Wage uncertainty looms over 21,000 workers in Ctg factories

More than 21,000 workers at 48 garment and industrial factories across 10 industrial zones in Chattogram may not receive wages and Eid bonuses on time ahead of Eid-ul-Adha, according to Industrial Police records, raising fears of labour unrest.

The affected workforce totals 21,481 workers --12,923 women and 8,558 men -- along with 2,021 staff.

The report says 18 of the factories are members of the BGMEA, five belong to the BTMEA, one is affiliated with BKMEA, 12 fall under BEPZA, while 14 are not affiliated with any organisation.

It also notes that eight factories are reportedly owned by Awami League-backed owners and two by BNP-affiliated owners, while the political affiliations of the remaining factories were not specified.

An analysis of IP reports compared with previous Eid-ul-Fitr and Eid-ul-Adha records shows that workers at about 50 factories previously faced uncertainty over salaries and bonuses.

Although the factories agreed to pay February wages, they refused to pay wages for the first 15 days of March. While different dates were announced for bonus payments, not all factories made full payments.

However, according to workers, many factories later paid their bonuses after Eid in accordance with agreements.

Under these circumstances, IP has now identified 36 factories where labour unrest may occur during Eid-ul-Adha if May salaries or Eid bonuses are not paid to the workers.

Intelligence reports have also apprehended that the workers may begin demonstrating for wages and allowances about a week before Eid-ul-Adha.

Police officials said they are trying to resolve the crisis by communicating with factory owners to ensure payment of April salaries along with at least 20 days’ wages for May and Eid bonuses before Eid across Chattogram’s 1,676 factories. Some factories have already paid April salaries.

“Based on preliminary information, around 48 factories may face problems regarding Eid wage payments,” Chattogram Industrial Police Superintendent Abdullah Al-Mahmud told reporters before his recent transfer from the city.

He said police had already spoken with both factory owners and workers, but the final categorisation of “highly risky, risky and less risky” factories would take more time.

“Some factories initially appear financially stable but later become involved in unexpected disputes,” he added.

Factory officials say the industry is facing mounting economic pressure.

Several officials from factories in Chattogram told reporters that declining export orders, banking complications, delays in opening letters of credit, shortages of raw materials and late payments from international buyers had created severe financial difficulties.

One factory official, speaking on condition of anonymity, said the situation had worsened since the Covid-19 pandemic, as the company “failed to maintain a balance between income and expenses.”

The official said operations had been reduced and workers laid off after clearing dues. “Even after cutting manpower by half, we are struggling to run the factory,” he said, adding that April salaries had been paid but May wages before Eid may not be possible, though eligible workers would still receive bonuses.

Mahbub Ahmed, executive director of Karnaphuli Export Processing Zone (KEPZ), said three of the four factories identified by IP in the zone had already paid April wages and allowances.

“Those factories are also expected to pay bonuses,” he said.

However, he added that Strong Footwear, a factory that has shut down operations, remained uncertain about clearing wages and allowances.

“Discussions are ongoing regarding whether factories will be able to pay May salaries according to policy or at least half of the month’s wages before Eid,” he said.

According to Industrial Police data, Chandgaon Zone has the highest number of vulnerable factories, with 14 factories employing more than 7,000 workers and staff members facing uncertainty over wages and bonuses.

Factories in Patenga, Bandar, Sitakunda, Panchlaish, Bayezid, Kotwali and Karnaphuli zones were also identified as at risk.

In Sitakunda, police said Mars Textile Limited, a spinning mill employing hundreds of workers, had already declared a layoff.