One garment factory after another closing, thousands of workers uncertain after losing jobs

PNN News Desk, Dhaka

Bangladesh’s ready-made garment industry is facing a renewed crisis. Continuous factory closures in major industrial areas have raised concerns over employment. In Gazipur, Savar, and other key zones, several factories shutting down have suddenly left thousands of workers jobless.

Recently, Unique Designers and Unique Washing Limited in Gazipur’s Board Bazar area permanently shut down operations due to financial and business difficulties, leaving around 1,800 workers unemployed overnight.

Workers say they were shocked to learn about job losses after returning from Eid holidays, with no prior notice or alternative arrangements.

Industry experts say this is not an isolated incident but a reflection of long-term financial pressure in the sector. Declining export orders, rising production costs, gas and electricity price hikes, dollar shortages, high-interest bank loans, and raw material import complications have all contributed.

They also note that wage increases and regular increments have raised labor costs, but productivity has not increased proportionally, making it difficult for many factories to survive.

According to sector data, around 400 factories have closed in the last three years. Between August 2024 and June this year, 457 factories in seven major industrial zones were permanently shut down.

Bangladesh Chamber of Industries President Anwar-ul Alam Chowdhury Parvez said the crisis initially began with declining orders and later turned into working capital shortages.

Labor organizations argue that workers are not receiving full compensation in many cases, and some factories are using business downturns as an excuse to lay off experienced workers.

To address the issue, the government has initiated training programs for 22,815 garment workers over the next three years with support from EPB, BGMEA, BKMEA, and BUFT.

Experts warn that since the garment sector accounts for about 80% of export earnings, prolonged instability could threaten the national economy.