Bangladesh garment factory owners on an average laid off 20% of their workers in the wake of the first wave of the coronavirus pandemic. Bangladesh is the world’s second-largest apparel producer after China, but its industry leaders say international retailers are either refraining from placing orders, delaying buying decisions or demanding steep price cuts. In the financial year that ended in June, Bangladesh’s garment exports totaled $27.94 billion (21.6 billion pounds), down 18% from the previous year.
Nearly half of factories producing knitwear products like t-shirts and sweaters are finding it difficult to remain open. Low wages have helped Bangladesh build its garment industry, with some 4,000 factories employing 4 million workers. Readymade garments are a mainstay of the economy, contributing almost 16% of country’s GDP, according to the central bank. Experts fear the South Asian country might itself face another surge in infections during the winter, having so far confirmed 390,206 cases, including 5,681 deaths.
About a third of the one million workers who were either furloughed or laid off have been rehired since July, according to union leaders. But many workers are struggling without overtime pay, which often accounts for 20% of their monthly income.
