"Eid joy eludes jobless workers amid factory closures", 22 March 2025

As Eid approaches, an air of uncertainty looms over thousands of workers who have lost their jobs due to widespread factory closures and layoffs following last year’s political upheaval. Trade union groups estimate that nearly 100,000 workers, primarily in the garment and textile sectors, have been affected over the past seven and a half months as factory owners grapple with financial difficulties.

The ongoing economic and political instability in the country has led to a slowdown in recruitment, with entrepreneurs hesitant to invest in new production units or expand existing operations. Many former workers are now desperately searching for new employment, while others have returned to their villages, unable to afford rent and daily necessities in urban areas.

With no steady income, the prospect of buying anything for family members during Eid has become a distant dream for many. The loss of employment has severely impacted their ability to provide for their families.

The closure of factories owned by individuals connected to the ousted Awami League government has particularly exacerbated the situation. Notably, Beximco Group shuttered 14 textile and garment units following the arrest of its vice chairman, Salman F Rahman...

Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), noted that factories are experiencing liquidity issues as a result of last year’s political disruptions, compounded by domestic economic instability and global inflation...

In response to the crisis, Employment Secretary AHM Shafiquzzaman acknowledged the lack of precise data on factory closures since the political shift. He informed that a committee is working to facilitate job placement for affected workers in BGMEA and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) member factories, as well as units in Export Processing Zones.

BGMEA administrator Anwar Hossain reported that reassessments revealed that only a small number of factories may be critically affected. The government has been coordinating with BGMEA, BKMEA, and other agencies to manage payment issues effectively, with plans to expedite disbursement of funds to support small and medium enterprises.

Despite these efforts, the situation regarding back pay for workers before Eid is reported to be worse than in previous years, particularly among firms that are not members of BGMEA and BKMEA. The Industrial Police are collaborating closely with these organizations to address the ongoing payment crisis.