Bangladesh garment owners threaten to quit wage talks, shut factories indefinitely
Bangladesh garment manufacturers are threatening to withdraw from wage negotiations and close factories indefinitely due to ongoing violent protests. Workers are demanding a significant increase in the minimum wage, while owners cite security concerns and property damage.
Why it matters
The garment industry is a cornerstone of the Bangladeshi economy, and prolonged instability could have global supply chain implications.
Garment manufacturers in Bangladesh have threatened to withdraw from minimum wage negotiations and shut factories indefinitely if workers continue vandalising industrial units during protests.The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said on Saturday that they were reconsidering their participation in the wage talks, citing a lack of assurances over factory security."If the situation persists, we must reconsider," BGMEA president Mahmud Hasan Khan said at a news briefing in Dhaka, referring to the next round of negotiations scheduled for Monday.Khan also said factories unable to operate because of the unrest would remain closed indefinitely under Bangladesh's labour law. Section 13(1) of the Bangladesh Labour Act allows employers to suspend operations under a "no work, no pay" provision.The warning comes after weeks of protests over wages and working conditions, with demonstrations turning violent in several garment manufacturing centres.
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