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Bangladesh garment owners threaten to quit wage talks, shut factories indefinitely

By · Via Times of India · Published by Everything Blog

In short

The impasse comes as employees demand monthly pay increases from Tk12,500 to at least Tk30,000 to offset an inflation rate running near 8%. Protests have severely disrupted operations in Savar, Ashulia, and Gazipur, leading to property damage and closures across dozens of sites. While the Minimum Wage Board is scheduled to negotiate a new structure on Monday, factory owners have not submitted their formal proposal and may boycott the session entirely.

Key points

  • Employers are prepared to enforce Section 13(1) of the labour law, which permits indefini…: Employers are prepared to enforce Section 13(1) of the labour law, which permits indefinite factory closures under a no-work, no-pay rule.
  • Looming factory shutdowns coincide with the crucial pre-Christmas export window, threaten…: Looming factory shutdowns coincide with the crucial pre-Christmas export window, threatening critical foreign exchange revenue.
  • The Minimum Wage Board risks a boycott on Monday as manufacturers have withheld their for…: The Minimum Wage Board risks a boycott on Monday as manufacturers have withheld their formal wage proposal pending security assurances.

Sources checked by our analysis pipeline: 1

Garment manufacturers in Bangladesh have threatened to withdraw from minimum wage negotiations and shut factories indefinitely if workers continue vandalising industrial units during protests.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said on Saturday that they were reconsidering their participation in the wage talks, citing a lack of assurances over factory security.

"If the situation persists, we must reconsider," BGMEA president Mahmud Hasan Khan said at a news briefing in Dhaka, referring to the next round of negotiations scheduled for Monday.

Khan also said factories unable to operate because of the unrest would remain closed indefinitely under Bangladesh's labour law. Section 13(1) of the Bangladesh Labour Act allows employers to suspend operations under a "no work, no pay" provision.

The warning comes after weeks of protests over wages and working conditions, with demonstrations turning violent in several garment manufacturing centres. Workers have blocked roads, while clashes this month have involved damage to property and the torching of police vehicles.

At least 147 factories remained closed on Saturday across Savar, Ashulia and…

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