brands on the evolving situation,” he said. As a part of the dialogue, the BGMEA will be meeting with the American Apparel & Footwear Association, which represents over 1000 brands from the US.
“We will update them about the current situation,” Mahmud added.
Abdullah Hil Rakib, senior vice president of the BGMEA, said they have asked the chief adviser to lobby the US for lowering the tariff on garment shipments as the Western nation has suspended its trade benefits under the Generalised System of Preferences (GSP) for all countries.