Economy

75% factories yet to pay March wages, say Industrial Police

74.57% clear Eid bonus
Photo: Palash Khan

Nearly 75 percent of the 9,596 garment and non-garment factories across Bangladesh were yet to pay workers their March wages till yesterday, according to Industrial Police, as Eid holidays are just around the corner.

The figures, compiled until 3pm yesterday, also show that 74.57 percent of the factories have so far paid Eid bonuses.

Of the total, 2,890 factories are affiliated with major trade bodies, including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), the Bangladesh Textile Mills Association (BTMA), and the Bangladesh Export Processing Zones Authority (Bepza).

Of them, 2,282 (78.96 percent) have yet to settle March wages.

The data also shows stark disparities among industry groups. Only 331 out of 1,555 BGMEA-affiliated factories have paid March wages, while just 53 of 581 BKMEA members have done so.

The BTMA fares similarly, with only 30 of its 330 mills settling wages.

Factories under Bepza performed slightly better, with 214 out of 424 paying workers.

In the jute sector, 47 out of 86 mills have cleared March wages, but workers at 72.97 percent (6,719) of factories in other sectors remain unpaid.

Bonus payments paint a marginally brighter picture.

Among BGMEA members, 1,309 out of 1,555 factories have disbursed bonuses, while 383 of 581 BKMEA-affiliated units have done the same.

The BTMA saw 238 of its 330 members paying bonuses, and Bepza factories nearly swept the board with 419 out of 424 complying.

In the jute industry, 65 of 86 mills paid bonuses, while 4,816 out of 6,719 factories in other sectors met their obligations.

BGMEA administrator Anwar Hossain said most factories would likely pay wages in the next two days before the holiday, as is customary.

"Paying earlier risks workers leaving before the official holiday, disrupting urgent production and shipments," he added.

Hossain said that while 94.78 percent of factories had paid bonuses, liquidity pressures were high due to the dual burden of salaries and bonuses. 

To ease it, the Bangladesh Bank has released Tk 2,250 crore from export cash incentives to help facilitate payments before Eid. 

At a press conference in Dhaka yesterday, Labour and Employment Adviser Brig Gen (Retd) M Sakhawat Hussain assured that "almost all factories" would clear payments as Eid approaches. 

According to the adviser, the government has barred 12 garment factory owners from travelling abroad over unpaid wages.

As the owner of Roar Fashion Saifuzzaman Shikhor, a former Amwai League lawmaker, is now absconding, labour agitation prompted authorities to disburse Tk 1.23 crore in loans to cover unpaid wages.

The labour ministry has also urged the home ministry to file a case against the former lawmaker and alert Interpol. 

In a bid to settle dues, the adviser said Apparels Eco Ltd of TNZ Group sold cars to pay workers, while Mahmud Jeans used central bank incentives. Disputes at Stylecraft and Youngone BD have also been resolved.

In a statement last night, BGMEA said that 83.2 percent of its 2,107 factories had paid half of March's wages, with full payments expected by March 28-29.

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75% factories yet to pay March wages, say Industrial Police

74.57% clear Eid bonus
Photo: Palash Khan

Nearly 75 percent of the 9,596 garment and non-garment factories across Bangladesh were yet to pay workers their March wages till yesterday, according to Industrial Police, as Eid holidays are just around the corner.

The figures, compiled until 3pm yesterday, also show that 74.57 percent of the factories have so far paid Eid bonuses.

Of the total, 2,890 factories are affiliated with major trade bodies, including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), the Bangladesh Textile Mills Association (BTMA), and the Bangladesh Export Processing Zones Authority (Bepza).

Of them, 2,282 (78.96 percent) have yet to settle March wages.

The data also shows stark disparities among industry groups. Only 331 out of 1,555 BGMEA-affiliated factories have paid March wages, while just 53 of 581 BKMEA members have done so.

The BTMA fares similarly, with only 30 of its 330 mills settling wages.

Factories under Bepza performed slightly better, with 214 out of 424 paying workers.

In the jute sector, 47 out of 86 mills have cleared March wages, but workers at 72.97 percent (6,719) of factories in other sectors remain unpaid.

Bonus payments paint a marginally brighter picture.

Among BGMEA members, 1,309 out of 1,555 factories have disbursed bonuses, while 383 of 581 BKMEA-affiliated units have done the same.

The BTMA saw 238 of its 330 members paying bonuses, and Bepza factories nearly swept the board with 419 out of 424 complying.

In the jute industry, 65 of 86 mills paid bonuses, while 4,816 out of 6,719 factories in other sectors met their obligations.

BGMEA administrator Anwar Hossain said most factories would likely pay wages in the next two days before the holiday, as is customary.

"Paying earlier risks workers leaving before the official holiday, disrupting urgent production and shipments," he added.

Hossain said that while 94.78 percent of factories had paid bonuses, liquidity pressures were high due to the dual burden of salaries and bonuses. 

To ease it, the Bangladesh Bank has released Tk 2,250 crore from export cash incentives to help facilitate payments before Eid. 

At a press conference in Dhaka yesterday, Labour and Employment Adviser Brig Gen (Retd) M Sakhawat Hussain assured that "almost all factories" would clear payments as Eid approaches. 

According to the adviser, the government has barred 12 garment factory owners from travelling abroad over unpaid wages.

As the owner of Roar Fashion Saifuzzaman Shikhor, a former Amwai League lawmaker, is now absconding, labour agitation prompted authorities to disburse Tk 1.23 crore in loans to cover unpaid wages.

The labour ministry has also urged the home ministry to file a case against the former lawmaker and alert Interpol. 

In a bid to settle dues, the adviser said Apparels Eco Ltd of TNZ Group sold cars to pay workers, while Mahmud Jeans used central bank incentives. Disputes at Stylecraft and Youngone BD have also been resolved.

In a statement last night, BGMEA said that 83.2 percent of its 2,107 factories had paid half of March's wages, with full payments expected by March 28-29.

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