"Over 100 RMG units fail to pay December wages, reports Industrial Police", 6 February 2025

As of the last week of January, a total of 104 apparel factories in Bangladesh have yet to disburse wages and allowances for December, according to a report from the Industrial Police. The factories are distributed across six industrial zones, with Gazipur reporting the highest number at 55, followed by Ashulia with 18, Narayanganj with 14, and Chittagong with 12. Mymensingh and Cumilla recorded the fewest, with four and one factory, respectively.

The report...cited low orders and ongoing financial crises as the primary reasons for the delayed payments. Under labor law, employers are required to pay workers within the first seven working days of the following month.

While several factory owners mentioned in the report refuted claims of non-payment...some admitted to having outstanding payments. Most factory owners declined to comment when approached for clarification.

Md Sibgat Ullah, deputy inspector general of the Industrial Police, informed that the list of factories is updated daily based on payment statuses.

Among the factories that have not paid wages is Alema Textile Limited, located in Bhogra, Gazipur. Head of Administration Mohammad Selim acknowledged financial difficulties but stated that they managed to pay workers’ wages in the third week of January, although managerial staff payments remain overdue. He attributed their struggles to the sudden cessation of business from Inditex...which previously accounted for 70 per cent of the factory’s production capacity.

Following the loss of this major client, daily production plummeted from approximately 60,000 pieces to just 15,000, forcing the factory to reduce its operational lines from 42 to 13. However, after six months of effort, Selim reported that the factory has since increased its operational lines to 28, producing 40,000 pieces daily, and he expressed optimism for future improvements.

Another factory on the list, Mahmud Jeans in Gazipur, has been non-operational for an extended period due to a gas crisis. Reports indicate that its owner, Rafi Mahmud, was assaulted by workers following unrest at the facility in November of the previous year.

Kattali Textile Limited, a publicly listed apparel manufacturer based in Chattogram, was also mentioned in the report. HR official Ashraful Islam confirmed that they had cleared workers’ payments on 27th January.