Take urgent steps to resolve Beximco crisis
We are worried about the uncertainty surrounding the fate of workers from the 16 garment and textile factories of Beximco that suspended operations on December 15, citing a lack of export orders and financial distress. More than a month has passed since then, yet there is no resolution in sight. Tuesday's mass rally by thousands of workers from the Beximco Industrial Park in Gazipur—demanding the reopening of factories and payment of outstanding salaries—underscores their frustration at the slow pace of efforts. On Wednesday, workers again staged protests by blocking the Chandra-Nabinagar highway. According to a Prothom Alo report, the situation escalated when a group of unruly men vandalised over 50 vehicles, set fire to four vehicles and a factory, and even attacked journalists.
The 16 Beximco factories employed around 42,000 workers and officials in total, with 27,000 workers laid off at the time of closure. On January 14, a senior labour ministry official stated that the government was trying to find employment for affected workers in other factories and attract foreign buyers for the closed ones. However, this is proving to be difficult due to Beximco's liabilities that pose a major hurdle to any acquisition or reopening bid.
The 16 Beximco factories employed around 42,000 workers and officials in total, with 27,000 workers laid off at the time of closure. On January 14, a senior labour ministry official stated that the government was trying to find employment for affected workers in other factories and attract foreign buyers for the closed ones. However, this is proving to be difficult due to Beximco's liabilities that pose a major hurdle to any acquisition or reopening bid. The group owes banks approximately Tk 50,000 crore in loans, over half of which have turned non-performing, according to data from Bangladesh Bank.
Moreover, a state advisory council convened on January 20 to discuss selling the factories to repay these loans but deferred its decision, citing discrepancies in loan and default amounts between the financial statements provided by Beximco's state-appointed administrator and banks. Naturally, there will be further scrutiny of these statements now, which will further delay the selling and reopening process. It will require time, something that the laid-off workers cannot afford as they remain without wages or alternative employment.
Beximco's crisis—caused by the fall of the autocratic Awami League government of which its founder Salman F Rahman, now behind bars, was an influential adviser—had nothing to do with the workers, yet they are the ones left to bear its brunt.
Beximco's crisis—caused by the fall of the autocratic Awami League government of which its founder Salman F Rahman, now behind bars, was an influential adviser—had nothing to do with the workers, yet they are the ones left to bear its brunt. It is heartening that the convener of the state advisory council assured that every worker would receive their due benefits, and Beximco Industrial Park authorities announced earlier on Wednesday that all dues would be paid. But this is not enough. Workers need a clear timetable for payments and, more importantly, their jobs back. That said, those trying to take advantage of the crisis to create unrest must also be brought to book.
We urge the authorities to resolve this crisis with the highest priority. It is understandable that businesses must operate within financial realities, but if Beximco cannot sustain operations, alternative arrangements must be made. Whether through restructuring, alternative ownership, or even nationalisation, as demanded by a labour union leader at Wednesday's rally, these factories must be revived—both for the sake of workers and our economy.
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