Deeper crisis feared as 219 factories shut

With 219 garment factories shut amid worker unrest along the industrial belts yesterday, Bangladesh’s apparel sector is feared to get into a deeper crisis if production does not resume on Saturday after the weekend.  
Officials believe “real workers” are not involved in the vandalism of some factories, while labour leaders blame the influence of partisan politics and fabric scrap trade for the situation.
Meanwhile, the inaction of a demoralised industrial police force and the “unusual demands” of the workers have frustrated the owners, who are under pressure from international buyers ahead of the next holiday season in the West. 
Of the factories closed yesterday, 86 were shut by the authorities for an indefinite period under Section 13 (1) of the Labour Act, which empowers the employer to shut any unit in case of a strike.
The remaining 133 factories were closed as they declared a general holiday, said Md Sarwar Alam, superintendent of Ashulia Industrial Police-1.
Khandoker Rafiqul Islam, president of the Bangladesh Garment Manufacturers and Exporters Association or BGMEA, said the closed factories included 107 members of the association mainly in the Ashulia and Zirabo areas.
Although a few committees involving local politicians have been formed in Ashulia to resolve the crisis through discussions, industry owners are worried about the safety of their factories because of non-stop unrest, he said.
Industrial police have yet to start fully functioning more than one month after the ouster of the Awami League government, further fuelling safety concerns about the factories. Harsh measures like internet shutdown amid street protests during the mass uprising already hampered production and orders heavily.
Owners say they are not getting help from the industrial police even after lodging complaints. The number of personnel patrolling the industrial zones is inadequate.
Army personnel have been deployed to the industrial zones, but they do not have the magistracy powers to arrest protesters, said Shams Mahmud, managing director of Shasha Denims.
“We aren’t getting the confidence to run the factories because of safety concerns,” Mahmud told The Daily Star over phone.
International retailers and brands are putting pressure for timely delivery but the factories are shut, said a frustrated Mahmud. Many shipments may get cancelled, or the buyers may demand big discounts or expensive air shipments, he added.
Many international retailers and brands are cancelling buying trips because of the labour unrest although this is the peak time to confirm work orders for the next winter season, exporters said.
“So, a massive impact of the unrest will be noticed in the next winter season,” Mahmud said.
A senior officer of the industrial police, requesting anonymity, said they are conducting joint patrols in the industrial zones and responding to the crisis. Industrial police are trying to be fully functional, the officer added.
AK Azad, chairman and CEO of Ha-Meem Group, echoed the views of Mahmud. He said local groups in Ashulia are also involved in the unrest with most of the incidents taking place in the area.
Police are not working, which is leading unrest in one factory to spill over to the nearby factories, said a garment exporter based in Narayanganj’s Rupganj who asked not to be named.
In some cases, political issues are also involved, the exporter said.
For instance, the unrest in the Beximco garment factory has political influence as one of its owners, Salman F Rahman, was an adviser to ousted prime minister Sheikh Hasina, the exporter said.
He also said that buyers, worried and frustrated over the situation, are sending a lot of queries to know about the condition of work orders for the next season.
Faruque Hassan, managing director of Giant Group, claimed the unrest this time is not about wages because the salary was hiked in December last year.
In many cases, the workers are demanding the removal of senior officials, equal ratio in appointment of male and female workers, he said. In some cases, unrest in one factory is affecting other units in the same area, Faruque added.
The workers are placing “unusual demands” in some cases, said Md Saleudh Zaman Khan, vice-president of Bangladesh Textile Mills Association.
For example, he said, the workers of a factory in Naryanganj demanded that the authorities hire 300 workers when the factory needed only 20 workers. The management of the factory decided to recruit a little more than 20 new workers, but the protesters did not return to work, Zaman said.
Worker leaders have pointed the finger at partisan politics and conflict in fabric scrap trade for the unrest.
A section of fabric scrap traders are trying to maintain control over the business by using the workers, the leaders said.
Md Towhidur Rahman, president of the Bangladesh Apparels Workers Federation, said many are taking the advantage of the weak law and order.
If the factories do not reopen fully on Saturday, the sector may face a deeper crisis in near future as the international buyers are also worried about the situation, he said.
Nazma Akter, president of Sammilito Garment Sramik Federation, said many workers are also involved in partisan politics. In some cases, outsiders are instigating them to launch unrest, she said.
She recommended holding a dialogue among the stakeholders to discuss the issues and find a way out of the crisis, Akter said.
Labour and Employment Secretary AHM Shafiquzzaman believes those involved in the vandalism of factories are not real workers.
The secretary said he held a meeting with BGMEA leaders and union leaders at Tongi yesterday as part of measures to improve relations between workers and owners.
Asif Mahmud, youth and sports adviser to the interim government, suspects a conspiracy behind the ongoing unrest in the garment sector.
Speaking at a media briefing at the Foreign Service Academy yesterday, he said that around 20 percent of total orders have been cancelled.
“And we have witnessed that the buyers of a certain country have been desperate and lobbying to get those orders,” he said, citing Secretary Shafiquzzaman.