Garment workers fear a crisis over wages and Eid bonuses

Worker leaders in the garment sector have warned of a possible crisis over unpaid wages and Eid bonuses despite the government’s directive for banks to provide special term loans to export-oriented industries to help pay workers’ February salaries.

They urged the government to take immediate steps to ensure all workers receive their wages and bonuses within the next week and to closely monitor factories.

Eid-ul-Fitr, the largest religious festival for Muslims, is expected to fall on 20 or 21 March depending on the sighting of the moon.

Labour leaders fear the situation could be more difficult this year than in previous years due to unresolved problems, including workers from 79 closed factories and unpaid wages in more than 100 factories for December and January.

Following the July 2024 uprising, thousands of workers lost their jobs after many factories owned by entrepreneurs aligned with the Awami League were shut down.

Leaders in the readymade garment (RMG) sector said around 130,000 workers remain unemployed and many have yet to receive their December wages. They warned that protests similar to those seen in previous years could erupt if workers do not receive their salaries and Eid bonuses.

According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the country’s apex apparel trade body, its 4,255 member factories export “Made in Bangladesh” products to more than 150 countries, including the United States, the European Union and markets in the Middle East.

Around four million workers are directly employed in the garment industry.

Data from the Export Promotion Bureau (EPB) show that RMG exports reached $39.35 billion in the 2024–25 fiscal year, accounting for 81.49% of the country’s total export earnings.

Govt urged to monitor factories closely

National Garment Workers Federation (NGWF) President Amirul Haque Amin told Daily Sun that the sector could face greater difficulties this year due to unresolved labour issues.

“We welcome the government’s decision to provide special funds to garment owners so they can pay workers’ salaries and Eid bonuses. But the funds must be released quickly, and the government must closely monitor factories to ensure workers actually receive the money,” he said.

Amin said about 130,000 workers from the 79 closed factories remain unemployed, adding that most of those factories were owned by entrepreneurs aligned with the Awami League.

“Factory owners may have supported the previous government, but workers should not suffer for that. The current government must resolve the issue,” he said.

He suggested reopening factories that are capable of operating again, while those that cannot be revived should be sold and a fund created to support affected workers.

Amin also warned that labour unrest often occurs ahead of Eid over unpaid wages and bonuses.

“Every year we see protests in front of factories demanding salaries and bonuses. We hope the government will ensure such a situation does not arise this year,” he said.

He also urged the government to engage leaders from around 700 trade unions in efforts to address labour concerns.

Govt directs payment by 12 March

To review the labour situation and prevent unrest in the RMG sector ahead of Eid-ul-Fitr, the 94th meeting of the Tripartite Consultative Council (TCC) and the 23rd meeting of the RMG sector’s TCC were recently held in the capital.

At the meeting, Labour and Employment Minister Ariful Haque Choudhury directed factory owners to clear all outstanding wages and pay Eid bonuses by 12 March.

He said employers and workers must work together to ensure that no public inconvenience occurs.

The minister also stressed that workers should not be laid off or dismissed without valid reasons.

In addition to general holiday notifications issued by the Ministry of Public Administration, Eid holidays for factory workers should be determined through discussions between employers and workers in line with the Bangladesh Labour Act, 2006.

Factory owners hopeful

BGMEA Director Mohammad Sohel told Daily Sun that most member factories have already paid January salaries and are currently processing February wages.

“Normally salaries are paid between the 7th and 10th of each month. However, we expect February salaries to be disbursed before the Eid vacation,” he said.

He added that timely bank support would help factory owners pay both wages and Eid bonuses on schedule.

Sohel also expressed concern about the ongoing conflict involving the United States, Israel and Iran, warning that prolonged tensions could affect the garment industry.

“Without oil, how will we run our generators? Even shipments may be cancelled because of the conflict. If the war continues, it will create serious challenges for our industry and the overall economy,” he said.

Earlier, on 3 March, BGMEA welcomed the government’s decision to allocate Tk2,500 crore in outstanding cash assistance to the export-oriented RMG sector and related industries.

According to a notification from the Ministry of Finance, Tk1,500 crore has been allocated in the first phase of the third instalment for FY26, while Tk1,000 crore has been earmarked for the second phase.

In a statement, BGMEA President Mahmud Hasan Khan thanked the government and described the move as a timely intervention during a critical period for the garment sector.

He said the funds would provide much-needed relief to factory owners facing pressure to pay salaries, allowances, bonuses and utility bills ahead of Eid-ul-Fitr.

The association has urged its member factories to contact their respective lien banks to complete the required formalities and access the facility.