Bangladesh garment-makers threaten to quit wage talks

Bangladeshi garment manufacturers have threatened to withdraw from wage negotiations and shut down factories indefinitely if protests against higher pay continue. Inflation rates of around 8% have eroded workers' purchasing power as food, housing, transport, and healthcare costs rise. The industry, a key contributor to Bangladesh's economy, generates approximately $38 billion annually and employs over 4 million workers.

Protests began in October and have turned violent, with protesters damaging property and clashing with authorities. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) questioned the justification of participating in wage board negotiations without assurances of factory safety.

BGMEA President Mahmud Hasan Khan stated that if the situation persists, they may reconsider their participation in the negotiations scheduled for Monday. Garment factories affected by the unrest will remain closed indefinitely under Bangladesh's labour law, which allows factory owners to suspend operations without paying workers.

The "no work, no pay" provision has already led to 147 factories closing in Savar, Ashulia, and Gazipur, the main garment manufacturing hubs. Over 4,500 factories are registered with trade bodies like the BGMEA. The disruptions, occurring ahead of the busy Christmas export period, have forced some factory managers to announce indefinite closures.